Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

Mid-Century Insurance Company of Texas v. Boyte

The judgment-debtor's ability to supersede the judgment does not create a disparity in power that requires continued application of the good faith duty.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The question in this case is whether an insurer’s common-law and statutory duties of good faith and fair dealing extend beyond entry of judgment in favor of its insured. The court of appeals held that the insurer’s duty of good faith and fair dealing extended beyond the trial court’s rendition of a money judgment against the insurer. 49 S.W.3d 408, 413. Because this result is inconsistent with our decision in Stewart Title Guar. Co. v. Aiello, 941 S.W.2d 68 (Tex. 1997), we reverse the court of appeals’ judgment and render judgment that Randy Boyte, the insured in this case, take nothing.

Boyte sustained injuries to his back in an auto accident with Kathleen Godfrey in 1992. Boyte settled with Godfrey’s insurer for the $100,000 limit of her policy, and then he filed an underinsured motorist (“UIM”) claim with his insurance carrier, Mid-Century Insurance Company of Texas (“Mid-Century”). Mid-Century valued Boyte’s claim at $120,000, and tendered the $20,000 difference between that figure and Godfrey’s $100,000 settlement. Boyte alleged that his damages exceeded his UIM policy’s $200,000 limit, and so his claim against Mid-Century proceeded to trial. In October 1995, a jury found that Boyte was entitled to the remaining $80,000 in policy benefits, and the trial court rendered judgment accordingly. Mid-Century appealed.

After judgment was rendered in the UIM trial, Boyte informed Mid-Century that he was in urgent need of back surgery but could not afford to pay for it. Mid-Century offered to pay for the surgery and post-surgery therapy – for a total of $23,400 – but refused to pay the full $80,000 judgment while its appeal was pending. Although Mid-Century left its offer open, Boyte never scheduled the surgery. The court of appeals affirmed the UIM judgment, Mid-Century Ins. Co. v. Boyte, No. 02-96-00081-CV (Fort Worth Sept. 11, 1997, pet. denied) (not designated for publication), and this Court denied review in March 1998. Mid-Century then paid the judgment. But Boyte then filed a new suit against Mid-Century for, among other things, common-law bad faith and violations of article 21.21 of the Insurance Code. Boyte asserted that Mid-Century knowingly failed to attempt a fair settlement when its liability became reasonably clear after the jury verdict and judgment in 1995, and that the two-plus year delay in payment had injured him. See Universe Life Ins. Co. v. Giles, 950 S.W.2d 48, 55 (Tex. 1997); id. at 69 (Hecht, J., concurring); Tex. Ins. Code art. 21.21, �� 4(10)(a)(ii), 16.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center

General Counsel Conference East 2023

October 03, 2023
Brooklyn, NY

General Counsel Conference addresses trends in regulatory, data protection, tech management, legal operations, and leadership.


Learn More

New York Legal Awards (NYLA) 2023

October 05, 2023
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More

GlobeSt. NET LEASE Fall 2023

October 16, 2023 - October 17, 2023
Los Angeles, CA

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.


Learn More
Go to Events Go to Webcasts

FINANCE & REAL ESTATE ASSOCIATES - Connecticut Preferred; Remote will be considered


Shipman & Goodwin LLP is seeking two associates to expand our national commercial real estate lending practice. Candidates should have ...


Apply Now ›

Labor and Employment Senior Associate or Counsel


Duane Morris LLP seeks a highly motivated senior associate or counsel to join its dynamic and growing Labor and Employment Class Action grou...


Apply Now ›

Labor and Employment Associate


Duane Morris LLP has an immediate opening for a mid-level, highly motivated associate to join its dynamic and growing Employment, Labor, Ben...


Apply Now ›
Go to Lawjobs

Chiesa Shahinian & Giantomasi

09/25/2023
New Jersey Law Journal

Prof


View Announcement ›

RIKER DANZIG SCHERER HYLAND & PERRETTI LLP

09/18/2023
New Jersey Law Journal

Riker Danzig deeply mourns the passing of our esteemed partner, dear friend and beloved colleague, Marc D'Angiolillo.


View Announcement ›

Eisenberg, Rothweiler, et.al

09/12/2023
TLI Web

Eisenberg Rothweiler


View Announcement ›
Go to Professional Announcements

Legal Newswire

Brian Slater and Greg Sephton Join Sterlington to bolster IP and Life Sciences p...
Morristown Law Firm Celebrates Its 50th Anniversary
Shook & Stone Workers’ Compensation Webinar: Know Your Rights!
Court Hearings Scheduled in Heath Ritenour, John Ritenour and Insurance Office o...
Submit a press release