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Monday, September 30, 2024

Ninth Court gives injured worker who received worker’s comp second chance to pierce corporate veil

Lawsuits
Forklift

BEAUMONT – The Ninth Court of Appeals recently reversed a summary judgment win for a company that was sued by an employee who received worker’s compensation.

The opinion stems from a lawsuit brought by Michael Gustafson against Complete Manufacturing Services (CMS).

Gustafson, a Locke Technical Services employee, was assigned to work for one of the company’s clients, CMS, a non-subscriber to worker’s compensation.

While working at CMS’s facility, Gustafson was injured by a forklift. He lost a toe in the incident and received worker’s comp benefits under Locke’s policy. 

Gustafson sued CMS along with the company’s owner, Ronald Smith, and his wife, Oletha, for negligence and gross negligence, seeking to hold the individuals liable based on a corporate veil-piercing theory.

Because Gustafson has already received worker’s comp benefits with Locke, the Smiths moved for summary judgment, which the trial court granted, court records show.

On appeal, the Ninth Court found the defendants’ no-evidence motion for summary judgment on the corporate veil-piercing claim insufficient.

“Therefore, the trial court improperly granted summary judgment,” states the court’s July 23 opinion. “We reverse and remand for further proceedings.”

Appeals case No. 09-18-00415-CV

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