Appellate: Civil; Insurance; Personal Injury; Procedure.

Significant Decision

Brainard v. Trinity Universal Insurance Co.

12/22/2006- 04-0537

Chief Justice Jefferson. Justice O’Neill and Justice Johnson did not participate in the decision.

Insurance; Uninsured/Underinsured Motorist Covers Prejudgment Interest.

Uninsured/Underinsured motorist (UIM) insurance covers prejudgment interest that the underinsured motorist would owe the insured in tort liability.

Insurance; Uninsured/Underinsured Motorist Applying Settlement and PIP Credits.

Under the “declining principal” formula, each credit for settlement and personal injury protection (PIP) credits is applied to the interest calculation according to the date on which it was received.

Insurance: Uninsured/Underinsured; Recovery of Attorney’s Fees

The insured may recover attorney’s fees in an action for uninsured/underinsured insurance coverage, under Tex. Civ. Prac. & Rem. Code Chapter 38, only if the insurer does not tender UIM benefits within thirty days after the trial court signs a judgment establishing the liability and underinsured status of the other motorist.