Texas Mutual Gains Legal Ground in Oklahoma, Tennessee Cases
Wood Energy Group, the worker's employer, then requested a defense and indemnification from Texas Mutual. When Texas Mutual declined, Wood Energy threatened a bad-faith action. In this dispute, Judge Austin ruled that the policy covers
Judge Austin's ruling is in the form of a recommendation to Judge
Judge Austin's recommendation is particularly significant because it takes a different look at worker's compensation policies.
Judge Austin held that because it is a standard form mandated by a state regulatory agency, a workers' compensation policy should be interpreted through the "ordinary, everyday meaning of the words to the general public." Typically, insurance policy language is interpreted in a way that's most favorable to the insured.
"This court recognizes the significance of a state-mandated insurance form in a way that will be helpful in other policy coverage cases,"
Lower courts in
In its appeal, Texas Mutual argued that the trial court lacked personal jurisdiction over the insurance company, that the trial court erred in applying Tennessee's "statutory employer" rule to the Texas Mutual policy, and that Texas Mutual's policy did not cover subcontractors of Broadband Specialists.
"This victory is important for this case, which had been a lengthy, expensive and pointless trip through the
About Texas Mutual Insurance Company
Austin-based Texas Mutual Insurance Company is the state's leading provider of workers' compensation insurance, with approximately 25 percent of the market. Since 1991, the company has provided a stable, competitively priced source of workers' comp insurance for all
For more information, visit www.texasmutual.com.
Media Contacts: Laurie Parker email@example.com John Egan firstname.lastname@example.org Elizabeth Christian & Associates Public Relations (512) 472-9599
SOURCE Texas Mutual Insurance Company
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