Cook v. LOWE'S HOME CENTERS, INC.
209 N.C. App. 364
| N.C. Ct. App. | 2011Background
- Cook was injured on Lowe's premises in North Carolina in 2005 while employed by a Tennessee company, the Oryan Group.
- Cook and the Oryan Group entered a lump-sum Tennessee workers' compensation settlement, approved by a Tennessee chancery court.
- Hartford Insurance, the Oryan Group's workers' compensation carrier, intervened in Cook's North Carolina negligence case to enforce a subrogation lien.
- Cook and defendants settled the North Carolina negligence claim for $220,000; Cook then moved in North Carolina to reduce or extinguish the lien.
- The trial court held that North Carolina law applied and reduced Hartford's lien to $30,000 after a hearing.
- Hartford appealed, challenging the choice of law and the lien reduction validity; the North Carolina Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which law governs lien reduction, NC or TN? | Cook argues NC law governs remedial lien reduction. | Hartford contends TN law should apply and prohibit reduction. | NC law governs lien reduction. |
| Did the trial court abuse its discretion in reducing the lien? | Cook asserts the lien reduction is proper given inadequate benefits. | Hartford argues the lien should remain larger under TN policy. | No abuse of discretion; reduction to $30,000 affirmed. |
Key Cases Cited
- Beam v. Maryland Casualty Co., 477 S.W.2d 510 (Tenn. 1972) (legislative intent to reimburse employer from net recovery)
- Charnock v. Taylor, 223 N.C. 360, 26 S.E.2d 911 (1939) (remedial rights governed by forum law)
- In re Biddix, 138 N.C.App. 500, 530 S.E.2d 70 (2000) (no fixed formula; trial court has discretion)
- Allen v. Rupard, 100 N.C.App. 490, 397 S.E.2d 330 (1990) (discretionary nature of lien determination requires reasoned judgment)
- Radzisz v. Harley Davidson of Metrolina, Inc., 346 N.C. 84, 484 S.E.2d 566 (1997) (employer's lien on third-party recovery is mandatory but subject to court discretion)
- Carolina Bldg. Servs.' Windows & Doors, Inc. v. Boardwalk, LLC, 362 N.C. 262, 658 S.E.2d 924 (2008) (remedial benefits construed broadly to eliminate evils sought to be eliminated)