American Protection Insurance Company v. Liana Leordeanu

Court of Appeals of Texas·Decided February 13, 2009·No. 03-06-00529-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

ON MOTION FOR REHEARING

NO. 03-06-00529-CV

American Protection Insurance Company, Appellant v.

Liana Leordeanu, Appellee

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 201ST JUDICIAL DISTRICT NO. D-1-GN-04-001199, HONORABLE MARGARET A. COOPER, JUDGE PRESIDING

DISSENTING OPINION

I withdraw my previous dissenting opinion and substitute the following opinion on rehearing. Liana Leordeanu was a pharmaceutical sales representative injured in an accident while driving from a business dinner to a storage unit to unload and reorganize the sales materials in her company car. This case hinges on a single issue: Was Leordeanu in the course and scope of her employment at the time of her injury? The jury answered the question in the affirmative. Because there is ample evidence to support the jury’s finding, and the evidence is legally and factually sufficient, I would affirm the judgment.

Workers’ compensation benefits are recoverable only where the death or injury in question occurs in the course and scope of the employee’s employment. Deatherage v. International

Ins. Co., 615 S.W.2d 181, 182 (Tex. 1981). “‘Course and scope of employment’ means an activity of any kind or character that has to do with and originates in the work, business, trade, or profession of the employer and that is performed by an employee while engaged in or about the furtherance of the affairs or business of the employer.” Tex. Lab. Code Ann. § 401.011(12) (West 2006). This statutory term includes activities “conducted on the premises of the employer or at other locations.” Id. (emphasis added). Work that is directed or authorized by the employer is within the course of employment regardless of whether the work benefits the employer’s business. Burkett v. Welborn, 42 S.W.3d 282, 287-88 (Tex. App.—Texarkana 2001, no pet.). An injury “arises out of” employment if it would not have occurred if the conditions and obligations of employment had not placed the claimant in harm’s way. Texas Workers’ Comp. Ins. Fund v. Simon, 980 S.W.2d 730, 735-36 (Tex. App.—San Antonio 1998, no pet.).

It is well settled that courts should construe the Workers’ Compensation Act to carry out the legislature’s evident purpose of compensating injured workers and their dependents. Texas Workers’ Compensation Comm’n v. Patient Advocates of Tex., 136 S.W.3d 643, 652 (Tex. 2004); Ackerson v. Claredon Nat. Ins. Co., 160 S.W.3d 273, 275 (Tex. App.—Austin 2005, pet. denied). Its provisions “should not be hedged about with a strict construction but should be given a liberal construction to carry out its evident purpose.” Lujan v. Houston Gen. Ins. Co., 756 S.W.2d. 295, 297 (Tex. 1998) (quoting Yeldell v. Holiday Hills Ret. & Nursing Ctr., Inc., 701 S.W.2d 243, 245 (Tex.1985)).

With regard to traveling salespersons like Leordeanu, Texas has adopted the “continuous coverage principle.” See Shelton v. Standard Ins. Co., 389 S.W.2d 290, 292-93

(Tex. 1985); Aetna Cas. & Sur. Co. v. Orgon, 721 S.W.2d 572, 574-75 (Tex. App.—Austin 1986, writ ref’d n.r.e.). As explained by Professor Larson and adopted by this Court in Orgon:

Employees whose work entails travel away from the employer’s premises are held in the majority of jurisdictions to be within the course of their employment continuously during the trip, except when a distinct depart[ure] on a personal errand is shown.

Orgon, 721 S.W.2d at 574-75 (quoting 1A A. Larson, Workmen’s Compensation Law § 25.00 (1985)). This Court recognized in Orgon that the “‘continuous coverage principle’ is the prevailing view throughout the United States.” See id. (citing cases). Under this principle, Leordeanu’s injury would be compensable because there was no evidence of a distinct departure on a personal errand at the time of her injury. See id.

The majority begins its analysis from the vantage point of another well-established rule: Ordinarily an employee is not within the course and scope of his employment when he is injured going to and coming from work. Tex. Lab. Code Ann. § 401.011(12)(A); Evans v. Illinois Employers Ins., 790 S.W.2d 302, 304 (Tex. 1990); Texas Gen. Indem. Co. v. Bottom, 365 S.W.2d 350, 353 (Tex. 1963). The rationale for this rule is that such injuries do not arise out of a person’s employment, but are suffered as a consequence of the risk to which all traveling persons are exposed. Evans, 790 at S.W.2d at 304. But this is not a “coming and going” case; it is a traveling salesperson case. See Shelton, 389 S.W.2d at 292-93 (recognizing distinction between “going to or returning from” case and cases involving traveling salesmen). As a traveling salesperson without a fixed place of employment, the risk to Leordeanu was inherent in the employment itself. See United States Fid. & Guar. Co. v. Lowry, 231 S.W. 818, 823 (Tex. Civ. App.—Austin 1921, no writ). An injury is

deemed to arise out of employment if the conditions of employment put the claimant at a greater risk of injury by virtue of his travel. The neutral risk of an automobile accident is causally related to employment if it involves an employee whose duties increase his exposure to such a hazard. “The problem in each case is to determine whether the relationship between the travel and the employment is so close that it can fairly be said that the injury had to do with and originated in the work, business, trade or profession of the employer.” Shelton, 398 S.W.2d at 292.

Moreover, even if we viewed this as a “coming and going” case, there are some exceptions to this general rule. Transportation to and from the place of employment may be in the course and scope of employment if the transportation is furnished as part of the contract of employment or is paid for by the employer. Tex. Lab. Code Ann. § 401.011(12)(A)(i); Bottom, 365 S.W.2d at 353-54; see also Poole v. Westchester Fire Ins. Co., 830 S.W.2d 183, 185-87 (Tex. App.—San Antonio 1992, writ denied) (issue of fact as to whether sales manager on way to work in company car with logo fell within exception to general commute rule). The key issue in determining whether compensation is available for an injury incurred while traveling to or from work under this exception is whether the employer’s furnishing or paying for the transportation was an integral part of the employment contract or merely an accommodation to the employee. In the former case, the injury is within the course of employment and is compensable; in the latter, it is not. See Rose v. Odiorne, 795 S.W.2d 210, 214-15 (Tex. App.—Austin 1990, writ denied) (oil rig employee entitled to compensation if employer’s transportation plan was essential for transporting employees to remote job site, benefitted employer, and was needed to operate rig). There is no

dispute that Leordeanu’s employer furnished and/or paid for Leordeanu’s transportation. Thus, as a matter of law, this exception applies and renders Leordeanu’s injury compensable under the statute.

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