Entergy Fight May Arise in Workers' Comp Division Sunset Review
Texas Lawyer
August 17, 2010
Supporters of the Texas Supreme Court's decision in Entergy Gulf States Inc. v. Summers may have thought the fight ended when a bill to repeal the ruling stalled in the state Senate in 2009. But get ready for round two. When the Texas Legislature meets in 2011, debate over the 2009 Entergy decision is expected to re-ignite.
Entergy allows plant owners to obtain immunity from injured workers' suits for damages by providing workers' compensation insurance coverage for subcontractors' employees working on their premises.
"I think the Legislature considered that to be a fundamental shift in policy," says state Sen. Robert Duncan, R-Lubbock.
Two Texas House committees already are looking at third-party liability issues involving workers' compensation. The Business & Industry and Judiciary & Civil Jurisprudence Committees heard testimony on the impact of the Entergy decision during a joint hearing July 29. The Texas Senate State Affairs Committee has scheduled an Aug. 17 hearing to begin examining the adequacy of workers' compensation benefits.
Plaintiffs lawyers and attorneys for business groups are gearing up to push or oppose any legislation addressing Entergy .
In 2007, the state Supreme Court held that, because Entergy provided workers' compensation coverage to contract workers at its plants, the company is immune from injured worker John Summers' suit for damages. Summers, an employee of International Maintenance Corp., sustained serious injuries in 2001 while working on a hydrogen cooler at Entergy's Sabine Station plant in Bridge City. In a 6-3 decision in 2009, the Supreme Court again ruled in Entergy's favor after reconsidering the case. [See "Divided High Court Sides With Entergy — Again," Texas Lawyer, April 3, 2009, page 1.]
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