On Petition for Review from the Court of Appeals for the Thirteenth District of Texas
The decedent suffered a fatal, work-related injury while working for two employers that both had workers’ compensation coverage. The decedent’s parents sued one of the employers. The jury found that the petitioner company negligent but not grossly negligent. After factoring in a settlement credit, the trial court entered judgment on the jury’s award on the negligence claim. The court awarded $515,167.09 to the decedent’s estate for pain, mental anguish, and pre-judgment interest and $2,189,967.76 to the decedent’s parents for mental anguish, loss of companionship and society, and pre-judgment interest. The appellate court held that the policy at issue did not cover the decedent because he was a temporary worker and affirmed the judgment. The Texas Supreme Court observed that it had long held that the Labor Code and the rule against split workforces required employers to elect workers’ compensation coverage for all employees, except for limited statutory and common-law exceptions that did not apply in the instant case. Because the petitioner had a workers’ compensation policy, the decedent was an employee, he suffered a work-related injury, and the jury failed to find the petitioner grossly negligent, the Texas Workers’ Compensation Act provided that the exclusive remedy was against the employer’s insurer, not the employer. Accordingly, the claim at issue in the instant appeal was barred. Accordingly, the court reversed the judgment of the appellate court and rendered judgment for the petitioner.