Oftentimes requiring an insurer to pay attorneys’ fees for a wrongfully underpaid or denied claim is the only way for the insured to be made whole. Insurance defense attorneys in Texas are arguing for the Texas Supreme Court to uphold the “plain language” of a law, claiming that it prevents the recovery of attorney fees in cases where the insurer pays the full amount of the appraisal.
Homeowner Mario Rodriguez is seeking attorney fees from Safeco Insurance Company, despite already receiving more than the initial claim post-appraisal. His attorneys are arguing that, because Rodriguez’s claims were initially denied and he had to pay for repair costs, he had to hire an attorney, which led to high fees and costs that would not have been incurred if his claim was not denied. Due to this, they are arguing that he is entitled to attorney fees because of the unreasonable delay.
The Texas Supreme Court’s ultimate decision may have a significant impact on insurance claim disputes in the state.
Read the full story here.