# Arnold v. National County Mutual Fire Insurance Co.

> Texas Supreme Court · January 28, 1987 · 30 Tex. Sup. Ct. J. 177

URL: https://www.frixlaw.com/law-library/cases/9764767

## Case

- **Full name:** Glen ARNOLD, Petitioner, v. NATIONAL COUNTY MUTUAL FIRE INSURANCE COMPANY, Respondent
- **Court:** Texas Supreme Court
- **Decided:** January 28, 1987
- **Citations:** 30 Tex. Sup. Ct. J. 177; 725 S.W.2d 165; 1987 Tex. LEXIS 286
- **Precedential status:** Published
- **Opinion:** Concurrence by Gonzalez
- **Judges:** Ray, Gonzalez
- **Cited by:** 531 later opinions in the Frix Law Library

## Citator (automated)

- **Red flag:** Overruled by Aranda v. Insurance Co. of North America, 31 Tex. Sup. Ct. J. 279 (1988).
- Negative treatments: 2
- Distinguished by: 0
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/9764767

## How later opinions describe it (automated extraction)

- concluding that insured met summary-judgment burden to show that insurer “had no reasonable basis for its refusal to pay his [UIM] claim and with actual knowledge of that, forced 15 him to a trial on the accident before it would pay the claim”
- recognizing that both a breach-of-contract claim on an insurance policy and a claim for breach of duty of good faith and fair dealing can be brought by insured
- holding that “exemplary damages and mental anguish damages are recoverable for a breach of the duty of good faith and fair dealing under the same principles allowing recovery of those damages in other tort actions ”
- stating that nominal damages are appropriate where a plaintiff shows "actual loss or injury" but fails to prove "the extent and amount of damages"
- noting unequal bargaining power in the insurance context allows “unscrupulous insurers to take advantage of their insureds’ misfortunes in bargaining for -8- 04-18-00729-CV settlement and resolution of claims” and bad faith cause of action is necessary to prevent insurers, who…

## Opinion text

GONZALEZ, Justice,
concurring.
I concur. I believe that the elements of this cause of action are: (1) a contract between the insurer and the insured; (2) the insurer denied the insured’s claim or delayed in payment; and (3)(a) the insurer knew that it had no reasonable basis for denying the claim or delaying in payment; or (b) the insurer failed to determine whether there was any reasonable basis for the denial or delay.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/9764767. Public record. Not legal advice.