The question in this case is whether an insurer’s common-law and statutory duties of good faith and fair dealing extend beyond entry of judgment in favor of its insured. The court of appeals held that the insurer’s duty of good faith and fair dealing extended beyond the trial court’s rendition of a money judgment against the insurer. 49 S.W.3d 408, 413. Because this result is inconsistent with our decision in Stewart Title Guar. Co. v. Aiello, 941 S.W.2d 68 (Tex. 1997), we reverse the court of appeals’ judgment and render judgment that Randy Boyte, the insured in this case, take nothing.
Boyte sustained injuries to his back in an auto accident with Kathleen Godfrey in 1992. Boyte settled with Godfrey’s insurer for the $100,000 limit of her policy, and then he filed an underinsured motorist (“UIM”) claim with his insurance carrier, Mid-Century Insurance Company of Texas (“Mid-Century”). Mid-Century valued Boyte’s claim at $120,000, and tendered the $20,000 difference between that figure and Godfrey’s $100,000 settlement. Boyte alleged that his damages exceeded his UIM policy’s $200,000 limit, and so his claim against Mid-Century proceeded to trial. In October 1995, a jury found that Boyte was entitled to the remaining $80,000 in policy benefits, and the trial court rendered judgment accordingly. Mid-Century appealed.
After judgment was rendered in the UIM trial, Boyte informed Mid-Century that he was in urgent need of back surgery but could not afford to pay for it. Mid-Century offered to pay for the surgery and post-surgery therapy – for a total of $23,400 – but refused to pay the full $80,000 judgment while its appeal was pending. Although Mid-Century left its offer open, Boyte never scheduled the surgery. The court of appeals affirmed the UIM judgment, Mid-Century Ins. Co. v. Boyte, No. 02-96-00081-CV (Fort Worth Sept. 11, 1997, pet. denied) (not designated for publication), and this Court denied review in March 1998. Mid-Century then paid the judgment. But Boyte then filed a new suit against Mid-Century for, among other things, common-law bad faith and violations of article 21.21 of the Insurance Code. Boyte asserted that Mid-Century knowingly failed to attempt a fair settlement when its liability became reasonably clear after the jury verdict and judgment in 1995, and that the two-plus year delay in payment had injured him. See Universe Life Ins. Co. v. Giles, 950 S.W.2d 48, 55 (Tex. 1997); id. at 69 (Hecht, J., concurring); Tex. Ins. Code art. 21.21, �� 4(10)(a)(ii), 16.
