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Representing the Rights of Employers to Workers' Compensation Rebate.

Scott represented Amber, Inc., Champagne-Webber, Inc., Churchill Truck Lines, Inc., Royal Seating Corp., Wall Street Deli, Inc., and many other Texas businesses in their efforts to enforce a Texas Department of Insurance order requiring all Texas workers’ compensation insurers writing retrospectively rated policies to issue rebates to policyholders.

The Texas Department of Insurance issued an order requiring all insurers writing retrospectively rated workers compensation insurance to rebate premiums to Texas businesses.  All Texas insurers affected by the order filed suit contesting the order under both the Texas and Federal Constitutions. Following the district court’s denial of an injunction, Scott’s clients settled with most insurers for approximately $53 million. Liberty Mutual Insurance Company did not settle. After certification of a litigation class against Liberty Mutual and the trial court’s summary judgment favoring the class, Liberty appealed.  Scott then successfully represented the class in the Texas Court of Appeals and then the Texas Supreme Court. The appeal concluded on March 1, 2007, when Liberty Mutual chose not to appeal to the Supreme Court of the United States. As a result, the class became entitled to an additional $13.5 million from Liberty. Scott settled this case as a class action and the clients recovered over $57.855 million.  The expenses were paid out of the fees paid to the attorneys. In this case, the attorneys' fees and expenses were $8.645 million. 

Liberty Mut. Ins. Co. v. Texas Dep’t of Ins., 187 S.W.3d 808, 819 (Tex. App. - Austin 2006, pet. denied).

 

 

 

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