Houston Insurance Litigation Attorney

Insurance companies are in the business of collecting premiums and minimizing payouts. When you file a claim, their adjusters, algorithms, and defense attorneys go to work finding reasons to deny, delay, or devalue your claim. Bad faith denials. Lowball settlement offers. Unreasonable delays designed to pressure you into accepting less than you deserve.

David Mestemaker has fought insurance companies for 37 years. He knows their tactics because he has seen every one of them — and he knows how to make them pay when they fail to honor their obligations.

Bad Faith Insurance Practices in Texas

Texas law imposes a duty of good faith and fair dealing on insurance companies. When an insurer unreasonably denies a valid claim, delays payment without justification, or fails to conduct a reasonable investigation, the policyholder can sue for bad faith. Under the Texas Insurance Code and the Deceptive Trade Practices Act, bad faith claims can recover not only the policy benefits owed but also additional damages, penalties, and attorney fees.

Common bad faith tactics include denying claims without a reasonable basis, failing to promptly investigate a claim, misrepresenting the terms of the policy, refusing to negotiate a fair settlement, and making unreasonably low offers designed to exhaust the claimant into settling.

Underinsured and Uninsured Motorist Claims

When the driver who caused your accident does not carry enough insurance to cover your damages — or carries no insurance at all — your own underinsured/uninsured motorist (UM/UIM) coverage is supposed to fill the gap. But your own insurance company does not automatically pay. They often fight these claims as aggressively as if they were defending the other driver.

David handles UM/UIM claims against major insurers across Texas. These cases can be particularly frustrating because you are fighting your own insurance company — the company you have been paying premiums to for years. David knows how to build these cases and, when necessary, take them to trial.

Property Insurance Disputes

Hurricane damage, hail damage, fire damage, water damage — Texas property owners face natural disasters regularly, and insurance companies find ways to deny or underpay claims just as regularly. Lowball estimates, scope disputes, depreciation games, and outright denials are standard operating procedure.

When your property claim is denied or underpaid, David can help. He works with independent adjusters, engineers, and contractors to establish the true cost of repair, and he holds the insurance company accountable for the full amount owed under the policy.

The Texas Insurance Code and DTPA

Chapter 541 of the Texas Insurance Code defines unfair settlement practices. Section 541.060 prohibits misrepresenting facts or policy provisions, failing to attempt prompt and fair settlement when liability is reasonably clear, compelling policyholders to file lawsuits by offering substantially less than ultimately due, and refusing to pay without a reasonable investigation. Violations give the policyholder a private right of action with actual damages and, for knowing conduct, up to three times actual damages.

Chapter 542 (the "Prompt Payment" statute) imposes strict deadlines: acknowledge receipt within 15 days, begin investigation within 15 days, accept or deny within 15 business days after receiving all requested items. Failure to comply means the insurer owes the full claim plus 18 percent annual interest plus attorney fees. Chapter 542A (2017) added specific procedures for weather-related claims including a 60-day pre-suit notice requirement.

The Deceptive Trade Practices Act (Business & Commerce Code Chapter 17) provides additional recovery. Section 17.46(b)'s "laundry list" covers misrepresentation, nondisclosure, and unconscionable actions. Section 17.50 allows economic damages, mental anguish for knowing conduct, and treble damages for intentional conduct, plus mandatory attorney fees.

The combined effect: an insurer that wrongfully denies a $50,000 claim can end up paying the $50,000 owed, plus 18 percent interest, plus treble damages, plus all attorney fees. David has used these statutes for decades to make insurers regret fighting rather than paying.

How Insurance Companies Deny Claims

Delay is foundational. Requesting unnecessary documentation, reassigning claims, "losing" paperwork — all designed to increase financial pressure until you accept less than you deserve.

Independent Medical Examinations (IMEs) are anything but independent. The insurer selects and pays the doctor. Many IME physicians derive significant income from insurance referrals. The examinations frequently minimize injuries or attribute conditions to pre-existing causes.

Policy exclusion gamesmanship exploits ambiguous policy language. Under Texas law, ambiguous insurance provisions are construed strictly against the insurer and in favor of coverage — because the insurer drafted the policy and could have made its terms clear.

Lowball repair estimates use Xactimate software with adjuster-controlled inputs that underestimate scope, apply excessive depreciation, use inaccurate local pricing, and omit required code upgrades. The result may cover only 40 to 60 percent of actual repair cost.

Recorded statements are used to lock claimants into statements that can be used to impeach them later. David advises clients to never give a recorded statement to an opposing insurer without counsel present.

Stacking UM/UIM Coverage in Texas

Stacking means combining UM/UIM limits from multiple policies or vehicles. If you own two vehicles on the same policy with $100,000 each, can you access $200,000? It depends on whether the policy has a valid anti-stacking provision.

Brainard v. Trinity Universal (Texas Supreme Court, 2000) held that anti-stacking clauses are enforceable when they clearly and unambiguously limit recovery. But many are poorly drafted. If the provision is ambiguous, it is construed against the insurer, and stacking is permitted.

Stacking also applies across separate policies. If you are a named insured or household member on multiple policies, you may access UM/UIM coverage under each one.

Under Texas Insurance Code Section 1952.101, insurers must offer UM/UIM coverage equal to liability limits. If the policyholder rejected it, the rejection must be in writing. If the insurer cannot produce a signed written rejection, the policyholder is entitled to UM/UIM at full liability limits. David has recovered additional coverage for clients whose insurers could not produce the required rejection.

Hurricane and Storm Damage Claims

Chapter 542A requires a pre-suit notice 60 days before filing, with specific claim and damages information. The insurer can inspect and make a settlement offer in that window. If the offer is reasonable, certain damages may be limited. If not, all remedies remain available.

The wind vs. flood distinction is critical. Standard policies cover wind but exclude flood. Flood requires separate coverage (NFIP or private). After hurricanes, each insurer points at the other — the wind insurer says flood caused it, the flood insurer says wind.

USAA v. Menchaca (Texas Supreme Court, 2018) established five rules governing breach of contract vs. statutory bad faith: (1) no coverage = no policy benefits as statutory damages; (2) full payment = no double recovery; (3) statutory violations can create liability even without breach of contract; (4) policy benefits can be recovered as Insurance Code damages; (5) Insurance Code damages are available even without a separate breach finding. This framework governs how David structures every case.

Hail damage claims are the highest-volume property disputes in Texas. Insurers deploy out-of-state contract adjusters who frequently underestimate damage, miss impacts on less visible areas, and fail to account for gutters, HVAC, and interior water intrusion. Get an independent inspection from a public adjuster or roofing contractor.

Commercial Insurance Disputes

Business interruption coverage replaces income lost when a covered event forces closure. Insurers challenge the restoration period length, baseline income projections, expense definitions, and mitigation efforts. These disputes require forensic accounting.

The duty to defend is broader than the duty to indemnify. Under the "eight corners" rule, an insurer must defend if the petition's allegations potentially fall within coverage. Wrongful refusal to defend can result in estoppel of coverage defenses and liability for the full judgment plus defense costs.

Commercial policy disputes are more complex because policies are negotiated, endorsements are layered, and exclusions are numerous. Pollution exclusions, professional services exclusions, and "expected or intended" injury exclusions all require careful analysis. David reviews policies to identify coverage arguments and builds the case needed to recover full benefits.

The Appraisal Process

Most Texas property policies contain an appraisal clause. Each side selects an appraiser, the two select an umpire, and any two of three set the loss amount. The award is binding on amount but does not resolve coverage disputes.

Appraisal is advantageous when the dispute is about the amount — the insurer acknowledged coverage but offered too little. It produces a binding result within 60-120 days without litigation cost.

Appraisal can be disadvantageous when the insurer uses it to strip trial value. Texas courts generally hold that paying after being sued does not erase pre-suit bad faith liability — the analysis looks at conduct at the time of denial.

Whether to demand, accept, or resist appraisal is a strategic decision David evaluates case by case, considering coverage strength, damages evidence, pre-suit conduct, and the likelihood of extra-contractual recovery.