Whipped Cream Difficulties

La Barbecue is a popular Austin joint. It is in the Texas Monthly Top 50, though not in the Top 10.

The owner and manager of La Barbecue have been criminally indicted.

[Leanne] Mueller and [Allison] Clem are each charged with two counts of fraudulent securing of document execution.

What does that mean? Here’s how the Statesman explains it. La Barbecue didn’t have worker’s comp insurance, and hadn’t had it since November of 2014. Sometime in July of 2016, one of their employees was hurt “while operating a piece of kitchen equipment”. It sounds like the injuries were pretty serious: I’ll get into that in a minute.

Four days later, Clem contacted Paychex Insurance to get workers’ compensation coverage, something the restaurant had been without since November 2014.
Clem did not disclose her employee’s injuries to the agent but asked that the new policy be backdated to July 1, 2016, three weeks before the employee was hurt, the Texas Department of Insurance reported.

This kind of strikes me as equivalent to being in a car accident, then calling your insurance agent to get backdated coverage. I would call this “insurance fraud”. But: I am not a lawyer.

“It is perfectly legal to obtain a backdated policy in Texas,” said the women’s attorney, Brian Roark.

Which may be true. But it is legal to obtain a backdated policy, then make a claim against that policy for an accident that happened while coverage was not in place?

Mueller then submitted a signed application for coverage, claiming the business had no previous losses, and the policy was approved by Travelers Casualty Insurance Co. of America, the department said.

According to the article, Travelers paid out “$350,000 in medical and indemnity benefits”. In addition, “The insurance company is also responsible for lifetime care of the injured employee.”

“The insurance company determined early on that they didn’t believe they should have to pay for the claim, yet continued to pay for it anyway,” Roark said. “Regardless of the insurance company’s determination, La Barbecue, Leanne Mueller and Allison Clem believed they were acting in good faith at all times when they signed the application that had been provided to them by the insurance agent. All the monies paid for the employee were paid to the employee or directly for his medical expenses and not to La Barbecue, Leanne Mueller or Allison Clem. We believe once a jury hears the facts, that La Barbecue, Leanne Mueller and Allison Clem will be exonerated.”

If they are convicted, supposedly the two can be made to pay restitution “up to double the amount Travelers already paid to the injured worker in benefits”.

I’d hate to lose a good barbecue joint (though I’ve never had a chance to eat at La Barbecue). But I think this goes to show at least one thing: it’s just ignorant not to have worker’s comp insurance.

(More from eater.com. Crossposted to The Logbook of the Saturday Dining Conspiracy.)

This entry was posted on Wednesday, August 24th, 2022 at 3:19 pm and is filed under Beef, Food, Law. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.