Liberty Mutual v. Kinser
The case addresses whether a workers' compensation carrier has a subrogation right to benefits paid to an employee under their personal uninsured/underinsured motorist (UIM) insurance coverage. Michael Kinser, injured in an automobile accident during employment, received workers' compensation benefits from Liberty Mutual. After receiving payment from the at-fault driver's insurer, Liberty Mutual sought subrogation from Kinser's personal UIM policy with State Farm. The trial court denied Liberty Mutual's claims, and the appellate court affirmed. The court held that the Texas Labor Code's subrogation provision applies to 'damages' from a third party liable in tort or contract, not to contractual UIM benefits, especially when the employee paid the premiums. Consequently, Kinser was not liable for conversion.