News & Analysis as of

Appraisal Awards Prompt Payment

Zelle  LLP

Morakabian and Rosales Signal a Consensus View on Recovery of Attorneys’ Fees After Appraisal

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Chapter 542 of the Texas Insurance Code, also known as the Texas Prompt Payment of Claims Act (“TPPCA”), generally allows an insured to recover interest and attorneys’ fees, in addition to the amount of the insurance claim,...more

Faegre Drinker Biddle & Reath LLP

Insurer’s Appraisal Award and Statutory Interest Payments Entitle It to Summary Judgment

In a case of first impression, the Dallas Court of Appeals recently held that, under a statute passed by the Texas Legislature in 2017, if an insurer pays an appraisal award issued in connection with a weather-related...more

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Texas Insurers' Paths to Post-Appraisal Summary Judgment

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Until recently, property insurers who paid a binding appraisal award in Texas were almost certain to end a matter by doing so, with respect to both breach-of-contract claims and all extracontractual claims. But changes...more

Cozen O'Connor

Federal Court Holds that the Voluntary Payment of an Appraisal Award Plus Penalty Interest Defeats TPPCA Claims Under Texas Law

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In 2019, the Supreme Court of Texas issued a pair of decisions that allowed policyholders to prosecute claims under the Texas Prompt Payment of Claims Act (“TPPCA”) even after the insurers paid appraisal awards. The decisions...more

Cozen O'Connor

Fifth Circuit Weighs in on Aftermath of Texas Supreme Court’s Decisions Affecting Insurers’ Pre-Appraisal Award Payments and...

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Just a few short years ago, there was a bright line rule under Texas law concerning appraisal awards. If an insurer timely paid an appraisal award, that payment extinguished all of the insurer’s contractual and...more

Cozen O'Connor

The Supreme Court of Texas Finds that a Reasonable Payment of an Insurance Claim Does Not Satisfy the Texas Prompt Payment of...

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In Hinojos v. State Farm Lloyds, the Supreme Court of Texas addressed liability under the Texas Prompt Payment of Claims Act (the “TPPCA”) when an insurer timely pays only part of a claim....more

Zelle  LLP

5th Circ. Insurance Case May Encourage Post-Appraisal Suits

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On Oct. 6, the U.S. Court of Appeals for the Fifth Circuit is set to hear oral arguments in Pearson v. Allstate Fire and Casualty Insurance Company. The case centers on statutory construction of Chapters 542 and 542A of the...more

Cozen O'Connor

Texas Supreme Court Identifies Claims that Survive the Payment of an Insurance Appraisal Award

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On June 28, 2019, a divided Supreme Court of Texas issued a pair of important opinions addressing how an insurer’s timely payment of an appraisal award impacts the viability of a policyholder’s contractual and...more

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The Graber Opinion is Confirmed as an Outlier in Matters Involving Texas Appraisals

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With the continued onslaught of hail and other weather related litigation in Texas, insurance carriers often elect to resolve claims through the appraisal process outlined in the policy. Insurance carriers historically...more

Cozen O'Connor

Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result

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Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect...more

Zelle  LLP

Graber v. State Farm is a Texas Prompt Payment Outlier

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For more than a decade, courts applying Texas law — including the Fifth Circuit, two federal district courts and several Texas courts of appeal — have uniformly held that an insurer’s full and timely payment of an appraisal...more

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