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In re Liberty Mutual Fire Insurance Co.

Plaintiff sought bad-faith damages against his workers' compensation carrier for denying preauthorization of medical treatment. By demanding preauthorization when it was not required and failing to request it when it was, plaintiff avoided all the administrative remedies that governed his claims. His bad-faith suit cannot be brought before first exhausting administrative remedies. Texas Supreme Court, No. 08-0742, 08-28-2009

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ON PETITION FOR WRIT OF MANDAMUS

Raymond Nickelson seeks bad-faith damages against his workers’ compensation carrier, Liberty Mutual Fire Insurance Company, for denying preauthorization of medical treatment. But he only alleges the carrier turned down office visits (for which preauthorization was not required) and possible back surgery (for which preauthorization was not sought). By demanding preauthorization when it was not required and failing to request it when it was, Nickelson avoided all the administrative remedies that governed his claims. As his bad-faith suit could not be brought before first exhausting these administrative remedies, the courts below erred in denying Liberty’s plea to the jurisdiction.

Nickelson alleged total and permanent disability from neck and back injuries he received when he jumped off a four-foot platform on June 4, 2003. After failing to timely dispute compensability, Liberty paid temporary income benefits for seven months and medical care that included thrice-weekly chiropractic treatments. Liberty stopped paying temporary income benefits in January 2004 when a designated doctor found Nickelson had reached maximum medical improvement with an impairment rating of zero percent. See TEX. LAB. CODE§§ 408.0041,.102.

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