86R13217 AJA-D
By: Davis of Dallas H.B. No. 4223
A BILL TO BE ENTITLED
AN ACT
relating to the resolution of certain contract disputes through a
contractual appraisal process.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 154, Civil Practice and Remedies Code,
is amended by adding Subchapter E to read as follows:
SUBCHAPTER E. RESOLUTION OF DISPUTES BY CONTRACTUAL APPRAISAL
PROCESS
Sec. 154.101. TIME FOR INVOKING APPRAISAL. A party that
receives written notice of a dispute that may be subject to a
contractual appraisal process meant to determine the amount of a
loss covered by the contract may not invoke that appraisal process
after the 60th day after the date the party receives the notice.
Sec. 154.102. PURPOSE OF APPRAISAL; OTHER DUTIES NOT
AFFECTED. (a) A party that may be liable under a contract for a loss
the amount of which may be determined through a contractual
appraisal process is required to promptly investigate and pay any
obligation under the contract, notwithstanding the existence of the
appraisal provision in the contract.
(b) A contractual appraisal process does not serve any
purpose other than the resolution of a dispute regarding the amount
of a covered loss that must be paid under the contract. The
appraisal process does not absolve a party from a statutory or
common law obligation to timely investigate and pay a contractual
obligation in good faith or exempt a party from the prompt payment
of penalties or attorney's fees ordinarily recoverable when a party
fails to adequately and timely pay a covered loss.
Sec. 154.103. AMOUNT RECOVERABLE. A party that prevails in
a contractual appraisal process is entitled to establish the amount
that must be paid under the contract for the covered loss, which may
include reasonable attorney's fees and the cost of investigators or
appraisers.
Sec. 154.104. CONFLICT WITH OTHER LAW. This subchapter
controls over any other law to the extent of a conflict.
SECTION 2. The change in law made by this Act applies only
to a contract entered into or renewed on or after the effective date
of this Act.
SECTION 3. This Act takes effect September 1, 2019.