Opinion by: CATHERINE STONE, Chief Justice.
Justin Briggs, an employee of a subcontractor on a construction site, appeals from the trial court's dismissal of his suit against the premises owner, general contractor, and other subcontractors (Toyota Motor Manufacturing of Texas, Toyota Tsusho America, Inc., Automatic Fire Protection, Walbridge Aldinger Company, Bartlett Cocke Operations, Inc., and Walbridge/Bartlett Cocke). We reverse the trial court's judgment and remand for further proceedings.
This case arises from an explosion during the construction of Toyota's San Antonio assembly plant on March 15, 2006. Toyota Motor Manufacturing of Texas, Inc. ("Toyota Manufacturing") owned the real property upon which the construction was taking place, while Toyota Tsusho America, Inc. ("Toyota Tsusho") owned the onsite building.
On August 10, 2004, Bartlett Cocke L.P.
(emphasis added).
On March 22, 2005, Toyota Tsusho and Bartlett Cocke L.P. signed an agreement entitled "EJCDC Standard Form of Agreement Between Owner and Contractor on the Basis of a Stipulated Price" ("Agreement"). Under the Agreement, Bartlett Cocke L.P. agreed to complete all of the work necessary for the construction of Toyota's San Antonio assembly plant. The Agreement contained basic provisions, but most of those provisions incorporated or referred to the documents defined in Article 8 of the Agreement as the Contract Documents. Article 8 provided:
None of the Contract Documents are contained in the appellate record.
In April of 2005, Bartlett Cocke L.P. and Walbridge/Bartlett Cocke entered into an Assignment of Contract Rights and Duties pursuant to which Bartlett Cocke L.P. assigned its rights and duties under the Agreement with Toyota Tsusho to Walbridge/Bartlett Cocke, the joint venture.
During the course of the construction of the assembly plant, Briggs was instructed to relocate a section of a fire protection line. Briggs isolated and depressurized the fire protection line and began to cut the line with a saw. The line exploded when Briggs cut it, causing him to sustain serious injuries to his head, neck, and back. Briggs did not return to work following the accident.
Prior to the construction of the assembly plant, Toyota Manufacturing initiated an owner controlled insurance program ("OCIP"). This OCIP, like any other owner provided insurance program, was designed to secure insurance, including workers' compensation insurance, at a reasonable price for all workers at the construction site. Toyota Manufacturing's OCIP manual provides "the Contractor and all tiers of Subcontractors . . . will be insureds under this OCIP." The manual further provides "the Contractor and all tiers of Subcontractors are required to . . . [d]elete the insurance costs for the Toyota furnished insurance from their contract bid." The manual identifies Mitsui as Toyota Manufacturing's workers' compensation carrier and states Toyota "will have issued to Contractor and each Subcontractor of all tiers, certificates of insurance evidencing the insurance the Owner will be providing for this project." Mitsui Sumitomo Insurance Group ("Mitsui") served as Toyota Manufacturing's workers' compensation carrier, issuing certificates of insurance to the following entities: Toyota Tsusho; Automatic Fire; WPM; Walbridge Aldinger Company; and Bartlett Cocke L.P.
Briggs brought suit against Toyota Manufacturing, Toyota Tsusho, Automatic Fire, Walbridge Aldinger Company, Bartlett Cocke Operations, Inc., and Walbridge/Bartlett Cocke (collectively "Toyota") for negligence and gross negligence in connection with the assembly plant explosion. Toyota responded by filing "Defendants' Joint Motion to Dismiss for Lack of Jurisdiction," claiming the exclusive remedies provision of the Texas Workers' Compensation Act barred Briggs's suit. See TEX. LABOR CODE ANN. § 408.001 (West 1996). Toyota asserted each defendant "had workers' compensation coverage via
As a preliminary matter, we need to address the unique procedural posture of this case. The exclusive remedies provision of the Texas Workers' Compensation Act ("TWCA") is an affirmative defense. Funes v. Eldridge Elec. Co., 270 S.W.3d 666, 668 (Tex.App.-San Antonio 2008, no pet.); Morales v. Martin Res., Inc., 183 S.W.3d 469, 471 (Tex.App.-Eastland 2005, no pet.). An affirmative defense should be raised through a motion for summary judgment or proven at trial. In re D.K.M., 242 S.W.3d 863, 865 (Tex. App.-Austin 2007, no pet.); In re K.B.S., 172 S.W.3d 152, 153 (Tex.App.-Beaumont 2005, pet. denied). Rather than asserting its exclusive remedies affirmative defense through a summary judgment motion, Toyota asserted its affirmative defense through a motion to dismiss and procured a pretrial dismissal of Briggs's suit.
Nevertheless "a speedy and final judgment may be obtained on the basis of matters in bar and without formality of trial on merits, if the parties so agree or if summary judgment procedure is utilized." Martin v. Dosohs I, Ltd., Inc., 2 S.W.3d 350, 353 (Tex.App.-San Antonio 1999, pet. denied); see also Kelley v. Bluff Creek Oil Co., 158 Tex. 180, 309 S.W.2d 208, 214 (1958). If a summary judgment procedure is not utilized when a plea in bar is asserted, the reviewing court may treat a dismissal as a summary judgment because such dismissal has the same effect as entry of a take-nothing judgment. Martin, 2 S.W.3d at 353-54; Walker v. Sharpe, 807 S.W.2d 442, 446-47 & n. 2 (Tex.App.-Corpus Christi 1991, no writ). "In such case, the reviewing court will review the record as if summary judgment was granted to determine whether the movant satisfied the notice requirements and his burden of proof under Texas Rule of Civil Procedure 166a." Martin, 2 S.W.3d at 354.
In this case, the record shows a summary judgment procedure was utilized in connection with Toyota's motion to dismiss. The motion was filed twenty-one days prior to the hearings before the trial court, and the parties presented evidence in support of their positions. Therefore, we review the underlying case as a summary judgment. See id.
The standard of review for a summary judgment is well established: (i) the movant for summary judgment has the burden of showing there is no genuine issue of material fact and it is entitled to summary judgment as a matter of law; (ii) in deciding whether there is a disputed fact issue precluding summary judgment, evidence favorable to the nonmovant will be taken as true; and (iii) every inference must be indulged in favor of the nonmovant and any doubts resolved in his favor. Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex.1985). A defendant who
The TWCA was adopted to provide prompt remuneration to employees who sustain injuries in the course and scope of their employment. Hughes Wood Prods., Inc. v. Wagner, 18 S.W.3d 202, 206 (Tex. 2000). An employer has the option of providing workers' compensation insurance for employees and becoming a subscriber under the TWCA, or not providing workers' compensation insurance and remaining a nonsubscriber. TEX. LAB.CODE ANN. § 406.002(a) (West 2006) (providing that except for public employers and as otherwise provided by law, an employer may elect to obtain workers' compensation insurance coverage). "The decision to subscribe or not to subscribe, however, has certain consequences for both an employer and an employee that are specifically delineated by the TWCA." Robertson v. Home State County Mut. Ins. Co.
If the employer chooses not to subscribe, the employer may not assert common-law defenses against an employee in a negligence suit. Hunt Constr. Group, Inc. v. Konecny, 290 S.W.3d 238, 243 (Tex. App.-Houston [1st Dist.] 2008, pet. denied); TEX. LAB.CODE ANN. § 406.033 (West 2006). If the employer does subscribe, the employer and the employer's employees are protected from an employee's common-law claims for injuries or death occurring during the course and scope of the employee's work responsibilities. TEX. LAB.CODE ANN. § 408.001(a) (West 2006). "Recovery of workers' compensation benefits is the exclusive remedy of an employee covered by workers' compensation insurance coverage. . . for the death of or a work-related injury sustained by the employee." Id. Employees may have more than one employer within the meaning of the TWCA, and each employer may raise the exclusive remedy provision as a bar to the employee's claims. Wingfoot Enters. v. Alvarado, 111 S.W.3d 134, 143 (Tex.2003); Etie v. Walsh & Albert Co., Ltd., 135 S.W.3d 764, 768 (Tex.App.-Houston [1st Dist.] 2004, pet. denied).
Under the TWCA, a general contractor is deemed the employer of a subcontractor and the subcontractor's employees if the general contractor provides, in accordance with a written agreement, workers' compensation insurance coverage to the subcontractor and its employees.
In addition to the OCIP manual and the documents previously discussed, the record also includes an affidavit from Mitsui's vice president—regional claims manager, Dale Wimer. Wimer's affidavit states Toyota manufacturing "purchased an insurance policy from Mitsui under which multiple entities received workers' compensation insurance" and notes the "OCIP was purchased for work performed at the Toyota Motor Manufacturing plant in San Antonio, Texas." The affidavit also states Briggs received workers' compensation benefits under the policy purchased by Toyota Manufacturing. In addition, the record contains the deposition testimony of Toyota Manufacturing's OCIP coordinator, Lauri Andrews. Andrews testified she believed the Walbridge/Bartlett Cocke joint venture was participating in the OCIP because its venturers, i.e., Walbridge Aldinger Company and Bartlett Cocke L.P., each had insurance policies issued to them by Mitsui. She further stated that a contractor "would be in violation of their contract with Toyota likely" if it was not enrolled in the OCIP.
On appeal, Briggs claims Toyota failed to conclusively establish the exclusive remedies defense applies because the record is devoid of evidence showing there was a written agreement between Toyota Manufacturing and any of the other appellees under which Toyota Manufacturing agreed to provide workers' compensation coverage in exchange for a lower contract price. As previously noted, the TWCA outlines the process by which a general contractor qualifies for immunity from common-law tort claims brought by the employees of its subcontractors. Entergy, 282 S.W.3d at 436. Under the TWCA, "the general contractor and subcontractor must enter into a written agreement under which the general contractor provides workers' compensation insurance coverage to the subcontractor and the employees of the subcontractor." Id. (emphasis added).
The Agreement and Subcontracts contained in the record make no reference to the OCIP. Although such references may be contained in the Contract Documents referenced in the Agreement and in the Articles and Exhibits referenced in the Subcontracts, our applicable standard of review requires us to indulge every inference in favor of Briggs. Nixon, 690 S.W.2d at 549-49. Accordingly, we must infer that the Contract Documents and Articles and Exhibits contain no provisions relating to the OCIP.
During oral argument, a concern was raised with regard to whether form might be elevated over substance in this case. We initially note that the Texas Supreme Court has emphasized the necessity of a written agreement in order to qualify for protection under the exclusive remedies provision as follows:
Entergy Gulf States, Inc., 282 S.W.3d at 436. Secondly, Toyota chose the procedural vehicle for bringing this issue before the trial court, and Toyota must contend with the high burden the procedural vehicle imposed on it. Under the circumstances of this case, our appellate standard of review required Toyota to prove the applicability of the exclusive remedies provision as a matter of law. Based on the record presented, Toyota simply has failed in meeting its burden.
Toyota seeks to rely on the OCIP Manual of Insurance Procedure, detailing how the OCIP at issue was to operate, as evidence of an agreement. The OCIP manual, however, falls short of constituting an express written agreement for purposes of the TWCA. See In re 24R, Inc., 324 S.W.3d 564 (Tex.2010) (noting policy manual did not constitute a contract). The manual's own language suggests it was not intended to be considered as a contractual document:
Turning to the affidavit testimony of Wimer and the deposition testimony of Andrews, this evidence also fails to prove Toyota Manufacturing provided workers' compensation insurance coverage to its subcontractors pursuant to a written agreement. Toyota failed to meet its summary judgment burden through Andrews's statement that a contractor "would be in violation of [its] contract with Toyota likely" if it was not enrolled in the OCIP because it is unclear whether Andrews is referring to an oral or written agreement. To qualify for immunity under the statute, a written agreement is absolutely necessary. See Entergy Gulf States, 282 S.W.3d at 436. If Andrews was referring to some sort of oral agreement, the exclusive remedies defense under section 408.001 would not apply. Moreover, Andrews qualified her statement by stating that a contractor would "likely" be in violation of its contract. This qualification raises an inference
Toyota claims Briggs may not complain about the lack of evidence concerning the existence of a written agreement between Toyota Manufacturing and the other defendants because he never raised this argument in the trial court. As previously noted, however, we are reviewing the underlying proceeding as a summary judgment proceeding. A nonmovant has no burden to respond to a summary judgment motion unless the movant conclusively establishes its cause of action or defense. Rhone-Poulenc, Inc. v. Steel, 997 S.W.2d 217, 222-23 (Tex.1999). "The trial court may not grant summary judgment by default because the nonmovant did not respond to the summary judgment motion when the movant's summary judgment proof is legally insufficient." Id. at 223. A movant must establish its right to summary judgment on the issues expressly presented to the trial court by conclusively proving all elements of the movant's cause of action or defense as a matter of law. Id. Accordingly, the burden was on Toyota to conclusively prove the existence of a written agreement, and Briggs was not required to alert the trial court to the deficiencies in Toyota's proof.
Alternatively, Toyota argues Briggs's complaint lacks merit in light of Lazo v. Exxon Mobil Corp., No. 14-06-00644-CV, 2009 WL 1311801 (Tex.App.-Houston [14th Dist.] May 7, 2009, no pet.) (mem.op.). In Lazo, the appellant claimed the appellee failed to establish as a matter of law that there was an agreement between the premises owner and the contractor regarding the provision of workers' compensation insurance coverage. Lazo, 2009 WL 1311801 at *2. The appellate court disagreed, noting the record contained a construction agreement between the contractor and a division of the premises owner addressing the workers' compensation issue. Id. In addition, the court noted the record contained an affidavit from an insurance advisor of the premises owner that the premises owner had provided insurance pursuant to an OCIP as outlined in the written agreement, the contractor had reduced its bid in recognition of the coverage, and the worker had received benefits under the policy. Id. Based on such evidence, the court rejected the appellant's argument on appeal and affirmed the summary judgment granted in favor of the appellee. Id. at *2-3.
Lazo is factually distinguishable from the case at bar. Unlike Lazo, the appellate record in this case lacks any type of written agreement between the premises owner and its contractors regarding the OCIP and the provision of workers' compensation coverage. Lazo is thus not on point and does not require this court to overrule Briggs's contention on appeal. Accordingly, we sustain Briggs's first issue on appeal because the proof presented to the trial court failed to conclusively establish the existence of a written agreement for the provision of workers' compensation coverage between Toyota Manufacturing and any of its contractors.
Based on the foregoing, we reverse the trial court's judgment and remand the case to the trial court for further proceedings.