Maryland Insurance Co. v. Head Industrial Coatings & Services, Inc.

The issue we address in this case is whether an insurer owes its insured a duty of good faith and fair dealing to investigate and defend claims by a third party against its insured. The court of appeals held that such a duty exists. 906 S.W.2d 218. We disagree.

The facts of this case are set out in the court of appeals’ opinion. 906 S.W.2d 218. We summarize only those material to the issue we address.

Don Nelson, an employee of Head Industrial Coatings & Services, Inc., sued Texas Utilities Electric Company and others for personal injuries he sustained while working on TU’s premises. TU…