CM Wins Summary Judgment in Texas Bad Faith Case
Congratulations to CM partner Terry McCarthy who recently secured a significant win for our homeowners carrier client in a bad faith action. A Fort Bend County, Texas judge granted Defendant’s Motion for Summary Judgment, with prejudice, finding that the Defendant carrier had fulfilled its contractual obligations by the timely payment of an appraisal award, with Prompt Pay Act interest, thereby negating Plaintiff’s claims for attorney fees, breach of contract, and bad faith.
The lawsuit arose out of a water loss at the insured home. The Plaintiff alleged that the Defendant homeowner’s carrier failed to properly pay the claim and committed bad faith.
Defendant filed a motion for summary judgment arguing that when it fully and timely paid the appraisal award, with the accompanying Prompt Pay Act interest, it had fulfilled its contractual obligations and owed no additional monies, including attorney fees. Plaintiff argued that he was entitled to bad faith damages and attorney fees because the Prompt Pay Act penalty interest was not paid until after suit was filed. Following robust oral arguments, the Court granted Defendants’ Motion for Summary Judgment with prejudice, finding that the carrier had complied with its contractual and statutory duties.
Terence C. McCarthy