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Addison v. Diversified Healthcare/Dallas, L.L.C.
2012 Tex. App. LEXIS 7269
Tex. App.
2012
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Background

  • Addison, a Brookhaven cook, injured his back lifting about 50 pounds at the work site.
  • Brookhaven, a long-term-care facility, terminated Addison the same day of the injury after supervisor Williams urged him to leave.
  • Addison sought workers’ compensation under Tex. Labor Code § 451.001, alleging retaliatory discharge for exercising workers’ compensation rights.
  • Brookhaven moved for summary judgment, arguing it was a non-subscriber under the Act and thus not liable under § 451.001.
  • Addison argued Brookhaven’s representation of itself as a subscriber to workers’ compensation should subject it to § 451.001.
  • The trial court granted Brookhaven’s summary judgment; Addison appeals.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is Brookhaven a subscriber under the Act? Addison contends Brookhaven held itself out as a subscriber. Brookhaven is a non-subscriber, lacking Texas-approved WC insurance. Brookhaven is not a subscriber.
Does Brookhaven’s holding-out as a subscriber expose it to § 451.001 liability as a non-subscriber? Holding out could render Brookhaven liable under § 451.001. Only subscribing employers are subject to § 451.001; holding-out is irrelevant for non-subscribers. Holding out does not create liability for a non-subscriber; § 451.001 applies only to subscribers.

Key Cases Cited

  • Tex. Mex. Ry. Co. v. Bouchet, 963 S.W.2d 52 (Tex. 1998) (non-subscriber not liable under § 451.001)
  • City of LaPorte v. Barfield, 898 S.W.2d 288 (Tex. 1995) (retaliation claim premised on subscriber status)
  • Storage & Processors, Inc. v. Reyes, 134 S.W.3d 190 (Tex. 2004) (fair notice doctrine; enrollment in non-subscriber benefits does not create § 451.001 liability)
  • Anderson-Berney Realty Co. v. Soria, 67 S.W.2d 222 (Tex. 1933) (breach-of-contract context for failure to provide promised benefits)
  • Tigrett v. Heritage Building Co., 533 S.W.2d 65 (Tex. Civ. App.-Texarkana 1976) (contract-based promises of benefits; breach theories distinct from statutory claim)
  • Watkins v. Diversitech Corp., 988 S.W.2d 440 (Tex. App.-Hous. [1st Dist.] 1999) (non-subscriber status controlling § 451.001 applicability)
Read the full case

Case Details

Case Name: Addison v. Diversified Healthcare/Dallas, L.L.C.
Court Name: Court of Appeals of Texas
Date Published: Aug 28, 2012
Citation: 2012 Tex. App. LEXIS 7269
Docket Number: No. 05-11-01455-CV
Court Abbreviation: Tex. App.