Holley v. Ace American Insurance Co.
2013 OK 88
| Okla. | 2013Background
- Oklahoma employment contract and Workers' Compensation Act apply irrespective of where injury occurs if contract entered in Oklahoma.
- Deceasedworker died at a Texas jobsite, but within the scope of employment.
- Widow could elect to receive death benefits under Texas law or Oklahoma law.
- Insurer paid Texas-law death benefits to the widow.
- Widow also recovered Texas-law tort damages; dispute centers on whether Oklahoma-law subrogation applies despite her election.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Oklahoma's subrogation prohibition apply to death benefits paid under Texas law? | Insurer: Texas-subrogation rights apply since benefits and tort recovery arose under Texas law. | Widow: Oklahoma policy protections bar subrogation for death benefits, regardless of Texas-law award. | Yes; Oklahoma prohibits subrogation for death benefits, regardless of award jurisdiction. |
| Does §4's election framework allow Texas adjudication to foreclose Oklahoma subrogation rights? | Insurer: election to Texas law should not invoke Oklahoma subrogation protections. | Widow: election under §4 fixes rights under another state's law and precludes Oklahoma subrogation. | Election to pursue benefits under another state's law forecloses Oklahoma subrogation rights. |
| Can the widow seek declaratory relief on subrogation without filing an Oklahoma Workers' Compensation claim? | Insurer: not necessary to file a claim; issues arise under Oklahoma law. | Widow: declaratory relief is proper to resolve a live controversy; no claim filing requirement. | Yes; declaratory judgment appropriate; no claim filing needed to resolve subrogation issue. |
Key Cases Cited
- Knott v. Halliburton Services, 752 P.2d 812 (Okla. 1988) (limits of when rights vest and application of later amendments)
- Knoit v. Halliburton Services, 752 P.2d 812 (Okla. 1988) (statutory basis of workers' compensation rights fixed at time of injury)
- Pryse Monument Co. v. District Court of Kay County, 595 P.2d 435 (Okla. 1979) (two remedies election principle in workers' compensation context)
- Independent School District No. 89 v. McReynolds, 528 P.2d 313 (Okla. 1974) (rights of survivors fixed as of date of death; law applicable at death governs)
- McBride v. Grand Island Express, Inc., 246 P.3d 718 (Okla. 2010) (clarifies the scope of §44(b) subrogation in death-benefit context)