City of Houston v. Rhule

Respondent, a firefighter for the Houston Fire Department, suffered an on-the-job injury in 1988. The City of Houston and Respondent entered into a settlement agreement under which Respondent would receive lifetime medical expenses in exchange for releasing the City from any further claims derived from the injury. In 2004, the City stopped paying for many of Respondent's medical expenses, concluding they were not reasonable or necessary. A jury found for Respondent and awarded him $127,500 in damages. The City petitioned for the Supreme Court's review, arguing (1) the trial court lacked jurisdiction to hear the case because Respondent did not exhaust his administrative remedies as required by statute; and (2) governmental immunity shielded the City from suit. The Supreme Court reversed and dismissed Respondent's action for lack of subject matter jurisdiction, holding that Respondent failed to exhaust his administrative remedies as required by statute, and therefore, the trial court was divested of jurisdiction. View "City of Houston v. Rhule" on Justia Law