Texas Health Enterprises, Inc. v. Kirkgard

882 S.W.2d 630, 1994 WL 460846
CourtCourt of Appeals of Texas
DecidedSeptember 14, 1994
Docket09-93-334 CV
StatusPublished
Cited by16 cases

This text of 882 S.W.2d 630 (Texas Health Enterprises, Inc. v. Kirkgard) 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
Texas Health Enterprises, Inc. v. Kirkgard, 882 S.W.2d 630, 1994 WL 460846 (Tex. Ct. App. 1994).

Opinion

OPINION

BURGESS, Justice.

Teresita Belen Kirkgard and Thelma Jean Rogers initiated this action, alleging Texas Health Enterprises (“T.H.E.”) wrongfully terminated their employment for refusing to sign a waiver of their rights under the Texas Workers’ Compensation Act. The case was removed to federal court, then remanded to state court. The federal district court’s order stated: “it is untrue that Plaintiffs’ allegations are necessarily federal in character in that they fall under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001, et seq.” Kirkgard and Rogers obtained an interlocutory partial summary judgment on the issue of liability under Tex. Rev.Civ.Stat.Ann. art. 8307c. 1 Connie Jones, Jean Brown, Mercy Smith, Maria Leal, Cathy Stewart, Merle Kehl, Beatrice Reyna, Melissa Mikle, and Marie Chapman joined the suit as plaintiffs. 2 The trial court directed a verdict of liability for violation of Article 8307c. The jury found total actual damages of $65,096 and exemplary damages of $765,000. Appellant raises fourteen points of error, which we address as grouped in appellant’s brief.

T.H.E. is a non-subscriber ,to the Texas workers’ compensation system. T.H.E. developed an employee injury benefit plan under ERISA 3 . The benefits provided in the plan were not comparable to benefits provided through workers’ compensation. T.H.E. demanded all its employees execute a waiver of all workers’ compensation and common law rights to sue T.H.E. for on-the-job injuries. T.H.E. fired the appellees for refusing to sign the waiver. 4

The first six points of error aver:

Point of error one: The District Court erred in holding, as a matter of law, that Appellant had violated Art. 8307c. V.T.C.S., and in granting Appellees’ (Plaintiffs’) motion for a directed verdict of liability for violation of Art. 8307c V.T.C.S., *633 while simultaneously finding that none of the factual prerequisites to violation of Art. 8307c had occurred.
Point of error two: The District Court erred by granting the Motion for Partial Summary Judgment of Appellees KIRK-GARD and ROGERS, and by denying Appellant’s Motion for Summary Judgment.
Point of error three: The District Court erred by attempting to conform its rulings on motions for instructed verdict and the instructions in the Charge to the jury with its earlier erroneous summary judgment ruling.
Point of error four: The District Court erred by denying Appellant’s motions for instructed verdict.
Point of error five: The District Court erred by denying Appellant’s Motion for Judgment NOV and Motion to Vacate Judgment.
Point of error six: The court committed fundamental error by erroneously instructing the jury in the charge that Defendant had violated the law, while simultaneously finding that none of the factual prerequisites to violation of Art. 8307c had occurred.

The question presented by the parties is whether former Article 8307c applies to situations where the employee of a non-subscribing employer is fired for refusing to waive her right to sue for injuries under the Texas Workers’ Compensation Act. Employees of non-subscribers are immune to employer defenses of contributory negligence, assumption of the risk, and the fellow servant rule. Tex.Rev.Civ.Stat.Ann. art. 8308-3.03, see now Tex. LaboR Code Ann. § 406.033. Article 8308-3.09, now found in the Labor Code at section 406.035, provides that any agreement to waive the employee’s right to compensation is void. T.H.E. not only forced its employees to waive their rights under the act, it forced its employees to waive their rights under the common law as well.

Article 8307c refers to “employees” without limitation to employees of subscribing employers. Thus, the statute applies equally to employees of subscribers and non-subscribers. Hodge v. BSB Investments, Inc., 783 S.W.2d 310 (Tex.App.—Dallas 1990, writ denied). Courts of appeal have recognized the validity of a cause of action under article 8307c where employment is terminated before the employee has actually filed a claim. Mid-South Bottling Co. v. Cigainero, 799 S.W.2d 385 (Tex.App.—Texarkana 1990, writ denied); Texas Steel Co. v. Douglas, 533 S.W.2d 111 (Tex.Civ.App.—Fort Worth 1976, writ ref d n.r.e.). These cases recognize that evidence that an employee took steps towards instituting a proceeding under the Act is sufficient to support a finding that the employee “filed a claim.” This case differs from those cited by appellees, in that the appellees did not sustain physical on-the-job injuries before they were fired. However, T.H.E.’s demands violated Article 8308-3.09, which prohibits waiver of rights under the Act. T.H.E. terminated these employees for taking steps preparatory to maintaining a proceeding under the workers compensation act. We find no error by the trial court. Points of error one through six are overruled.

Point of error seven maintains: “The District Court erred in overruling Appellant’s pleas to the jurisdiction and special exception B; and the Court compounded that error and exceeded its jurisdiction by holding that Defendant’s ERISA Plan is ‘contrary to public policy, void and illegal.’ ” T.H.E. contends the trial court exceeded its jurisdiction by ruling the entire ERISA plan is void as against public policy. The court’s order granting partial summary judgment contains very broad language, but the trial court clarified its ruling in the judgment, which states: “The waiver defendant imposed on its employees as a condition of employment is contrary to public policy, void, and illegal.” [emphasis added] It appears the trial court actually ruled the waiver was void, rather than the ERISA plan.

Hon. Robert M. Parker, Chief Judge of the United States District Court, Eastern District of Texas, presumably resolved this issue adversely to T.H.E. when he remanded the case back to state court because “it is untrue that Plaintiffs’ allegations are necessarily federal in character in that they fall under [ERISA].” In rejecting a remarkably simi *634 lar argument in an unrelated case involving the same employer, another United States District judge held: “[Njothing in either ERISA’s text or legislative history indicates that Congress meant to override state laws prohibiting employers from forcing employees to forego common-law rights by compelling participation in an ERISA plan.” Sperling v. Texas Health Enterprises, Inc., 791 F.Supp. 662, 664 (S.D.Tex.1992). Appellees are not seeking benefits under the ERISA plan.

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882 S.W.2d 630, 1994 WL 460846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-health-enterprises-inc-v-kirkgard-texapp-1994.