Hartford Accident & Indemnity Co. v. Buckland

882 S.W.2d 440, 1994 Tex. App. LEXIS 2241, 1994 WL 316836
CourtCourt of Appeals of Texas
DecidedJune 30, 1994
Docket05-93-00631-CV
StatusPublished
Cited by28 cases

This text of 882 S.W.2d 440 (Hartford Accident & Indemnity Co. v. Buckland) 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
Hartford Accident & Indemnity Co. v. Buckland, 882 S.W.2d 440, 1994 Tex. App. LEXIS 2241, 1994 WL 316836 (Tex. Ct. App. 1994).

Opinion

OPINION

ROSENBERG, Justice.

This ease arises out of a third-party claim under the Texas Workers’ Compensation Act. 1 Hartford Accident and Indemnity Company (Hartford) appeals the trial court’s judgment in favor of Theodore Buckland, Theodore Eric Buckland, and Brittany Buck-land (collectively Buckland). In two points of error, Hartford contends that the trial court erred in ruling as a matter of law that Hartford is not entitled to a credit for future benefit payments against Buckland’s recovery from third parties and that the trial court erred in awarding Buckland’s attorney one-third of Hartford’s subrogation recovery as attorney’s fees. We affirm the trial court’s judgment.

FACTUAL BACKGROUND

Hartford issued a workers’ compensation insurance policy to Fish Engineering and Construction, Inc. (Fish) under which it agreed to pay benefits in accordance with the Texas Workers’ Compensation Act to certain Fish employees who suffered covered injuries during the course and scope of their employment. In its policy of insurance, Hartford agreed to waive certain rights to recover payments under the policy from third parties. The policy provides:

We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule, but this waiver applies only with respect to bodily injury arising out of the operations described in the Schedule where you are required by a written contract to obtain this waiver from us.
This endorsement shall not operate directly or indirectly to benefit anyone not named in the Schedule.
The premium for this endorsement is shown in the Schedule.
SCHEDULE
1. ( ) Specific Waiver
Name of person or organization
2. (X) Blanket Waiver
Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver.

In 1987, Fish contracted with Phillips Petroleum Company (Phillips Petroleum) to provide construction services at Phillips Petroleum’s facilities. The contract provided that Phillips Petroleum was entitled to the waiver of Hartford’s subrogation rights. During the construction contract, one of Fish’s employees, Buckland, suffered severe injuries when he fell from scaffolding designed, manufactured, and marketed by Fig-gie International, Inc. (Figgie). Hartford be *442 gan paying workers’ compensation benefits to Buckland under the policy.

While continuing to receive workers’ compensation benefits, Buckland, individually and as next friend of his two minor children, filed suit in August 1989 against Phillips Petroleum and Figgie asserting theories of negligence and strict liability. 2 Hartford intervened in the suit. Buckland later joined Phillips 66 Company (Phillips 66) as an additional defendant. Buckland ultimately settled his case with Phillips Petroleum and Phillips 66 for approximately $3.2 million (Phillips settlement). Buckland settled his case with Figgie for $75,000 (Figgie settlement).

PROCEDURAL BACKGROUND

In December 1991, the trial court entered a summary judgment that Hartford recover nothing by way of its subrogation action filed against Phillips 66 on the ground that Hartford’s contractual waiver of subrogation extended to Phillips 66. Additionally, in January 1992, the trial court rendered a summary judgment that Hartford was not entitled to attorney’s fees on any portion of the Phillips settlement recovery. On January 30, 1992, the trial court entered an agreed judgment with respect to the settlement of all claims against the defendants.

In April 1992, Hartford filed an amended plea in intervention. Hartford sought declaratory relief concerning its entitlement to a credit against Buckland’s recovery of the Phillips settlement, its entitlement to the $75,000 Figgie settlement, apportionment of attorney’s fees, and equitable subrogation. Thereafter, Buckland, Hartford, and Figgie settled all matters in controversy between them, and the trial court entered a take-nothing judgment on Buckland’s and Hartford’s claims against Figgie.

Hartford then filed a motion for summary judgment seeking a declaration that, notwithstanding its contractual waiver of subrogation, Hartford was entitled to a credit against future benefits from the excess of Buckland’s $3.2 million settlement recovery from Phillips 66 over the amounts previously paid to Buck-land by Hartford. Hartford also sought a declaration that it was entitled to subrogation recovery of the entire $75,000 Figgie settlement on the grounds that no waiver existed in favor of Figgie.

Buckland filed a cross-motion for summary judgment and a motion for attorney’s fees out of the $75,000 Figgie settlement. On May 22, 1992, the trial court denied Hartford’s motion for summary judgment seeking declaratory relief. The trial court did not dispose of Buekland’s cross-motion for summary judgment or Buckland’s motion for attorney’s fees.

On June 19, 1992, Hartford filed a motion for new trial, requesting the trial court to reconsider its May 22, 1992 order denying Hartford’s motion for summary judgment. The record reflects that the trial court did not rule on Hartford’s motion for new trial until March 1, 1993.

Hartford perfected this appeal on March 30,1993, complaining of the trial court’s May 22, 1992 order denying its motion for summary judgment, and filed an abridged transcript on April 19 containing the May 22, 1992 order. We informed the parties on May 10, 1993, that the transcript did not contain a final judgment because the denial of Hartford’s motion for summary judgment was not a disposition on the merits. We instructed the parties to file a supplemental transcript containing an order disposing of all the claims.

Thereafter, the parties filed a supplemental transcript containing various other judgments, including a January 30, 1992 agreed judgment, a take-nothing judgment on Buck-land’s and Hartford’s claims against Figgie, and a “final judgment” entered on May 26, 1993, signed ostensibly in response to this Court’s May 10, 1993 instructions. The May 26, 1993 judgment ordered that (1) Hartford was not entitled to subrogation from Phillips 66 because Hartford waived its subrogation rights against both Phillips Petroleum and Phillips 66, (2) Hartford was not entitled to a credit because its waiver of subrogation also waived its right to future credits, (3) Hartford was not entitled to attorney’s fees from *443 any recovery from Phillips Petroleum and Phillips 66 because of its waiver of subrogation and because there was no recovery by Hartford, (4) Hartford was not entitled to attorney’s fees out of the $75,000 Figgie settlement, (5) Buckland’s attorney was awarded 33⅞ percent of the Figgie settlement as attorney’s fees, and (6) Hartford was not entitled to recover any portion of the $944,-686.99 paid to Buckland in benefits under the workers’ compensation insurance policy with Buckland’s employer.

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Bluebook (online)
882 S.W.2d 440, 1994 Tex. App. LEXIS 2241, 1994 WL 316836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartford-accident-indemnity-co-v-buckland-texapp-1994.