Maryland Insurance Company, Petitioner v. Head Industrial Coatings and Services, Inc. and Gans & Smith Insurance…

Summary

The Texas Supreme Court held that Texas law does not impose a tort duty of good faith and fair dealing on insurers to investigate and defend third‑party claims; only the contractual duty recognized in Stowers applies, limiting recovery to the policy limits and defense costs and precluding treble damages or statutory penalties. The Court reversed the Court of Appeals judgment and remanded for entry of judgment consistent with this holding.