Texas High Court: Payment Of Appraisal Award Bars Claims In Bad Faith Suit

Mealey's (July 8, 2019, 1:02 PM EDT) -- AUSTIN, Texas — A divided Texas Supreme Court on June 28 held that an insurer’s payment of an appraisal award bars an insured’s breach of contract claim, so far as it is premised on the insured’s claims that the insurer failed to pay the amount necessary on the covered loss, and that payment of the appraisal award also bars the insured’s claims for common-law and statutory bad faith “to the extent the only actual damages sought are lost policy benefits" (Oscar Ortiz v. State Farm Lloyds, No. 17-1048, Texas Sup., 2019, 2019 Tex. LEXIS 678)....