United States Court of Appeals for the Fifth Circuit A True Copy United States Court of Appeals Certified Jul 12, 2023 Fifth Circuit

____________ FILED Clerk, U.S. Court of Appeals, Fifth Circuit July 12, 2023 No. 22-11070 Lyle W. Cayce ____________ Clerk

Mario Rodriguez,

Plaintiff—Appellant,

versus

Safeco Insurance Company of Indiana,

Defendant—Appellee. ______________________________

Appeal from the United States District Court for the Northern District of Texas USDC No. 5:20-CV-168 ______________________________

Before Higginbotham, Graves, and Douglas, Circuit Judges. Dana M. Douglas, Circuit Judge: Mario Rodriguez (“Rodriguez”) appeals the district court’s summary judgment of his claims against Safeco Insurance Company of Indiana (“Safeco”) for violating § 541 and § 542 of the Texas Insurance Code. In 2017, the Texas legislature amended § 542, raising an important issue of Texas insurance law as to which there is no controlling Texas Supreme Court authority, and the authority from the intermediate state appellate courts provides insufficient guidance. Thus, we CERTIFY the relevant question to the Supreme Court of Texas. See Tex. Const. art. V, § 3-c(a); Tex. R. App. P. 58.1. Case: 22-11070 Document: 00516817659 Page: 2 Date Filed: 07/12/2023

No. 22-11070

I. On May 25, 2019, a tornado struck the home of Rodriguez. At the time of the storm, Rodriguez was insured by Safeco. After inspecting the property, an adjuster found covered damage to the home totaling $1,295.55. Dissatisfied with Safeco’s handling of the claim and the amount of the payment, on April 17, 2020, Rodriguez sent Safeco notice that he believed he was entitled to an additional $29,500 under the policy. The notice stated that Rodriguez did not wish to litigate but he intended to file suit if a resolution was not reached in 60 days. After no response, Rodriguez filed suit on June 18, 2020, alleging unfair settlement practices in violation of § 541 of the Texas Insurance Code, and delayed payment in violation of § 542 of the Texas Insurance Code — known as the Texas Prompt Payment of Claims Act (“TPPCA”). On July 21, 2021, Safeco invoked the appraisal provision under the policy and on April 5, 2022, the appraisal panel determined that the replacement cost value of the damage to Rodriguez’s home was $36,514.52. Safeco paid Rodriguez $32,447.73, claiming the amount represented the actual cash value of the appraisal award, less the deductible, policy limits, and prior payment. Safeco also paid Rodriguez $9,458.40, claiming the amount represented “any conceivable interest Plaintiff could allege to be owed under the [TPPCA] on the above-referenced