Texas Supreme Court Hears Arguments on Attorney Fee Awards When Appraisal Awards Are Paid

Insurance defense attorneys on Wednesday urged the Texas Supreme Court to uphold the ‘plain language’ of a law passed in 2017 that they say precludes recovery of attorney fees in cases where the insurer pays the full amount of an appraisal.

The high court heard oral arguments about a certified question from the 5th Circuit Court of Appeals that asked for an interpretation of Chapter 542A. Homeowner Mario Rodriguez is demanding attorney fees from Safeco Insurance Co. of Indiana even though the insurer invoked an appraisal and paid him more than he initially demanded.

Safeco and attorneys who filed amicus briefs argued that the law clearly bars attorney fees for claimants if the insurer pays the full amount of an appraisal award.