Texas Supreme Court’s Irwin Opinion and Its Effect on UM/UIM Claims

In January 2020, we discussed the 13th Court of Appeal’s Inclan opinion and its effect on UM/UIM trials. Specifically, we discussed how Inclan authorized plaintiffs in South Texas to seek declaratory relief to determine their damages under UM/UIM policies and gave trial courts the discretion to award attorney’s fees. On Friday, the Texas Supreme Court affirmed those practices in its Irwin opinion.

In Irwin, the plaintiff was injured in a motor vehicle accident and settled with the at-fault driver for the liability policy limits. After settling, the plaintiff sent a demand letter to the UM/UIM carrier for the underinsured policy limits. The UM/UIM carrier extended a low offer. In response, the plaintiff sued the UM/UIM carrier directly under Chapter 37 of the Texas Civil Practice & Remedies Code (known as the Uniform Declaratory Judgments Act or “UDJA”). Specifically, the plaintiff requested a declaratory judgment specifying the damages that the UM/UIM carrier was obligated to pay under the policy. The plaintiff also requested that the insurance carrier pay his attorney’s fees if he prevailed at trial.

The jury returned a favorable verdict for the plaintiff. The carrier agreed to tender the UM/UIM policy limits and pay the plaintiff’s court costs. However, the carrier objected to paying the plaintiff’s attorney’s fees and the use of UDJA to ligate the case. The plaintiff moved for entry of judgment, and the trial court’s judgment awarded the plaintiff his attorney’s fees. The carrier appealed the award of attorney’s fees, but the 4th Court Appeals in San Antonio affirmed the trial court’s decision.

Last week, the Texas Supreme Court ruled that plaintiffs could use the UDJA to establish an insurance carrier’s liability for benefits under a UM/UIM policy. The Court also approved of a trial court’s granting of attorney’s fees if the plaintiff prevails at trial. Thus, the Irwin opinion paves a new path for injured Texans to recover attorney’s fees when a UM/UIM carrier unfairly denies or undervalues an uninsured or underinsured motorist claim.

If an uninsured or underinsured driver has injured you or a loved one, you have enough things to worry about. Do not let navigating through the complexities of a UM/UIM policy be one of them. We deal with the insurance company so you can focus on getting your life back to normal. You have one chance to do this; make the right choice by choosing the right attorney. Call us at (956) 291-7870 or email us at contact@rdjlaywer.com for a free consultation and case evaluation.