Dallas County Jury Awards $250,000 in Insurance Bad Faith

In April 2016, a traffic collision occurred in Dallas County when an at-fault driver changed lanes, struck another vehicle, and then collided with the plaintiff’s vehicle. Police determined the at-fault driver was responsible. The plaintiff claimed neck, back, and shoulder injuries. The at-fault driver had a $30,000 liability policy, which settled before trial. The plaintiff also had a $100,000 underinsured motorist (UIM) policy with the insurer.

The plaintiff filed a lawsuit alleging the at-fault driver's negligence, the insurer's liability for UIM benefits, and that the insurer and its adjuster violated the Texas Insurance Code, including claims of bad faith. The extracontractual claims against the insurer and adjuster were severed from the UIM claim. In the UIM claim, the insurer stipulated that the at-fault driver's negligence caused the collision, and the case proceeded to trial solely on damages in October 2022. A jury determined the plaintiff's damages totaled $80,000, for future medical expenses only. After applying all credits, the insurer owed the plaintiff $40,000 under the UIM policy. The judgment, which included an award of attorney fees and costs totaling over $272,000, was subsequently appealed.

The extracontractual claims went to trial in August 2024. The jury was instructed that, based on the UIM verdict, the insurer owed the plaintiff $40,000. The plaintiff argued that a 2019 settlement demand, which included documentation supporting over $438,000 in past and future medical expenses, received no offer from the insurer or adjuster. The defense asserted that the prior liability settlement fully compensated the plaintiff and that adjusters reasonably exercise their own judgment regarding medical charges without requiring expert input.

The jury found that the insurer and the adjuster engaged in an unfair or deceptive act or practice, and that the insurer's conduct was committed knowingly. The jury awarded the plaintiff $10,000 in damages attributed to the adjuster and $20,000 attributed to the insurer for wrongfully withheld policy benefits. An additional $20,000 was awarded because the insurer's conduct was committed knowingly. The jury also awarded $200,000 for attorney fees through trial, bringing the plaintiff's total award for the extracontractual claims to $250,000.