When Can Workers Sue Oil Companies | Texas Oilfield Lawyer

You were following safety protocols on a drilling site near Houston when suddenly, the equipment failed, causing serious injuries that left you with mounting medical bills and facing months without employment. Your company's workers' compensation insurance is offering minimal coverage, so do you have any rights to sue? 

At Dortch Lindstrom Livingston Law Group, our Texas oilfield lawyers want you to know that while workers' compensation typically limits your ability to sue your employer directly, there are important exceptions that could allow you to pursue the full compensation for your injuries, accident-related expenses, and lost income.

Workers' Compensation Limitations in Texas Oilfield Cases

Understanding your company's insurance status is the first crucial step to determining your options. By law, private employers in our state aren’t required to carry workers' compensation insurance. However, if your company does provide it, these benefits typically become your "exclusive remedy" for workplace injuries—meaning you generally can’t sue your employer directly. However, this compensation is often inadequate for catastrophic injuries common in oilfield accidents, such as severe burns, traumatic brain injuries, or spinal cord damage.

Some oil companies attempt to misclassify employees as independent contractors to avoid providing benefits. This misclassification is often illegal and can be challenged, potentially opening additional avenues for compensation after an accident.

When Can You Sue an Oil Company Directly?

Two key scenarios may allow you to file a lawsuit against your employer after a workplace injury.

Non-Subscriber Status

If your employer opted out of workers' compensation coverage, you retain the right to sue them directly for negligence. In these cases, the oil company loses key legal defenses, including:

  • Contributory negligence. Your employer cannot argue that you were partially responsible for your own injuries. Even if you were 99% at fault, you may still recover damages from the company for their 1% negligence.
  • Assumption of risk. This defense isn’t available to non-subscribers. The company can’t claim you knew the job was dangerous and accepted those risks when you took the position. 

In these cases, it’s essential to prove the oil company's negligence contributed to your injuries. This might include providing inadequate training, failing to maintain equipment, or not enforcing safety protocols. The burden of proof is lower than in typical personal injury cases.

Gross Negligence Claims

Even if your employer carries workers' comp coverage, you may file an oilfield lawsuit if your injuries resulted from gross negligence. Unlike ordinary negligence, this involves:

  • Conscious indifference. The oil company knew about an extreme risk but proceeded anyway. For example, if supervisors were aware of a serious safety violation but intentionally ignored it to meet production quotas.
  • Extreme risk. The danger present must have posed a considerable risk of harm, not merely a general workplace hazard. This might include forcing workers to use obviously defective equipment known to cause serious injuries.

Gross negligence claims require substantial evidence showing the company's actions went far beyond simple carelessness.

Third-Party Liability Claims in Texas Oilfield Accidents

In the multi-layered environment of an oilfield, numerous companies typically work side by side. So, another option for a lawsuit targets parties other than your employer that may share responsibility for your injuries, such as:

  • Equipment manufacturers. If defective equipment caused your injury, you may have a product liability claim against the manufacturer. These claims don't require proving negligence—only that the equipment was defective and caused your injury.
  • Subcontractors. Many specialized tasks at oilfields are performed by subcontractors. If their negligence contributed to your accident, you may file a claim against them even if you can’t sue your employer.
  • Safety consultants. If a refinery hires an outside safety advisor who gives negligent advice or fails to identify serious hazards during an inspection, the consultant may share responsibility for any resulting accidents.
  • Property owners. If dangerous property conditions contributed to your accident, the landowner might be liable under premises liability laws. This is particularly relevant when the drilling site is owned by someone other than your employer.
  • Training providers. Third-party companies hired to train refinery workers may be liable if they deliver inadequate or incorrect safety instructions that contribute to an accident.

We conduct thorough investigations to identify all potentially liable parties. This often involves reviewing contracts between companies, analyzing maintenance records, and determining which entity controlled different aspects of the worksite at the time of your injury.

How Our Oilfield Legal Team Protects Your Rights

At Dortch Lindstrom Livingston Law Group, we have more than 60 years combined experience with state and federal cases. Our dedicated former defense attorneys strive for comprehensive results that provide you and your family with the justice and compensation you deserve. When you choose us, we get to work right away: 

  • Investigating the accident. We thoroughly examine the circumstances of your injury, identify all potentially liable parties, and gather critical evidence to strengthen your claim.
  • Assessing your damages. We calculate the true value of your losses—not just current medical bills, but also future medical needs, lost earning potential, and pain and suffering—which can total millions of dollars in catastrophic cases.
  • Handling all claims and paperwork. We manage every aspect of filing your claims, making sure documents are accurate, complete, and submitted within the strict legal deadlines.
  • Negotiating for a fair settlement. We use our experience dealing with insurance companies and large corporations to fight for the compensation you deserve—not just what they initially offer.

The oil and gas industry powers our state’s economy, but when companies cut corners on safety, workers like you pay the price. Understanding your legal options beyond basic workers' compensation benefits is crucial to protecting your future after a serious oilfield injury.

T. Micah Dortch
With more than 1,000 federal & state court matters as lead trial counsel, he has worked on many notable cases.