Mr. Henson and his attorney contributed nothing. In Henson v. Texas Farm Bureau, Mr. Henson, a Ropesville, Texas farmer, was injured in an auto accident on March 3, 1991. He sued insurance companies Texas Farm Bureau Mutual Insurance and Southern Farm Bureau Casualty Insurance when they refused his claim. The jury found for Mr. Henson. However, the Texas Supreme Court refused to grant Mr. Henson prejudgment interest.
Prejudgment interest is compensation given to a plaintiff for the lost use of money.
A plaintiff can typically collect prejudgment interest if there is a lapse of time between the development of a claim and the date of judgment. In this case Mr. Henson had to wait seven years as the insurance companies dragged their feet. This opinion does two things. First, it provides an incentive for insurance companies to sit on claims, litigate, and clog our courts with items that should be settled.