570 S.W.2d 44 | Tex. App. | 1978
Our original opinion in this case has been ordered withdrawn and the following one substituted for it.
Elia Garza Sanchez filed a claim with the Industrial Accident Board of Texas against Liberty Mutual Insurance Company for injuries allegedly sustained while in the course and scope of her employment by Joske’s Department Store. On November 4, 1976 the Board entered its “final award.” On November 10, 1976 the Board received notice from Sanchez that she was
A duly perfected appeal from an award of the Industrial Accident Board divests the Board of all jurisdiction with respect to the claim and invests jurisdiction, as of the date of the filing of the suit, in the district court. American Employers’ Ins. Co. v. Scott, 33 S.W.2d 845 (Tex.Cvi.App.—Eastland 1930, writ ref’d). Once the district court has acquired jurisdiction, the Board’s award is vacated and no longer has any force or significance. E. g., Latham v. Security Insurance Co. of Hartford, 491 S.W.2d 100 (Tex.1972). As such, Liberty Mutual’s payment of money in the amount of the Board’s award after the filing of the suit did not constitute a “payment of the Board’s award.” Buffalo Insurance Company v. McLendon, 402 S.W.2d 559 (Tex.Civ.App.—Texarkana 1966, no writ). The Board’s award was a nullity and that amount had no more significance than any randomly chosen figure.
Further, the payment cannot be deemed satisfaction of a compromise settlement agreement since no such agreements entered into after the court had acquired jurisdiction can be given force or effect unless they have received the court’s approval. Texas Employers Ins. Ass’n v. Miller, 137 Tex. 449, 154 S.W.2d 450 (1941, opinion adopted). Unapproved settlements are void and do not form the basis of a plea in bar of recovery. See United States Fidelity & Guaranty Co. v. Lewis, 266 S.W.2d 194 (Tex.Civ.App.—Texarkana 1954, writ ref’d n. r. e.).
The money paid to Sanchez must be viewed simply as voluntary compensation payments. Her attorney should not have retained twenty-five percent of the money as a legal fee, since such fee was not approved by the court as is required by statute. Tex.Rev.Civ.Stat.Ann. art. 8306 § 7d (Supp.1978). Sanchez is entitled to recover that money from her attorney.
Although Liberty Mutual must be given credit for the amount it has paid Sanchez, we decline to require her to deposit the money into the registry of the court as urged in Liberty Mutual’s cross point.
Reversed and remanded.