Becon Construction Company, Inc. and Bechtel Equipment Operations, Inc. v. Jose Alonso, Miguel Betancourt, Jose Rodriguez, Luis Guajardo, Alejandro Salinas, and Ricardo Salinas Jr.

Court of Appeals of Texas·Decided September 25, 2014·No. 09-13-00295-CV·Published

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

NO. 09-13-00295-CV

BECON CONSTRUCTION COMPANY, INC. AND BECHTEL EQUIPMENT OPERATIONS, INC., Appellants

V.

JOSE ALONSO, MIGUEL BETANCOURT, JOSE RODRIGUEZ, LUIS GUAJARDO, ALEJANDRO SALINAS, AND RICARDO SALINAS JR., Appellees

_______________________________________________________ ______________

On Appeal from the 58th District Court Jefferson County, Texas

Trial Cause No. A-190,853 ________________________________________________________ _____________

OPINION

In this permissive appeal, we address whether the exclusive remedy defense provided by the Texas Workers’ Compensation Act applies on a worksite that was subject to a contractor-controlled insurance program. See Tex. Lab. Code Ann. §§ 406.123, 408.001 (West 2006). Because the summary-judgment proof of the appellants, who were subcontractors on the site, established that they were entitled

to rely on the exclusive remedy defense, the appellants’ joint motion for summary judgment should not have been denied. The trial court also erred by granting the appellees’ no-evidence cross-motion for summary judgment, which asserted that the appellants could not rely on the exclusive remedy defense because they provided the trial court with no evidence to show that the general workplace insurance plan in which the appellants were enrolled complied with several Texas Department of Insurance regulations that apply to such plans. We grant the appellants’ joint motion for summary judgment, we deny the appellees’ no- evidence cross-motion for summary judgment, and we order that the appellees take nothing on their claims against the appellants.

Background

In January 2011, Jose Alonso, Miguel Betancourt, Jose Rodriguez, Luis Guajardo, Alejandro Salinas, and Ricardo Salinas Jr. (the employees and appellees) were on a scaffold working at a refinery on a project that involved work that other contractors and subcontractors were performing when a crane collapsed. All of the appellees who are parties to this suit, except Luis Guajardo, were employees of A&L Industrial Services, Inc. when the incident occurred; Luis was employed by Empire Scaffold, LLC. Initially, the employees sued Motiva Enterprises LLC and

Becon Construction Company, Inc.; later, they sued Bechtel Equipment Operations, Inc. in the same suit.

When the crane collapsed, A&L Industrial and Empire Scaffold were subcontractors on Motiva’s project. Both were subcontractors to Performance Contractors, Inc., and Performance was working on the project under a contract with Motiva. The Motiva/Performance contract obligated Performance to provide labor and equipment on the project and required Performance to take directions on the project from the Bechtel-Jacobs Joint Venture. The various contracts in evidence reflect that the Bechtel-Jacobs Joint Venture was the contractor placed in charge of managing the overall project.

The various contracts on the project also included clauses requiring the various contractors and subcontractors to have various types of insurance for the project, including a workers’ compensation policy that covered their respective employees while they worked on the project. The parties to the prime contract on the project were Motiva, Jacobs Engineering Group Inc., and Bechtel Corporation. The contract, with respect to the provisions that concern insurance for the project, required the Bechtel-Jacobs Joint Venture, the project’s general contractor, to “bring into effect a Contractor Controlled Insurance Program[.]” With respect to the workers’ compensation coverage for the project, the program for the project

obligated the Bechtel-Jacobs Joint Venture to obtain a policy covering all of the contractors and subcontractors who were to work on the project.1 The parties do not dispute that when the collapse occurred, Becon Construction and Bechtel Equipment (the subcontractors) were providing either construction equipment or services for the project under their respective subcontracts. Under their respective subcontracts with Performance, A&L Industrial and Empire Scaffold were not obligated to take direction on their work from the Bechtel-Jacobs Joint Venture; they were under contract to Performance. But, they were indirectly required to take direction from the Bechtel-Jacobs Joint Venture, as Performance’s contract with Motiva required that Performance take direction on its work from the Bechtel-Jacobs Joint Venture.

There is also no dispute that Becon Construction and Bechtel Equipment were named as insureds on the workers’ compensation policy obtained for the project by the Bechtel-Jacobs Joint Venture. The summary-judgment evidence

included various insurance policy endorsements and schedules, and these indicate 1 The contract contains an exception to the single-policy-for-the-project requirement, and allowed the contractors and subcontractors, by express agreement, to be excluded from the contract requirement that they enroll in the general workplace insurance plan. With respect to A&L Industrial and Empire Scaffold, the employers of the appellees, there was no summary-judgment evidence indicating that they had express agreements that excluded them from the requirement to enroll in the general workplace insurance plan created for the project.

that the Bechtel-Jacobs Joint Venture, Becon Construction, Bechtel Equipment, Performance, A&L Industrial, and Empire Scaffold, as well as numerous other entities not subject to the appeal, were named as additional insureds on the workers’ compensation policy that the Bechtel-Jacobs Joint Venture procured for the project. In the Motiva/Performance contract, Performance and its subcontractors were required to enroll as insureds in the general workplace insurance plan created for the project.

The employees who sued were injured when a crane owned by Bechtel Equipment and operated by Becon Construction collapsed. The employees who sued were present and were working on the project because their respective employers, A&L Industrial and Empire Scaffold, had contracts with Performance. The employees of Empire Scaffold and A&L Industrial who sued collected compensation benefits under the workers’ compensation policy obtained under the requirements obligating the Bechtel-Jacobs Joint Venture to procure the insurance coverage for the contractors and subcontractors who were to work on the project.

The Parties’ Arguments

Arguing that the Act’s exclusive remedy provision limited the employees to their compensation benefits and precluded them from bringing their common law damage claims, Becon Construction and Bechtel Equipment moved for summary

judgment on all of the claims of the employees that sued them. See Tex. R. Civ. P. 166a(c). In their appeal, Becon Construction and Bechtel Equipment contend the trial court erred by not granting their joint motion for summary judgment, and they argue the trial court should have rendered a take-nothing judgment in their favor on the employees’ claims.

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Becon Construction Company, Inc. and Bechtel Equipment Operations, Inc. v. Jose Alonso, Miguel Betancourt, Jose Rodriguez, Luis Guajardo, Alejandro Salinas, and Ricardo Salinas Jr., (Tex. Ct. App. 2014).

Becon Construction Company, Inc. and Bechtel Equipment Operations, Inc. v. Jose Alonso, Miguel Betancourt, Jose Rodriguez, Luis Guajardo, Alejandro Salinas, and Ricardo Salinas Jr. (Becon Construction Company, Inc. and Bechtel Equipment Operations, Inc. v. Jose Alonso, Miguel Betancourt, Jose Rodriguez, Luis Guajardo, Alejandro Salinas, and Ricardo Salinas Jr.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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