Amerisure Insurance Company v. Navigators Insuranc
445 F. App'x 756
5th Cir.2011Background
- This is the second appeal in a diversity insurance subrogation case arising from an underlying tort action against Texas Crewboats and its employee Sylvester.
- Sylvester drove for Texas Crewboats and fell asleep, causing a crash injuring Clanton and Satterfield; claims included negligence and Jones Act claims against Texas Crewboats.
- Primary Amerisure insured up to $1 million; Navigators provided excess coverage up to $9 million; settlement split between Clanton and Satterfield with disputes over which insurer pays.
- Amerisure paid $1 million and Navigators paid $1.35 million; Amerisure reserved subrogation rights against Navigators in the settlement.
- District court undertook a bench trial to determine Sylvester’s employment status for purposes of indemnity; court found Sylvester to be an independent contractor, not an employee.
- This court reviews the district court’s determination of the right to control under Texas law de novo with clear-error review for factual findings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Sylvester was Texas Crewboats’ employee or independent contractor | Amerisure contends Sylvester was an employee, triggering control by Texas Crewboats. | Navigators argues Sylvester was an independent contractor, lacking sufficient right to control by Texas Crewboats. | Affirmed district court; Sylvester is an independent contractor, not an employee. |
Key Cases Cited
- Limestone Prods. Distrib., Inc. v. McNamara, 71 S.W.3d 308 (Tex. 2002) (factors measuring the right to control)
- Thompson v. Travelers Indem. Co. of R.I., 789 S.W.2d 277 (Tex. 1990) (right of control as a test for employment status )
- Campbell v. Keystone Aerial Surveys, Inc., 138 F.3d 996 (5th Cir. 1998) (right to control is key in Texas-law status determinations)
- Ochoa v. Winerich Motor Sales Co., 94 S.W.2d 416 (Tex. 1936) (prima facie evidence of control under Texas law)
- Indus. Indem. Exch. v. Southard, 160 S.W.2d 906 (Tex. 1942) (identifies controlling facts under Texas framework)
- Brock v. Mr. W Fireworks, Inc., 814 F.2d 1042 (5th Cir. 1987) (multilevel inquiry into worker status using Silk factors)
- United States v. Silk, 331 U.S. 704 (U.S. 1947) (recognizes right-of-control factor among Silk factors)