Texas Mutual Insurance Co. v. Sara Care Child Care Center, Inc.

The insurance company challenged the trial court's summary judgment on its petition for judicial review. Having previously concluded that the company did not preserve its argument that �406.008 of the Texas Labor Code was not applicable to extend the insured's coverage, the El Paso Court of Appeals overruled the challenge and affirmed the trial court's summary judgment on the company's petition for judicial review. El Paso Court of Appeals, No. 08-08-00192-CV, 09-20-2010

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OPINION

Texas Mutual Insurance Company appeals from two summary judgment orders, and a final judgment following a bench trial, all in favor of its insured, Sara Care Child Care Center, Inc. (“Sara Care”), and the insured’s employee, Martha Martinez. The insurer argues the first summary judgment, affirming the Texas Workers’ Compensation Commission Appeals Panel decision in the claimant’s favor was in error, due to the panel’s reliance on Texas Labor Code Section 406.008. Texas Mutual continues by challenging the trial court’s partial summary judgment on the issue of its liability to Sara Care for the insured’s extra-contractual claims for affirmative relief. The insurer concludes that the trial court’s final judgment, including attorney’s fees, and statutory additional damages must be reversed, and judgment rendered in its favor, due primarily to errors in the summary judgments. In support of its request for reversal, Texas Mutual also raises an issue challenging the trial court’s rulings on Sara Care’s objections to the carrier’s summary judgment evidence. We reverse and remand in part and affirmed in part.

Sara Care Child Care Center, Inc. operated the child care center at the University of Texas at El Paso. In July 2001, Sara Care purchased a one year workers’ compensation insurance policy from Texas Mutual Insurance Company (“TMI”). The policy provided Sara Care with coverage for workers’ compensation claims August 4, 2001 to August 4, 2002. By letter dated June 6, 2002, TMI notified Sara Care that its policy was scheduled to expire on August 4. The letter specifically stated, in bold typeface, that it was “not a cancellation,” and that the insurer “look[ed] forward to continuing to serve as [Sara Care's] worker’s compensation carrier” in the next policy term. TMI’s agent, The Treiber Group, sent Sara Care a premium quote for the 2002-2003 policy year sometime prior to the 2001-2002 policy’s expiration. However, due to a mis-communication with the insurance agent, Sara Care failed to pay its 2002-2003 premium until August 24, 2002.

Texas Mutual Insurance Co. v. Sara Care Child Care Center, Inc.

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