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Texas employer wins right to use arbitration in worker injury dispute

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A Texas workers compensation nonsubscriber can compel the arbitration of an injured nurse's claim, a state court of appeals has ruled.

Registered nurse Mark Bennett began working at Atrium Medical Center in Corinth, Texas, in 2012, according to court records. He was injured in March 2013 when a co-worker unlocked and opened the door to the small room he was cleaning, striking him in the head.

The long-term acute care hospital is operated by Corinth Investor Holdings L.L.C., a workers compensation nonsubscriber that maintains an employee injury benefit plan, according to records. That plan includes arbitration provisions, which state that disputes, claims or controversies related to “the occupational injury, death or disease of a plan participant shall be submitted to final and binding arbitration under the Federal Arbitration Act.”

While plan participants can revoke the arbitration agreement by notifying Corinth in writing by certified mail and requesting a return receipt, provisions state that the agreement cannot be revoked after benefits, such as the payment of medical expenses, have been received, records show.

Mr. Bennett attempted to revoke the agreement after Corinth paid “thousands of dollars” in medical expenses over the course of one year to treat his injury, according to records. On May, 1 2014, Mr. Bennett was sent home from work for an alleged violation of company policy and instructed to return on May 6, 2014, records show. When he returned, accompanied by his attorney, he was again told to leave and come back on May 28, 2014.

It's unclear how long after May 28 his employment with Corinth continued.

Mr. Bennett filed a lawsuit against Corinth in October 2014, alleging that it failed to provide a reasonably safe workplace; to properly instruct, supervise and train supervisory employees; to supply reasonably safe and suitable equipment, tools and appliances; and to establish reasonably safe rules and regulations, according to records.

Corinth then filed a motion to compel arbitration in June 2015.

During a July 2015 hearing, Corinth argued that the arbitration agreement could not be revoked since Mr. Bennett had already received plan benefits and that he was not entitled to an evidentiary hearing, records show.

Later that month, the 193rd Judicial District Court of Dallas County, Texas, denied Corinth's motion to compel arbitration and granted Mr. Bennett's motion to declare the case nonarbitrable.

Corinth appealed to Texas' 5th District Court of Appeals in Dallas, which reversed and remanded the case on Thursday, directing the District Court to grant Corinth's motion to compel arbitration.

“It was uncontested that there was a valid, enforceable arbitration agreement,” the appellate court's ruling states. Mr. Bennett “raised several defensive theories in an effort to escape arbitration. He failed, however, to present any affidavits or other such admissible evidence to support his contentions.”

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