Archem Co. v. Austin Industrial, Inc

In Archem Co. v. Austin Industrial, Inc. 804 S.W.2d 268 (Tex. App.-Houston [1st Dist.] 1991, no writ), Vallejo was employed by Austin Industrial, who supplied temporary labor. Austin Industrial's client was Archem, and Vallejo was injured while working at Archem's premises. Vallejo sued Archem and Austin, both of whom contended that because they were workers' compensation subscribers, Vallejo's claims were barred by the exclusive remedy provision. Austin Industrial filed a motion for summary judgment, which the trial court granted. Citing its decision in Smith, the court of appeals reversed, saying that "where one entity 'borrows' another's employee, workers' compensation law identifies one party as the 'employer' and treats all others as third parties." The court held that there was a fact question of whether Austin Industrial or Archem was Vallejo's employer at the time he was injured.