Home Indemnity Co. v. Pate

866 S.W.2d 277, 1993 Tex. App. LEXIS 2774, 1993 WL 414701
CourtCourt of Appeals of Texas
DecidedOctober 14, 1993
Docket01-93-00022-CV
StatusPublished
Cited by7 cases

This text of 866 S.W.2d 277 (Home Indemnity Co. v. Pate) 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
Home Indemnity Co. v. Pate, 866 S.W.2d 277, 1993 Tex. App. LEXIS 2774, 1993 WL 414701 (Tex. Ct. App. 1993).

Opinion

OPINION

DUGGAN, Justice.

This is the appeal of a second take-nothing summary judgment in a suit for conversion. The appellee/defendant, Gordon R. Pate, was the attorney for a settling third-party defendant in a separate and underlying suit. That suit was a worker’s compensation claimant’s third party action, authorized by former Tex. Rev.Civ.Stat.Ann. art. 8307. 1 A first summary judgment in Pate’s favor was reversed and remanded. Home Indem. Co. v. Pate, 814 S.W.2d 497 (Tex.App.—Houston [1st Dist.] 1991, writ denied).

The appellant, The Home Indemnity Company (Home Indemnity), was the workers’ compensation carrier for Arthur Dooley & Son, Inc., whose employee, Charles Riddle (the employee), was injured in the course and scope of his employment. Home Indemnity made workers compensation and medical benefits’ payments to the employee in the amount of $37,748.49.

The employee then brought a third-party action against Allied Chemical Corporation, alleging negligence that proximately caused his injuries. The suit, styled Charles Thomas Riddle v. Allied Chemical Corporation, was filed in the U.S. District Court, Eastern District of Texas, Beaumont Division, cause number B-82-722-CA, and resulted in a favorable settlement to the employee in the amount of $45,000. The federal court denied Home Indemnity’s attempt to intervene in the employee’s third-party action. In its final judgment, the federal court entered an agreed judgment that Home Indemnity “have and recover nothing by way of any intervention or subrogation interest.” In concluding the settlement, Pate, the attorney representing Allied Chemical in the third-party action, transferred the settlement funds to the employee and the employee’s attorney in accordance with the federal court’s judgment and without accounting to Home Indemnity for its subrogation lien under article 8307.

Home Indemnity then filed this suit against Pate, Allied Chemical’s attorney, alleging conversion by Pate in directing the settlement payment to the employee and his attorney when Pate was aware of Home Indemnity’s subrogation claim. Pate answered and filed a first motion for summary judgment, asserting res judicata and collateral estoppel (based on the federal district court’s judgment), and good faith. The trial court granted Pate’s first motion for summary judgment and Home Indemnity appealed; this Court reversed the first summary judgment and remanded. Our opinion noted that summary judgment could be granted only on grounds set out in the motion; found that Pate had asserted only res judicata and collateral estoppel (based on the federal court suit), and good faith; and held that because Home Indemnity was not a party to the federal court suit, it was not barred from recovery under the doctrines of res judicata or collateral estoppel. We also held that good faith conduct was not a defense in a lawsuit seeking damages for conversion. Home Indem. Co., 814 S.W.2d at 500-501.

Upon remand, Home Indemnity and Pate each filed motions for summary judgment. On November 18, 1992, the trial court granted Pate’s second motion and denied Home Indemnity’s motion. Home Indemnity now appeals the granting of Pate’s second motion and the denial of its own. Home Indemnity urges three points of error; Pate asserts two reply points. We affirm.

The standard for appellate review of a summary judgment in favor of a defendant is whether the summary judgment proof establishes, as a matter of law, that there is *280 no genuine issue of fact as to one or more of the essential elements of the plaintiff’s cause of action. Gibbs v. General Motors Corp., 450 S.W.2d 827, 828 (Tex.1970). The movant has the burden to show that there is no genuine issue of material fact, and that it is entitled to judgment as a matter of law. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548-49 (Tex.1985). Evidence favorable to the nonmovant will be taken as true in deciding whether there is a disputed material fact issue that precludes summary judgment. Id. Every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in its favor. Montgomery v. Kennedy, 669 S.W.2d 309, 310-11 (Tex.1984). Once the defendant produces sufficient evidence to establish the right to a summary judgment, the plaintiff must set forth sufficient evidence to give rise to a fact issue to avoid a summary judgment. “Moore” Burger, Inc. v. Phillips Petroleum Co., 492 S.W.2d 934, 936-37 (Tex.1972).

The underlying events in this cause of action are governed by former Tex.Rev. Civ.Stat.Ann. art. 8307. This statute allows an injured employee to proceed against a third-party tortfeasor without precluding a claim against the employer’s compensation carrier. Watson v. Glens Falls Ins. Co., 505 S.W.2d 793, 795 (Tex.1974); Home Indem. Co., 814 S.W.2d at 498. The claimant, however, is prevented from getting a double recovery because the carrier is entitled to recoupment of its claims to the extent of all the compensation paid. Fort Worth Lloyds v. Haygood, 151 Tex. 149, 153, 246 S.W.2d 865, 869 (1952); Home Indem. Co., 814 S.W.2d at 498. The carrier has a statutory right to reimbursement out of the first monies paid to an injured employee or his representatives by a third-party tortfeasor, up to the amount of compensation paid, and can recover the amount from the employee or the third-party tortfeasor. Watson, 505 S.W.2d at 795; Fort Worth Lloyds, 246 S.W.2d at 870; Home Indem. Co., 814 S.W.2d at 498. To enforce its right to reimbursement, Home Indemnity was not required to intervene in the third-party action. Home Indem. Co., 814 S.W.2d at 500-501; Travelers Ins. Co. v. Seidel, 705 S.W.2d 278, 281 (Tex.App.—San Antonio 1986, writ dism’d).

A summary judgment cannot be affirmed on any grounds not presented in the motion for summary judgment. Hall v. Harris County Water Control & Improvement Dist. No. 50, 683 S.W.2d 863, 867 (Tex.App.—Houston [14th Dist.] 1984, no writ). When a trial court’s order does not specify the grounds relied on for its ruling, the summary judgment will be affirmed if any of the theories advanced are meritorious. Insurance Co. of North America v. Security Ins. Co., 790 S.W.2d 407, 410 (Tex.App.—Houston [1st Dist.] 1990, no writ).

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Bluebook (online)
866 S.W.2d 277, 1993 Tex. App. LEXIS 2774, 1993 WL 414701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-indemnity-co-v-pate-texapp-1993.