Thursday, February 11, 2021

Judicial estoppel not applied despite inconsistent statements

 Michel Ziade v Quality Business Solutions Inc.

Release Date:  Feb. 9, 2021  (July 2015)

Venue:  WD 83763  

Plot summary:  Claimant (Michel) is murdered and the murderer (Parker) confessed it was over a dispute about pay with FCMT.   The surviving spouse/company owner of FCTM  (Kristen)  named as employers FCTM and QBS.  FCTM did not appear at the hearing  

QBS defended the case that claimant was not an employee and the claim was also precluded under judicial estoppel. The ALJ and commission awarded benefits, and found an employment relationship. The Commission disavowed the opinion the DWC could not address issues of estoppel.  The ALJ found a service agreement that made QBS a co-employee of FCTM employees.  

The court noted the Commission improperly concluded it lacked jurisdiction to consider matters of res judicata or collateral estoppel.  QBS argued judicial estoppel and claimant cannot proceed on the theory that Michel was in the course and scope of employment to recover comp benefits when she alleged in an earlier motion for summary judgment that he was on a personal errand.  

The court noted the summary judgment in federal court was not decided on the issue if claimant was on a personal errand or not but on the issue of coverage, and FCMT had dropped its general liability coverage 3 months prior to the death.  

The ALJ rejected a 'wild' defense that the death was purely personal because of a private loan or that Parker wanted to kill Michel because he was while.  No additional evidence was introduced to support either theory.