Great American Insurance Co. v. North Austin Municipal Utility District No. 1

OWEN, Justice,

dehvered 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 obhgee. We hold there is no common law duty of good faith and fair dealing between the surety and the bond obhgee comparable to that between a liability insurer and its insured. We further hold that article 21.21 of the Insurance Code is inapphcable to a commercial surety, and accordingly, reverse the judgment of the court of appeals in part. 850 S.W.2d 285, 902 S.W.2d 488. 1 We affirm the holding of the court of appeals…