Nichols v. Jacobsen Construction Co.
334 P.3d 514
Utah Ct. App.2014Background
- Nichols, employed by Safway, was injured unloading scaffolding on Jacobsen Construction's project; Jacobsen sought summary judgment claiming exclusive remedy under Utah's Workers' Compensation Act.
- Jacobsen used a contractor-controlled insurance program (CCIP) to provide workers' compensation, with subcontractors accepting lower bids in exchange for CCIP coverage.
- CCIP included a safety program; a Jacobsen safety supervisor misinformed Nichols about designated medical care facilities, directing care outside the CCIP-ordered provider.
- Post-accident records show three conflicting accounts: Nichols's declaration; an email from Jacobsen counsel about benefits and coverage; and a Jacobsen safety manager affidavit describing policy to extend CCIP benefits.
- Nichols argues Jacobsen did not initially secure benefits and that Safway or its insurer administered benefits for months; Jacobsen contends it paid benefits from day one or soon after.
- The trial court granted summary judgment for Jacobsen; on appeal, the court held genuine issues of material fact preclude summary judgment and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Jacobsen is a statutory employer under 34A-2-103(7) | Nichols: Jacobsen is a statutory employer due to CCIP and project control. | Jacobsen: not a statutory employer unless CCIP creates an employee relationship and benefits are secured. | Genuine issue of material fact on statutory-employer status |
| Whether Jacobsen secured Nichols's workers' compensation benefits as required for exclusive-remedy protection | Nichols: benefits were not secured promptly; primary coverage improperly shifted. | Jacobsen: benefits were or would be secured by CCIP; evidence is disputed. | Genuine issue of material fact on benefit-securement |
Key Cases Cited
- Orvis v. Johnson, 177 P.3d 600 (Utah Supreme Court 2008) (standard for reviewing summary-judgment grants)
- Pinnacle Homes, Inc. v. Labor Comm'n, 173 P.3d 208 (Utah App. 2007) (statutory-employer concept under workers' compensation)
- In re Adoption of Baby E.Z., 266 P.3d 702 (Utah Supreme Court 2011) (plain-meaning approach to statutory terms)