Oklahoma Surety Co. v. Williams

483 F. Supp. 2d 541, 2006 U.S. Dist. LEXIS 95944, 2006 WL 4447766
CourtDistrict Court, W.D. Texas
DecidedDecember 20, 2006
Docket3:04-cv-00463
StatusPublished
Cited by1 cases

This text of 483 F. Supp. 2d 541 (Oklahoma Surety Co. v. Williams) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oklahoma Surety Co. v. Williams, 483 F. Supp. 2d 541, 2006 U.S. Dist. LEXIS 95944, 2006 WL 4447766 (W.D. Tex. 2006).

Opinion

ORDER

CARDONE, District Judge.

On this date, the Court considered Plaintiffs “Motion to Withdraw Funds and for Declaratory Judgment” and Plaintiffs “Motion for Permanent Injunction Against Any Further Proceedings on Plaintiff Uninsured Motorist Coverage for These Claims” (“Motion for Permanent Injunction”). Having reviewed the record, Plaintiffs Motion to Withdraw Funds is GRANTED and Plaintiffs Motion for Permanent Injunction is GRANTED.

1. BACKGROUND

The instant case involves an interpleader action filed by Plaintiff Oklahoma Surety Company (“Plaintiff’) against Defendants James Williams (‘Williams”), Rito Meza (“Meza”), Patricio Cano, Jr. (on whose behalf Bertha Alicia Cano brings the instant suit), and Elba Puentes (“Puentes”). 1

Plaintiff issued an insurance policy to Mimbela Construction Company (“Mimbe-la”), which policy provided uninsured motorist coverage. 2 Def., Elba Puentes’ *544 Resps. to Pl.’s Mot. to Withdraw Funds and for Declaratory J. and for Permanent Inj., Ex. A ¶ 1 (“Puentes’ Prop. Undisputed Facts”); PL’s Resp. to Puentes’ Statement of Contested and Uncontested Material Facts 1 (“PL’s Resp. to Prop. Undisputed Facts”). Defendants Williams, Meza, Bertha Alicia Cano, and Puentes are claimants to this policy’s proceeds. Puentes’ Prop. Undisputed Facts ¶2; PL’s Resp. to Prop. Undisputed Facts 2.

On or about February 13, 2004, John Rios (“Rios”), Meza, Williams, Patricio Cano, Jr., Seferino Lara (“Lara”), and José Moreno (“Moreno”) (on whose behalf Defendant Puentes defends the instant suit) met at Mimbela’s headquarters at 6:00 a.m. in order to carpool to Holloman Air Force Base in New Mexico for a job. App. to PL’s Mot. to Withdraw Funds and for Declaratory J., Ex. A, 10:6-11:16 (“Meza Dep.”). Meza and Williams testified that as a general rule, employees would meet at Mimbela’s headquarters and Mimbela would provide transportation to a job site if the job site was located far away. Id. at 10:6-9, 11:23-12:5; App. to PL’s Mot. to Withdraw Funds and for Declaratory J., Ex. B, 13:3-16 (“Williams Dep.”). On or about February 13, 2004, the company’s van had broken down and Rios told the employees to ride in his pickup truck because Mimbela had authorized him to drive the pickup to the job site. Meza Dep. at 10:10-20, 20:3-6; Puentes’ Prop. Undisputed Facts ¶ 3; PL’s Resp. to Prop. Undisputed Facts 2. They left at 6:00 a.m. Meza Dep. 11:15-22. Meza testified that they were supposed to be “on the clock” at 7:00 a.m. Id. at 11:20-22.

While on Highway 54 in New Mexico, Rios hit an unseen patch of ice and lost control of his truck. Puentes’ Prop. Undisputed Facts ¶ 4; PL’s Resp. to Prop. Undisputed Facts 2. This resulted in a one-vehicle rollover accident. Puentes’ Prop. Undisputed Facts ¶ 4; PL’s Resp. to Prop. Undisputed Facts 2. As a result of this accident, Defendants Meza and Williams suffered various injuries. Puentes’ Prop. Undisputed Facts ¶ 5; PL’s Resp. to Prop. Undisputed Facts 2. Moreno and Patricio Cano, Jr. were both ejected from the truck and died at the scene of the accident. Puentes’ Prop. Undisputed Facts ¶ 5; PL’s Resp. to Prop. Undisputed Facts 2.

Faced with multiple adverse claims exceeding policy limits, Plaintiff filed a statutory interpleader action in federal court on December 14, 2004. Puentes’ Prop. Undisputed Facts ¶ 6; PL’s Resp. to Prop. Undisputed Facts 2. Plaintiff believed and alleged that it had no interest in the policy proceeds, and further that one or more of the named Defendants had a right to all of the policy proceeds. Puentes’ Prop. Undisputed Facts ¶ 7; PL’s Resp. to Prop. Undisputed Facts 2. Plaintiff also tendered the maximum amount of the policy proceeds, $300,000, to the Registry of the Court on or near January 6, 2005. Puentes’ Prop. Undisputed Facts ¶ 6; PL’s Resp. to Prop. Undisputed Facts 2.

Plaintiff now asserts that upon conducting further discovery in this case, it has learned that Defendants would be barred from recovering anything against Rios, and are thus barred from recovering against Plaintiff under the exclusivity provisions of both the Texas and New Mexico Workers’ Compensation Acts. Puentes’ Prop. Undisputed Facts ¶ 7; PL’s Resp. to Prop. Undisputed Facts 2. Defendants assert that at the time Plaintiff filed the interpleader action, it knew that the Defendants were barred from recovery. Puentes’ Prop. Undisputed Facts ¶ 7; PL’s Resp. to Prop. Undisputed Facts 2. Thus, Plaintiff cannot now assert any statutory bar to recovery. Puentes’ Prop. Undisput *545 ed Facts ¶ 7; PL’s Resp. to Prop. Undisputed Facts 2.

At the time of this accident, Mimbela possessed workers’ compensation coverage for all of its employees. Puentes’ Prop. Undisputed Facts ¶ 8; PL’s Resp. to Prop. Undisputed Facts 2. After the accident, Bertha Alicia Cano, Lara, Meza, and Williams filed workers’ compensation claims. App. to PL’s Mot. to Withdraw Funds and for Declaratory J., Ex. C, 17:9-20:8 (“Bertha Alicia Cano Dep.”); Meza Dep. 16:23-25; Williams Dep. 21:13-27:19. Initially, the Texas Workers’ Compensation Commission denied these claims. Bertha Alicia Cano Dep. 18:3-19:18; Meza Dep. at 17:1-2; Williams Dep. at 25:5-27:19. Later, however, the Texas Workers’ Compensation Commission provided Bertha Alicia Cano, Lara, Meza, and Williams with workers’ compensation benefits, including medical care, funeral expenses, and other benefits where applicable. Bertha Alicia Cano Dep. at 19:19— 23:7; Meza Dep. 17:3-21; Williams Dep. 25:5-27:19. Around this time, Bertha Alicia Cano, Lara, Meza, and Williams filled out Benefit Dispute Agreement forms indicating that the employees involved in the accident sustained compensable injuries on February 13, 2004 and that the injured employees had disabilities from February 14, 2004 through February 29, 2004 as a result of the accident. Bertha Alicia Cano Dep. at 18:13-19:20:8; Meza Dep. at Ex. 3; Williams Dep. at Ex. 25.

Following the accident, Defendant Puentes also filed claims with the Texas Department of Insurance, Division of Workers’ Compensation (“Texas DWC”). Puentes’ Prop. Undisputed Facts ¶ 9, Ex. B6; PL’s Resp. to Prop. Undisputed Facts 2. The Texas DWC denied all of her claims, finding that Moreno was not injured while in the course and scope of his employment for Mimbela. Puentes’ Prop. Undisputed Facts ¶ 9, Ex. B6; PL’s Resp. to Prop. Undisputed Facts 2. The Texas DWC noted that Texas Labor Code section 401.011(12) provides that the term “course and scope of employment” does not include transportation to and from the place of employment, and that Moreno was injured while traveling to his place of employment. Puentes’ Prop. Undisputed Facts ¶ 9, Ex. B6; PL’s Resp. to Prop. Undisputed Facts 2. Further, the Texas DWC noted that Mimbela had not furnished the transportation as part of Moreno’s employment contract, that the means of transportation was not under the control of Mimbela, that Moreno was not directed to travel from one place to another, and finally that Moreno was not furthering an interest of the employer at the time of the accident. Puentes’ Prop. Undisputed Facts ¶ 9, Ex. B6; PL’s Resp. to Prop. Undisputed Facts 2.

Mario Rodriguez, Sr.

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Cite This Page — Counsel Stack

Bluebook (online)
483 F. Supp. 2d 541, 2006 U.S. Dist. LEXIS 95944, 2006 WL 4447766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-surety-co-v-williams-txwd-2006.