Ross v. Union Carbide Corp.
Full Opinion (html_with_citations)
MAJORITY OPINION ON EN BANC REVIEW
In this asbestos case, we must determine whether a broad settlement and release agreement executed by an injured worker and his wife acts as a bar, after the workerâs death, to his survivorsâ claims against his employer for exemplary and loss-of-consortium damages. In particular,
I. Factual and PROCEDURAL Background
After working as a pipefitter for more than thirty-seven years, Homer Ross developed an asbestos-related disease from his workplace exposure. In 1989, Ross and his wife Marjorie sued twenty-two asbestos manufacturers, alleging that Homer âis suffering from an asbestos-related disease and his future outlook is very dim. He has sought the services of physicians in an effort to cure or arrest the condition from which he is suffering, but to no avail.â They asserted Homerâs claim for personal injury and Marjorieâs claim for loss of consortium under theories of strict liability, negligence, gross negligence, intentional conduct, and breach of warranty. In 1993, both Homer and Marjorie reached a settlement with the Center for Claims Resolution (âCCRâ), a nonprofit corporation formed by twenty-one companies to act as the companiesâ agent in asbestos litigation. Homerâs former employer Union Carbide Corporation (âUnion Carbideâ), which was then known as Union Carbide Chemicals & Plastics Co., Inc., was a member of the CCR. Although Union Carbide was not a defendant in the suit, it was a party to the settlement and release (the âReleaseâ).
The Release provides in pertinent part as follows:
WHEREAS, Homer G. Ross and Marjorie Ross have agreed to settle and compromise their claim and cause of action asserted and which could be asserted in said suit, including, but not limited to, each and every cause of action for loss of consortium, personal injury, medical expenses, ... and any future claim for alleged wrongful death under the statutes and laws of the State of Texas;
WHEREAS, ... the Releasees and the Releasors desire to enter into a final compromise and settlement of any and all claims which they have or may hereafter have against the Releasees, for injuries to Homer G. Ross, and any claim for injuries to Marjorie Ross, including loss of consortium, mental anguish, or the future death of Homer G. Ross, arising directly or indirectly from such injuries, disease or death.
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
THAT WE, Homer G. Ross and Marjorie Ross, ... joined by our attorney, hereby fully and finally RELEASE, ACQUIT and FOREVER DISCHARGE the Releasees from any and all claims, demands, causes of action of whatsoever*210 nature or character which we may now have or hereafter have against the Re-leasees, including ... damages, punitive and exemplary damages, loss of consortium, damages under Wrongful Death and Survival Statutes, Workerâs Compensation liens ... in any manner arising out of, or in any way connected with, directly or indirectly, the exposure or occurrences of injuries, disease, illness or death of Homer G. Ross, above described, as well as any consequence thereof, as well as any cause of action sustained or to be sustained by Marjorie Ross.
This Release shall be construed as broadly as possible with regard to the alleged injuries of Homer G. Ross and shall include, but not be limited to, asbestosis, mesothelioma, cancer and any disease of the body that could now or in the future be alleged to be related to the exposure of Homer G. Ross to asbestos-containing products of any of the Re-leasees ....
We intend this Release to be as broad and comprehensive as possible so that the-Releasees shall never be liable, directly or indirectly, to us or our beneficiaries, heirs, successors or assigns, or any person ... claiming by, through, under or on behalf of us or them, for any claims, demands, actions or causes of action of whatsoever nature or character arising out of any illness[,] disease or death of Homer G. Ross or damages to Marjorie Ross in any way connected with the use of or exposure to various materials and products manufactured, sold or distributed by the Releasees....
The Releasors expressly contract that no claim or cause of action of any type is reserved against any Releasees. If any other claims exist against the Releasees, whether directly or indirectly, whether released herein or not, whether foreseeable or unforeseeable, the Releasors hereby assign those claims in full to the Releasees....
In consideration for the payment of the aforesaid sum, Homer G. Ross and Marjorie Ross, for themselves, their beneficiaries and heirs and on behalf of their successors and assigns[,] agree to indemnify and hold harmless the Releas-ees from any further payment of damages, debts, liens, charges and/or expenses of any character incurred by or on behalf of the Releasees as a result of any further claim by Homer G. Ross and spouse, Marjorie Ross, or their representatives, heirs, or assigns. Homer G. Ross and Marjorie Ross[ ] further agree to indemnify and hold harmless the Re-leasees from any and all liability for the payment of damages by reason of any claims asserted by any person ... as a result of any claim ... made by or to Homer G. Ross and spouse, Marjorie Ross, or their representatives, heirs, or assigns, arising out of any illness of Homer G. Ross and damages claimed or asserted by Marjorie Ross, and the potential claim for the wrongful death of Homer G. Ross in any way connected with the use of or exposure to various materials and products manufactured, sold or distributed by the Releasees....
It is the intent and purpose of this agreement that at no time will the Re-leasees be called upon to pay any further sum or incur any further expense by reason of any fact, matter or claim, directly or indirectly, ... arising out of or predicated upon any claim, demand, judgment or payment made by or to Homer G. Ross or Marjorie Ross, their beneficiaries, successors, heirs or assigns, arising out of the injuries to, disease of, or death of Homer G. Ross....
[T]his agreement is and may be asserted by the Releasees as an absolute*211 and final bar to any claim or proceeding now pending or hereafter brought....
By our signatures below we represent that we understand this Full and Final Release and Indemnity Agreement constitutes a final and complete release of all claims regardless of their kind or character, including any possible claim which might be discovered in the future.
Homer died in 2001, and two years later, his wife and children brought an exemplary-damages claim against Union Carbide,
II. Issues Presented
In their first three issues, appellants contend the trial court erred in granting summary judgment because Homer could not have validly assigned, settled, or released their claims arising from his death. In their fourth issue, appellants argue that a fact issue regarding unilateral mistake precluded summary judgment.
III. Standard of Review
We review summary judgments de novo. Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex.2005). In a traditional summary-judgment motion, the movant has the burden of showing that there is no genuine issue of material fact and it is entitled to judgment as a matter of law. Tex.R. Civ. P. 166a(c); Am. Tobacco Co. v. Grinnell, 951 S.W.2d 420, 425 (Tex.1997). A defendant must conclusively negate at least one essential element of each of the plaintiffs causes of action or conclusively establish each element of an affirmative defense. Sci. Spectrum, Inc. v. Martinez, 941 S.W.2d 910, 911 (Tex.1997). Evidence is conclusive only if reasonable people could not differ in their conclusions. City of Keller v. Wilson, 168 S.W.3d 802, 816 (Tex.2005). Once the defendant establishes its right to summary judgment as a matter of law, the burden shifts to the plaintiff to present evidence raising a genuine issue of material fact. City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678-79 (Tex.1979).
We apply a de novo standard of review to the interpretation of our state constitution
To clarify appellantsâ arguments, we first provide the legal context for their claims. Under the terms of the Wrongful Death Act, an individualâs surviving spouse, children, and parents may sue for actual damages arising from an injury that results in the individualâs death. Tex. Civ. Prao. & Rem.Code AnN. §§ 71.002, 71.004 (Vernon 2008). If the death was caused by a wilful act or omission or gross negligence, exemplary damages as well as actual damages may be recovered. Id. § 71.009. Claims made under the Wrongful Death Act are entirely derivative and thus may be brought only if the injured individual would have been entitled to bring an action for the injury if he had lived. Id. § 71.003(a); In re Labatt Food Serv., L.P., 279 S.W.3d 640, 646 (Tex.2009) (âWhile it is true that damages for a wrongful[-]death action are for the exclusive benefit of the beneficiaries and are meant to compensate them for their own personal loss, the cause of action is still entirely derivative of the decedentâs rights.â); Russell v. Ingersoll-Rand Co., 841 S.W.2d 343, 345 (Tex.1992).
Appellants filed suit against Union Carbide for exemplary damages, alleging that the companyâs intentional, knowing, or reckless acts or omissions in regularly exposing Homer to respirable asbestos fibers without providing respiratory protection or advising him of the health risks caused the injuries that resulted in Homerâs death. But the Release executed by Homer and Marjorie Ross biâoadly covers all claims and damages against Union Carbide, including those under the Wrongful Death Act. Thus, the Release bars appellantsâ claims unless the claims are properly asserted on some basis other than the Wrongful Death Act. Appellants expressly deny that their claims are brought pursuant to the Wrongful Death Act, and instead contend that specific provisions of the Texas Constitution and the Workersâ Compensation Act, alone or in combination, create an exemplary-damages cause of action that is both independent of the Wrongful Death Act and nonderivative of Homerâs rights.
Appellants first rely on article XVI, section 26 of the Texas Constitution, which provides as follows:
Every person, corporation, or company, that may commit a homicide, through wilful act, or omission, or gross neglect, shall be responsible, in exemplary damages, to the surviving husband, widow, heirs of his or her body, or such of them as there may be, without regard to any criminal proceeding that may or may not be had in relation to the homicide.
They next point out that although the recovery of workersâ compensation benefits is the exclusive remedy for the death or work-related injury of an employee covered by the Workersâ Compensation Act, the Act âdoes not prohibit the recovery of exemplary damages by the surviving spouse or heirs of the body of a deceased employee whose death was caused by an intentional act or omission of the employer or by the employerâs gross negligence.â See Tex. Lab.Code Ann. § 408.001(b) (Vernon 2006). Appellants contend that these provisions, either separately or together, allow them to recover exemplary damages based on Union Carbideâs grossly negligent or intentional acts or omissions that caused the injuries that led to Homerâs death. They argue that the Release does not cover their claims arising from Homerâs death because such claims did not accrue until after his death and never belonged to Homer. They further reason that Homer could not settle and thereby âsellâ the claims because âone cannot sell what one does not own.â Specifically, appellants argue in their first and third is
A. No Independent Exemplary-Damages Claim Under the Texas Constitution or Workersâ Compensation Act
In construing a state constitutional provision, âthe fundamental guiding rule is to give effect to the intent of the makers and adopters of the provision in question.â Harris County Hosp. Dist. v. Tomball Regâl Hosp., 283 S.W.3d 838, 842 (Tex.2009). And because any such provision is âconstrued in the light of the conditions existing at the time of adoption,â its meaning âis fixed when it is adopted, and it is not different at any subsequent time.â Cramer v. Sheppard, 140 Tex. 271, 285, 167 S.W.2d 147, 154 (1942) (orig. proceeding).
Here, our analysis of article XVI, section 26 of the Texas Constitution is made easier because our highest court already has analyzed and explained, in a unanimous decision, this sectionâs purpose:
[T]he reason for adoption of the constitutional provision was to allow for exemplary damages under the Wrongful Death Act because of an early interpretation that such damages were not authorized by the Act .... It did not abrogate the common law requirement of actual damages and extend the remedy to those with no cause of action under the [Wrongful Death] Act.
Travelers Indem. Co. of Ill. v. Fuller, 892 S.W.2d 848, 851-52 (Tex.1995).
Appellantsâ argument that the Workersâ Compensation Act creates an independent, nonderivative cause of action is similarly unpersuasive. In interpreting a statute, our goal is to ascertain the legislatureâs intent by examining the statuteâs plain language. City of DeSoto v. White, 288 S.W.3d 389, 394-95 (Tex.2009). Because
1. Perez Overruled
Although appellants cite several cases in support of their argument that the Texas Constitution and the Workersâ Compensation Act create an independent, nonderiva-tive cause of action, we find these authorities unpersuasive or inapplicable and therefore decline to follow them. Chief among the authorities on which appellants rely is this courtâs prior decision in Perez v. Todd Shipyards Corp.
In Perez, a deceased employeeâs children and personal representative sued the workerâs employer for gross negligence in allegedly causing the employeeâs death from asbestos exposure. 999 S.W.2d at 32. The employer filed a bankruptcy petition in 1987, and the plan was confirmed in 1990. Id. While the bankruptcy action was pending, the employee was diagnosed with a benign asbestos-related pleural disease. Id. In 1992, the employee was diagnosed with metastatic mesothelioma and died three months later. Id.
His employer argued that the childrenâs claims were derivative of the employeeâs claims, which were barred by the employerâs previously-obtained discharge in bankruptcy. Id. We rejected that argument on the grounds that the childrenâs claims were not brought under the Wrongful Death Act, but instead were brought pursuant to article XVI, section 26 of the Texas Constitution and section 408.001(b) of the Workersâ Compensation Act. We concluded that the children did not present âa derivative action arising from any rights that may have been possessed by the decedentâ because â[t]he cause of action provided to the surviving family under the Texas Constitution and the Labor Code is not an action that could have been brought by the deceased.â Id. at 33.
Although this is the same argument presented by appellants, we cannot agree with
In sum, Perez presents an unsupported and unsustainable departure from precedent. To obtain uniformity among this courtâs decisions and reduce further confusion, we therefore overrule Perez. See Tex.R.App. P. 41.2(c) (authorizing en banc consideration of a case when necessary to secure uniformity of the courtâs decisions).
2. Sbrusch Rejected
Appellants also point to some federal cases containing language suggesting that the Workerâs Compensation Act created an independent cause of action for exemplary damages. See, e.g., Sbrusch v. Dow Chem. Co., 124 F.Supp.2d 1090, 1092 (S.D.Tex. 2000); Castillo v. Angelo Iafrate Constr., L.L.C., No. Civ.A. 303CV0061L, 2003 WL 22287637, at *3-4 (N.D.Tex. Sept. 30, 2003) (not reported) (following Sbrusch ).
The Sbrusch court analyzed the Texas Supreme Courtâs opinion in Wright v. Gifford-Hill & Co., 725 S.W.2d 712, 713 (Tex.1987), and concluded that âWright supports the view that the Texas Supreme Court, if confronted with the issue directly, would hold that section 408.001 creates an independent cause of action for exemplary damages based on wrongful death, as opposed to merely saving a pre-existing cause of action.â Sbrusch, 124 F.Supp.2d at 1092. The issue addressed in Wright was whether a claimant who was entitled to workersâ compensation benefits was precluded from recovering exemplary damages in the absence of a jury finding on the amount of actual damages sustained as a result of the workerâs death. Wright, 725 S.W.2d at 713-14. The Texas Supreme Court rejected the argument, noting that â[t]he plaintiff in a workersâ compensation case cannot recover actual damages .... Therefore, it is a waste of the juryâs time and efforts to require a finding of an amount of actual damages in such a case.â Wright, 725 S.W.2d at 714. The court did not hold that section 408.001(b) creates an independent cause of action for exemplary damages, and as pre
Contrary to the authorities cited by appellants, precedent and plain language dictate the conclusion that neither article XVI, section 26 of the Texas Constitution nor section 408.001(b) of the Workersâ Compensation Act, alone or in conjunction with one another, creates a nonderivative cause of action that may be asserted independently from the Wrongful Death Act. Because claims under the Wrongful Death Act are derivative of the injured personâs claim and Homer released Union Carbide from liability for gross negligence, exemplary damages, or his future death, appellantsâ claim for exemplary damages is barred by the Release. We therefore overrule appellantsâ first and third issues.
B. Release Is Not Void
Because of the derivative nature of their claims, wrongful-death beneficiaries are generally bound by the injured family memberâs contract releasing the alleged tortfeasor from liability. See Labatt Food Serv., 279 S.W.3d at 644. But settlements of claims for workersâ compensation benefits are governed by the Workersâ Compensation Act, which requires the parties to obtain the workersâ compensation commissionerâs approval of such agreements. See Tex. Lab.Code Ann. § 408.005. Absent approval, a workersâ compensation claimant âcannot settle his claim by accepting a payment of money and signing a common-law release.â Starnes v. Tex. Employersâ Ins. Assân, 549 S.W.2d 46, 47 (Tex.Civ.App.-Dallas 1977, writ ref'd n.r.e.). To the contrary, with exceptions inapplicable here, âan agreement by an employee to waive the employeeâs right to compensation is void.â Tex. Lab.Code Ann. § 406.035. Appellants therefore contend in their second issue that if the Release waived all claims arising from Homerâs asbestos exposure, then it also impermissibly waived any right to workersâ compensation benefits. Because the Release contains no severability clause, appellants further argue that the inclusion of the unlawful provision voids the entire agreement. In the alternative, appellants assert that the Release addresses only products-liability claims, and not claims of employer or premises liability. Appellants argue that as a result of such defects, the Release does not bar their claim for exemplary damages or Marjorieâs claim for loss of consortium.
But even assuming that the Release encompasses claims for workersâ compensation benefits in violation of section 406.035 of the Labor Code,
Here, the central and essential purpose of the Release is to resolve any claim that has been or could be asserted against the members of the CRC based on Homerâs personal injury or death from asbestos exposure. Although the Release expressly includes any claim by his survivors for exemplary damages or loss of consortium, claims for workersâ compensation benefits are not mentioned. Consequently, such claims are included in the Release only if we construe the contractâs terms to include them. See Lewis v. Davis, 145 Tex. 468, 472, 199 S.W.2d 146, 149 (1947) (â[W]here the illegality does not appear on the face of the contract it will not be held void unless the facts showing its illegality are before the court.â). But because the purpose of the legal system is to combat unlawfulness, not promote it, we cannot construe a contract to impose or enforce an illegal obligation. Cayan v. Cayan, 38 S.W.3d 161, 166 n. 8 (Tex.App.-Houston [14th Dist.] 2000, pet. denied). When two constructions of a contract are possible, we must apply the one that does not result in a violation of law. Lewis, 145 Tex. at 472-73, 199 S.W.2d at 149. We therefore conclude that the parties intended the release to be as broad and comprehensive as the law allows, but not more so.
Moreover, even if the Release encompasses the right to workersâ compensation benefits, an invalid release and assignment of workersâ compensation claims can be severed from the remainder without doing violence to the partiesâ agreement to waive the claims specifically referenced therein, including claims for products liability, loss of consortium, wrongful death, and exemplary damages. See Keck, Mahin & Cate v. Natâl Union Fire Ins. Co. of Pittsburgh, 20 S.W.3d 692, 697-98 (Tex.2000) (holding that a broad-form release of â âall demands, claims or causes of action of any kind whatsoeverâ â validly released âunknown claims and damages that develop in the futureâ); Victoria Bank & Trust Co. v. Brady, 811 S.W.2d 931, 938 (Tex.1991) (analyzing a more narrowly-tailored release and stating that âthe releasing instrument must âmentionâ the claim to be releasedâ). Finally, there is no evidence that the parties would have declined to execute a Release that did not dispose of claims for statutory workersâ compensation
In support of their alternative argument that Homer and Marjorie Ross settled only products-liability claims, appellants point to language in the Release referring to âmaterials and products manufactured, sold or distributed by the Re-leasees,â overlooking other provisions in which the Rosses released the members of the CRC âfrom any and all claims, demands, causes of action of whatsoever nature or character which we may now have or hereafter have ... arising out of, or in any way connected with, directly or indirectly, the exposure or occurrences of injuries, disease, illness or death of Homer G. Ross.â And because we must presume that the parties to a contract intended every clause to have some effect, we cannot selectively grant controlling effect to the individual provisions appellants cite. See rePipe, Inc. v. Turpin, 275 S.W.3d 39, 44 (Tex.App.-Houston [14th Dist.] 2008, no pet.) (citing Heritage Res., Inc. v. Nations-Bank, 939 S.W.2d 118, 121 (Tex.1996)). Instead, we examine the entire contract and harmonize its provisions so that none are rendered meaningless. Id. (citing J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223, 229 (Tex.2003)). If the parties have entered into an unambiguous writing, we will enforce the partiesâ intentions as expressed in the contract, and because âit is objective, not subjective, intent that controls,â the writing alone ordinarily is sufficient to express the partiesâ intentions. Matagorda County Hosp. Dist. v. Burwell, 189 S.W.3d 738, 740 (Tex.2006) (per curiam).
As illustrated by the provisions of the Release excerpted in Section I of this opinion, the parties to the Release expressly and repeatedly stated their intent to settle any and all of the Ross familyâs present or future claims arising from Homerâs injuries or death, including Marjorie Rossâs claim for loss of consortium. In addition to reciting categories of.waived claims, the parties also stated their intentions in broad but general terms:
It is the intent and purpose of this agreement that at no time will the Re-leasees be called upon to pay any further sum or incur any further expense by reason of any fact,â matter or claim, directly or indirectly, ... arising out of or predicated upon any claim, demand, judgment or payment made by or to Homer G. Ross or Marjorie Ross, their beneficiaries, successors, heirs or assigns, arising out of the injuries to, disease of, or death of Homer G. Ross....
As an added safeguard of finality, Homer and Marjorie Ross assigned to Union Carbide and the other Releasees any other claims that they or their heirs could assert in connection with Homerâs injury or death.
Viewing the contract as a whole, we do not agree that the Release is void or its scope limited as appellants suggest. We therefore overrule appellantsâ second issue.
C. Unilateral Mistake
In their fourth issue, appellants argue that the trial court erred in granting summary judgment in favor of Union Carbide regarding their exemplary-damages claim and Marjorieâs loss-of-consortium claim because there is a question of fact as to whether appellants are entitled to the equitable remedy of rescission under the doctrine of unilateral mistake. Relief from a unilateral mistake is available âwhen the conditions of remediable mistake are present.â James T. Taylor & Son, Inc. v.
These conditions generally are: (1) the mistake is of so great a consequence that to enforce the contract as made would be unconscionable; (2) the mistake relates to a material feature of the contract; (3) the mistake was made regardless of the exercise of ordinary care; and (4) the parties can be placed in status quo in the equity sense, i.e., rescission must not result in prejudice to the other party except for the loss of his bargain.
Id. Appellants contend that Homer and Marjorie Ross âexercised ordinary care before signing the agreement and still made a material mistakeâ; however, the only evidence produced in support of this contention was Marjorieâs affidavit.
Although appellants contend that the affidavit raises a fact issue concerning the availability of equitable relief, the affidavit simply contains assertions that (1) Homer never worked for Union Carbide Chemicals & Plastics Co., Inc.; (2) â[i]t was not revealedâ to the Rosses at that time that any party to the Release was liable to them âfor anything other than manufacturing, selling, or distributing an asbestos[-]containing productâ; (3) when Homer and Marjorie executed the Release, they âhad no understandingâ of who Union Carbide Chemicals & Plastics Co., Inc. was; and (4) the Rosses would not have entered into the agreement if they had known that Homerâs employer was one of the released parties.
In effect, the affidavit addresses only the knowledge that the Rosses possessed without taking any steps to identify the current legal name of Homerâs prior employer or the identity of Union Carbide Chemicals & Plastics Co., Inc. But the Rosses were represented by counsel, and their attorney was a signatory to the Release, in which the Rosses acknowledged that they relied not only upon their own knowledge and information, but also upon their attorneyâs advice regarding their legal rights and the liability of the released parties. The Rossesâ attorney further certified that he had âfully explained to them the legal effect thereof and after such explanation they were fully satisfied to release their claims.â Nevertheless, Marjorieâs affidavit fails to address the summary-judgment evidence that, according to publicly-available records, Union Carbide changed its name to Union Carbide Chemicals & Plastics Co., Inc. in 1989, and changed its name back to Union Carbide Corporation in 1994. And although his employerâs legal name was Union Carbide Corporation at the time Homer retired in 1984, the company was named Union Carbide Chemicals & Plastics Co., Inc. when the Release was executed in 1993.
Appellants also argue that it would be unconscionable to enforce the contract because Union Carbide did not contribute to the settlement. Under the terms of the contract, however, the entities who are released from liability include Union Carbide and its parent, subsidiary, predecessor, and successor corporations; its insurance carriers; and its present, former, and subsequent officers, directors, attorneys, agents, servants, and employees. The Rosses acknowledged the receipt and sufficiency of the consideration they received, and nothing in the Release required the settlement to be funded by any particular entity or limited the right of any party to enforce the Release. Appellants have not cited, and we have not found, any authority for implying such restrictions. They also state that Union Carbide would not be prejudiced by the rescission of the
We conclude that appellants have failed to raise a legal or factual issue regarding the availability of equitable relief, and we overrule their fourth issue.
Y. Conclusion
Homer and Marjorie Ross, acting for themselves and on behalf of their heirs, reached a final settlement and release for the express purpose of reducing the time, expense, and uncertainty of litigation, and appellants are bound by that decision. Because the trial court correctly concluded that Union Carbide established its right to judgment as a matter of law on the affirmative defense of release and appellants failed to raise a legal or factual issue concerning their assertion of unilateral mistake, we affirm the. trial courtâs judgment.
FROST, J. and PRICE, S.J., concurring.
. Although Homerâs estate and two dozen other defendants were originally parties to this action, all claims were non-suited with the exception of the claims of Homerâs wife and children against Union Carbide.
. See Perry v. Del Rio, 67 S.W.3d 85, 91 (Tex.2001).
. Or, as appellants frame the issues, that such a claim could not be sold to the employer by the injured employee.
. See also id. at 850 (explaining that when the Republic of Texas adopted the common law, there was no common law cause of action for wrongful death); Morrow v. Corbin, 122 Tex. 553, 564, 62 S.W.2d 641, 647 (1933) (explaining that the Texas Constitution âis to be interpreted in the light of the common lawâ).
. Appellants do not contend otherwise.
. As the higher court has pointed out, â'[i]t is not the function of a court of appeals to abrogate or modify established precedent.â Lubbock County, Tex. v. Trammelâs Lubbock Bail Bonds, 80 S.W.3d 580, 585 (Tex.2002).
. We also note that the holdings of the authorities cited in Perez do not support its reasoning. See Perez, 999 S.W.2d at 33 (citing Smith v. Atl. Richfield Co., 927 S.W.2d 85, 87 (Tex.App.-Houston [1st Dist.] 1996, writ denied), Universal Servs. Co. v. Ung, 904 S.W.2d 638, 639-40 (Tex.1995), and Texaco, Inc. v. Sanderson, 898 S.W.2d 813, 814 (Tex. 1995) (orig. proceeding) (per curiam)). In Smith v. Atlantic Richfield Co., the family members of a deceased worker challenged the summary judgment granted in the employersâ favor on their exemplary-damages claim. 927 S.W.2d at 87. The employers argued that Smith could not have sued for his injuries had he survived because his exclusive remedy was workers' compensation benefits, and because Smith could not sue for actual damages, his family had no cause of action for exemplary damages. Id. But as Smithâs family correctly pointed out, its cause of action was permitted by section 408.001(b) of the Workers' Compensation Act. Id. Smith's employers conceded that this provision would have saved a state constitutional cause of action, but pointed out Fuller "explicitly extinguished" any independent cause of action under article XVI, section 26. Id. This argument, however, appears to have been a red herring, for the Smith opinion contains no indication the family pursued its claim under the Texas Constitution rather than the Wrongful Death Act. To the contrary, the court not only acknowledged the familyâs position that its claim was permitted by section 408.001(b) of the Labor Code, id. at 87-88, but expressly noted that the family relied on Texaco, Inc. v. Sanderson and Universal Services Co. v. Ung in support of their position. Id. at 88 (citing Sanderson, 898 S.W.2d at 814, and Ung, 904 S.W.2d at 639-40). Significantly, neither Sanderson nor Ung contains any mention of the Texas Constitution whatsoever.
.See, e.g., SĂşber v. Ohio Med. Prods., Inc., 811 S.W.2d 646 (Tex.App.-Houston [14th Dist.] 1991, writ denied) (en banc). In SĂşber, a plaintiff asserted a design-defect claim and recovered a judgment for her personal injuries. Id. at 648. After her death, her surviving spouse, children, and mother sued the same defendants for the decedent's wrongful death, and the trial court granted summary judgment in favor of the defendants. Id. On appeal, the survivors challenged the judgment on the ground, inter alia, that article XVI, section 26 of the Texas Constitution guarantees gross-negligence wrongful-death beneficiaries a cause of action for exemplary damages, regardless of whether the injured person recovered damages for her injuries during her lifetime. See id. at 651. We explained our rejection of this argument as follows:
Although this section provides for exemplary damages upon a finding of gross negligence, it is inapplicable where an award of actual damages is unsupportable. Because appellants are barred from bringing a wrongful[-]death action in the instant case, there can be no recovery of actual damages, and thus, no recovety of exemplary damages. Consequently, this constitutional provision is inapplicable.
Id. (citation omitted). Notably, our decision in SĂşber was cited with approval by the Texas Supreme Court in Fuller for the proposition that article XVI, section 26 "did not change the common law actual damages requirement.â Fuller, 892 S.W.2d at 851 n. 3.
Only a month after deciding Perez, we made no mention of it when following contrary reasoning in Frias v. Atlantic Richfield Co., 999 S.W.2d 97, 103 (Tex.App.-Houston [14th Dist.] 1999, pet. denied). Contrary to appellants' characterization, our decision in Frias did not address the derivative nature of the
. See, e.g., Zacharie v. U.S. Natural Res., Inc., 94 S.W.3d 748, 756-57 (Tex.App.-San Antonio 2002, no pet.) (citing Perez, as authority for the existence of an independent, nonderivative cause of action for gross negligence under the Texas Constitution and the Workersâ Compensation Act); Crowder v. Am. Eagle Airlines, Inc., 118 Fcd.Appx. 833, 841-42 & n. 41 (5th Cir.2004) (per curiam, not for publication) (same); Castillo v. Angelo Iafrate Constr., L.L.C., No. Civ.A. 303CV0061L, 2003 WL 22287637, at *3 (N.D.Tex. Sept. 30, 2003) (not reported) (same).
. But see Wyble v. E.I. DuPont de Nemours & Co., 17 F.Supp.2d 641, 644-46 (E.D.Tex.1998) (repeatedly referring to language in the Texas Workers' Compensation Act exempting exemplary-damage gross-negligence suits by certain survivors of deceased workers from the exclusivity rule as a "savings clauseâ); Callis v. Union Carbide Chem. & Plastics Corp., 932 F.Supp. 168, 170-71 (S.D.Tex. 996) ("While the Workers' Compensation Act generally provides the exclusive remedy for work-related injuries, it does not prohibit the recovery of exemplary damages under the Wrongful Death Act for gross negligence resulting in death.â).
. We do not imply that a deceased workerâs survivors could not maintain an action against the workerâs employer if the worker had released only third parties; here, however, tire employer was among those released from liability.
. Section 406.035 of the Texas Labor Code applies only to subscribing employers. See Martinez v. IBP, Inc., 961 S.W.2d 678, 682 (Tex.App.-Amarillo 1998, pet. denied). The parties, however, cite no evidence regarding Union Carbide's status as a subscriber. Appellants did not assert in their pleadings at trial or in their statement of facts on appeal that Union Carbide was a workersâ compensation subscriber. Cf. Tex.R.App P. 38.1(g) (âIn a civil case, the court will accept as true the facts stated unless another party contradicts them."). In the argument section of their brief, however, appellants state that "[a]s Union Carbide was a subscriber employer, the only claims Mr. and Mrs. Ross have ever held against Union Carbide, be it now or in 1993, are/were workersâ compensation remedies.â Inasmuch as virtually all of appellants' arguments are based on the assumption that Union Carbide is a workers' compensation subscriber and Union Carbide does not appear to have addressed that premise, either at trial or
. There is no evidence that Homer or appellants have ever asserted a claim for workers' compensation benefits in connection with his asbestos-related injuries or death.