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McBride v. Grand Island Express, Inc.
2010 OK 93
| Okla. | 2010
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Background

  • Decedent worked for NES Rentals as a truck driver; on Dec. 1, 2006, he stopped on a bridge to inspect a minor accident and was killed in a multi-vehicle crash involving the defendants.
  • Oklahoma Workers' Compensation Court found the death a compensable employment-related accident and awarded benefits to the decedent’s survivors; insurer NES Rentals’ workers’ compensation carrier paid the award.
  • Appellants (the intervenors) sought to recover amounts paid as death benefits from the third-party tortfeasor under 85 O.S. Supp. 2005 § 44(c)-(d).
  • Plaintiff argued § 44(d) only allows an employer (not insurer) to sue, and that death-benefit payments are collateral-source; Plaintiff moved to sever/dismiss intervenors.
  • The trial court granted summary judgment against intervenors; the Court of Civil Appeals reversed, holding the employer, not the insurer, has a right to intervene to recover death benefits.
  • Certiorari was granted to resolve whether the insurer may recover death-benefit payments under § 44(d) where the employer did not pay those benefits.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether § 44(d) authorizes recovery by insurer or only by the employer Plaintiff contends § 44(d) allows only the employer to recover. Defendants argue § 44(d) permits the employer (not the insurer) to recover, and insurer has no standing. Insurer has no standing; § 44(d) grants an independent right to the employer only, not the insurer.
Whether § 44(d) is constitutional under Art. 23, § 7 Plaintiff asserts § 44(d) is vague and unconstitutional as it restricts damages recoverable. Defendants contend the statute is clear and consistent with legislative intent. Constitutional interpretation not adopted; the statute is clear and unambiguous in granting only the employer a right of recovery.
Whether the insurer can pursue subrogation for death-benefit payments under any theory Plaintiff argues insurer should be able to recover benefits as a collateral-source subrogee. Defendants assert subrogation for death benefits is barred by § 44(b) and not extended by § 44(d). Insurer cannot pursue subrogation for death benefits under § 44; the legislative scheme bars it.
Standing and remedy considerations for intervenors Plaintiff asserts no standing for intervenors given payer is insurer and not employer. Defendants argue intervenors lack standing since only employer has right to sue under § 44(d). Intervenors lack standing; dismissal affirmed.

Key Cases Cited

  • World Publishing Co. v. Miller, 2001 OK 49, 32 P.3d 829 (OK 2001) (legislative intent governs statutory interpretation; look to whole act)
  • Prettyman v. Halliburton Co., 1992 OK 63, 841 P.2d 573 (OK 1992) (subrogation rights under § 44(a) for employer/insurer against third-party tortfeasor)
  • Nestle Food Co. v. Crews, 2000 OK 58, 11 P.3d 205 (OK 2000) (§ 44(a) subrogation for wage-related benefits; limits in § 44(a))
  • ACCOSIF v. American States Insurance Co., 2000 OK 21, 1 P.3d 987 (OK 2000) (subrogation context under § 44(a) and related provisions)
  • Earnest, Inc. v. LeGrand, 1980 OK 180, 621 P.2d 1148 (OK 1980) (death-benefits subrogation historically avoided due to Art. 23, § 7)
  • Updike Advertising System v. State Industrial Com'n, 1955 OK 19, 282 P.2d 759 (OK 1955) (historical view of subrogation and death-benefits policy constraints)
  • State ex rel. Board of Regents v. McCloskey Bros., Inc., 2009 OK 90, 227 P.3d 133 (OK 2009) (standing requires direct, personal stake and statutory/constitutional nexus)
Read the full case

Case Details

Case Name: McBride v. Grand Island Express, Inc.
Court Name: Supreme Court of Oklahoma
Date Published: Dec 14, 2010
Citation: 2010 OK 93
Docket Number: 106,362
Court Abbreviation: Okla.