Silsbee Hospital, Inc. v. George

163 S.W.3d 284, 2005 Tex. App. LEXIS 3236, 2005 WL 991726
CourtCourt of Appeals of Texas
DecidedApril 28, 2005
Docket09-04-368-CV
StatusPublished
Cited by13 cases

This text of 163 S.W.3d 284 (Silsbee Hospital, Inc. v. George) 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
Silsbee Hospital, Inc. v. George, 163 S.W.3d 284, 2005 Tex. App. LEXIS 3236, 2005 WL 991726 (Tex. Ct. App. 2005).

Opinion

OPINION

HOLLIS HORTON, Justice.

In this case, an employee of a nonsub-scriber to workers’ compensation insurance voluntarily elected to participate in an employee benefit plan that provided specified benefits in lieu of a common law remedy. The employer, Silsbee Hospital, Inc. d/b/a Columbia Silsbee Doctors Hospital, contends that under the employee benefit plan the employee, Lonny George, waived his common law rights to sue for personal injuries. The Hospital raises additional errors regarding: (1) the trial court’s refusal to grant it additional strikes for certain veniremembers it challenged for cause, (2) the trial court’s evidentiary rulings to exclude evidence arguably relevant to its affirmative defenses of waiver, release and estoppel, (3) the trial court’s broad form damage submission and refusal to submit a damage charge with segregated elements of damage, (4) the jury’s arguably excessive damage award, and, (5) the refusal of the trial court to allow it to amend its pleadings to assert the affirmative defense of ratification.

While descending a ladder on February 29, 1996, George was injured when the ladder slipped and he fell. He received multiple fractures of the bones in his foot and, subsequently, had three surgeries as a result of his injuries. A jury awarded George $1,000,000 in his suit against the Hospital. The award consisted of $100,000 for past damages and $900,000 for future damages.

Applying the rules of contract construction, as further discussed below, we hold that the waiver George signed does not expressly apply to relieve the Hospital of its potential liability at common law. We find the trial court erred in failing to grant additional strikes in jury selection. We also find this error was harmful and requires us to reverse and remand.

The Waiver Agreement

Prior to his injury, George elected to participate in an employee benefit plan and, in doing so, waived certain rights to bring negligence suits for on-the-job injuries. On February 14, 1996, George signed a document titled “ELECTION TO PARTICIPATE IN THE EMPLOYEE HEALTH AND SAFETY PROGRAM BENEFIT PLAN OF COLUMBIA/HCA HEALTHCARE CORPORATION.” The document (hereafter referred to as the “waiver agreement”) states, in all capital letters, “EXECUTION OF THIS DOCUMENT INVOLVES THE WAIVER AND RELEASE OF VALUABLE LEGAL RIGHTS.” The waiver agreement further provides:

By execution of this document, I hereby voluntarily elect to participate in the Employee Health and Safety Program Benefit Plan of Columbia/HCA Healthcare Corporation (the “Plan”). AS REQUIRED BY THE TERMS OF THE PLAN, I, THE UNDERSIGNED, HEREBY FREELY, IRREVOCABLY AND UNCONDITIONALLY RELEASE,. WAIVE AND AGREE NOT TO SUE UPON, ANY AND ALL CLAIMS AND CAUSES OF ACTION, WHETHER NOW EXISTING OR ARISING IN THE FUTURE, THAT I MAY HAVE AGAINST COLUMBIA/HCA HEALTHCARE CORPORATION, ITS SUBSIDIARIES, ITS OFFICERS, DIRECTORS, SHAREHOLDERS, AGENTS AND EMPLOYEES, THAT ARISE OUT OF OR ARE RELATED TO INJURIES OR DEATH SUSTAINED BY ME IN THE COURSE AND SCOPE OF MY EMPLOYMENT *289 BY COLUMBIA/HCA HEALTHCARE CORPORATION AND ARE CAUSED BY THE SOLE NEGLIGENCE OF COLUMBIA/HCA HEALTHCARE CORPORATION OR THE NEGLIGENCE OF COLUMBIA/HCA HEALTHCARE CORPORATION CONCURRENT WITH THE NEGLIGENCE OF ANY OTHER PERSON OR ENTITY....

The Hospital maintains that by participating in the plan and accepting benefits 1 , George waived his right to sue the Hospital. George contends that his injury was sustained in the course and scope of his employment with the Hospital, and not in the course and scope of his employment with Columbia/HCA Healthcare Corporation, the parent corporation of the Hospital. George further contends that under the express terms of the plan he waived only his rights to sue the parent, but retained his rights to sue the Hospital, a subsidiary of Columbia/HCA.

In its first issue, the Hospital asks this Court to reverse the trial court and render judgment in the Hospital’s favor. Alternatively, the Hospital seeks reversal and remand. To support its rendition argument based on waiver, the Hospital relies on Lawrence v. CDB Services, Inc., 44 S.W.3d 544, 551-53 (Tex.2001), and Storage & Processors, Inc. v. Reyes, 134 S.W.3d 190, 191(Tex.2004). In Lawrence, the Texas Supreme Court determined that agreements by workers to limit their employers’ liability in exchange for non-subscriber benefit plans were not prohibited by law. Lawrence, 44 S.W.3d at 551-53(superseded by Tex. Lab.Code Ann. § 406.033(e) (Vernon Supp.2005)) (“Any agreement by an employee to waive a cause of action or any right described in Subsection (a) before the employee’s injury or death is void and unenforceable.”). Although superseded by statute, Lawrence remains the law for the claims asserted by George, who both signed the waiver agreement and sustained his injury before September 1, 2001. See Reyes, 134 S.W.3d at 192.

The Texas Supreme Court further determined that employers who enroll employees in non-subscriber benefit plans as allowed by Lawrence must satisfy both components of the fair notice requirements, namely, the express negligence doctrine and conspicuousness. 2 Id. at 191. When the fair notice requirements apply, a contract must satisfy both requirements to avoid being unenforceable as a matter of law. Id. at 192 (citing Dresser Indus., Inc. v. Page Petroleum, Inc., 853 S.W.2d 505, 509-10 (Tex.1993), and U.S. Rentals, Inc. v. Mundy Serv. Corp., 901 S.W.2d 789, 792 (Tex.App.-Houston [14th Dist.] 1995, writ deniéd)). The express negligence doctrine requires that the parties’ intent to release an employer from liability for its own future negligence “must be expressed in unambiguous terms within the four corners of the release.” Lawrence, 44 S.W.3d at 553.

Relying on Victoria Bank, George maintains the document addresses only his right to pursue claims arising from injuries he received while working as an employee of Columbia/HCA, the parent, and not while working as an employee of the Hospital. See Victoria Bank & Trust Co. v. Brady, 811 S.W.2d 931, 938 (Tex.1991) (to effectively release a claim the releasing document must “mention” the claim). The pertinent language in the agreement here provides that George released and waived all claims and causes of action, including future ones, that he “may have against *290 Columbia/HCA Healthcare Corporation [or] its subsidiaries, .... ” “that arise out of or are related to injuries or death sustained by [George] in the course and scope of [his] employment by Columbia/HCA Healthcare Corporation

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163 S.W.3d 284, 2005 Tex. App. LEXIS 3236, 2005 WL 991726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silsbee-hospital-inc-v-george-texapp-2005.