Texas Farm Bureau Mutual Insurance Companies V. Sears - Texas Supreme Court

Texas Farm Bureau Mutual Insurance Companies V. Sears

By Texas Supreme Court

  • Release Date - Published: 2002-08-30
  • Book Genre: Law
  • Author: Texas Supreme Court
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Texas Farm Bureau Mutual Insurance Companies V. Sears Texas Supreme Court read online review & book description:

In this case, we must decide whether an insurance company owes its at-will independent agent a common-law duty of ordinary care in investigating the agent's alleged misconduct. We must also determine whether the company's alleged conduct will support the agent's claim for intentional infliction of emotional distress. A divided court of appeals held that the company did owe its agent such a duty, and that the evidence was legally sufficient to support the agent's recovery for intentional infliction of emotional distress. 54 S.W.3d 361. We decline to recognize a negligent-investigation cause of action in this circumstance, because to do so would substantially alter the parties' at-will relationship. Additionally, we hold that the company's alleged actions do not rise to the level of extreme and outrageous conduct necessary to maintain a claim for intentional infliction of emotional distress. Accordingly, we reverse the court of appeals' judgment and render judgment that the agent take nothing.

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