Texas Mutual Insurance Company v. P. Lance Morris
Texas Mutual Insurance Company (carrier) appealed a final judgment in favor of workers' compensation claimant P. Lance Morris. Morris sued Texas Mutual for bad faith and violations of the Texas Insurance Code after the company initially preauthorized his back surgery but then disputed the claim. Texas Mutual also counterclaimed for fraud. The jury found Texas Mutual engaged in unfair/deceptive acts and knowingly violated the Texas Insurance Code, awarding damages for mental anguish and loss of credit reputation, plus additional damages. On appeal, the court found legally sufficient evidence to support the jury's findings of unfair practices and knowing violation, as well as mental anguish damages. However, the court found insufficient evidence for damages to credit reputation, reducing the actual and additional damages accordingly, and remanding the issue of attorney's fees and interest for recalculation. The court affirmed the remainder of the trial court's judgment.