FOR PUBLICATION
ATTORNEYS FOR APPELLANT
: ATTORNEY FOR APPELLEE:
LINDA GEORGE SHARON FUNCHEON MURPHY
W. RUSSELL SIPES
Lewis & Wagner
Laudig George Rutherford & Sipes Indianapolis, Indiana
Indianapolis, Indiana
WILLIAM ROBERTS, JR., )
)
Appellant, )
)
vs. ) No. 93A02-0309-EX-783
)
ACandS, INC., )
)
Appellee. )
OPINION - FOR PUBLICATION
William Roberts, Jr. appeals from an order of the Full Workers Compensation Board
of Indiana (the Board) dismissing his claim against his former employer, ACandS, Inc.,
for workers compensation benefits. Roberts presents two issues for our review:
whether the Boards dismissal of Robertss workers compensation claim pursuant to Ind. Code
§ 22-3-7-36(b) (Burns Code Ed. Repl. 1997) was premature, and in the alternative,
whether I.C. § 22-3-7-36 is unconstitutional as applied. Because we conclude that
the dismissal of Robertss claim was premature, we do not address his constitutional
arguments.
We reverse and remand.
Roberts was a union insulator from 1957 through his retirement in 1994.
During his over twenty-five years of employment with ACandS, Roberts worked on a
multitude of jobs installing, handling, removing, or otherwise working directly with asbestos-containing insulation
products. As a result, Roberts developed terminal malignant peritoneal mesothelioma, a disease
most often associated with exposure to asbestos. Roberts was diagnosed with
the disease in July 2001.
On August 1, 2001, Roberts and his wife, Beverly, filed a civil suit
for damages in Marion County Superior Court against a number of defendants whom
they alleged contributed to Robertss disease. On November 10, 2001, Roberts filed
with the Board an Application for Adjustment of Claim (Application) against ACandS.
There is nothing in the record, however, which indicates that Roberts ever sought
or received workers compensation benefits pursuant to his Application. Roberts did, however,
pursue his third party action.
Prior to a jury trial upon his complaint, Roberts accepted payment pursuant to
several settlement agreements which he had reached with one or more defendants whom
he had named in the civil action. The total amount of these
settlements exceeded $3,800,000. On May 24, 2002, a jury returned a verdict
assessing damages for Roberts in the amount of $2,800,000 and damages for Beverly
in the amount of $1,000,000. When the verdict was returned, four defendants
and numerous nonparties, including ACandS, remained in the action. The jury apportioned
12% fault against Roberts, 13% fault against PSI Energy, Inc.,
See footnote 36% fault against
ACandS, and a total of 39% fault against various other nonparties. The
trial court entered a judgment upon the verdict.See footnote However, there is nothing
in the record which indicates that the judgment has been paid and accepted
or even tendered.
On August 1, 2002, ACandS filed a motion to dismiss Robertss workers compensation
Application. On March 6, 2003, a single hearing member of the Board
issued an order dismissing Robertss Application. Finding that the facts were not
in dispute, the single hearing member concluded that, because Roberts had settled with
one or more third parties, pursuant to I.C. § 22-3-7-36, ACandS had no
further liability to compensate Roberts for his occupational disease. Roberts sought review
of the single hearing members decision by the full Board, and a hearing
was subsequently held on June 24, 2003. On July 28, 2003, the
full Board adopted and affirmed the single hearing members decision dismissing Robertss Application.
Roberts now appeals.
The present case involves interpretation of a statute found within the Occupational Diseases
Act (ODA), an act which is part of the workers compensation scheme.
More than twenty years after introduction of the Workers Compensation Act (WCA), our
General Assembly enacted the ODA, Ind. Code 22-3-7, in order to protect employees
by providing compensation, without regard to fault, for those who contracted occupational diseases
which were generally not covered under the WCA.
Spaulding v. Intl Bakers
Servs, Inc., 550 N.E.2d 307, 309 (Ind. 1990); Duvall v. ICI Americas, Inc.,
621 N.E.2d 1122, 1126-27 (Ind. Ct. App. 1993). By authorizing compensation for
certain diseases not caused by an employers negligence, the ODA created new rights
and remedies previously unrecognized by our common law. Baker v. Westinghouse Elec.
Corp., 637 N.E.2d 1271, 1275 (Ind. 1994). As with interpretation of
provisions of the WCA, the provisions of the ODA should be liberally construed
in favor of the employee to effectuate its humane purpose. Id.
Further, where, as here, the facts are not in dispute and the matter
for our review is primarily a legal question, we do not grant the
same degree of deference to the Boards decision as we would if the
issue were of fact, because law is the province of the judiciary and
our constitutional system empowers the courts to draw legal conclusions. See Walker
v. Muscatatuck State Dev. Ctr., 694 N.E.2d 258, 266 (Ind. 1998).
The ODA provides the exclusive remedy for an employee against his employer when
the employee develops an occupational disease.
See footnote
See Ind. Code § 22-3-7-6 (Burns
Code Ed. Repl. 1997). It has been observed, however, that in enacting
the WCA, the legislature never intended to abridge the remedies an employee has
in tort against a third party. Ross v. Schubert, 180 Ind.App 402,
407, 388 N.E.2d 623, 627 (1979). The same holds true for the
ODA. Indeed, the ODA provides:
Whenever disablement or death from an occupational disease arising out of and in
the course of the employment for which compensation is payable under this chapter,
shall have been sustained under circumstances creating in some other person than the
employer and not in the same employ a legal liability to pay damages
in respect thereto, the injured employee . . . may commence legal proceedings
against such other person to recover damages notwithstanding such employers or such employers
occupational disease insurance carriers payment of, or liability to pay, compensation under this
chapter. I.C. § 22-3-7-36(a) (emphasis supplied).
While the ODA permits employees to seek workers compensation benefits as well as
seek recovery from third parties, it also contains provisions to further the general
policy prohibiting an employee from obtaining a double recovery for his injury.
Cf. Waldridge v. Futurex Industries, Inc., 714 N.E.2d 783, 786 (Ind. Ct. App.
1999) (discussing the policy based upon nearly identical language under the WCA), trans.
denied. Under the ODA, this policy is fostered in part by the
subrogation provision found in I.C. § 22-3-7-36(a) and in the limitation on an
employers liability which is found in I.C. § 22-3-7-36(b).
See footnote
Upon appeal, Roberts maintains that the Board improperly interpreted I.C. § 22-3-7-36(b) and
thus, he claims that dismissal of his Application was premature.
See footnote
That statute
provides:
In the event such employee,[
See footnote
] . . . not having received compensation or
medical, surgical, hospital, or nurses services and supplies or death benefits, . .
. shall procure a judgment against such other party for disablement or death
from an occupational disease arising out of and in the course of the
employment, which judgment is paid, or if settlement is made with such other
person, either with or without suit, then the employer or such employers occupational
disease insurance carrier shall have no liability for payment of compensation or for
payment of medical, surgical, hospital, or nurses services and supplies or death benefits
whatsoever . . . . I.C. § 22-3-7-36(b) (emphasis supplied).
Specifically, Roberts contends that I.C. § 22-3-7-36(b) does not operate to bar his
claim against ACandS until his third-party action is fully concluded by settlement or
judgment which is procured and paid. While Roberts has admitted that he
has accepted settlements from one or more of the defendants named in his
third party action, he asserts in his appellants brief that his third party
action is not fully concluded because the judgment in his favor has not
yet been paid.
Roberts asserts that although the statute speaks in terms of the singular when
it provides that in circumstances where the employee shall procure a judgment against
such other party or if settlement is made with such other person, such
phrases must be read inclusive of the plural. In construing statutes,
[w]ords importing the singular number only may be also applied to the plural
of persons and things unless such construction is plainly repugnant to the intent
of the legislature or the context of the statute. Ind. Code §
1-1-4-1 (Burns Code Ed. Repl. 2002). Reading such phrases to encompass multiple
alleged tortfeasors who may have a legal liability to pay damages is consistent
with the reality that in many cases there are multiple parties who may
have contributed to an occupational disease and may therefore be liable to an
injured employee for damages. Thus, under Robertss interpretation of I.C. § 22-3-7-36(b),
where there are multiple alleged tortfeasors, an injured employee would not be barred
from seeking compensation benefits from his employer for an occupational disease unless he
procures a judgment, which is paid, or settles with each of the alleged
tortfeasors thereby fully concluding the third party action.
ACandS disagrees with such an interpretation of I.C. § 22-3-7-36(b) and directs our
attention to Waldridge v. Futurex Industries, Inc., 714 N.E.2d 783 (Ind. Ct. App.
1999), trans. denied. In Waldridge, another panel of this court interpreted an
essentially identical provision under the WCA, i.e. I.C. § 22-3-2-13.
See footnote In that
case, Waldridge suffered injuries from her exposure to various chemicals while she was
employed at Futurex from 1986-1988. In 1990, Waldridge filed with the workers
compensation board an application for adjustment of claim against Futurex, in addition to
filing a third party action against various chemical manufacturers in federal court.
Id. at 784. In 1992, Waldridge entered into a settlement agreement and
release with one of the named defendants in the third party action.
Thereafter, Futurex filed a motion to dismiss Waldridges workers compensation claim. The
Board affirmed a single hearing members decision to dismiss Waldridges workers compensation claim
pursuant to I.C. § 22-3-2-13, concluding that Waldridge was barred from workers compensation
recovery after settlement of her third party claim in federal court. Id.
Upon appeal to this court, Waldridge argued that the release rule provision found
in I.C. § 22-3-2-13 was impliedly repealed by the Comparative Fault Act (CFA).
The court considered the nature, scope, and policies of the WCA and
the CFA and held that the release rule provision remained intact after the
adoption of the CFA. Id. at 786-87. The court went on
to conclude that pursuant to I.C. § 22-3-2-13, because Waldridge had entered into
a settlement and release with a third party defendant, she was barred from
seeking workers compensation benefits. Id. at 787.
ACandS would have us read Waldridge to say that
pursuant to I.C. §
22-3-7-36(b), an employee is barred from seeking workers compensation benefits after he settles
with any other alleged tortfeasor, regardless of how small the proportion of fault
which is attributable to such other party. ACandS thus argues that as
soon as Roberts settled with any of the defendants in his civil action,
as he did here prior to going to trial, Roberts was thereafter barred
from recovering workers compensation benefits from ACandS.
The policy of the law generally is to discourage litigation and encourage negotiation
and settlement of disputes.
Mendenhall v. Skinner and Broadbent Co. Inc., 728
N.E.2d 140, 145 (Ind. 2000). To adopt ACandSs interpretation of I.C. §
22-3-7-36(b) would appear to do just the oppositehinder negotiations and settlement and encourage
litigation. Indeed, under circumstances where there are multiple alleged tortfeasors, injured employees
would be discouraged from settling with even the least culpable tortfeasor for fear
of terminating his employers liability. Moreover, in such a situation, ACandSs interpretation
does not foster the policy of prohibiting double recovery for which the provision
was enacted.
Although the court in
Waldridge concluded that the claimant was barred from seeking
workers compensation benefits because she had settled with a third party defendant, the
court so concluded in affirming the Boards decision to dismiss her application for
benefits because of her settlement of her third party claim in federal court.
This language could be read to mean that Waldridges third party claim
was fully concluded. However, we note that the status of the other
defendants initially named in Waldridges action is unclear. If those other defendants
still remained as part of the third party action, then Waldridges action was
not fully concluded. Thus, to the extent that the facts in Waldridge
can be read to say that the third party action was fully concluded,
we believe it was a correct application of the law. However, to
the extent that Waldridge may be read as ACandS urges, we decline to
follow it.
Here, although Roberts settled with one or more defendants, his third party claim
was still pending as to the several defendants who remained in the lawsuit.
Under our reading of the statute, Roberts would not be barred from
seeking workers compensation benefits until his third party claim is fully concluded by
settlement or a judgment which was paid. At the time of the
Boards dismissal of his claim, Roberts had settled with some defendants and a
judgment had been rendered as to the remaining defendants. However, there is
no evidence that the judgment had been paid or even tendered to Roberts.
Indiana Code § 22-3-7-36(b) requires that a settlement be reached or a
judgment be rendered
and paid before the employers liability for compensation terminates.
Therefore, we hold that because there was no evidence before the Board as
to whether Robertss judgment has been paid, and thus, that his third party
claim was fully concluded, we hold that the Boards dismissal of Robertss Application
for workers compensation benefits pursuant to I.C. § 22-3-7-36(b) was premature.
See footnote
The decision of the Board is reversed and the cause is remanded for
further proceedings.
ROBB, J., and BROOK, Sr.J., concur.