Texas Employers' Insurance Ass'n v. Remy
George Remy, Jr. (Remy), an injured worker, entered into a worker’s compensation compromise settlement agreement with Texas Employers’ Insurance Association (TEIA). The agreement was based on representations made by orthopedic surgeon Dr. Robert Pace, Jr., who was later found to be an agent of TEIA. Remy's condition deteriorated rapidly after the settlement, and it was discovered that Dr. Pace had misdiagnosed his severe spinal cord injury, which led to quadriplegia. Remy sought to set aside the settlement, and a jury found in his favor, but the trial court disregarded the jury's finding that Dr. Pace was TEIA's agent. The appellate court reversed the trial court's decision regarding agency, affirming the judgment for rescission based on constructive fraud.