Court Opinion

ID: 9760936
Source: CourtListenerOpinion
Date Created: 2023-08-29 01:24:38.251436+00
Date Added: 2024-06-11T07:29:18.850325
License: Public Domain

OPINION ON MOTION FOR REHEARING
In their Motion for Rehearing, the Appel-lees urge that the Court erred in reversing in part the take-nothing summary judgment of the trial court.

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Duty of Good Faith and Fair Dealing

It is argued that we have departed from long recognized law that an employee is a party to a workers’ compensation policy. We recognized that a three-party agreement exists between the employer, the employee and the compensation carrier as Justice Spears stated in Aranda v. Insurance Co. of North America, 748 S.W.2d 210, 212 (Tex.1988). We are unwilling to say that employees are a party to the contract. Do employees have any say in which carrier writes the policy for their employer? Do their names appear on the contract? If the carrier cancels the contract, must notice of cancellation be given to each and every company employee? If they are a party to the contract, can they be sued for nonpayment of premium by the employer? To each question the answer is no. Thus, we conclude they are not a party to the contract even though the three-party agreement does exist to provide compensation coverage as provided for in the compensation statute.
The employee is a beneficiary under the policy of insurance issued to the employer. In this case, Rosa Natividad was a beneficiary of the compensation policy issued to her employer by National Union Fire Insurance Company. When that carrier chose to contract away its right to adjust and pay claims thereunder to Alex-sis, Inc., Rosa Natividad became a beneficiary under that contract and she was entitled to require Alexsis, Inc. to discharge the duty of good faith and fair dealing in the handling and payment of any compensation claim she had while an employee of Reveo.
We believe the rule applied in Aranda to an employee who was not a party to the contract with Insurance Company of North America should be extended in this case to an employee who was not a party to the contract with the adjusting company for the reasons set forth in Scott Wetzel Services, Inc. v. Johnson, 821 P.2d 804 (Colo.1991). We recognize that the courts of this state have declined to extend the duty of good faith and fair dealing to many contractual relationships, but those cases do not involve the insurance industry which has the disparity of bargaining power and the exclusive control over the processing of claims which was the basis for the Aranda decision. 748 S.W.2d 210, 212.1 If we are mistaken as to our analysis of the Aranda case and there must be a contractual relationship between the plaintiff and the defendant, then Alexsis, Inc. was not under a duty to exercise good faith and fair dealing with Ms. Natividad, and the summary judgment in its favor should not be reversed on this issue. Point of Error No. One is overruled.

Emotional Distress

The Appellees urge that intent is not an element of the cause of action for negligent infliction of emotional distress or for extreme and outrageous conduct which causes severe emotional distress and that the judgment of the trial court should be affirmed even if an issue exists as to the intent of William Steen. His affidavit states he had no intent to cause any emotional distress to Ms. Natividad. That affidavit does not establish that the conduct about which complaint is made concerning delay in the payment of claims did not occur. No proof was offered to establish as a matter of law that she did not have emotional distress from procedures used by the adjusting company in the handling and payment of her claims. There was no burden on the plaintiff at the summary judgment to prove her claim, and the defendant did not establish the lack of such a claim as a matter of law. Points of Error Nos. Two. Three and Four are overruled.
The Motion for Rehearing is overruled.

. Federal Deposit Insurance Corp. v. Coleman, 795 S.W.2d 706, 708-709 (Tex.1990); English v. Fischer, 660 S.W.2d 521, 522 (Tex.1983); Georgetown Associates, Ltd. v. Home Federal Savings & Loan Association, 795 S.W.2d 252, 255 (Tex.App.—Houston [14th Dist.] 1990, writ dism’d w.o.j.); Hicks v. Baylor Univ. Medical Center, 789 S.W.2d 299, 303-304 (Tex.App.—Dallas 1990, writ denied); and Cluck v. Frost National Bank of San Antonio, 714 S.W.2d 408 (Tex.App.—San Antonio 1986, writ refd n.r.e.).