Reported / Citable
Background
Gary Jackson sued Allstate Vehicle and Property Insurance Company. Allstate moved to limit Jackson’s potential attorney-fee recovery, contending that Jackson had not provided the presuit notice required by Texas Insurance Code Section 542A.003.
Jackson argued that emails his counsel sent before suit met the statutory notice requirement. The emails included a proposed $45,000 settlement amount, but did not state the specific amount Jackson alleged Allstate owed for covered property damage or the amount of reasonable and necessary attorney fees incurred as of the notice date.
The Court’s Holding
Judge Charles Eskridge granted Allstate’s motion. The court held that the emails did not provide adequate Section 542A.003(b) notice because they omitted two mandatory disclosures: the specific amount alleged to be owed by the insurer for the property-damage claim and the amount of attorney fees incurred.
A settlement demand is not a substitute for the claimed damage amount, the court held, and it does not satisfy the separate attorney-fee disclosure requirement. Because Jackson did not give compliant presuit notice, Section 542A.007(d) barred recovery of attorney fees incurred after Allstate filed its motion on July 9, 2026.
Key Takeaways
- Texas Insurance Code Section 542A.003(b) requires presuit notice to include the claim’s factual basis, the specific claimed damage amount, and incurred attorney fees.
- A proposed settlement figure does not itself state the specific amount alleged to be owed for covered property damage.
- Failure to provide compliant notice permits the statutory limitation on attorney fees incurred after the insurer files its motion.
Why It Matters
The order reinforces that property-insurance plaintiffs in Texas must satisfy each element of Section 542A.003(b), not merely communicate a settlement demand before filing suit. In federal diversity litigation, the court treated the notice requirement and its fee limitation as substantive Texas law.