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A BILL TO BE ENTITLED
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AN ACT
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relating to the resolution of certain contract disputes through a |
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contractual appraisal process. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 154, Civil Practice and Remedies Code, |
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is amended by adding Subchapter E to read as follows: |
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SUBCHAPTER E. RESOLUTION OF DISPUTES BY CONTRACTUAL APPRAISAL |
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PROCESS |
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Sec. 154.101. TIME FOR INVOKING APPRAISAL. A party that |
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receives written notice of a dispute that may be subject to a |
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contractual appraisal process meant to determine the amount of a |
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loss covered by the contract may not invoke that appraisal process |
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after the 60th day after the date the party receives the notice. |
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Sec. 154.102. PURPOSE OF APPRAISAL; OTHER DUTIES NOT |
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AFFECTED. (a) A party that may be liable under a contract for a loss |
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the amount of which may be determined through a contractual |
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appraisal process is required to promptly investigate and pay any |
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obligation under the contract, notwithstanding the existence of the |
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appraisal provision in the contract. |
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(b) A contractual appraisal process does not serve any |
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purpose other than the resolution of a dispute regarding the amount |
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of a covered loss that must be paid under the contract. The |
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appraisal process does not absolve a party from a statutory or |
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common law obligation to timely investigate and pay a contractual |
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obligation in good faith or exempt a party from the prompt payment |
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of penalties or attorney's fees ordinarily recoverable when a party |
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fails to adequately and timely pay a covered loss. |
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Sec. 154.103. AMOUNT RECOVERABLE. A party that prevails in |
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a contractual appraisal process is entitled to establish the amount |
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that must be paid under the contract for the covered loss, which may |
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include reasonable attorney's fees and the cost of investigators or |
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appraisers. |
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Sec. 154.104. CONFLICT WITH OTHER LAW. This subchapter |
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controls over any other law to the extent of a conflict. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into or renewed on or after the effective date |
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of this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |