| 5 | 3 | | |
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| 6 | 4 | | |
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| 7 | 5 | | A BILL TO BE ENTITLED |
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| 8 | 6 | | AN ACT |
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| 9 | 7 | | relating to the resolution of certain contract disputes through a |
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| 10 | 8 | | contractual appraisal process. |
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| 11 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 10 | | SECTION 1. Chapter 154, Civil Practice and Remedies Code, |
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| 13 | 11 | | is amended by adding Subchapter E to read as follows: |
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| 14 | 12 | | SUBCHAPTER E. RESOLUTION OF DISPUTES BY CONTRACTUAL APPRAISAL |
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| 15 | 13 | | PROCESS |
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| 16 | 14 | | Sec. 154.101. TIME FOR INVOKING APPRAISAL. A party that |
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| 17 | 15 | | receives written notice of a dispute that may be subject to a |
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| 18 | 16 | | contractual appraisal process meant to determine the amount of a |
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| 19 | 17 | | loss covered by the contract may not invoke that appraisal process |
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| 20 | 18 | | after the 60th day after the date the party receives the notice. |
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| 21 | 19 | | Sec. 154.102. PURPOSE OF APPRAISAL; OTHER DUTIES NOT |
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| 22 | 20 | | AFFECTED. (a) A party that may be liable under a contract for a loss |
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| 23 | 21 | | the amount of which may be determined through a contractual |
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| 24 | 22 | | appraisal process is required to promptly investigate and pay any |
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| 25 | 23 | | obligation under the contract, notwithstanding the existence of the |
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| 26 | 24 | | appraisal provision in the contract. |
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| 27 | 25 | | (b) A contractual appraisal process does not serve any |
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| 28 | 26 | | purpose other than the resolution of a dispute regarding the amount |
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| 29 | 27 | | of a covered loss that must be paid under the contract. The |
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| 30 | | - | appraisal process does not absolve a party from an |
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| 31 | | - | extra-contractual obligation, including a statutory or common law |
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| 32 | | - | obligation to timely investigate and pay a contractual obligation |
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| 33 | | - | in good faith, or exempt a party from the prompt payment of |
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| 34 | | - | penalties or attorney's fees ordinarily recoverable when a party |
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| 28 | + | appraisal process does not absolve a party from a statutory or |
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| 29 | + | common law obligation to timely investigate and pay a contractual |
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| 30 | + | obligation in good faith or exempt a party from the prompt payment |
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| 31 | + | of penalties or attorney's fees ordinarily recoverable when a party |
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| 36 | | - | Sec. 154.103. CONFLICT WITH OTHER LAW. (a) Except as |
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| 37 | | - | provided by Subsection (b), this subchapter controls over any other |
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| 38 | | - | law to the extent of a conflict. |
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| 39 | | - | (b) This subchapter does not apply to a dispute that is |
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| 40 | | - | subject to Section 2210.574, Insurance Code. |
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| 33 | + | Sec. 154.103. AMOUNT RECOVERABLE. A party that prevails in |
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| 34 | + | a contractual appraisal process is entitled to establish the amount |
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| 35 | + | that must be paid under the contract for the covered loss, which may |
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| 36 | + | include reasonable attorney's fees and the cost of investigators or |
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| 37 | + | appraisers. |
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| 38 | + | Sec. 154.104. CONFLICT WITH OTHER LAW. This subchapter |
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| 39 | + | controls over any other law to the extent of a conflict. |
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