GREAT AMERICAN INS. CO. v. N. AUSTIN UTILITY

No. D-3889.

908 S.W.2d 415 (1995)

GREAT AMERICAN INSURANCE COMPANY, Petitioner, v. NORTH AUSTIN MUNICIPAL UTILITY DISTRICT NO. 1, Respondent.

Supreme Court of Texas.

Decided June 15, 1995.

Rehearing Overruled November 16, 1995.


Attorney(s) appearing for the Case

David C. Wenholz, Dallas, Arthur F. Selander, Dallas, for petitioner.

Scott R. Kidd, Austin, for respondent.


OWEN, Justice, delivered the opinion of the Court in which all the Justices join.

The issues in this case involve the duties and liabilities of a commercial surety to its bond obligee. We hold there is no common law duty of good faith and fair dealing between the surety and the bond obligee comparable to that between a liability insurer and its insured. We further hold that article 21.21 of the Insurance Code is inapplicable to a commercial surety, and accordingly...

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