TEXAS PROMPT PAYMENT OF CLAIMS ACT [TPPCA]

APPRAISALS

&

INSURANCE BAD FAITH

Ortiz v. State Farm Lloyds Insurance [SFL], 589 S.W.3d 127 (Tex. 2019)

Justice Boyd [Alone] Concurring In Part and Dissenting In Part

Justice Boyd agrees with the majority of the court that SFL’s payment of the appraisal amount cuts off any breach of contract action and any action for common law or statutory bad faith which seeks only damages covering no more than the covered loss. 

He dissents, just as he did in Barbara Tech to express his view as to the nature of TPPCA. Justice Boyd believes that when SFL voluntarily and unconditionally paid the appraisal award, it conceded the validity of the policyholder’s claim and its own liability and hence conceded that TPPCA applied to it in this case. 

Justice Boyd agreed to remand the case in order to determine the amount of the 18% penalty SFL’s would be required to pay and the amount of Ortiz’s attorney fees SFL would be required to pay.