MEEKS v. GUARANTEE INSURANCE COMPANY
2017 OK 17
| Okla. | 2017Background
- Tracy Meeks alleged Guarantee Insurance (Insurer) repeatedly failed to pay court-ordered temporary total disability (TTD) benefits on 26 separate occasions between 2012–2014.
- Meeks relied on a June 26, 2014 Workers' Compensation Court (WCC) order finding the insurer had again, without just cause, failed to comply with prior TTD orders on 26 dates.
- The WCC assessed penalties and interest but denied certification under 85 O.S. § 42(A) because the carrier paid the penalty before the hearing.
- Meeks filed a district-court tort action alleging insurer bad faith for failing to provide benefits as ordered; insurer moved to dismiss for lack of WCC certification.
- The district court granted dismissal; the Oklahoma Supreme Court retained the appeal to clarify Summers v. Zurich and certification requirements where monetary awards were paid late or eventually satisfied.
- The Supreme Court reversed, holding the June 26, 2014 WCC order satisfied the Summers certification category for "benefits not provided as ordered," allowing Meeks to proceed in district court on a bad-faith claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a WCC order that finds benefits were withheld but later satisfied can certify under Summers the second category ("benefits not provided as ordered") | Meeks: June 26, 2014 WCC order explicitly found repeated failures without good cause—this satisfies Summers' certification requirements | Insurer: Certification under §42(A) was denied; without that certification Meeks cannot bring a bad-faith tort in district court; Sizemore requires unpaid award or certification | Held: The WCC order satisfied Summers' second category; certification is not limited to unpaid awards and need not use "magic" words—district court erred in dismissing |
| Whether §42(A) and Rule 58 are prerequisites for bad-faith suit when monetary awards were ultimately paid | Meeks: Where benefits were not provided as ordered (even if later paid), Rule 58 certification suffices; §42(A) is bypassed for this category | Insurer: §42(A) procedures and certification for unpaid awards are required before district-court bad-faith suit | Held: Two distinct Summers pathways exist: unpaid awards (use §42(A) + Rule 58) and benefits not provided as ordered (use Rule 58); the latter was met here |
| Whether the WCC must use specific language to certify lack of good cause | Meeks: WCC’s factual findings and explicit conclusion that insurer failed to show just cause are sufficient | Insurer: Denial of §42(A) certification shows no certification; strict wording required | Held: No "magical words" required; findings that insurer failed to demonstrate good cause and identified prior ordered benefits satisfy certification |
| Whether payment of arrearages/penalties before hearing bars a bad-faith tort claim | Meeks: Payment does not bar a common-law bad-faith action if WCC finds failure to provide benefits as ordered | Insurer/Dissent: Payment and WCC contempt/penalty powers provide the exclusive remedy; allowing tort undermines statutory exclusivity | Held: Majority: payment does not bar bad-faith suit when WCC issues a certification under Summers' second category; plaintiff may proceed in district court |
Key Cases Cited
- Summers v. Zurich Am. Ins. Co., 213 P.3d 565 (Okla. 2009) (defines two Summers certification categories: unpaid awards or benefits not provided as ordered)
- Sizemore v. Continental Cas. Co., 142 P.3d 47 (Okla. 2006) (recognizes bad-faith action available for refusal to pay workers' compensation awards)
- Goodwin v. Old Republic Ins. Co., 828 P.2d 431 (Okla. 1992) (insurer's implied duty of good faith; bad-faith tort for unjustified delay/withholding)
- Christian v. Am. Home Assurance Co., 577 P.2d 899 (Okla. 1977) (adopts insurer duty of good faith; tort remedy for bad-faith withholding)
- Silljer v. Mega Life & Health Ins. Co., 213 P.3d 1156 (Okla. 2009) (applies Summers; requires WCC certification that benefits were not provided as ordered for nonmonetary/paid-late awards)