Fort Worth Lloyds v. Tom E. Haygood

Summary

The Texas Supreme Court reversed the lower courts and remanded with instructions to enter judgment for Fort Worth Lloyds for the $7,139 compensation paid to the employee plus a reasonable attorney's fee. The Court held that under Section 6a of the Workmen's Compensation Act the carrier is entitled to recoup its compensation payments and costs before any excess recovery goes to the employee, and that a settlement made with knowledge of the carrier's subrogation rights triggers this entitlement.