Texas Mutual Insurance Company (TMIC) said it would appeal a decision that upheld a jury verdict that will cost them $750,000 in damages.
On Aug. 27, The Texas 14th Court of Appeals rejected Texas Mutual's appeal of a jury verdict that 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 suffered mental anguish and loss of credit reputation damages because of TMIC's actions. The Court of Appeals held that the evidence was sufficient to support the jury's verdict.
TMIC's legal representative vehemently disagreed with the ruling.
"In Texas Mutual's opinion, the court did not correctly apply the law to the facts of this case," said Mary Nichols, TMIC's general counsel. "We feel strongly that allegations of negligence in claim handling or the fact that the insurance carrier has a difference of 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."
The law firm of Doyle Raizner, LLP represented Morris, and responded via media statement.
"When out on a call and carrying a patient from an accident scene, [Morris] injured his lumbar spine. While he was at a hospital in the Texas Medical Center for emergency spine surgery, Texas Mutual denied his claim. The adjuster had been on the job for one day when she denied the claim, despite medical evidence documenting the need for surgery, and with no medical evidence whatsoever supporting any denial. In March 2006, a Houston state court jury decided that Texas Mutual had acted in bad faith, and awarded $750,000 in damages, including $500,000 in damages for insurance misconduct committed knowingly."
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