Texas Insurance Code 544.054 – Judicial Action; Award by Court
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(a) A person who has sustained economic damages as the result of a violation of § 544.052 may maintain only in a Travis County district court an action against the person who violated that section.
(b) An action under this section must be commenced on or before the second anniversary of:
(1) the date on which the plaintiff was denied insurance or the unfair act occurred; or
(2) the date the plaintiff, in the exercise of reasonable diligence, should have discovered the occurrence of the unfair act.
Terms Used In Texas Insurance Code 544.054
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Plaintiff: The person who files the complaint in a civil lawsuit.
(c) A plaintiff who prevails in an action under this section may obtain:
(1) the amount of economic damages, court costs, and attorney’s fees; and
(2) an order enjoining the violation.
(d) Court costs under Subsection (c) may include any reasonable and necessary expert witness fees.
(e) If the trier of fact finds that the defendant knowingly committed an act prohibited by § 544.052, the court may award a civil penalty in an amount of not more than $25,000 for each claimant.
(f) The court shall award the defendant reasonable and necessary attorney’s fees if the court finds that an action under this section was:
(1) groundless; and
(2) brought in bad faith or for the purpose of harassment.