Insurer settles in tenant equitable garnishment case

A fourth insurance company defendant in an equitable garnishment case agreed to settle for over a million dollars, avoiding a December trial.

Hallmark Specialty Insurance Co. agreed to pay a class of low-income tenants $1.45 million in an equitable garnishment case that already saw three other insurance company defendants settle. The Hallmark settlement was given final approval by the Jackson County Circuit Court Oct. 16.

This latest settlement stems from a $62.5 million judgment in 2020 against a Kansas City apartment company for uninhabitable living conditions, emotional damages and punitive damages.

KM-T.E.H. Realty 8 LLC was one of the defendants in that original suit, as was Michael Fein, a manager and a member of the company. Fein fled the country to avoid paying the class of tenants involved in that suit.

An equitable garnishment claim was filed, seeking to partially satisfy the judgment from insurance company funds. Six defendants were ultimately identified in the equitable garnishment claim. Three companies — Colony Insurance Company, Starstone Specialty Insurance Company and Liberty Insurance Underwriters — already settled for $2.75 million prior to the Hallmark settlement.

The plaintiffs were represented by Greg Leyh, Andrea Knernschield and Nick Leyh. The defendant, Hallmark, was represented by Andrew Paul Laquet of Roberts Perryman.

According to Greg Leyh, settlement checks in the amount of $20,405.35 from the first settlement have been distributed to class members. Class representatives received $30,405.35 in that round. Settlement checks for $10,006.93 were distributed to class members in November from Hallmark settlement. Class representatives received $18,006.93 from that settlement.

A fifth settlement with Allied World Assurance Company was given final approval by the trial court Nov. 17 for   $1.675 million. Greg Leyh said he it “is my hope and expectation” that the third round of settlement checks will be distributed before Christmas, and that he expects class members to receive over $42,000 from this phase (all three rounds) of the equitable garnishment case.

“The fight continues to provide low-income tenant class members with the fruits of the final judgment and to hold accountable their former slumlord, as well as those who knowingly insured or facilitated the slumlord’s disregard for humane living conditions,” said Greg Leyh. “Our partial success so far is due to persistence, steely-eyed trial judges and our firm’s mission to vindicate the economic rights of Missouri consumers.”

Laquet could not be reached for comment.

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Consumer Protection

Total value of settlement: $1.45 million

Breakdown and distribution of total value: After previously settling with three insurance company defendants in an equitable garnishment case, a fourth insurance company — Hallmark Specialty Insurance Co. — agreed to pay the class of low-income tenants $1.45 million.

Venue: Jackson County Circuit Court

Case Number/Date: Case No. 1916-CV29273, 10/16/2025

Caption: Ana Fuentes, et al. v. KM-TEH Realty 8, LLC, et al.

Plaintiffs’ Experts: Wayne Taff, insurance expert

Defendants’ Experts: None

Insurance Carrier(s): Hallmark Insurance Specialty Company (Defendant)

Injuries Alleged: Other

Injuries Detail: Roaches, rats, vagrants in building, collapsing ceilings, mold, moisture in building, unlocked electrical rooms, unstable patios, periodic violence onsite

Special Damages: Emotional distress, property loss

Plaintiff’s Attorneys:  Greg Leyh, Andrea Knernschield and Nick Leyh

Defendant’s Attorneys: Andrew Paul Laquet of Roberts Perryman

Class Action: Yes