980 N.W.2d 217
S.D.2022Background
- JM Custom Homes (general contractor) subcontracted plumbing to Pine Tree; Douglas Ries was Pine Tree’s employee.
- Ries fell through an unanchored plywood stair on the job and received workers’ compensation benefits from Pine Tree’s insurer.
- Ries sued JM for negligence (unsafe stairs, no handrail). JM later sought leave to amend its answer to assert statutory immunity under SDCL 62-3-10/62-3-2.
- The circuit court allowed the amendment, and then granted JM summary judgment, concluding JM was potentially liable for workers’ compensation and workers’ compensation was Ries’s exclusive remedy.
- The South Dakota Supreme Court affirmed the summary judgment; Chief Justice Jensen dissented, arguing JM failed to prove it secured coverage for Ries and thus was not entitled to immunity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court abused its discretion by allowing JM to amend its answer to assert statutory immunity | Ries: JM waived immunity by not pleading it initially | JM: Amendment permitted; extensive discovery occurred and Ries was not prejudiced | Affirmed — court did not abuse discretion; no prejudice shown |
| Whether SDCL 62-3-10 and SDCL 62-3-2 bar Ries’s negligence suit because JM is potentially liable for workers’ compensation | Ries: JM’s insurance language and facts create a dispute; JM did not accept liability for subcontractor employees so immunity inapplicable | JM: A general contractor who has secured workers’ compensation coverage and is potentially liable under SDCL 62-3-10 is entitled to immunity under the exclusive remedy provision | Majority: Affirmed summary judgment — JM was potentially liable under SDCL 62-3-10 and workers’ compensation was Ries’s exclusive remedy. Dissent: JM did not prove it secured coverage for Ries, so immunity was not established |
Key Cases Cited
- Metzger v. J. F. Brunken & Son, Inc., 169 N.W.2d 261 (S.D. 1969) (general contractor treated as statutory employer and entitled to immunity when potentially liable for workers’ compensation)
- Thompson v. Mehlhaff, 698 N.W.2d 512 (S.D. 2005) (explains limits on immunity in certain down-the-ladder claims; context for statutory employer analysis)
- Zephier v. Cath. Diocese of Sioux Falls, 752 N.W.2d 658 (S.D. 2008) (defendant must presumptively establish affirmative statutory defense on summary judgment)
- Blumhardt v. Hartung, 283 N.W.2d 229 (S.D. 1979) (employer immunity arises from contribution to the compensation scheme)