American Zurich Insurance Co. v. Sandra Jasso

598 F. App'x 239
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 13, 2015
Docket13-51097
StatusUnpublished
Cited by13 cases

This text of 598 F. App'x 239 (American Zurich Insurance Co. v. Sandra Jasso) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Zurich Insurance Co. v. Sandra Jasso, 598 F. App'x 239 (5th Cir. 2015).

Opinion

PER CURIAM: *

After exhausting its state administrative remedies in Texas, Plaintiff-Appellant and *242 Cross-Appellee American Zurich Insurance Company (“Zurich”) filed suit in district court seeking reversal of a decision of an appeals panel (“Appeals Panel”) for the Texas Department of Insurance, Division of Workers’ Compensation (“DWC”) finding Defendant-Appellee and Cross-Appellant Sandra Jasso (“Appellee” or “Sandra Jasso”) entitled to death benefits. The district court denied Sandra Jasso’s motion to dismiss for lack of subject matter jurisdiction. Zurich then filed a motion for summary judgment, and Sandra Jasso filed a motion for partial summary judgment. Affirming the decision of the Appeals Panel, the district court denied Zurich’s motion but granted Sandra Jasso’s motion. Counsel for Sandra Jasso filed a motion for attorney’s fees, which the district court denied in part for various reasons. Zurich appealed the denial of its motion for summary judgment and the grant of Sandra Jasso’s motion for partial summary judgment. Sandra Jasso cross-appealed the denial of her motion to dismiss for lack of jurisdiction and the partial denial of her attorney’s fees. For the reasons stated herein, we affirm the district court in all respects.

I. FACTUAL AND PROCEDURAL HISTORY

On September 14, 2011, a contested case hearing officer for the Texas Department of Insurance determined that Hilario Jasso (“Jasso”) sustained a compensable injury on July 20, 2010, that resulted in his death, entitling Sandra Jasso to death benefits under the Texas Labor Code. The hearing officer deemed the injury compensable because Jasso was acting in the course and scope of his employment with DCP Midstream (“DCP”). Zurich, DCP’s insurer, appealed the decision of the hearing officer to the Appeals Panel, which did not issue a decision within forty-five days of the appeal, causing the decision of the hearing officer to become final on December 19, 2011, pursuant to Tex. Lab. Code § 410.204(c). Zurich then filed the instant case, seeking a determination that Jasso was not acting in the course and scope of his employment with DCP at the time of the accident.

Jasso worked for DCP as a field supervisor based at DCP’s Fullerton office on the date of his death. Jasso’s job was to oversee field operations, which included scheduling employees, overseeing time off and vacation, and ensuring that all DCP’s engines in the gas extraction and pipeline operations divisions were running. As part of his job, DCP issued Jasso a cell phone, laptop computer, and a company truck. The truck was not to be used for personal purposes. DCP also provided Jasso with a fuel card for the truck but required Jasso to pay income tax on the value of the use of the company truck to commute to and from work. DCP’s logo was on the outside of Jasso’s truck. DCP gave Jasso discretion to- travel either to the Fullerton office or one of the field locations each day. Regardless of whether he traveled to the Fullerton office or a field location, Jasso would travel out of Odessa along Highway 385 North.

On July 19, 2010, Jasso took off work for a wellness physical, which was encouraged by DCP so its employees would qualify for an insurance discount. On the morning of July 20, 2010, Jasso returned to his physician’s office to have his blood drawn for one more test as a part of the physical. He left his house for the physician’s office later than he would normally leave for work. Jasso received and placed numerous phone calls to various DCP employees before having his blood drawn. Jasso left *243 the physician’s office and proceeded to an off-site work location known as the Love Discharge Facility to meet a DCP employee to help make a decision about laying certain pipeline at that site. On his way to the Love Discharge Facility, Jasso’s truck was struck at an intersection on Highway 385 by a vehicle that ran a stop sign. This intersection was along the same route as Jasso’s daily commute to and from work. Jasso died as a result of the accident.

II. DISCUSSION

A. Jurisdiction and Abstention

We first consider whether the district court had subject matter jurisdiction. This court reviews an interlocutory appeal of a denial of a motion to dismiss for lack of subject matter jurisdiction de novo. E.I. DuPont de Nemours & Co. v. Sawyer, 517 F.3d 785, 792 (5th Cir.2008). Tex. Lab.Code § 410.251 provides that “[a] party that has exhausted its administrative remedies under this subtitle and that is aggrieved by a final decision of the appeals panel may seek judicial review[J” Diversity jurisdiction in federal court is allowed for “citizens of different States” for “all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interests and eosts[.]” 28 U.S.C. § 1332(a).

Sandra Jasso makes two arguments that the district court did not have jurisdiction: (1) the enactment of the Texas Workers’ Compensation Act of 1989 (“1989 Act”) removed the basis for jurisdiction for federal courts to review final decisions of an appeals panel for the DWC, and (2) the amount in controversy was not greater than $75,000, as the district court case was an appeal of an agency finding with no pleading for monetary recovery.

Counsel for Sandra Jasso cites no case-law to support the contention that the 1989 Act had any effect on federal judicial review of decisions of the DWC. In fact, two courts in this circuit have recently stated that subject matter jurisdiction extends to Texas Workers’ Compensation Act cases where the plaintiff has exhausted administrative remedies. See Rubell v. Gen. Dynamics Corp., No. 7:10-CV-00176-O, 2011 WL 477175, at *1 (N.D.Tex. Jan. 20, 2011); England v. Liberty Ins. Corp., No. H:10-1937, 2011 WL 3567084, at *2 (S.D.Tex. Aug. 12, 2011). The court in Rubell noted that “[ajlthough it is unusual to find a worker’s compensation case filed in Federal Court because it is a state statutory action, the court does have subject matter jurisdiction so long as complete diversity and the requisite amount in controversy are established.” 2011 WL 477175, at *1. In denying an insurance company’s motion to dismiss for lack of subject matter jurisdiction, the court in England stated, “there is no Texas law to suggest that this court’s jurisdiction ought to be constrained after an initial determination by the DWC that benefits were due.” 2011 WL 3567084, at *2. The England court concluded that “because ... a Texas state court would hold that it has jurisdiction, this court ... has jurisdiction over this diversity action.” Id.

As noted in Rubell, this type of suit is not common in federal court, but we agree it is not necessarily improper. 2011 WL 477175, at *1. 1 Tex.

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598 F. App'x 239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-zurich-insurance-co-v-sandra-jasso-ca5-2015.