Barbara Technologies Corp. v. State Farm Lloyds (Opinion)Annotate this Case
The Supreme Court reversed the judgment of the court of appeals in this insurance dispute, holding that an insurer's payment of an appraisal award is neither an acknowledgment of liability under the policy nor an award of actual damages.
After Insurer investigated Insured's claim and rejected it, Insurer invoked the policy's provision for an appraisal process and paid Insured in full in accordance with the appraisal. Insured sued Insurer and moved for summary judgment, asserting that State Farm violated the Texas Prompt Payment of Claims Act (TPPCA), Tex. Ins. Code ch. 542, by failing to pay the claim within the TPPCA's time limitation and therefore owed damages. Insurer filed a cross-motion for summary judgment asserting that it timely paid the appraisal award and was not liable. The trial court granted summary judgment for Insurer. The court of appeals affirmed. The Supreme Court reversed, holding that because Insured did not establish that it was entitled to TPPCA prompt pay damages as a matter of law and Insurer likewise did not establish that it can owe no TPPCA damages as a matter of law, the case must be remanded.