Texas Mutual Insurance Co. F/K/A/ Texas Workers' Compansation Ins. Fund v. Ray Ferguson Interest, Inc., RFI Brazos Paving Co., Inc.
Texas Mutual Insurance Company (the Fund) appealed a judgment from a jury verdict in favor of Ray Ferguson Interests, Inc. (RFI), awarding RFI over $2.2 million in actual damages, $3.5 million in statutory damages for Insurance Code violations, and attorney's fees. The dispute arose from the Fund's investigation into RFI's workers' compensation premiums, alleging premium fraud related to RFI's subcontractor, Brazos. RFI counter-sued, alleging breach of contract and violations of the Insurance Code for the Fund's actions. The appellate court found errors in the trial court's denial of pre-judgment interest to the Fund and in the jury's damage awards for 'lost time' due to litigation and for 'loss of value' or 'credit reputation' resulting from statements protected by judicial immunity or lacking direct causation to the Fund's alleged contract breaches or deceptive acts. Consequently, the court reversed RFI's recovery, affirmed parts of the judgment, and remanded the case with instructions, including entering a take-nothing judgment on RFI's claims.