American Cargo Express v. Super Ct.
C081125
| Cal. Ct. App. | Oct 13, 2017Background
- SISF assumed Mainstay's workers' compensation liabilities after Mainstay defaulted; DIR ordered the assumption on or about April 19, 2011.
- Mainstay was a tribal government–sponsored entity (Blue Lake Rancheria) operating a temporary staffing and employee leasing business.
- Mainstay’s clients had agreements that Mainstay’s certificate would cover workers’ compensation benefits for workers.
- Mainstay became insolvent; collateral for the certificate was exhausted around October 2012; SISF paid and assumed liabilities totaling about $49.9 million by March 31, 2014.
- SISF sued Mainstay, Mainstay’s clients, and others to recover excess costs; the trial court granted judgment on the pleadings against the clients on the section 3744(c) claim.
- Mainstay’s clients petitioned for writ of mandate/prohibition; the court held that SISF could bring a section 3744(c) action in superior court and that the section 3602(d) defense does not bar the action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SISF's action is barred by exclusive remedy under the Act | SISF fits the 3744(c) exception | Exclusive remedy applies to employee injuries | Not barred; SISF may pursue in superior court |
| Whether section 3602(d) creates a defense to SISF's action | 3602(d) does not bar recovery | 3602(d) would bar tort-style action | 3602(d) defense does not bar SISF's action |
| Whether writ review is appropriate after 3701.9 enactment | Writ review remains appropriate | Issues moot by 3701.9 | Writ review appropriate; judgment affirmed |
Key Cases Cited
- San Francisco Taxpayers Assn. v. Board of Supervisors, 2 Cal.4th 571 (1992) (pre-emption of general rule by specific statute; interplay of special provisions)
- Snyder v. Michael’s Stores, Inc., 16 Cal.4th 991 (1997) (exclusivity when action damages injury dependent on employee injury)
- Lance Camper Mfg. Corp. v. Republic Indemnity Co. of America, 44 Cal.App.4th 194 (1996) (demurrer-like standard for judgment on the pleadings)
- In re D.O., 247 Cal.App.4th 166 (2016) (interpretation of exclusive list in 3744 subdivision (c))
- Vacanti, M.D., Inc. v. State Comp. Ins. Fund, 24 Cal.4th 800 (2001) (comparison of state fund actions and statutory framework)