State Farm Mutual Automobile Insurance Company v. Teresa Nickerson

The issue in this case is whether an insured can recover attorney’s fees under Chapter 38 of the Civil Practice and Remedies Code from her underinsured motorist (UIM) insurer.

Teresa Nickerson was injured in an automobile collision with Calvin Christopher. Nickerson sued Christopher, but she released her claims against him after accepting a $25,000 payment representing the limits of Christopher’s insurance policy. Nickerson also accepted a $10,000 payment of personal injury protection (PIP) benefits from State Farm. Believing her damages to be greater than Christopher’s policy limits,…