Bill Text: TX HB4223 | 2019-2020 | 86th Legislature | Comm Sub


Bill Title: Relating to the resolution of certain contract disputes through a contractual appraisal process.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-05-06 - Committee report sent to Calendars [HB4223 Detail]

Download: Texas-2019-HB4223-Comm_Sub.html
  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.
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