Court Affirms $1,000 Verdict, but Remands for Fees that Could Reach $360,000

AUSTIN - A Texas appeals court held Aug. 26 that homeowner's who were awarded only $1,000 on their bad faith and breach of contract action against State Farm Lloyds could be entitled to attorneys' fees approaching $360,000, and remanded for further action on that issue. McMillin v. State Farm Lloyds, No. 03-04-00171-CV (Texas Ct. App., 3rd Dist.).

The McMillins sued State Farm over coverage for water damage resulting from storms that occurred while the McMillins' roof was exposed during renovations in the fall of 2000. State Farm paid a total of $346,875.62 on the water damage claims, but the McMillins …