Employers Mutual Casualty Company v. Trejo, 1:18-cv-03066

Plaintiff (Employers Mutual Casualty Co.) issued a commercial auto policy to Defendant’s employer; Defendant was injured in an accident caused solely by a co-employee while both were on the job.
Defendant received workers’ compensation benefits; the employer and co-employee are immune from suit under Colorado’s Workers’ Compensation Act (WCA).
Defendant seeks UM/UIM recovery under the employer’s commercial policy; Plaintiff filed for declaratory judgment denying coverage.
The sole legal question is whether Defendant is “legally entitled to recover” under the employer’s policy given WCA immunity.
The parties moved for summary judgment; no material factual disputes exist and Colorado law governs.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Defendant is "legally entitled to recover" under his employer's UM/UIM policy despite WCA immunity	Defendant cannot be legally entitled to recover from the employer's insurer because the employer and co-employee are immune under the WCA	Defendant would be legally entitled to recover because, absent the WCA immunity, he would prevail on a negligence claim against the co-employee	Court: Defendant is not legally entitled to recover under the employer's policy; summary judgment for Plaintiff
Whether allowing recovery under the employer's policy would conflict with WCA public policy	Allowing recovery from employer’s insurer would undermine the WCA and permit recovery that derives from immune parties	Defendant analogizes to cases allowing insureds to claim UIM under their own policies despite immunity and argues the WCA and UM statutes are compatible	Court: Distinguishes prior cases where insureds claimed their own policies; allowing recovery from employer’s policy would erode WCA policy and discourage individuals from obtaining their own coverage

American Family Mut. Ins. Co. v. Ashour, 410 P.3d 753 (Colo. App. 2017) (division held injured employee could pursue UIM benefits under his personal policy despite WCA benefits)
Borjas v. State Farm Mut. Auto. Ins. Co., 33 P.3d 1265 (Colo. App. 2001) (holding governmental-immunity of tortfeasor did not prevent insured from bringing UM claim against her own insurer)
Continental Divide Ins. Co. v. Dickinson, 179 P.3d 202 (Colo. App. 2007) (refusing to allow independent contractor who declined to obtain coverage to recover under employer’s UM/UIM coverage)
Kandt v. Evans, 645 P.2d 1300 (Colo. 1982) (Workers’ Compensation Act provides exclusive remedy for covered workplace injuries)