{"id":237648,"date":"2025-05-12T07:39:41","date_gmt":"2025-05-12T07:39:41","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/proper-notice-must-be-given-when-suing-under-section-542a-dallas-fort-worth-insurance-lawyer-blog-may-10-2025\/"},"modified":"2025-05-12T07:39:41","modified_gmt":"2025-05-12T07:39:41","slug":"proper-notice-must-be-given-when-suing-under-section-542a-dallas-fort-worth-insurance-lawyer-blog-may-10-2025","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=237648","title":{"rendered":"Proper Notice Must Be Given When Suing Under Section 542A \u2014 Dallas Fort Worth Insurance Lawyer Blog \u2014 May 10, 2025"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Here is a case regarding \u2018Notice\u201d under <a href=\"https:\/\/statutes.capitol.texas.gov\/Docs\/IN\/htm\/IN.542A.htm#542A.007\" target=\"_blank\" rel=\"noopener\">Texas Insurance Code, section 542A.007(d)<\/a>. \u00a0It is a 2025 opinion styled, <a href=\"https:\/\/www.insurancelawsection.org\/wp-content\/uploads\/Devindra-v.-Wesco.pdf\" target=\"_blank\" rel=\"noopener\">Devindra Investments, Inc. v. Wesco Insurance Company<\/a>. \u00a0It is from the <a href=\"https:\/\/www.txnd.uscourts.gov\/location\/amarillo\" target=\"_blank\" rel=\"noopener\">Northern District of Texas, Amarillo Division<\/a>.<\/p>\n<p class=\"p1\">Before the Court is Defendant Wesco Insurance Company\u2019s amended Opposed Motion to Limit Plaintiff\u2019s Recovery of Attorneys\u2019 Fees. \u00a0Pursuant to \u00a7 542A.007(d) of the Texas Insurance Code, Defendant moves the Court to preclude Plaintiff Devindra Investments, Inc. from recovering any attorney\u2019s fees incurred after July 25, 2024. \u00a0The sole issue is raised by Plaintiff\u2019s timely presentation of adequate notice to an independent adjuster retained by a third-party claims administrator on Defendant\u2019s behalf, but not to Defendant directly. \u00a0After considering the arguments of the parties and applicable law, the Court finds the Motion should be GRANTED IN PART by limitation of Plaintiff\u2019s recovery of attorney\u2019s fees and DENIED IN PART by precluding fees incurred after July 26, 2024.<\/p>\n<p class=\"p1\"><a href=\"https:\/\/statutes.capitol.texas.gov\/Docs\/IN\/htm\/IN.542A.htm#542A.001\" target=\"_blank\" rel=\"noopener\">Chapter 542A of the Texas Insurance Code<\/a> applies to first party insurance claims made under Texas law and resulting from forces of nature such as hailstorms. \u00a0That chapter requires that a claimant provide presuit notice to any person from whom the claimant seeks damages, and it establishes various criteria such notice must meet.<\/p>\n<p class=\"p1\">The Court is not aware of, and the parties have not pointed to, any case law interpreting this chapter of the Texas Insurance Code in a context where presuit notice was provided to an independent adjuster hired by a third-party claims administrator, rather than directly to the insurer.<\/p>\n<p class=\"p1\">Defendant argues that the statute requires the Plaintiff to give presuit notice directly to the insurer because the insurer is \u201cthe person\u201d from whom the Plaintiff seeks damages. \u00a0Defendant further argues that service of notice \u201cupon an independent adjuster or other agent of the insurer\u201d is not contemplated by the statute, because the legislature specifically referred to agents of the insurer in other sections of the same chapter.<\/p>\n<p class=\"p1\">Plaintiff responds that, in this case, \u201cthe independent adjuster is the functional equivalent of a claims employee of an insurer.\u201d \u00a0Comparing the question to that of whether communications with the adjuster are covered by the attorney-client privilege, Plaintiff alleges that Mr. Young was responsible for performing a key job for Defendant, that he had a continuous and close relationship with Defendant, and that Mr. Young was the first recipient of information about the insurance claim that forms the foundation of this lawsuit. \u00a0Plaintiff also asserts that the Texas Insurance Code does not generally distinguish between in-house adjusters employed by an insurer and independent adjusters working for third-party claims administrators retained by the insurer.<\/p>\n<p class=\"p1\">The Court finds this issue is best resolved by looking to the legislative intent of the statute and to the plain meaning of the words chosen to implement that intent. \u00a0The purpose of provisions requiring presuit notice in Texas law is generally \u201cto discourage litigation and encourage settlements of consumer complaints.\u201d<\/p>\n<p class=\"p1\">To achieve that purpose, Texas law requires claimants to wait to file suit for at least sixty days after providing certain information to an insurer. \u00a0Section 542A establishes two possible consequences if a plaintiff does not wait for the required time. \u00a0One is that, if presuit notice was inadequate in any way, proceedings may be abated. \u00a0The other is that, if presuit notice does not set forth the specific amount alleged to be owed by the insurer, the recovery of attorney\u2019s fees may be limited. \u00a0In a case where both abatement and limitation of fees are on the table, the choice is left to the defendant, who must move for one or the other in accordance with certain procedural requirements.<\/p>\n<p class=\"p1\">The requirement that a plaintiff provide notice and then wait a specified time before filing suit is set out in a different section from either of those establishing remedies for defendants. \u00a0A plaintiff\u2019s obligation to give timely, adequate notice is imposed as a straightforward duty and as a prerequisite to filing suit. \u00a0Neither section establishing a defendant\u2019s remedies frames its applicability in terms of a plaintiff\u2019s discharge of this duty. \u00a0Instead, each section, by its own terms, is triggered by the violation of a defendant\u2019s right to receive the mandatory notice.<\/p>\n<p class=\"p1\">Plaintiff was obligated to provide presuit notice to Defendant no later than March 9, 2024, the sixty-first day before Plaintiff filed suit in this court. \u00a0Though Plaintiff provided notice to the independent adjuster Mr. Young on December 28, 2023, the record before the Court does not clearly establish that, in this case, that was sufficient to discharge Plaintiff\u2019s obligation. \u00a0Defendant pleaded and proved by affidavit that it was not given the presuit notice to which it was entitled. \u00a0Plaintiff has not provided any evidence that Defendant was given or did receive the presuit notice to which it was entitled, other than an email from Mr. Young stating he would provide the notice to Crawford &amp; Company\u2019s legal department. \u00a0The record is devoid of any evidence as to what happened, if anything, once Crawford and Company\u2019s legal department presumably received the notice from Mr. Young. \u00a0This is especially significant considering the extensive delays the Court has granted the parties so that discovery on the matter could be conducted. \u00a0Accordingly, the Court finds that Defendant has met the requirements imposed by Texas law, and Defendant\u2019s motion should therefore be granted.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Here is a case regarding \u2018Notice\u201d under Texas Insurance Code, section 542A.007(d). \u00a0It is a 2025 opinion styled, Devindra Investments, Inc. v. Wesco Insurance Company. \u00a0It is from the Northern District of Texas, Amarillo Division. Before the Court is Defendant Wesco Insurance Company\u2019s amended Opposed Motion to Limit Plaintiff\u2019s Recovery of Attorneys\u2019 Fees. \u00a0Pursuant to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":116455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94],"tags":[73445,3767,14667,2538,11034,13466,2896,22003,3447,17750,11288],"dealstore":[],"offerexpiration":[],"class_list":["post-237648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","tag-542a","tag-blog","tag-dallas","tag-fort","tag-insurance","tag-lawyer","tag-notice","tag-proper","tag-section","tag-suing","tag-worth"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Proper Notice Must Be Given When Suing Under Section 542A \u2014 Dallas Fort Worth Insurance Lawyer Blog \u2014 May 10, 2025 - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=237648\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Proper Notice Must Be Given When Suing Under Section 542A \u2014 Dallas Fort Worth Insurance Lawyer Blog \u2014 May 10, 2025 - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Here is a case regarding \u2018Notice\u201d under Texas Insurance Code, section 542A.007(d). \u00a0It is a 2025 opinion styled, Devindra Investments, Inc. v. Wesco Insurance Company. \u00a0It is from the Northern District of Texas, Amarillo Division. Before the Court is Defendant Wesco Insurance Company\u2019s amended Opposed Motion to Limit Plaintiff\u2019s Recovery of Attorneys\u2019 Fees. \u00a0Pursuant to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=237648\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-12T07:39:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/social-image-logo-og.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=237648#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=237648\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"Proper Notice Must Be Given When Suing Under Section 542A \u2014 Dallas Fort Worth Insurance Lawyer Blog \u2014 May 10, 2025\",\"datePublished\":\"2025-05-12T07:39:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=237648\"},\"wordCount\":911,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=237648#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/03\/social-image-logo-og.png\",\"keywords\":[\"542A\",\"Blog\",\"dallas\",\"Fort\",\"insurance\",\"Lawyer\",\"Notice\",\"Proper\",\"SECTION\",\"Suing\",\"Worth\"],\"articleSection\":[\"Insurance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=237648#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=237648\",\"url\":\"https:\/\/fivemor.com\/?p=237648\",\"name\":\"Proper Notice Must Be Given When Suing Under Section 542A \u2014 Dallas Fort Worth Insurance Lawyer Blog \u2014 May 10, 2025 - 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