Barbara Technologies v. State Farm
Raizner Slania led the fight to force the insurance industry to bear the cost of delay in the appraisal process.
Barbara Technologies is a Texas Supreme Court case from 2019 where we represented the plaintiff. The Court’s decision overruled more than a decade’s worth of law in Texas, which previously held the payment of an appraisal award prevented the insured from pursuing interest owed under the Texas Prompt Payment of Claims Act.
Previously, when an insurance company paid an appraisal award – no matter how long after a claim was filed, and no matter what the insurance company did to cause delays – the policyholder could not obtain the interest owed under the Act.
Barbara Technologies changed this, bringing Texas in line with the prevailing United States rule that an insurer must pay for its delay.
The Texas Prompt Payment of Claims Act under Section 542 of the Texas Insurance Code:
This law requires insurance companies to pay interest, in addition to the amount of the insurance claim, when an insurance company delays payment of a claim longer than the statute’s imposed deadlines for making a claims decision.
The deadline to pay can be as short as 75 days. If an insurer delays longer, it can potentially be liable for interest, ranging from 10.00% to 18.00%.