Continental Casualty Company, Petitioner v. Mary Ann Downs, Beneficiary of Raymond Downs, Deceased, Respondent

Summary

The Texas Supreme Court affirmed the Court of Appeals' judgment, holding that a workers' compensation carrier that neither begins benefit payments nor provides a notice of refusal within seven days of receiving notice of injury has not satisfied the statutory prerequisite and therefore cannot later contest the compensability of the claim. The Court based its decision on the mandatory language of Tex. Lab. Code §§ 409.021(a) and 409.022(b) and the legislative intent to provide claimants prompt payment or notice of denial. Justice Jefferson dissented, arguing that the statute's waiver provision applies only to the 60‑day deadline and that the majority improperly creates a forfeiture penalty not found in the text.