in Re Zurich American Insurance Company and Kathryn Kuba

In The

Court of Appeals

Ninth District of Texas at Beaumont

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NO. 09-05-168 CV

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IN RE ZURICH AMERICAN INSURANCE COMPANY

AND KATHRYN KUBA


Original Proceeding


MEMORANDUM OPINION (1)

In this original proceeding the relators, Zurich American Insurance Company ("Zurich") and Kathryn Kuba, seek a writ of mandamus directing the trial court to vacate an order assuming jurisdiction over certain claims of real party in interest Arthur Hill and to enter an order dismissing Hill's medical dispute claims with prejudice.

Hill filed a suit alleging bad faith in handling of his claim for worker's compensation. The relators' plea to the jurisdiction alleged Hill was required to submit his medical benefits claims to the medical dispute resolution ("MDR") system of the Texas Workers Compensation Commission ("TWCC"). The relators argued that the suit must be dismissed with prejudice because Hill failed to timely request medical dispute resolution. The trial court ruled that Hill's failure to exhaust his remedies by proceeding through the MDR system precluded him from asserting that the denials by the relators that the bills were reasonable and necessary constituted bad faith in this case. The trial court limited its ruling to claims that the denial of medical bills on the basis that the bills were not reasonable and necessary, and ruled that Hill was not precluded from asserting bad faith "to the extent that any medical bills or treatment sought was disputed by Defendant on the grounds that Plaintiff's injuries were not compensable or the treatment was not related to the injuries. . . ." Hill argues he may litigate bad faith claims involving the dispute over compensability because the issue of compensability was fully adjudicated before the TWCC.

The relators have not established a "judicial appropriation of state agency authority" warranting relief through mandamus proceedings. See In re Entergy, 142 S.W.3d 316, 321 (Tex. 2004). Accordingly, the petition for writ of mandamus, filed April 27, 2005, is denied.

WRIT DENIED.

PER CURIAM

Opinion Delivered May 19, 2005

Before McKeithen, C.J., Kreger and Horton, JJ.

1. Tex. R.App. P. 47.4.