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Lawrence v. CDB Services3/29/2001
On Petitions for Review from the Court of Appeals for the Seventh District of Texas
Argued on October 2, 2000
Justice O'Neill delivered the opinion of the Court, joined by Justice Hecht, Justice Enoch, Justice Owen, Justice Abbott, and Justice Hankinson.
Justice Baker filed a dissenting opinion, joined by Chief Justice Phillips.
In these consolidated cases, employees of nonsubscribers to workers' compensation insurance under the Texas Workers' Compensation Act voluntarily elected to participate in employer benefit plans that provide injured employees specified benefits in lieu of common-law remedies. We must decide whether the Workers' Compensation Act prohibits voluntary pre-injury agreements of this type and, if not, whether we should hold them void on public policy grounds because they undermine the Legislature's workers' compensation scheme. In Lawrence v. CDB Services, Inc., we must also decide whether the waiver signed by the employee meets the express-negligence and fair-notice tests.
We discern no clear legislative intent to prohibit agreements such as those presented here. Although the parties and various amici have raised numerous fact-intensive public policy considerations favoring both sides of the issue, we believe these policy choices are best resolved by the Legislature. Absent any clear indication of legislative intent to prohibit such agreements, we decline to hold them void on public policy grounds. Finally, we hold that the waiver Lawrence executed satisfies the fair-notice and express-negligence tests. Accordingly, we affirm the court of appeals' judgments upholding summary judgments in favor of the employers. 16 S.W.3d 35; 20 S.W.3d 1.
I.
A. Lawrence v. CDB Services, Inc.
At all times relevant to these proceedings, CDB Services was a nonsubscriber under the Texas Workers' Compensation Act. Instead of opting into the statutory workers' compensation scheme, CDB adopted an employee benefit plan that provides medical disability, dismemberment, and death benefits for its eligible employees who choose to participate in the plan. On his first day of employment with CDB, Gary Lawrence signed an election to participate in the plan. That election provided:
By executing this document, I voluntarily elect to participate in the CDB SERVICES, INC.'S EMPLOYEE BENEFIT PLAN AND TRUST (the "Plan"). According to the Plan, I agree that by accepting benefits under the Plan or executing this election form indicating an election to participate in the Plan:
* I agree to the Plan's terms.
* I waive any right I may have to recover from CDB Services, Inc. (the "Employer"), or any of its Affiliated Employers, directors, officers, shareholders, employees, and agents for injuries I sustain or for my death if they arise out of and within the course and scope of my employment with Employer or any Affiliated Employers.
* I acknowledge that, if I am injured or killed in the course and scope of my employment, my only relief against Employer or any of its Affiliated Employers, directors, officers, shareholders, employees, and agents will be to receive the benefits provided by the Plan.
I understand that by electing to participate in the Plan, I will lose any right that I may have had to sue Employer or any of its Affiliated Employers, directors, officers, shareholders, employees, and agents because of any injuries, illness, or death I sustain in my employment with Employer or any of its Affiliated Employers resulting from their negligence or any other conduct actionable under the common law of the State of Texas, the statutes of the State of Texas, o
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