Storage & Processors, Inc. v. Reyes

Summary

The Supreme Court of Texas held that employers enrolling employees in non-subscriber workers' compensation benefit plans must satisfy the fair-notice requirements of the express-negligence doctrine and conspicuousness. The court affirmed the court of appeals and remanded because a fact question remained regarding the employee's actual knowledge of the plan terms.

Holdings

1. An employer must satisfy both the express-negligence doctrine and the conspicuousness requirement when enrolling employees in a nonsubscriber workers' compensation benefits plan.
2. A contract that fails either applicable fair-notice requirement is unenforceable as a matter of law, unless both contracting parties had actual knowledge of the plan's terms.
3. The decision is a limited extension of the fair-notice doctrines based on the unique public-policy status of nonsubscriber workers' compensation agreements; it does not establish that the doctrines apply to every contract shifting any degree of risk.

Questions Presented

1. Whether the express-negligence and conspicuousness fair-notice requirements apply when an employer enrolls employees in a nonsubscriber workers' compensation benefits plan.
2. Whether the liability waiver was enforceable despite its failure to satisfy the conspicuousness requirement because Reyes may have had actual knowledge of the plan's terms.
3. Whether the court of appeals' suggestion that the fair-notice requirements apply to any contract shifting any degree of risk should be disapproved.

Disposition

affirmed