On June 28, 2019, the Texas Supreme Court decided Barbara Technologies Corporation v. State Farm Lloyds. The court issued two key holdings that clarified the law regarding the impact of an appraisal award on claims arising under the Texas Prompt Payment of Claims Act, Tex. Ins. Code Ch. 542 (the “TPPCA”). We represent Barbara Technologies in this important case, and provided our initial analysis in our blog post on July 1.
While not a complete win for either side, Barbara Technologies brings a measure of balance back into the appraisal process, and moves Texas closer to the vast majority of states that have defined legal consequences for delay even after an appraisal award. One effect of Barbara Technologies should be to curtail the practice of using the appraisal process as an instrument of delay and immunity for TPPCA violations occurring prior to and during the appraisal process.
In our blog post of July 1, we promised a deeper analysis of the Barbara Technologies opinion, and that analysis can be accessed HERE.
As anticipated, State Farm has filed its motion for rehearing, which will be resolved in the coming months. We will continue to update with any significant developments on this case.