Liberty Mutual Insurance Company v. Buddy J. Trahan
Liberty Mutual Insurance Company appealed a summary judgment from the 240th District Court, Fort Bend County, Texas, which affirmed a decision by the Texas Department of Insurance, Division of Workers’ Compensation (TDI). The TDI had ruled that Liberty Mutual contractually waived its right to reimbursement and/or subrogation under sections 417.001 and 417.002 of the Texas Labor Code. This waiver pertained to workers’ compensation benefits paid to Buddy J. Trahan, preventing Liberty Mutual from recovering these funds from Trahan's settlement with a third party. The court referenced the Supreme Court of Texas's decision in Wausau Underwriters Insurance Company v. Wedel, which involved a substantively identical waiver endorsement. Applying the precedent set by Wedel, which held that such a waiver precludes a carrier from seeking reimbursement indirectly from an injured employee out of third-party settlement funds, the appellate court affirmed the trial court's judgment.