With this provision in place, Exxon’s status as a statutory employer effectively shut the door on its claim for insurance benefits.
Legal Battle Stemming From a Deadly Plant Disaster
The dispute dates back to a catastrophic 2013 explosion at an Exxon facility, which led to multiple injuries among Brock subcontractors. The injured workers filed suit after receiving workers’ compensation benefits, prompting Exxon to sue Lexington in 2014 for coverage.
Despite securing a $25 million judgment in 2022, Exxon’s victory was short-lived. The appellate court found that because the OCIP explicitly classified subcontractors as Exxon employees, the company was legally barred from seeking further compensation.
Exxon Walks Away With “Nothing”
In a decisive opinion, the panel determined that Exxon was never entitled to coverage under the excess policy.
“This case concerns the depth and breadth of the ‘exclusive remedy’ defense provided by the Texas Workers’ Compensation statute,” the court stated. “Historically, general liability policies were never meant to cover an employer’s liability to its own employees.”
