Latest 2 Cases: Richards v. State (Insurance Law), Orozco v. County of El Paso (Labor & Employment Law)

What Happens Now?

JOSEPH MARGULIES

Cornell law professor Joseph Margulies points out that in the face of the present COVID-19 pandemic, there seems to be general consensus nationwide that the federal government should intervene to mitigate the economic damage, even among those who very recently believed that social problems are better solved by the private sector than by the government. Margulies asks whether this new perspective will also evoke compassion. He points out that, given the expected duration of the fight against the novel coronavirus, $2,500 is not nearly sufficient for a struggling family of four who can no longer work. What will we do for the tens of millions of Americans facing disaster?

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Richards v. State

Docket: 19-0802

Opinion Date: March 20, 2020

Judge: Blacklock

Areas of Law: Insurance Law

In this insurance dispute, the Supreme Court answered a question of Texas law in a case certified from the United States Court of Appeals for the Fifth Circuit by stating that a "policy-language exception" to the "eight-corners rule" is not a permissible exception under Texas law. The certified question asked about the "eight-corners rule," which is given its name by the "four corners" of the petition and the "four corners" of the policy. Under the eight-corners rule an insurer's "duty to defend is determined by the claims alleged in the petition and the coverage provided in the policy. The instant case concerned a dispute as to whether State Farm must defend its insureds against personal injury claims. According to one federal district court applying Texas law, the eight-corners rule does not apply unless the policy includes language requiring the insurer to defend all actions against its insured, even if the allegations are groundless, fraudulent, or false. The case made its way to the federal district court, which asked whether the "policy-language exception" to the eight-corners rule was a permissible exception under Texas law. The Supreme Court answered that it was not.

Orozco v. County of El Paso

Docket: 17-0381

Opinion Date: March 20, 2020

Judge: John P. Devine

Areas of Law: Labor & Employment Law, Personal Injury

In this workers' compensation case involving the death of a deputy sheriff who died in a vehicular accident while driving his assigned patrol car the Supreme Court reversed the judgment of the court of appeals reversing the summary judgment rendered by the trial court for the deputy's widow, holding that, at the time of the accident, the deputy was engaged in law enforcement activity within the course and scope of his employment. In granting summary judgment fort he deputy's widow the trial court concluded that the deputy was in the course and scope of his duties at the time of his death. The court of appeals reversed, concluding that because the accident occurred during the deputy's travel home from an extra-duty assignment with a private employer the deputy was not in the course and scope of his employment. The Supreme Court reversed, holding (1) the deputy was operating the marked patrol car with the county's permission and under its authority at the time of his death; and (2) therefore, summary judgment was properly granted in the widow's favor.