Carol S. Covington v. the Travelers Indemnity Company of Rhode Island/Connecticut
Carol S. Covington appealed a take-nothing summary judgment in her bad-faith claim against The Travelers Indemnity Company of Rhode Island/Connecticut (Travelers). Covington sought weekly indemnity benefits for a 1990 work injury sustained while employed by American Airlines, arguing Travelers breached its duty of good faith and fair dealing by failing to pay. The Texas Workers' Compensation Commission (TWCC) had initially awarded Covington benefits, which she appealed. The Court of Appeals found that Covington presented more than a scintilla of evidence that Travelers' liability was 'reasonably clear,' and that a factual dispute existed regarding the extent of her injury. Therefore, the appellate court reversed the trial court's summary judgment and remanded the case for trial, concluding that Travelers had not conclusively established a good-faith dispute.