906 S.W.2d 218; MARYLAND INSURANCE COMPANY, Appellant, v. HEAD
INDUSTRIAL COATINGS AND SERVICES, INC., Appellee. (Tex. App.);
MARYLAND INSURANCE COMPANY, Appellant, v. HEAD INDUSTRIAL
COATINGS AND SERVICES, INC., Appellee.
Court of Appeals of Texas, Texarkana.
August 31, 1995.
Portia J. Bott, R. Brent Cooper, Cooper, Huddleston, Aldous, Dallas, for appellant.
Scott Patrick Stolley, Thompson, Coe, Cousins, Irons, Dallas, for Gans & Smith.
Winford L. Dunn, Jr., Smith, Stroud, McClerkin, Dunn, Texarkana, for Head Industrial.
Before CORNELIUS, C.J., and BLEIL and GRANT, JJ.
This is a bad faith insurance case with liability premised on violations of the
Insurance Code. Maryland Insurance Company appeals from a judgment rendered in
favor of its insured, Head Industrial Coatings and Services, Inc., and also appeals from a
take-nothing judgment rendered against it on its third-party action against Gans & Smith
Insurance Agency. The primary issues on appeal
involve the existence of a viable cause of action under the Insurance Code for unfair
claims settlement practices and bad faith conduct by an insurer on a third-party liability
policy, the sufficiency of the evidence to support the jury's determination that Maryland
engaged in unfair or deceptive acts, the amount of the jury finding of damages, the effect
of a settlement agreement, and the assessment of a statutory interest penalty against
Maryland because of its tardy payment of a claim.
Head Industrial Coatings and Services, Inc. is one of two family-owned businesses
that together provide vacuuming, sandblasting, and coating services to various industries,