Hunt Construction Group, Inc. v. Konecny
290 S.W.3d 238 | Texas Court of Appeals, 1st District (Houston) | 2009
What This Case Means for Subcontractors
Kevin Konecny, a foreman for a subcontractor, was injured at the Toyota Center construction project in Houston and received workers' compensation benefits. He then sued the general contractor (Hunt) and other subcontractors for negligence. The Texas Court of Appeals ruled that because Konecny received workers' compensation benefits through the owner-controlled insurance program (OCIP) that covered all subcontractors on the project, he could not sue the other contractors. The court found that workers' compensation was his exclusive remedy, blocking the negligence lawsuit entirely.
Key Takeaways
- •If you're covered under an owner-controlled insurance program (OCIP) that provides workers' compensation, your employees cannot sue other subcontractors on the same project for negligence—workers' comp is their only recovery option.
- •Require all subcontracts to include participation in any OCIP or group workers' compensation program. This protects you from negligence lawsuits by injured workers from other subs.
- •Make sure your subcontracts clearly state that workers' compensation coverage is the exclusive remedy for job injuries. This language shields you from liability claims.
Recovery of workers' compensation benefits is the exclusive remedy.
Frequently Asked Question
If my employee gets hurt on a job with an owner-controlled insurance program, can they sue other subcontractors?
No. If workers' compensation benefits were paid through the OCIP or group program covering all subs on the project, that is the employee's only remedy. They cannot file a negligence lawsuit against other subcontractors. Make sure your subcontracts clearly state this to avoid disputes.
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