400 S.W.3d 922
Tex.2013Background
- Texas Labor Code makes workers’ compensation the exclusive remedy for covered employees.
- In Port Elevator-Brownsville, L.L.C. v. Casados, the Court held employees cannot defeat exclusivity by arguing lack of policy coverage, to avoid splitting the workforce.
- Magnum Staffing provided Johnson to the City and paid him based on hours reported to the City.
- The City controlled Johnson’s work schedule, assignments, and supervision; Magnum had no oversight role.
- The City was required to provide workers’ compensation coverage; Johnson was within that coverage under the interlocal arrangement.
- Johnson’s arm injury occurred while Johnson worked on a City vehicle driven by a City employee; Johnson sued the City and Larson; the City and Larson asserted immunity and the exclusive remedy defense.
- The trial court dismissed; the court of appeals reversed, questioning whether Johnson was actually covered under the City’s policy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Johnson falls under the exclusive-remedy bar. | Johnson argues not conclusively covered; dispute over coverage exists. | City asserts Johnson is covered as a matter of law via the interlocal agreement. | Yes; Johnson is covered; exclusivity applies. |
| Whether the City’s immunity is waived by the exclusive remedy rule. | Immunity may apply if not actually covered. | Exclusivity bars suit even if coverage is argued. | Immunity waived by exclusivity when covered. |
| Whether Johnson was a “paid employee” under Section 504.011(3). | Johnson argues he was paid by Magnum, not the City. | Evidence shows City paid Johnson through Magnum based on hours reported. | Johnson was a paid employee under the interlocal agreement. |
| Whether Johnson’s injury is within the City’s workers’ compensation coverage. | Unclear if City’s policy extended to Johnson. | Interlocal agreement provides statutorily required coverage. | Yes; Johnson is within the City’s coverage. |
Key Cases Cited
- Port Elevator-Brownsville, L.L.C. v. Casados, 358 S.W.3d 238 (Tex. 2012) (exclusivity applies regardless of precise policy terms to avoid workforce-splitting)
- Limestone Prods. Distrib. Inc. v. McNamara, 71 S.W.3d 308 (Tex. 2002) (control over the progress, details, and methods determines employee status)
- Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547 (Tex. 2000) (subject-matter jurisdiction and exclusive remedy often raised via plea to the jurisdiction)
- Duhart v. State, 610 S.W.2d 740 (Tex. 1980) (state immunity retained; workers’ comp provides an alternate remedy)
- Lyons v. Texas A&M Univ., 545 S.W.2d 56 (Tex. Civ. App.–Hou. [14th Dist.] 1976) (state immunity and exclusive remedy interplay)
