When a worker is injured on the job, he or she can file a workers' compensation claim, no matter who was at fault in the accident. These benefits are very important as they help injured workers pay for medical bills, lost wages and other costs associated with the workplace accident.
Last week, the Texas Supreme Court handed down an important ruling pertaining to workers' compensation claims. In a 5-4 decision, the state's highest court held that injured workers have no right to sue workers' compensation insurance carriers that act in bad faith. The court reasoned that doing so gets in the way of the state's workers' compensation system running smoothly.
The specific case at issue involved the state's largest workers' compensation insurance carrier, Texas Mutual Insurance Co. of Austin. The facts go something like this: A worker from Galveston was hurt on the job and filed a workers' compensation claim. Texas Mutual originally denied benefits after concluding that the worker was injured playing softball, not while performing his job duties.
The worker found legal representation and Texas Mutual eventually agreed to settle the case with the worker. Soon after, the worker sued the company, charging that the delay in getting the benefits damaged his credit, caused his hernias to get worse, and caused him mental anguish, pain and suffering.
A Houston jury awarded the worker $173,500 in damages, plus attorney fees. However, last summer, the Texas Supreme Court overturned the damages award, holding that the worker could not sue under the insurance code or deceptive trade practices law. On the other hand, the court held that the claims could be considered under a bad-faith provision of the law.
Please check back later this week for more on this important case.
Source: statesman.com, "State Supreme Court rules injured workers can't sue for bad faith," Laylan Copelin, June 24, 2012
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