Ellis Ex Rel. Ellis v. Kenworth Motor Truck Co.
This case involves a dispute over a subrogation lien in a wrongful death action that was settled for $140,000. Transport Indemnity Company, the deceased's workers' compensation carrier, was apportioned $16,740 of the settlement due to its subrogation lien under Tex.Civ.Stat.Ann. art. 8307 § 6a. Of this amount, one-third ($5,580) was awarded to the plaintiff's attorney, leaving $11,160. The plaintiff argued that Transport's subrogation lien should only extend to the portion representing recovery for loss of support, as worker's compensation benefits only compensated for loss of earning capacity, and applying it to the entire sum would be inequitable. However, the court rejected this argument, stating that the issue is one of statutory construction rather than pure equity, and Texas courts consistently interpret the statute to grant a subrogation lien to the full extent of sums paid by the carrier. Therefore, the court ordered that Transport Indemnity Company is entitled to the full $11,160 by virtue of its subrogation lien.