Texas High Court Asked to Review Post-Appraisal Attorney Fees

The Fifth Circuit has asked the Texas Supreme Court to review whether a policyholder can collect his attorney fees from a Liberty Mutual unit that already paid out a claim for his tornado-damaged home.

Texas’ high court doesn’t provide guidance on whether the state’s insurance law prohibits an insurer from reimbursing a policyholder’s legal bills after paying out a claim to replace a damaged home in the amount determined by an appraisal panel, the US Court of Appeals for the Fifth Circuit said Wednesday.

“The federal courts that have addressed this issue are split,” the appeals court said.

The insurance ...