The Texas Supreme Court’s recent decision in In re East Texas Medical Center Athens, 712 S.W.3d 88 (Tex. 2025), addresses a recurring issue in workplace injury litigation: whether a nonsubscribing employer may designate responsible third parties under the proportionate responsibility statute in employee negligence suits. This ruling clarifies the interplay between the Workers’ Compensation Act and Chapter 33 of the Texas Civil Practice and Remedies Code.
Sharon Dunn, an emergency department nurse at ETMC Athens, suffered a serious back injury when an EMT (not employed by ETMC Athens) pushed a stretcher into her. Dunn initially sued the EMT and his employer, but those claims were dismissed because she failed to timely serve an expert report under the Texas Medical Liability Act. Dunn then brought negligence claims against ETMC Athens, a nonsubscriber to the Texas workers’ compensation program.
ETMC Athens moved for leave to designate the EMT and his employer as responsible third parties under Tex. Civ. Prac. & Rem. Code § 33.004. Dunn did not object, and the trial court granted the motion. Eleven months later, Dunn moved to strike the designations. Dunn argued that her suit was “an action to collect workers’ compensation benefits” and thus exempt from the proportionate responsibility statute under Tex. Civ. Prac. & Rem. Code § 33.002(c)(1). The trial court granted Dunn’s motion, and the Tyler Court of Appeals denied ETMC Athens’s petition for mandamus relief. ETMC Athens then sought mandamus relief from the Texas Supreme Court.
The question presented to the Texas Supreme Court in this petition for mandamus was whether nonsubscribing employers can designate responsible third parties under the proportionate responsibility statute.
The Court held that an employee’s negligence claim against a nonsubscribing employer is not “an action to collect workers’ compensation benefits” under the Workers’ Compensation Act. Instead, these claims are governed by common law, and the proportionate responsibility statute applies. See In re East Tex. Med. Ctr. Athens, 712 S.W.3d at 92–96.
The Court distinguished between statutory claims for workers’ compensation benefits and common law negligence claims against nonsubscribers, noting that the Act’s exclusive remedy provision applies solely to subscribers. It further clarified that while the Workers’ Compensation Act bars subscribers from employing certain defenses (such as contributory negligence, assumption of risk, and fellow employee negligence) it does not prohibit nonsubscribing employers from designating responsible third parties. Id. See also, Tex. Lab. Code §§ 406.033, 406.034.
In re East Texas Medical Center Athens clarifies that the proportionate responsibility statute applies to negligence claims against nonsubscribing employers, and that nonsubscribing employers may designate responsible third parties. This decision strengthens the defense options available to nonsubscribers going forward.
