Giersdorf v. A & M Construction, Inc.
2012 Minn. LEXIS 443
Minn.2012Background
- Hartford provided workers’ compensation insurance to A&M (June 12, 2007–June 12, 2008); Hartford audited and raised the premium for 2008–2009 and billed it lump-sum; policy cancelled on December 18, 2008 after nonpayment; Giersdorf sustained a work-related injury on January 20, 2009 and claim filed; Hartford denied the claim, citing cancellation; A&M petitioned for a declaration of insurance coverage, arguing Hartford breached the policy and owes defense/indemnification for the Giersdorf claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject matter jurisdiction of the workers’ compensation courts | A&M argues jurisdiction exists as coverage issue ancillary to employee claim | Hartford asserts breach-of-contract action outside WCCA jurisdiction | Yes, WCCA has jurisdiction |
| Whether petition is a coverage issue or a breach of contract | Real nature is insurance coverage dispute | Petition is breach of contract seeking damages | Real action is insurance coverage question within WCCA authority |
| Due process concerns about defense rights | N/A (Hartford raises rights to defenses) | Allowing only coverage questions may bar defenses like mitigation/setoff | No due process violation; defenses either irrelevant or available elsewhere depending on outcome |
| Preservation of 60A.38 defense on appeal | A&M amended petition; record on appeal does not include amendment | Hartford’s 60A.38 defense raised within amended petition | Not preserved on appeal; record limitation governs |
Key Cases Cited
- Frost-Benco Elec. Ass’n v. Minn. Pub. Utils. Comm’n., 358 N.W.2d 639 (Minn. 1984) (agency jurisdiction hinges on statutory language)
- Landgraf v. Ellsworth, 267 Minn. 323 (Minn. 1964) (nature and character of controversy governs rights)
- Home Ins. Co. v. Nat’l Union Fire Ins. of Pittsburgh, 658 N.W.2d 522 (Minn. 2003) (liberal pleadings interpretation in coverage disputes)
- Ives v. Sunfish Sign Co., 275 N.W.2d 41 (Minn. 1979) (insurance coverage remains in effect when not terminated properly)
- Martin v. Morrison Trucking, Inc., 803 N.W.2d 365 (Minn. 2011) (WCCA authority to decide insurance coverage questions)