Stephen Butts v. State Automobile Mutual Insurance Company

Austin, Texas insurance law lawyer represented Plaintiff who sued Defendant on a bad faith breach of insurance contract theory.



Texas law allows individuals to file a bad faith lawsuit against an insurance company if the company unreasonably denies or delays a claim. To establish a bad faith claim, the individual must prove that the insurance company:



Knew or should have known that its denial or delay was unreasonable.

Acted with a conscious disregard for the individual's rights.

Caused the individual to suffer damages as a result of its unreasonable conduct.



If the individual can prove all of these elements, they may be able to recover damages from the insurance company, including:



The amount of the claim that was denied or delayed.

Interest on the denied or delayed claim.

Attorney's fees.

Punitive damages.



Punitive damages are designed to punish the insurance company for its bad faith conduct and to deter other insurance companies from engaging in similar conduct.



The statute of limitations for a bad faith lawsuit in Texas is two years. This means that the individual must file their lawsuit within two years of the date that the insurance company denied or delayed their claim.



If you believe that your insurance company has acted in bad faith, you should contact an attorney to discuss your legal options.



Here are some examples of bad faith insurance practices:



Denying a claim without a reasonable basis.

Delaying the processing of a claim without a reasonable explanation.

Failing to investigate a claim thoroughly.

Offering a settlement that is significantly less than the value of the claim.

Refusing to cooperate with the insured in the investigation or settlement of a claim.



If you believe that your insurance company has engaged in any of these practices, you should contact an attorney to discuss your legal options.

Dismissed without prejudice.