Beldon Roofing & Remodeling Co. v. San Antonio Water System

898 S.W.2d 351, 1995 WL 121016
CourtCourt of Appeals of Texas
DecidedMarch 22, 1995
DocketNo. 04-94-00344-CV
StatusPublished
Cited by3 cases

This text of 898 S.W.2d 351 (Beldon Roofing & Remodeling Co. v. San Antonio Water System) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beldon Roofing & Remodeling Co. v. San Antonio Water System, 898 S.W.2d 351, 1995 WL 121016 (Tex. Ct. App. 1995).

Opinion

OPINION

CHAPA, Chief Justice.

Appellant, Beldon Roofing & Remodeling, Inc., appeals from a summary judgment arising out of a declaratory judgment action in which the trial court was asked to interpret a section of the Texas Workers’ Compensation Act (The Act). On cross-motions for summary judgment, the trial court denied Bel-don’s motion and granted appellee San Antonio Water System’s (SAWS) motion. We affirm.

The section of the Act at issue provides:

§ 406.096. Required Coverage for Certain Building or Construction Contractors.
(a) A governmental entity that enters into a building or construction contract shall Require the contractor to certify in WRITING THAT THE CONTRACTOR PROVIDES WORKERS’ COMPENSATION INSURANCE COVERAGE for each employee of the contractor employed on the public project.
(b) Each subcontractor on the public project shall provide such a certificate relating to coverage of the subcontractor’s employees to the general contractor, who shall provide the subcontractor’s certificate to the governmental entity.
(c) A contractor who has a contract that requires workers’ compensation insurance coverage may provide the Coverage through a group plan or other method
SATISFACTORY TO THE GOVERNING BODY OF THE GOVERNMENTAL ENTITY.
(d) The employment of a maintenance employee by an employer who is not engaging in building or construction as the employer’s primary business does not constitute engaging in building or construction.

Tex.Lab.Code Ann. § 406.096 (Vernon 1995) (formerly article 8308, § 3.23(c) of the Texas Workers’ Compensation Act) (emphasis added); see Act of December 13,1989, 71st Leg., 2nd C.S., ch. 1, § 3.23, 1989 Tex.Gen.Laws 22, repealed by Acts of 1993, 73rd Leg., R.S., ch. 269, § 5, 1993 Tex.Gen.Laws 1273.

Beldon, pursuant to the Uniform Declaratory Judgments Act, Tex.Civ.Prac. & Rem. Code Ann. §§ 37.001-011 (Vernon 1988), [353]*353asked the trial court for an interpretation of this section and a declaration that this provision should not be interpreted to deny Bel-don a building or construction contract based solely on Beldon’s nonsubseriber status under the Act. The trial court held that the disputed article requires governmental entities to contract only with contractors who participate in the state-created workers’ compensation system.

Beldon chose to “opt out” of the Texas Workers’ Compensation system and created its own compensation system that provides benefits to its employees who are injured on the job. According to Beldon, its benefits equal or surpass those mandated by the Act. Beldon bid on a reroofing job for SAWS, a political subdivision of the State of Texas. Although Beldon entered the lowest bid, SAWS did not complete its evaluation of the bid after it determined that Beldon did not have workers’ compensation coverage “as required by State law.” In two points of error, Beldon contends that the trial court erred in denying its motion and in granting SAWS’s motion because, as a matter of law, the challenged article allows governmental entities to contract with a nonsubscriber of the Act if the contractor provides similar coverage through a method that is satisfactory to the governmental entity.

Because this appeal involves the proper construction of a statute, it is a question of law that this court reviews de novo. Johnson v. City of Ft. Worth, 774 S.W.2d 653, 656 (Tex.1989). The purpose of statutory construction is to give effect to the intent of the legislature. Monsanto Co. v. Cornerstones Mun. Util. Dist., 865 S.W.2d 937, 939 (Tex.1993). We presume that the legislature intended that the statute be constitutional, that the entire statute be effective, that the results be just and reasonable, that the statute be capable of execution, and that the public interest be favored over private interests. Tex.Gov’t Code Ann. § 311.021 (Vernon 1988); Linick v. Employers Mut. Casualty Co., 822 S.W.2d 297, 301 (Tex.App. — San Antonio 1991, no writ).

Beldon argues that the legislative intent embodied in the Act is that employers should be able to elect whether to subscribe to the Act, pointing out that participation has never been mandatory. See Tex.Lab.Code Ann. § 406.002 (Vernon 1995). While it is certainly true that the legislature intended to allow employers to opt out of the system, its primary, indeed overriding, intent in enacting the Workers’ Compensation Act was to benefit and protect injured employees and to expedite the settlement of meritorious claims. See Stott v. Texas Employers Ins. Ass’n, 645 S.W.2d 778, 780 (Tex.1983); Hodge v. BSB Invs., Inc., 783 S.W.2d 310, 312 (Tex.App. — Dallas 1990, writ denied). Furthermore, Section 406.002 allows election of the Act with one notable exception: public employers may not opt out of the Act.

Therefore, as we attempt to ascertain the specific legislative intent in enacting Section 406.096 of the Act, we must consider not only the elective nature of Section 406.002, as urged by Beldon, but also the mandatory exception as it relates to the provision in question. SAWS urges that the “public employer” exception bears directly on the legislative reasoning in enacting Section 406.096: a private contractor who works on public contracts should provide the same required coverage for its workers as the public entity contracting with the private employer provides for its workers. We find this argument to be of considerable merit.

Turning to an analysis of Section 406.096, Beldon asserts that the plain language of subsection (e) allows nonsubscribing contractors to contract with governmental entities if the contractor provides its employees with a workers’ benefit system that is satisfactory to the governing body of the entity." Beldon contends that the phrase, “group plan or other method” can only be interpreted as authorizing alternative insurance plans. Because the legislature has included subsection (c), Beldon continues, we must give it effect; we cannot ignore it.

A court must presume that every word in a statute was used for a purpose, and should not ignore language unless it is necessary to give effect to the legislative intent. Roberts v. Southwest Tex. Methodist Hosp., 811 S.W.2d 141, 144 (Tex.App. — San Antonio 1991, writ denied); see Chevron Corp. v. Red[354]*354mon, 745 S.W.2d 314, 316 (Tex.1987) (a court must give effect to all of the words in a statute, if possible, treating none as surplus-age).

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898 S.W.2d 351, 1995 WL 121016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beldon-roofing-remodeling-co-v-san-antonio-water-system-texapp-1995.