High Court Ruling Protects Insurers from Lawsuits

The Texas Supreme Court has dramatically expanded the rights of insurance companies to duck lawsuits from injured workers, even when they are accused of intentionally misrepresenting policies or using the criminal justice system to maliciously punish the worker.

In a unanimous, unsigned decision handed down Friday, the high court ruled that the Texas Department of Insurance has exclusive jurisdiction over such complaints within the workers' compensation system. Translation: State regulators can use their administrative powers to sanction insurers who inflict such harm, but the workers can't sue for damages.

The decision arose from a lawsuit filed by Glenn Johnson and his wife, Natalie. Both were arrested and accused of committing insurance fraud based on a complaint by the insurance company, according to court records. The charges were later dropped after the evidence fell apart.

Johnson, horribly burned in a smelter explosion in Amarillo in 1998, said in a statement to The Texas Tribune that he was appalled by the Supreme Court’s ruling, which overturned lower court rulings.

Read more: http://www.texastribune.org/2015/02/27/insurance-companies-score-new-victory-supreme-cour/