498 P.3d 24
Utah Ct. App.2021Background
- Farman-Rava lost part of a finger when his supervisor activated equipment while he was working for Blu Auto Transport LLC.
- Employer had not obtained workers’ compensation insurance, so Farman-Rava sued in district court for negligence and for intentional infliction of emotional distress (IIED).
- Bench trial: the court found for Farman-Rava on the negligence claim and against him on the IIED claim; it awarded damages for medical expenses and pain and suffering.
- Farman-Rava sought attorney fees under Utah Code § 34A-2-207(4), which applies when an employer fails to secure workers’ compensation insurance.
- The district court denied fees, reasoning § 34A-2-207(4) did not authorize fees for the negligence claim and deducted fees even for time counsel said was allocated to the prevailing claim.
- The Court of Appeals reversed, holding § 34A-2-207(4) plainly authorizes reasonable attorney fees for civil actions (including negligence) permitted by that provision, and remanded for fee proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Utah Code § 34A-2-207(4) authorizes recovery of reasonable attorney fees for a negligence action against an employer that failed to obtain workers’ comp insurance | Section 34A-2-207(4) applies because the negligence claim is a "civil action permitted under" § 34A-2-207 and thus entitles the employee to necessary costs and a reasonable attorney fee | The district court (effectively Employer) concluded § 34A-2-207(4) did not apply to the negligence claim and that some other statute would be required to authorize fees | Reversed: § 34A-2-207(4) applies and entitles the prevailing employee to recover reasonable attorney fees for the negligence claim; remanded to determine fees |
Key Cases Cited
- Thomas A. Paulsen Co. v. Industrial Comm'n, 770 P.2d 125 (Utah 1989) (if employer is properly insured, workers’ compensation is the employee’s exclusive remedy)
- Brown v. Williams, 392 P.3d 919 (Utah Ct. App. 2017) (affirming that workers’ compensation preempts employee negligence claims when employer is insured)
- Working RX, Inc. v. Workers' Comp. Fund, 173 P.3d 853 (Utah Ct. App. 2007) (district courts lack jurisdiction over matters within the workers’ compensation scheme)
- Anderson & Karrenberg v. Warnick, 289 P.3d 600 (Utah Ct. App. 2012) (attorney fees are recoverable only if authorized by contract or statute)
- Gilbert Dev. Corp. v. Wardley Corp., 246 P.3d 131 (Utah Ct. App. 2010) (entitlement to attorney fees is a legal question reviewed for correctness)