Implied Covenant of Good Faith and Fair Dealing Extended to Workers’ Compensation Insurance Carriers: Aranda v. Insurance Co. of North America, 748 S.W.2d 210 (Tex. 1988)

Discusses the case of Aranda v. Insurance Co. of North America, in which the Supreme Court held that a workers’ compensation carrier owes a claimant a duty of good faith and fair dealing, notwithstanding the statutory provisions of the Workers’ Compensation Act. The article concludes that while the decision is precise enough to target carriers who do not process claims in good faith, it also has the effect of trapping carriers who attempt to follow the statutory provisions and still deny claims.