Paradissis v. Royal Indem. Co.

Decision Date23 January 1974
Docket NumberNo. B--4108,B--4108
Citation507 S.W.2d 526
PartiesChris PARADISSIS, Petitioner, v. ROYAL INDEMNITY COMPANY, Respondent.
CourtTexas Supreme Court

Wandel & Bousquet, R. D. McPherson, Houston, for petitioner.

Fulbright, Crooker & Jaworski, Sam H. Hood, Jr., Martin D. Beirne and Russell H. McMains, Houston, for respondent.

DANIEL, Justice.

This suit is for damages for personal injuries of an employee resulting from an alleged common law tort committed by a workmen's compensation carrier. The trial court action of dismissal for want of jurisdiction was affirmed by the Court of Civil Appeals. 496 S.W.2d 146. We affirm.

On June 6, 1962, Chris Paradissis, plaintiff in the trial court and appealing party in both the Court of Civil Appeals and this Court, received back injuries in the course of his employment by Rainbo Baking Co. On January 20, 1965, the Industrial Accident Board found Paradissis to be totally and permanently disabled as a result of his injuries. The final award was fully paid by Royal Indemnity Company, Rainbo's workmen's compensation carrier and defendant in this action. Royal Indemnity also paid certain costs of continuing medical care for Paradissis.

The record before the Industrial Accident Board, which was considered by the trial court, reveals that on December 27, 1971, Paradissis, hereinafter referred to as plaintiff, alleged by letter from his attorney to the Board that Royal Indemnity Company refused to reimburse his family for nursing services, refused to pay other medical expenses, and refused to furnish medical attention recommended by treating physicians. The letter stated, 'We herewith make claim against them (Royal Indemnity) for all such expenses, debts, and medical care needed but not furnished.' It also asked for a change in treating physicians for an immediate conference, and a Board hearing if 'the problems cannot be resolved amicably at such conference.' Again on January 24, 1972, plaintiff requested a conference with the Board. On January 26, 1972, the manager of Royal Indemnity wrote the Board that to the best of his knowledge all medical payments had been paid but that the case 'does, however, have complexities, including request for psychiatric treatment.' He further stated that the company felt the interests of Mr. Paradissis would be best served by the suggested conference. On January 26, 1972, and February 11, 1972, Chris Paradissis' attorney wrote the Industrial Accident Board requesting it to take no further action. Without a hearing or any further proceeding before the Board, plaintiff filed this suit in District Court against Royal Indemnity on February 15, 1972.

Plaintiff alleged that, pursuant to a contract of workmen's compensation entered into between his employer and Royal Indemnity, the latter became liable to him for certain medical care, nursing services and hospital benefits which it had failed and refused to furnish; that both a neurosurgeon and an orthopedic surgeon chosen by Royal Indemnity advised the company as early as 1966, that in addition to his back injury plaintiff was suffering from psychoneurosis and that he should be treated by a psychiatrist; that from 1967 to 1971, Royal Indemnity negligently refused and failed to provide such psychiatric services, insisting instead that plaintiff be treated only by the orthopedic surgeon of its choice; that he was not informed by the company or the surgeon of the need for psychiatric services until 1971; that if his psychoneurosis had been properly and timely treated when known to the company in 1966, he would have recovered and again become gainfully employed; that because of the delay and failure of Royal Indemnity to furnish necessary psychiatric treatment as required under its contract, 'his course of treatment will be longer, and that his prognosis is most guarded, and it is most probable that he will never again be able to return to . . . remunerative employment . . .'

We granted plaintiff's writ in order to give further consideration to the effect of his additional specific allegation that Royal Indemnity concealed his true condition from him, and his argument that this amounted to an independent common law tort from which he suffered new and independent injuries. There have been exceptional cases in other jurisdictions in which fraud on the part of the employer and intentional torts such as assault and battery or intentional infliction of emotional distress on the part of the insurer have been held to constitute separate common law actions beyond the scope of Workmen's Compensation Acts. See Unruh v. Truck Insurance Exchange, 7 Cal.3d 616, 102 Cal.Rptr. 815, 498 P.2d 1063 (1972); Ramey v. General Petroleum Corp., 173 Cal.App.2d 386, 343 P.2d 787 (1959); and Redner v. Workmen's Comp. Appeals Bd., 5 Cal.3d 83, 95 Cal.Rptr. 447, 485 P.2d 799 (1972). However, a careful study of plaintiff's pleadings in the present case makes it unnecessary for us to pass upon the effect of similar torts in this State. Plaintiff has pitched his case solely upon alleged negligence of Royal Indemnity in failing to furnish proper medical services. He has no allegation of fraud or intentional infliction of a separate tort not arising from the original compensable injury or treatment thereof by Royal Indemnity in its status as an insurer. All of his alleged acts on the part of Royal Indemnity, including that of concealment, are cast in terms of negligence...

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  • Travelers Ins. Co. v. Savio
    • United States
    • Colorado Supreme Court
    • September 30, 1985
    ...must exhaust his administrative remedies. See Paradissis v. Royal Indemnity Co., 496 S.W.2d 146, 150 (Tex.Civ.App.1973), aff'd, 507 S.W.2d 526 (Tex.1974) (employee must exhaust self-help remedies under Texas act before maintaining state court action). It finds support for this argument in s......
  • Texas Workers' Compensation Com'n v. Garcia
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    ...for loss of earning capacity, the statutory scheme is in lieu of common law liability based on negligence." Paradissis v. Royal Indem. Co., 507 S.W.2d 526, 529 (Tex.1974) (emphasis added). See also Barnett v. Aetna Life Ins. Co., 723 S.W.2d 663, 667 (Tex.1987) ("The avowed purpose of worker......
  • Vasquez v. Dillard's, Inc.
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    ...Id.(citing Tex. Lab. Code 406.034(b)).9 Id.(citing Tex. Lab. Code 406.034(d)).10 Id.at 552(majority op.) (citing Paradissis v. Royal Indem. Co., 507 S.W.2d 526, 529 (Tex. 1974)).11 Id.at 555(Baker, J., dissenting) (citing Tex. Lab. Code 406.002).12 Id.(citing Tex. Lab. Code 406.033).13 Id.(......
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    ...carrier through the Workers' Compensation Act, which provides the employee with a substitute cause of action. Paradissis v. Royal Indemnity Co., 507 S.W.2d 526, 529 (Tex.1974); Grove Manufacturing Co. v. Cardinal Const. Co., 534 S.W.2d 153 (Tex.Civ.App.-Houston (14th Dist.) 1976, writ ref'd......
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