Texas Justices Wrestle with Attorney Fee Recovery in Prompt Payment Act Dispute
The Texas Supreme Court heard oral arguments Wednesday morning on a certified question from the U.S. Court of Appeals for the Fifth Circuit in a dispute that tees up the interpretation of a 2017 amendment to the Texas Prompt Payment of Claims Act. Noting a federal court split on the issue and that only one intermediate appellate court in Texas has addressed the issue, the Fifth Circuit asked: In an action under Chapter 542A of the act, does an insurer’s payment of the full appraisal award plus any possible statutory interest preclude recovery of attorney fees?

