Austin Bridge & Rd., LP v. Suarez
556 S.W.3d 363 | Court of Appeals of Texas | 2018
What This Case Means for Subcontractors
A worker died on a Baylor University construction project. His family sued Austin Bridge for $17 million in negligence. Austin Bridge won on appeal because the project had an owner-controlled insurance program (OCIP) that covered all contractors and subcontractors, including Austin Bridge. Under Texas law, workers' compensation benefits are the exclusive remedy—meaning the family couldn't sue for negligence once they received death benefits from the OCIP policy.
Key Takeaways
- •If your project is covered by an OCIP that includes you as a subcontractor, you likely have an exclusive-remedy defense against negligence lawsuits from injured workers or their families.
- •Make sure you're actually listed and covered under any OCIP before relying on it as a defense. Coverage gaps can eliminate this protection.
- •Verify that workers' compensation benefits were actually paid under the OCIP policy—this is essential to establishing the exclusive-remedy defense.
Recovery of workers' compensation benefits is the exclusive remedy against the employer.
Frequently Asked Question
Can a worker's family sue me for negligence if the project has an OCIP?
Not if the OCIP covers you and the worker received death benefits under it. Texas law makes workers' compensation the exclusive remedy when an OCIP is in place. However, you must be actually listed in the OCIP coverage and benefits must have been paid for this defense to work.
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