Texas Court Says Spouse Can Pursue Workers’ Comp Bad Faith Claim

The spouse of a workers’ compensation claimant may continue her bad faith complaint against Zurich American Insurance company over the insurers’ refusal to pay compensation benefits, a district court in Travis County, Texas, has ruled.

Zurich American had requested that the court deny standing to Dana Aiken, the wife of claimant James Aiken, who is seeking damages allegedly resulting from the carrier’s wrongful denial of compensation benefits that were later ordered to be paid.

The case is James Aiken and Dana Aiken vs. Zurich American Insurance Company. Zurich American had argued that the court had no jurisdiction over Dana Aiken’s claims because she did not meet the definition of “person” as stated in the Texas Insurance Code, according to attorneys representing the plaintiff.

The court denied Zurich American’s plea, allowing the spouse’s claim to proceed despite the insurer’s argument that Dana Aiken is neither a policyholder nor a beneficiary under the workers’ comp policy.

Sources: Law Office of Joe K. Longley; 353rd District Court of Travis County