Texas Workers' Compensation Insurance Fund v. DEL Industrial, 35 S.W.3d 591 (Tex. 2000)
This was a suit brought by the Texas Workers' Compensation Insurance Fund (the "Fund") against DEL Industrial, Inc. ("DEL"), alleging additional premiums due from DEL on a workers' compensation insurance policy DEL had purchased from the Fund. The Fund was seeking premiums for workers DEL leased from a licensed staff-leasing company, Administrative Resources, Ltd. ("ARL"). DEL had purchased a workers' compensation insurance policy from the Fund, intending only to cover the executive staff and office personnel who were not leased through ARL, but who remained employees of DEL.
The Fund sued DEL, stating that DEL was responsible for payment of additional premiums attributable to the employees DEL had leased through ARL. The Fund's theory was that DEL was the "co-employer" of the leased workers, and thus was equally responsible for providing workers' compensation insurance coverage for such workers.
The Fund obtained a summary judgment from the Travis County District Court on the issue of DEL's liability for the additional premiums, and after a trial to decide the amount of premiums due, obtained a final judgment.
DEL appealed the judgment to the 3rd Court of Appeals in Austin, Texas. The Court of Appeals reversed the Travis County District Court's judgment, and rendered a judgment in favor of DEL, stating that DEL owed no additional premiums to the Fund. DEL Indus., Inc. v. Texas Workers' Compensation Ins. Fund, 973 S.W.2d 743 (Tex. App.-Austin 1998). The basis of the Court of Appeals' decision was that it was improper for the trial court to base its decision on only one sentence of the Staff Leasing Services Act. Rather, in construing a statute, all provisions of the statute must be reviewed to determine legislative intent.
The Fund appealed this decision to the Texas Supreme Court. After granting the Fund's Petition for Review, the Texas Supreme Court ultimately affirmed the judgment of the Court of Appeals. Texas Workers' Compensation Ins. Fund, 35 S.W.3d 591 (Tex. 2000).
DBI has also won two Texas appeals court cases recently, one in the 9th Court of Appeals and one in the 5th Court of Appeals. In the 9th Court of Appeals in Beaumont, the firm, representing National Family Care Life Insurance, was successful in the appeal of a judgment against its client resulting from a contract dispute involving allegedly vested commissions. The firm convinced the court that the trial court erred by improperly precluding cross-examination on the issues of damages and liability. Then, in December 2001, the 5th Court of Appeals affirmed the trial court's final judgment confirming an arbitration award of approximately $1.3 million in actual damages and $550,000 in punitive damages against John J. Kenny to National Family Care Life Insurance, again represented by DBI.
In the area of administrative proceedings, DBI recently represented InStaff Personnel Services of Plano in an unclaimed audit matter before the Texas Comptroller of Public Accounts. The firm obtained not only a 66% reduction in the amount due to the state comptroller's office, but also a complete waiver of both interest and penalties.
