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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. 2015-08-0509
Regular Panel Decision
Feb 12, 2016

Kelly, Thomas v. Catmur Development Co.

This expedited hearing addressed employee Thomas Kelly's claim for medical benefits for emergency air transport and attorney fees against employer Catmur Development Co. and its insurer, Builders Mutual Insurance Co. Mr. Kelly suffered a severe workplace injury, severing his left thumb, which necessitated an air ambulance transfer for attempted replantation surgery. Catmur denied payment for the air transport based on a utilization review, despite the Bureau's Medical Director overturning this denial. The Court, asserting its authority to independently review medical necessity, found Mr. Kelly was likely to prevail. Consequently, the Court ordered Catmur to cover the $52,900 air ambulance bill and granted a 20% attorney's fee lien on this payment.

Medical BenefitsAttorney FeesExpedited HearingAir Ambulance TransportUtilization Review DenialMedical Necessity DisputeThumb InjuryReplantation SurgeryShelby CountyJudge Jim Umsted
References
4
Case No. MISSING
Regular Panel Decision
Jan 26, 2017

Elness Swenson Graham Architects, Inc. v. RLJ II-C Austin Air, LP

This case involves an appeal and cross-appeal concerning a breach of contract suit related to defects in the design and construction of a hotel. Appellant Elness Swenson Graham Architects, Inc. (Elness), the architectural firm, appealed a judgment in favor of appellees RLJ II-C Austin Air, LP; RLJ II-C Austin Air Lessee, LP; and RLJ Lodging Fund II Acquisitions, LLC (collectively, RLJ), the hotel owner. RLJ had acquired the contract rights through an assignment from a previous owner and had settled with other defendants, EBCO (general contractor) and Terracon (geotechnical engineering firm). The jury found Elness liable and awarded RLJ $785,000 in damages. The trial court applied settlement credits and attorney's fees, resulting in a net award to RLJ. On appeal, Elness's issues regarding RLJ's capacity to sue, evidence admissibility, jury charge, and damages sufficiency were overruled. However, the appellate court reversed the trial court's judgment regarding attorney's fees. It ruled that after applying the one-satisfaction rule and the $1,170,000 in settlement credits from other defendants, RLJ did not actually recover any damages from Elness. Consequently, RLJ was not a "prevailing party" entitled to attorney's fees under Texas law. The court reversed the trial court’s final judgment and rendered a judgment that RLJ take nothing.

Breach of ContractArchitectural NegligenceConstruction DefectsHotel DevelopmentContract AssignmentCapacity to SueSummary JudgmentEvidence AdmissibilityJury ChargeDamages
References
151
Case No. A-16-CA-060-SS
Regular Panel Decision
Mar 20, 2019

Air Evac EMS, Inc. v. Sullivan

This case addresses whether the Airline Deregulation Act (ADA) preempts provisions of the Texas Workers' Compensation Act (TWCA) that regulate the reimbursement rates for air ambulance services. Plaintiff Air Evac EMS, Inc. argued that the TWCA's restrictions on its charges for services to workers' compensation patients are preempted by the ADA. The State Defendants (Texas Commissioner of Insurance and Texas Commissioner of Workers' Compensation) and Intervenor Defendants (multiple workers' compensation insurers) contended against preemption, citing a presumption against federal interference with state police powers and the McCarran-Ferguson Act. The court found that the ADA's preemption provision, which broadly prohibits state laws related to an air carrier's prices, routes, or services, applies to the TWCA's compensation scheme for air ambulance providers. Furthermore, the court determined that the McCarran-Ferguson Act does not shield the TWCA provisions because they regulate the 'business of insurance companies' rather than the 'business of insurance.' As a result, the court granted Air Evac's motion for summary judgment, denied the defendants' motions, and issued a permanent injunction prohibiting the State Defendants from enforcing the challenged TWCA provisions against Air Evac.

Airline Deregulation ActTexas Workers' Compensation ActFederal PreemptionAir Ambulance ServicesPrice RegulationMcCarran-Ferguson ActSummary JudgmentDeclaratory JudgmentPermanent InjunctionWorkers' Compensation Insurance
References
49
Case No. ADJ6461309
Regular
Jul 19, 2012

JOSEPH MARTIN vs. City of Ukiah, Permissibly Self-Insured, administered by REDWOOD EMPIRE MUNICIPAL FUND

The Workers' Compensation Appeals Board denied reconsideration, upholding the WCJ's decision regarding air ambulance service fees. The board found that California Administrative Rule 9789.70, which dictates reasonable fees for ambulance services, is preempted by the federal Airline Deregulation Act. This preemption applies because the rule attempts to regulate the prices and services of air carriers, which is exclusively within federal purview. Therefore, the board concluded that the specific fee limitations in Rule 9789.70 do not apply to air ambulance services.

Workers Compensation Appeals BoardAD Rule 9789.70Air Ambulance ServicesAirline Deregulation ActADA Preemption49 U.S.C. § 41713(b)(1)Morales v. Trans World AirlinesState Regulation of Air CarriersWCABPetition for Reconsideration
References
10
Case No. No. 05-11-01377-CV
Regular Panel Decision
Apr 09, 2014

Noell, David W., City of Carrollton, Carrollton Property Standards Board, Crow-Billingsley Air Park, LTD, Henry Billingsley v. Air Park Common Area Preservation Association, Chad Maisel, Amy Eklund, and Dale Burgdorf

This case involves a dispute between homeowners of Air Park Dallas, a residential airpark community, and a real estate developer (Crow-Billingsley Air Park, Ltd. and Henry Billingsley), the Air Park Zoning Committee, and the City of Carrollton. The homeowners sued after the City ordered the airpark’s airport closed following its annexation of a portion of the airport and the passage of a regulating ordinance. The trial court initially found the ordinance facially valid but the closure order invalid, granting declaratory and injunctive relief to homeowners against the City and against the developer for breach of contract, fiduciary duty, and interference with easements. On appeal, the Court of Appeals affirmed the invalidation of the closure order but reversed the finding that the ordinance was facially valid, remanding claims concerning its constitutionality. The court also affirmed most of the jury’s findings against the developer and Zoning Committee, modifying only a specific part of the injunction.

Property RightsZoning OrdinanceEasementsBreach of ContractFiduciary DutyMunicipal LawConstitutional LawDue ProcessVagueness DoctrineAirport Regulation
References
92
Case No. MISSING
Regular Panel Decision

PHI Air Med., LLC v. Tex. Mut. Ins. Co.

This case concerns PHI Air Medical, LLC's dispute with various insurers over reimbursement rates for air ambulance services for workers' compensation in Texas. The central issue is whether the Airline Deregulation Act (ADA) preempts state laws and rules that regulate these rates. The court concludes that the ADA indeed preempts these state provisions because they relate to the price of an air carrier's services. Furthermore, the court found that the McCarran-Ferguson Act does not "reverse-preempt" the ADA, as the state regulations primarily aim to control insurers' costs rather than regulate the "business of insurance" itself. Consequently, the trial court's judgment is reversed, and the case is remanded for further proceedings consistent with the finding that the state's rate-setting provisions are preempted.

Airline Deregulation ActPreemptionAir Ambulance ServicesWorkers' CompensationReimbursement RatesMcCarran-Ferguson ActInsurance RegulationState LawFederal LawTexas Labor Code
References
31
Case No. 04-14-00451-CV
Regular Panel Decision
Nov 26, 2014

Wheelabrator Air Pollution Control, Inc. v. City of Public Service Board of San Antonio, a Municipal Board of the City of San Antonio

Wheelabrator Air Pollution Control, Inc. appealed an order granting a plea to the jurisdiction on its attorney's fees claim in a breach of contract suit against the City of San Antonio acting through the City Public Service Board (CPS). The Fourth Court of Appeals in San Antonio, Texas, affirmed the trial court's decision. The court determined that Chapter 271 of the Texas Local Government Code, as applicable to the 2004 contract, did not waive governmental immunity for attorney's fees. Furthermore, the court rejected arguments that CPS waived immunity by seeking affirmative relief or engaging in a proprietary function. The appellate court concluded that the trial court properly granted the plea to the jurisdiction due to the absence of a clear and unambiguous waiver of immunity for attorney's fees.

Governmental ImmunityAttorney's FeesBreach of ContractPlea to JurisdictionTexas Local Government CodeChapter 271Waiver of ImmunityProprietary FunctionSubject Matter JurisdictionAppellate Review
References
20
Case No. MISSING
Regular Panel Decision

Glendale Construction Services, Inc. v. Accurate Air Systems, Inc.

This case involves an appeal concerning an indemnity contract between Glendale Construction Services, Inc. (contractor) and Accurate Air Systems, Inc. (subcontractor), following a worker's electrocution. Carol Brooks, the worker's wife, sued several parties, including Glendale and Accurate Air, for negligence. Glendale, after settling with Brooks' wife, filed a third-party action against Accurate Air for contribution, indemnity, and attorney fees. The trial court granted summary judgment for Accurate Air, finding the contract did not indemnify Glendale for its own negligence. The appellate court affirmed, applying the express negligence doctrine, and also denied Glendale's claims for attorney fees, concluding that Accurate Air was not obligated to indemnify Glendale.

Indemnity contractExpress negligence doctrineSummary judgmentSubcontractor liabilityContractor liabilityWorker's compensation barAttorney feesContract interpretationTexas lawAppellate court
References
12
Case No. ADJ6833713
En Banc
Mar 28, 2013

Luis Enriquez vs. Couto Dairy, Zenith Insurance Company

The Appeals Board held that the federal Airline Deregulation Act (ADA) preempts the California workers' compensation fee schedule for air ambulance services, provided the air ambulance company can prove it is an 'air carrier' under the ADA. The case was returned to the trial level to determine the provider's status.

Workers' Compensation Appeals BoardHeader standardizationFootnote referencesMarkdown processingAccess DeniedTechnical error
References
24
Case No. MISSING
Regular Panel Decision

L. B. Smith, Inc. v. Circle Air Freight Corp.

Defendant and third-party plaintiff Circle Air Freight Corp. moved to dismiss two affirmative defenses raised by third-party defendant Iberia Air Lines of Spain. The court denied the motion to strike the first affirmative defense, 'failure to state a cause of action,' as it is not subject to such a motion. Regarding the second affirmative defense, which asserted that the action was time-barred by the two-year period in Warsaw Convention article 29, Circle argued this period was inapplicable to contribution claims. However, the court ruled that Warsaw Convention article 29 constitutes an absolute condition precedent to suit, not merely a statute of limitations, and its two-year period applies broadly to all actions for damages, including those for contribution, overriding conflicting State laws. Consequently, Circle's motion to strike Iberia's second affirmative defense was also denied.

Warsaw ConventionContributionStatute of LimitationsCondition PrecedentAir Carrier LiabilityThird-Party ActionAffirmative DefenseDismissal MotionFederal SupremacyTreaty Interpretation
References
9
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