Lead Opinion
delivered the opinion of the Court,
In Continental Casualty Co. v. Downs, we construed section 409.021(a) of the Workers’ Compensation Act
Because the rale announced in Downs was in effect for only about a year, petitioner contends we should overrule that case as having been wrongly decided. We agree. We reverse the judgment of the court of appeals
I
On August 14, 2000, Louise Mitchell, a clerk-typist for petitioner Southwestern Bell Telephone Company, was diagnosed with Legionnaire’s disease. Claiming to
At the time, section 409.021(a) of the Texas Labor Code stated:
An insurance carrier shall initiate compensation ... promptly. Not later than the seventh day after the date on which an insurance carrier receives written notice of an injury, the insurance earner shall:
(1) begin the payment of benefits as required by this subtitle; or
(2) notify the commission and the employee in writing of its refusal to pay and advise the employee of:
(A) the right to request a benefit review conference; and
(B) the means to obtain additional information from the commission.7
Earlier in the year, on January 26, the court of appeals had issued its opinion in Downs holding that a carrier who failed to meet this seven-day deadline could not contest compensability. The Commission had always taken the position that failing to meet the deadline resulted only in a possible administrative penalty,
(c) If an insurance carrier does not contest the compensability of an injury on or before the 60th day after the date on which the insurance carrier is notified of the injury, the insurance carrier waives its right to contest compensability. The initiation of payments by an insurance carrier does not affect the right of the insurance earner to continue to investigate or deny the compensability of an injury during the 60-day period.10
After the court of appeals’ Downs decision, the Commission adhered to its position, adopting rules in March that reflected its construction of the statute.
After consultation with the Office of the Attorney General ..., the Commission understands that the August 16th decision in the Dovms case should not be considered as precedent at least until it becomes final upon completion of the judicial process. In addition, the related Commission’s rules, such as those found at 28 Tex. Admin. Code §§ 124.2, 124.8, and 182.17, remain in effect.13
For the Mitchell claim, Downs’s new seven-day deadline fell two weeks after the court of appeals’ final opinion and two days after the Commission’s advisory against compliance. Bell did not meet that deadline but did file its contest of compensability within sixty days, as the Commission required. For more than two years, the administrative proceeding languished while Downs was appealed to this Court. We affirmed the court of appeals on June 6, 2002, but pending rehearing, the Commission remained adamant in its position. On June 17, it issued an advisory stating that “the 7 day ‘pay or dispute’ provision in the Dovms case is not final pending the motion for rehearing.”
The Mitchell proceeding then resumed. A contested case hearing was held in March 2003, the focus of which was, according to the hearing officer, “where the bacteria [legionella pneumophilia] was contracted, that is, at work, or somewhere else.” Based on medical evidence that “the bacteria is everywhere in the environment and because no other co-workers, including those at high risk, contracted the disease”, the hearing officer concluded that Mitchell’s husband had failed to prove that Mitchell contracted her illness in the course and scope of employment, finding instead that “[t]he legionnaire’s disease that caused her death was an ordinary disease of life.” However, the hearing officer also rejected Bell’s argument that Dovms should not be applied retroactively and concluded that by failing to pay benefits or give notice of its refusal to do so within seven days of notice of Mitchell’s injury, Bell was precluded from contesting compensability. Consequently, the hearing officer awarded death benefits to Mitchell’s husband. Bell filed an administrative appeal.
An insurance carrier that fails to comply with Subsection (a) does not waive the carrier’s right to contest the com-pensability of the injury as provided by Subsection (c) but commits an administrative violation subject to Subsection (e).17
On May 29, the day after the amendments to section 409.021 passed, the Commission appeals panel affirmed the hearing officer’s decision, holding that Downs should apply retroactively to injuries occurring before the Court’s decision was final. Bell sought review in the district court, which, though of the view that this Court “may ... very well [have] been wrong in Downs”, granted summary judgment for Mitchell’s husband. The court of appeals affirmed.
We granted Bell’s petition for review.
II
Bell, supported by several amici curiae,
“Generally, the doctrine of stare decisis dictates that once the Supreme Court announces a proposition of law, the decision is considered binding precedent”,
We have observed that “in the area of statutory construction, the doctrine of stare decisis has its greatest force”
That is precisely the situation here. In Downs, we construed section 409.021(a) of the Workers’ Compensation Act to provide that a carrier that did not pay or dispute a claim by paragraph (a)’s seven-day deadline could not contest compensa-bility.
An insurance carrier that fails to comply with Subsection (a) does not waive the carrier’s right to contest the compensa-bility of the injury as provided by Subsection (c) but commits an administrative violation subject to Subsection (e).27
The effect of the amendment was to restore the rule the Texas Workers’ Compensation Commission had applied for a decade.
Thus, Downs is simply an anomaly in the law. Prior cases unaffected by Downs, and cases controlled by House Bill 2199, are all treated alike. The rule for them is the same. Were we to adhere to Downs, a different rule would apply only in those cases caught in the Downs gap. Stare decisis does not warrant an obstinate insistence on precedent that appears to be plainly incorrect.
We believe, as the dissent does, that finality is an important consideration in statutory construction, and that an appellate court’s decisions should not change merely because the judges have changed. But while we think Downs was wrongly decided, as does the author of the dissent, even if our view of Doivns were different, we could not insist that it disrupt the orderly application of the law in a few cases before the Legislature’s amendment to the statute. No interest in stare decisis supports the application of different rules in these circumstances. Contrary to the dissent, we opt for stability in the law — a rule that has been followed for years and is, by legislative action, to continue to be followed in the future. The error in Downs can easily be remedied without violating the principles of stare decisis. The case is overruled.
Accordingly, we reverse the judgment of the court of appeals and remand the case to the trial court for further proceedings.
Notes
. Act of December 12, 1989, 71st Leg., 2d C.S., ch. 1, § 5.21, 1989 Tex. Gen. Laws 1, 51 (effective Jan. 1, 1991) (formerly Tex.Rev.Civ. Stat. Ann. art. 8308-5.21), codified by Act of May 12, 1993, 73d Leg., R.S., ch. 269, § 1, 1993 Tex. Gen. Laws 987, 1195-1196, as Tex. Labor Code §§ 409.021-.022.
.
. The Commission was created in 1989 to replace the Industrial Accident Board, and was abolished effective September 1, 2005, with its functions transferred to a new division of the Texas Department of Insurance. Act of December 12, 1989, 71st Leg., 2d C.S., ch. 1, §§ 2.01-.09, 17.01,
. Downs,
. Act of May 28, 2003, 78th Leg., R.S., ch. 1100, § 1, 2003 Tex. Gen. Laws 3161, 3162 [H.B. 2199],
.
. Act of May 12, 1993, 73d Leg., R.S., ch. 269, § 1, 1993 Tex. Gen. Laws 987, 1195, codifying Act of December 12, 1989, 71st Leg., 2d C.S., ch. 1, § 5.21(a) (in part), (b), 1989 Tex. Gen. Laws 1,51 (effective Jan. 1, 1991) (formerly TexRev.Civ. Stat. Ann. art. 8308-5.21).
. Tex. Labor Code § 409.021(e) (“An insurance carrier commits a violation if the insurance carrier does not initiate payments or file a notice of refusal as required by this section. A violation under this subsection is a Class B administrative violation. Each day of noncompliance constitutes a separate violation.”), Act of May-12, 1993, 73d Leg., R.S., ch. 269, § 1, 1993 Tex. Gen. Laws 987, 1196, codifying, as rewritten, Act of December 12, 1989, 71st Leg., 2d C.S., ch. 1, § 5.21(a) (in part), (b), 1989 Tex. Gen. Laws 1, 51 (effective Jan. 1, 1991) (formerly TexRev.Civ. Stat. Ann. art. 8308-5.2 l(a)-(b)).
. See Tex. Workers’ Comp. Comm’n, Appeal No. 960949,
. Tex. Labor Code § 409.021(c).
. 25 Tex. Reg. 2101 (Mar. 10, 2000) (adopting new Rule 124.3, 28 Tex. Admin. Code § 124.3 (2000)); id. at 2106-2114 (Mar. 10, 2000) (adopting new Rule 132.17, 28 Tex. Admin. Code § 132.17(2000)).
. Downs v. Continental Cas. Co.,
. Tex. Workers’ Comp. Advisory 2000-07 (Aug. 28, 2000), http://www.tdi.state.tx.us/wc/ news/advisories/ad2000-07.html.
. Tex. Workers' Comp. Advisory 2002-08 (June 17, 2002), http://www.tdi.state.tx.us/wc/ news/advisories/ad2002-08.html.
. Tex. Workers' Comp. Comm’n, Appeal No. 021635,
. Tex. Workers' Comp. Advisory 2002-15 (Sept. 12, 2002), http://www.tdi.state.tx.us/wc/ news/advisories/ad2002-l 5 .html.
. Act of May 28, 2003, 78th Leg., R.S., ch. 1100, § 1, 2003 Tex. Gen. Laws 3161, 3162.
.
. 49 Tex. S.Ct. J. 360 (Feb. 24, 2006).
. Texas Municipal League — Intergovernment Risk Pool, Texas Association of Business, Texas Association of School Boards, Insurance Council of Texas, Texas Mutual Insurance Co., and Edwards Risk Management, Inc.
. Lubbock County v. Trammel's Lubbock Bail Bonds,
. Weiner v. Wasson,
. Lehmann v. Har-Con Corp.,
. Willis v. Owen,
. Marmon v. Mustang Aviation, Inc.,
. Continental Cas. Co. v. Downs,
. Tex. H.B. 2199, 78th Leg., R.S. (2003) (committee substitute); Tex. Lab.Code § 409.021(a-1).
Dissenting Opinion
filed a dissenting opinion,
Chief Justice JEFFERSON, joined by Justice O’NEILL and Justice MEDINA, dissenting.
As I noted in dissent six years ago, I believe Downs was wrongly decided. Con
Downs stated the law, and we should not so quickly cast it aside. Dickerson v. United States,
I
Overruling Downs
Stare decisis has its greatest force in cases involving statutory construction. Grapevine Excavation, Inc. v. Maryland Lloyds,
Downs, a 5-4 decision, was thoroughly briefed (including submissions from the Texas Workers’ Compensation Commission and a chorus of other amici, at least one of which also urges us today to overrule the decision), and it was carefully considered. Bell makes a number of arguments for oveiTuling Downs, most of which were raised and, to my dismay, rejected in Downs. The only new reason advanced is that the Legislature amended section 409.021 nine months after our decision. That is enough, says Bell, to conclude that Downs was “manifestly erroneous.” While it is true that the Seventy-Eighth Legislature amended section 409.021 in 2003, its actions provide no insight into the Seventy-First Legislature’s intent when enacting the law some fourteen years earlier. Massachusetts v. EPA,
Legislatures write statutes; courts construe them. Cf. The Federalist No. 78, at 466 (Alexander Hamilton) (Clinton Rossi-ter ed., 1961)(“The interpretation of the laws is the proper and peculiar province of the courts.”). We did so in Downs, and subsequent legislative action should not affect our construction. This is not to suggest we are infallible. When there are “compelling reasons” for doing so, Weiner,
II
Non-retroactive Application
Nor would I hold, as Bell urges, that Downs should be applied prospectively only. As a rule, our decisions apply retroactively. Elbaor v. Smith,
Since our adoption of the Chevron Oil test, however, the Supreme Court explicitly overruled it as it applies to constitutional decisions and suggested that prospective application was not only wrong as to constitutional decisions, but contrary to the role of the judiciary. The Court stated:
*451 When this Court applies a rule of federal law to the parties before it, that rule is the controlling interpretation of federal law and must be given full retroactive effect in all cases still open on direct review and as to all events, regardless of whether such events predate or postdate our announcement of the rule.... [W]e can scarcely permit the substantive law [to] shift and spring according to the particular equities of [individual parties’] claims of actual reliance on an old rule and of harm from a retroactive application of the new rule.
Harper v. Va. Dep’t of Taxation,
Even if Chevron’s rule is still viable, applying it here would ignore the Legislature’s role in setting a statute’s effective date. Although a legislature cannot interpret the law, see Rowan Oil,
This Act takes effect September 1, 2003, and applies only to a claim for workers’ compensation benefits based on a com-pensable injury that occurs on or after that date. A claim based on a compen-sable injury that occurs before the effective date of this Act is governed by the law in effect on the date the compensa-ble injury occurred, and the farmer law is continued in effect for that purpose.
Act of May 28, 2003, 78th Leg., R. S., ch. 1100, § 2, 2003 Tex. Gen. Laws 3161, 3162 (emphasis added). Thus, the Legislature chose not to disrupt the law in effect prior to September 1, 2003 — the law as interpreted by this Court in Downs,
Ill
Conclusion
The Court holds today that, “without violating the principles of stare decisis,” it may overturn very recent precedent construing a statute. Ironically, those principles counsel just the opposite. When we observe the time-honored tradition of adherence to precedent, particularly in statutory cases, the democratic process generally works as intended. It worked here. The Court declared the law in Downs. Though I believed then (and do now) that the Court’s statutory analysis was flawed, the Downs holding nevertheless bound all litigants. It should also bind the Court. It was entirely appropriate, of course, for a subsequent Legislature to revise the statute. But the fact that the Legislature changed the law does not alter its former validity. Otherwise, the force of any prior decision in which we have determined statutory meaning is subject to change, threatening the law’s stability. I would affirm the court of appeals’ judgment.
