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Texas Workers' Compensation Commission v. Old Republic Insurance Company

3/15/2000



Justice Dodson


The Texas Workers' Compensation Commission (the TWCC), Todd K. Brown as executive director of the TWCC, and the TWCC Subsequent Injury Fund and its administrator, Claudia Nadig (collectively, TWCC) bring four points of error challenging a permanent injunction and declaratory judgment granted in favor of Old Republic Insurance Company (Old Republic). Concluding that the matters presented are moot, the trial court's judgment is reversed, all previous orders are set aside, and the cause is dismissed.


FACTUAL AND PROCEDURAL BACKGROUND


This action arose from a worker's compensation claim filed by Rogelio Estrada with the TWCC for an alleged on-the-job injury. Old Republic was the insurance carrier. The parties were unable to resolve the matter at the benefits review conference (BRC). The matter then proceeded to a contested case hearing before a hearing officer. On August 27, 1996, the hearing officer awarded Estrada a twenty percent impairment rating and ordered Old Republic to immediately pay a lump sum amount of accrued impairment income benefits to Estrada. Old Republic appealed this decision to an appeals panel of the TWCC.


The Texas Worker's Compensation Act in effect at the time had no provision for reimbursement of overpayment of benefits ordered by a hearing officer, even if appealed to and reversed by an appeals panel. Old Republic claimed the statute's deficiency and the hearing officer's order violated its rights under the United States and Texas Constitutions. On September 20, 1996, Old Republic brought this action in the trial court for a declaratory judgment and injunction against TWCC. In its action, Old Republic sought judgment declaring certain provisions of the Texas Worker's Compensation Act unconstitutional and a permanent injunction enjoining the TWCC from enforcing the hearing officer's order.


The TWCC's appeals panel heard Old Republic's appeal from the hearing officer's challenged order and rendered its decision on November 6, 1996. The appeals panel reversed the hearing officer's order and determined that Estrada's impairment rating was zero percent, entitling him to no benefits under the Worker's Compensation Act. There was no appeal from the appeals panel's decision. Accordingly, the appeals panel's decision became final and dispositive of Estrada's claim. The record further shows that Old Republic paid no benefits to Estrada.


On March 25, 1997, the trial court rendered judgment granting the requested permanent injunction and declaring certain provisions of the statute unconstitutional. TWCC appealed from the judgment to this Court.


APPLICABLE LAW AND DISPOSITION


The Texas Worker's Compensation Act provides a four-tiered system for determining disputed worker's compensation claims. See St. Paul Fire & Marine Ins. Co. v. Texas Workers' Compensation Comm'n, 945 S.W.2d 886, 887 (Tex. App._Austin 1997, no writ). The first step is a benefit review conference (BRC) conducted by a benefit review officer. See Tex. Lab. Code Ann. §§ 410.021, .022 (Vernon 1996). Parties dissatisfied with the result of a BRC may proceed to the second step, a contested case hearing before a hearing officer. See id. §§ 410.151, .152 (Vernon 1996). The third step in the process is an appeal to an appeals panel. The appeals panel resolves the disputed issues and renders a decision which becomes final unless a party timely appeals to a district court. See id. § 410.205(a), (b) (Vernon Supp. 2000). The appeal from the appeals panel to the district court is the fourth step in the administrative scheme. See id.; St. Paul Fire & Marine Ins. Co., 945 S.W.2d at 887.


As the court

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