Texas Mutual to Appeal Court Decision

Texas Mutual Insurance Company (TMIC) said it would appeal to the Supreme Court a decision handed down Wednesday by the 14th Court of Appeals.

The 14th Court rejected Texas Mutual's appeal of a jury verdict from a district court in Harris County found TMIC acted in bad faith and that the company had knowingly violated the insurance code. The jury also had found that plaintiff P. Lance Morris had mental anguish and loss of credit reputation damages because of TMIC's actions.

In June of 2000, Morris reported an injury to his lower back while working for Justin Volunteer Fire Department, which is a TMIC policyholder.

The 14th Court of Appeals today held that the evidence was sufficient to support the jury's entire verdict, with the exception of the loss of credit reputation damages.

"In Texas Mutual's opinion, the court did not correctly apply the law to the facts of this case," Mary Nichols, Texas Mutual's general counsel, said. "We feel strongly that allegations of negligence in claims handling or the fact that the insurance carrier has a difference of an opinion with an injured worker regarding the extent of his work-related injury does not rise to the level of bad faith. Texas Mutual intends to appeal this decision to the Texas Supreme Court. The facts of this case speak for themselves," Nichols said.