Appraisal Law: Barbara Technologies Corporation v State Farm Lloyds

This summer, Texas issued important cases on Insurance Dispute Resolution involving Appraisal Law.

The Court addressed the issue of whether payment of an appraisal award precludes recovery under Chapter 542.  The actual issue presented on summary judgment was whether an insured party can prevail on its claim for delayed payment pursuant to Chapter 542, when it is undisputed that the insurer investigated the claim, rejected it, invoked the appraisal process, and ultimately paid the insured in full in accordance with the appraisal. The Court held that the insurer’s payment based on the appraisal was neither an acknowledgement of liability under the policy nor an award for actual damages.