Unraveling the East Texas Medical Ruling: A Threat to Nonsubscriber Negligence Claims in Texas

Texas courts for decades have recognized that nonsubscriber negligence claims arise out of common law, not the Texas Workers’ Compensation Act. However, a recent decision by the Tyler Court of Appeals threw a wrench in current case law. In the case East Texas Medical, the Tyler Court incorrectly held that a nonsubscribing employer could not designate responsible third parties because a negligence claim against a nonsubscriber is “an action to collect workers’ compensation benefits” under the TWCA. In re E. Tex. Med. Ctr. Athens, No. 12-23-00263-CV (Tex. App. Nov. 21, 2023). Not only does the Tyler Court ignore decades of precedence on nonsubscriber law and misinterpret precedent, they also completely disregard the plain language of the responsible third-party statute.

Arbitration Agreement’s One-Year Statute of Limitations for Employee’s Personal Injury Claim Upheld in Texas Courts

Introduction

On June 28, 2022, Court of Appeals of Texas, Fourteenth District, concluded that a Texas non-subscriber employer could bargain for an arbitration agreement under the FAA to limit the time in which an employee must submit a negligence claim to arbitration, which effectively circumvents the statutory two-year statute of limitation under the Texas Civil Practice and Remedies Code.

Understanding HB 19

Understanding HB 19

On September 1, 2021, Texas House Bill 19 went into effect. The new law provides significant procedural changes to trucking-related lawsuits filed on or after that date. In a nutshell, the new law allows motor carriers to request a two-part trial under certain circumstances. In the first phase, the jury would determine the amount of compensatory damages (i.e. the amount necessary to make a plaintiff whole, including medical expenses and lost wages). In the second phase, the jury would determine the amount of exemplary damages, if any (i.e. “punitive” damages meant to punish the defendant for egregious conduct or send a message to other motor carriers).

COVID-19 is sure to bring a wave of future litigation on a variety of topics, including contract disputes, insurance coverage, landlord-tenant issues, medical malpractice, labor issues, etc. For Texas employers who opt out of workers’ compensation, there is a legitimate concern that work injury lawsuits alleging COVID-19 exposure will spike. More than 3,000 complaints have reportedly been filed with the Occupational Safety & Health Administration (OSHA) alleging workers were exposed to COVID-19 in the workplace. This article addresses the risk of future COVID-19 work injury litigation and evaluates the types of legal claims employers are likely to face and the potential viability of such claims under Texas law. At the end of the article, there is a checklist for employers to consider that may reduce their potential liability exposure.