Here is a case where the Prompt Payment of Claims Act was not violated, even though at first glance it appears it was violated. Knowing how the facts and the law square on these issues is important in evaluating a case. This 2018, case is from the Amarillo Court of Appeals and is styled, Steven Biasatti And Paul Gross D/B/A Topdog Properties v. GuideOne National Insurance Company and John Karl Graves.
TopDog was insured with GuideOne and suffered property damage during a storm. A claim was made and GuideOne adjusted the loss as being $1,896.88. TopDog requested an additional inspection. GuideOne retained an engineer who confirmed the adjuster’s findings. TopDog wished to proceed with an appraisal and GuideOne responded that only they, GuideOne, could invoke the appraisal process.
TopDog filed this lawsuit and then GuideOne invoked the appraisal clause in the insurance contract. The trial court ordered appraisal, the parties designated appraisers, and the court appointed an umpire. The umpire filed the appraisal award, in which the parties’ appraisers and the umpire unanimously set the amount of loss at $168,808.