Travelers Insurance Co. v. Bailey

Texas Court of Civil Appeals · 1963 · Contracts

ContractsWorkmen's compensationFinality of judgmentsSurvival of claimsworkmen's compensationgeneral injurydeath of claimantfinal judgment

Facts

Bailey had obtained a judgment awarding total and permanent disability benefits under the Workmen's Compensation Act for an injury sustained in 1960. This court affirmed that judgment on May 3, 1963, but Bailey died on May 7, 1963, from causes not related to the compensable injury. The insurer's motion for rehearing was overruled on May 24, and its application for writ of error was later refused; the insurer learned of Bailey's death after mandate issued. The insurer argued that Bailey was entitled to compensation for his general injury only during his lifetime because the judgment was not final when he died.

Issue

When an employee awarded weekly compensation for a general injury dies from unrelated causes before the judgment becomes final, do the unaccrued and unmatured installments survive to his heirs or representatives? Or is recovery limited to the installments accrued and unpaid up to the date of death?

Rule

A claim for workmen's compensation for a general injury survives the employee's death only as to amounts accrued and unpaid at the time of death; all unaccrued and unmatured portions are extinguished. Unaccrued weekly installments may survive only when, before the employee's death, a final judgment has vested in the employee a right to a liquidated sum payable in installments.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Houston, Elena Ruiz obtained a court judgment awarding weekly work-injury benefits for a general injury. The insurer appealed, and while the appeal was still pending, Elena died from an unrelated stroke.

Which result is most consistent with the governing rule?

Explanation. If an employee receiving compensation for a general injury dies from causes unrelated to the injury before the judgment becomes final, only accrued and unpaid installments survive. Unaccrued and unmatured installments are extinguished. A nonfinal judgment does not create a vested right to the remaining future installments. (Derived from Travelers Insurance Co. v. Bailey (n.d.).)