Fort Worth Lloyds v. Tom E. Haygood

Summary

The Texas Supreme Court reversed the Court of Civil Appeals and remanded for entry of judgment in favor of Fort Worth Lloyds for the $7,139 compensation it paid to the employee plus a reasonable attorney's fee. The majority held that under Section 6a of the Workmen's Compensation Act the carrier is entitled to recoup the compensation it paid and the costs of enforcing the employee's third‑party liability, even when the employee settled with the tortfeasor with knowledge of the carrier's subrogation rights. Justice Wilson dissented, arguing that the statute does not transfer title or control of the third‑party action to the carrier.