Argonaut Insurance Company, Petitioner v. Debbie Baker

Summary

The Texas Supreme Court held that Argonaut Insurance Company is entitled to be reimbursed from the settlement proceeds for the full amount of workers' compensation benefits it paid, including the $250,000 deductible portion. The Court reasoned that the Labor Code subrogation provisions and the plain language of Insurance Code article 5.55C require reimbursement of all benefits paid, and that the employee is not required to pay the deductible because the reimbursement comes from a third‑party recovery, not from the employee. Justice Hankinson dissented, arguing that the deductible should be reimbursed by the employer, not the employee.