Texas Mutual Victorious on Appeal of Sanctions Imposed by Lower Court

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Mar 17, 2010, 06:34 ET

AUSTIN, Texas, March 17 /PRNewswire/ -- The Texas Fifth District Court of Appeals (Dallas) issued an opinion on March 16, 2010, ruling that sanctions imposed against Texas Mutual Insurance Company related to a workers' compensation case were improper. The court reversed the sanctions judgment against Texas Mutual.

The Court of Appeals found that the trial court abused its discretion in awarding sanctions against Texas Mutual. The court found no evidence of fraudulence or document falsification and no evidence that Texas Mutual acted in bad faith, thus providing a full exoneration of Texas Mutual's conduct.

The court also held that summary judgment in Juan Narvaez's favor required reversal and remand to the lower court.

In 2008, the trial court granted a summary judgment and sanctions against Texas Mutual in a case involving Narvaez's workers' compensation claim for what he said was an on-the-job injury. Texas Mutual had disputed the claim based on co-worker testimony that Narvaez was not hurt on the job. Narvaez appealed that denial in a case that was eventually tried in the 68th Judicial District Court in Dallas County.

"We are delighted, but not surprised, that the Court of Appeals recognized Texas Mutual's good faith and overturned the district court's judgment against our company," Mary Barrow Nichols, general counsel and senior vice president for Texas Mutual, said. "We were confident that we handled this case appropriately and that the appellate court would fully vindicate the company, as it has done."

The full ruling by the Texas Fifth District Court of Appeals can be found at www.texasmutual.com.

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 Texas employers. Helping employers prevent workplace accidents is a major part of Texas Mutual's mission. For more information, visit www.texasmutual.com.