July 10, 2023

How Texas Laws Affect Your Subrogation Practice

In Texas, subrogation statutes are primarily designed to protect the rights of insured parties and their insurers.

Texas Tort Laws and Subrogation

Tort laws in Texas significantly influence subrogation practices in numerous ways, providing a complex backdrop against which such cases are argued.

  • Comparative Negligence: The blame and subsequent liability for an accident are distributed among all parties involved based on their degree of fault. If the insured is deemed partially responsible for the incident, recovery amounts can be proportionately reduced.
  • Joint and Several Liability: These rules can also come into play, particularly in cases involving multiple defendants. When one party is more than 50% at fault, they can be held entirely responsible for all damages.
  • Statute of Limitations: For personal injury or property damage, the statute of limitations is generally two years from the date of the incident.
  • Damage Caps: Certain types of damages in Texas are subject to caps or upper limits. For example, in medical malpractice cases, non-economic damages like pain and suffering are capped.
  • Product Liability Laws: If an incident involves defective products, Texas product liability laws may be involved in a subrogation claim.

Influence of Texas Property Laws

Property laws in Texas significantly shape the contours of subrogation claims, presenting unique complexities that must be navigated proficiently to ensure a favorable outcome.

  • Liens: Liens are legal claims or rights that a creditor has on the property of another individual until a debt is paid off. In Texas, there are several types of liens that can affect subrogation, including mechanic’s liens, tax liens, and judgment liens.
  • Salvage Rights: Texas property laws also recognize salvage rights, where an insurance company, after compensating the insured for a total loss, assumes ownership of the damaged property.
  • Property Damage Claims: Texas laws allow the damaged party to seek compensation for the diminished value of their property, in addition to the cost of repair or replacement.
  • Homestead Laws: Texas shields a person’s primary residence from the reach of most creditors, including judgment creditors.
  • Community Property Laws: Texas is a community property state. In subrogation cases involving property owned by a married couple, these laws could have a substantial impact on the recovery process.

Texas Insurance Regulations and Subrogation

Texas Department of Insurance regulations play a significant role in the practice of subrogation. These rules encompass several aspects of insurance claims, the violation of which could lead to relinquished recovery rights.

  • Notice Requirements
  • Standard Provisions
  • Subrogation Waivers
  • Regulations on Settlements
  • Consumer Protections

The Fusselman Law Firm, P.C.

The real-world cases handled by the Fusselman Law Firm, P.C. offer insight into the practical application of Texas laws in subrogation. Whether it’s battling a tort case with comparative negligence or navigating the labyrinth of property laws, these cases highlight the significant role played by an experienced subrogation lawyer in influencing outcomes.

The laws won’t wait. Why should you? Contact The Fusselman Law Firm, P.C. today.

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