County of Maverick v. Texas Ass'n of Counties Workers' Compensation Self-Insurance Fund
The County of Maverick (County) appealed a trial court's judgment that Nutmeg Insurance Company (Nutmeg) and the Texas Association of Counties Workers’ Compensation Self-Insurance Fund (the Fund) did not owe the County a duty to defend or indemnify in a wrongful discharge lawsuit. Four former employees had sued the County after being terminated for filing workers' compensation claims. Both Nutmeg and the Fund refused to defend the County, which subsequently lost the wrongful discharge suit and was ordered to pay damages and reinstate employees. The appellate court affirmed the trial court's judgment, finding that neither Nutmeg's public entity liability policy nor the Fund's interlocal agreement covered damages for wrongful discharge, and upheld the award of attorneys' fees to Nutmeg and the Fund.