ASSOCIATED INDEM. CORP. v. CAT CONTRACTING, INC.

No. 96-0387.

964 S.W.2d 276 (1998)

ASSOCIATED INDEMNITY CORPORATION and Fireman's Fund Insurance Company, Petitioners, v. CAT CONTRACTING, INC., GTS Equipment, Inc., Michigan Sewer Construction Co., Construction Equipment Co., Mario Diponio, Benjamin Diponio, Phyllis Diponio, Guilio Catallo, and Rosemary Catallo, Respondents.

Supreme Court of Texas.

Decided February 13, 1998.

Rehearing Overruled May 8, 1998.


Attorney(s) appearing for the Case

Joseph A. Rodriguez, Brownsville, Jeffrey Parsons, Tracy Phillips, Houston, James A. Knox, Dallas, for Petitioners.

Roger W. Hughes, Harlingen, David E. Keltner, Fort Worth, Edward A. Stapleton, III, Brownsville, Tom Lockhart, Harlingen, for Respondents.


PHILLIPS, Chief Justice, delivered the opinion of the Court, in which GONZALEZ, ENOCH, SPECTOR, BAKER, ABBOTT and HANKINSON, Justices, join.

The primary issue presented is whether at common law a surety owes a duty of good faith to its principal. The court of appeals, holding that this duty existed, affirmed the trial court's judgment for the principal against its surety for bad faith conduct. 918 S.W.2d 580. For the reasons set...

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