Great American Insurance Company, Petitioner v. North Austin Municipal Utility District No. 1, Respondent

Summary

The Texas Supreme Court held that a commercial surety does not owe a common law duty of good faith and fair dealing to a bond obligee and that article 21.21 of the Texas Insurance Code does not apply to sureties. It affirmed the surety's liability up to the face amount of the performance bond and awarded attorneys' fees based on the jury's percentage, reversing the trial court's trebling of damages and remanding for further proceedings on interest.