86R23107 AJA-D
By: Davis of Dallas H.B. No. 4223
Substitute the following for H.B. No. 4223:
By: White C.S.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 an
extra-contractual obligation, including 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. CONFLICT WITH OTHER LAW. (a) Except as
provided by Subsection (b), this subchapter controls over any other
law to the extent of a conflict.
(b) This subchapter does not apply to a dispute that is
subject to Section 2210.574, Insurance Code.
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.