The Supreme Court of Texas issued a decision in Texas Mutual Insurance Company versus Timothy J. Ruttiger that reversed the Houston Court of Appeals' ruling and required Ruttiger take nothing on his Insurance Code and Texas Deceptive Trade Practices Act claims.
According to Justice Phil Johnson's written opinion, a bad faith cause of action is contradictory with the current workers' compensation system.
"An extra-statutory cause of action builds additional costs into the system by increasing litigation expense to employees, insurers and employers," Justice Johnson wrote. "The way the dispute was resolved after Ruttiger initiated the dispute resolution process is the way the Act is designed to function."
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