The facts of this case are strange; however, the bottom line is contingency contracts and storm chasing is a racket.
http://www.dallasnews.com/investigations/watchdog/20131005-watchdog-lon-smith-roofing-loses-suit-over-contracts-legality.ece
Identifying the conflict of interest is a step in the right direction. I've made a lot of money over the years when my competitors abandon their regular customers to chase storms. :P