Luther Frank Tankersley v. Stephen S. Durish, Ancillary Receiver for Transit Casualty Company, Wal-Mart Stores, Inc., Alexander & Alexander, Inc. and Alexander & Alexander of Texas, Inc.
This appeal concerns the validity of workers' compensation insurance policies. Luther Frank Tankersley appeals a district court's decision denying his summary judgment motion and granting summary judgment to appellees Stephen S. Durish (ancillary receiver for Transit Casualty Company), Wal-Mart Stores, Inc., and Alexander & Alexander, Inc. (A&A). Wal-Mart had obtained workers' compensation policies from Transit, but disputes arose regarding premiums and the enforceability of a 'side agreement.' Previous Arkansas litigation found the policies and side agreement illegal. In Texas, the Receiver filed suit, and Tankersley, a Wal-Mart employee, also filed a separate suit. The Court of Appeals affirmed the district court's judgment, concluding that the collateral estoppel doctrine did not preclude Wal-Mart and A&A from asserting the policies' validity, and that the policies themselves are valid and enforceable under Texas law despite the illegal side agreement.