History
  • No items yet
midpage
Alston v. St. Paul Insurance Companies
612 A.2d 421
Pa.
1992
Check Treatment

*2 NIX, C.J., LARSEN, Bеfore FLAHERTY, and jj. McDERMOTT, ZAPPALA, CAPPY, PAPADAKOS and OPINION ZAPPALA, Justice. presented issue in this appeal is whether an employee

who sustains an covered the Pennsylvania Work- men’s Compensation § may P.S. et seq., assert a separate injuries tort action for allegedly out arising of mali- cious and fraudulent conduct and abuse of the legal process to terminate workmen’s by agents benefits employer’s insurance carrier. Based our upon decision PMA Insurance Company, 578 A.2d we conclude that the exclusivity provisions of the Act prohibit a tort action against the agents of the insurance injuries carrier allegedly caused their actions in handling the employee’s compensa- tion claim. from an order appeal

This is County Court Common affirming the order the Delaware in favor Paul Insur- judgment of St. granting summary Pleas Services, Inc., Companies, ance Vocational Rehabilitation Williams, granted M.D. allocatur limited John T. We acting it to individuals or entities stated above as relates issue carrier. of an or the insurance behalf fell work- On Calvin Alston while April Appellant wrists, spine, neсk injuries sustained ing on a ladder and (St. Paul), the Companies Paul Insurance back. St. carrier, Alston’s assigned Dunham, began Alston file Robert a claims examiner. receiving disability total contracted with Vocational Rehabili- Appellee

St. Paul later Services) (Vocational Services, to obtain Alston’s tation Inc. records, report recovery, to mоnitor his St. medical *3 M.D., 7, 1982, Resnick, an ortho- January Paul. On Edward requested by Alston Vocational pedist, examined Services. any Dr. reported Resnick that examination did reveal symp- to significant findings causally that could be related 24, of, He or to the 1981. complained April toms strong pain that was a of chronic possibility stated there X-rays final could be syndrome, оpinion but reserved his until had examined. Alston refused to allow Dr. Resnick to take any X-rays. 1982, assigned Vocational Alston’s file February, Services Rohrer, Appellee Janet a “rehabilitation employee, an in February, was treated

nurse”. Alston evaluated and March, Dr. Wynne, J. Brendon D.O. April, that was unable to calculate a Wynne indicated to Rohrer he After Rohrer firm on which Alston could return work. ‍‌​​‌‌‌​‌‌‌‌‌‌‌​​​‌‌​​​‌​​‌​​‌​‌​​​​‌​‌​​‌‌​​‌​‌‌‍date Paul, findings Dr. a decision was reported Wynne’s to St. approach toward aggressive made to institute a more allegedly Alston. May to meet with Alston and his wife on arranged

Rohrer At prognosis. his medical discuss treatment time, indicated that would like schedule Rohrer she Williams, M.D., for Alston with John T. whom appointment she allegеdly agreed described as a “miracle worker”. Alston to be examined. 31, 1982,

On Alston August was examined Dr. Williams. alleged Alston that he was not informed that an independent occur, medical examination would or that Dr. Williams had the ability sign physician’s affidavit of or that he recovery, him physician accompany entitled to have his own examination. Dr. conducted а brief examination. Williams records, review of prior X-rays, Without Alston’s medical contact treating physician, with the Dr. Williams told Alston he was able to return to work.

Dr. Williams executed a affidavit of physician’s recovery. Subsequently, approached Robert Dunham Alston to negotiate lump sum settlement of his workmen’s compensation bene- fits. Alston rejectеd the offer as insufficient. St. Paul then petition filed a to terminate Alston’s benefits. months,

Alston’s benefits were discontinued for nineteen petition until St. Paul’s to terminate was denied. The benefits attorney’s were reinstated and fees were awarded to Alston. St. Paul appealed the referee’s decision to the Workmen’s Compensation Appeal Boаrd. The decision was underlying affirmed, of attorney’s award fees was reversed on the Board’s finding of a reasonable contest. No was taken appeal from the Board’s order. 6,1984, July

On the Alstons initiated the trespass action for Paul, compensatory and punitive damages St. Vocational Services, and Dr. joined Williams. Ms. Rohrer was as an additional dеfendant Vocational Services. The essence of the Alstons’ claim is the allegation that the defendants con- *4 to and made spired misrepresentations to the Alstons to them of workmen’s compensation defraud A summary judgment motion for was filed on behalf of the motion, In Appellees. their the Appellees upon relied Ward, decision in Rоsipal Montgomery Superior Court’s (1987), 521 Pa.Super. granted, ‍‌​​‌‌‌​‌‌‌‌‌‌‌​​​‌‌​​​‌​​‌​​‌​‌​​​​‌​‌​​‌‌​​‌​‌‌‍A.2d 49 alloc. 516 Pa. (1987), dismissed, appeal A.2d 93 A.2d 495 that an tort holding against action employer her was barred exclusivity provision of the granted the Act. The trial court Compensation Workmen’s summary judgment motion. Superior The affirmed. Superior Court appeal,

On employ- is afforded to immunity legal Court held that еxclusivity under the insurers compensation and their ers Compensation Act extends provisions inten- also to claims based negligence, acts of only to its decision tional, Citing and willful misconduct. wanton immuni- that the Court concluded Rosipal, supra, Superior han- from the arising civil actions ty extended cover a claim. dling of workmen’s her performing while Rosipal, In plaintiff filed a notice of guard. employer as The security duties a indemnity wage payments. and initiated compensation payable a termination that was later filed petition The recovery. plain- a affidavit of The physician’s supported a following hearing were a before tiff’s benefits reinstated referee. her action plaintiff brought

The civil duress, infliction of economic emotional alleging distress, false and breach procuring recovery, affidavit agreement. preliminary The filed it from the action under that was immune objections, asserting Act. The trial court dismissed Compensation the Workmen’s objections, granted the Superior but the preliminary for review and reversed. employer’s petition Compensa- that the Workmen’s Superior Court stated flowing work-related tion Act barred all civil actions that the did not injuries. rejecting argument accident, the Court rea- Superior from a work-related arise accident, would have that without a work-related there soned out of which the compensation proceedings nо workmen’s been civil arose. The Court concluded action of action as all of the plaintiff had failed to state a cause had complaint in her ultimate basis allegations under the Workmen’s injury compensable within its framework. her claims must be considered *5 The Superior expanded analysis Court on its Rosipal the instant case. The court hеld that when sustain injuries during employment, course of their because of an intentional wrongdoing by their itself, exclusive for the or for the handling claim, lies within the framework of the Workmen’s Com- pensation Act. The Superior Court concluded that the admin- istrative remedies established therein are the exclusive reme- dies for claimants who believe that their benefits have been wrongfully suspended or terminated com- pensation insurer. The applied analysis as well to those or entities employed by individuals the insurer case, to review the such as Vocational Services and Dr. Williams.

Subsequent to the Superior Court’s decision the instant case, we addressed the issue of whether an immu- nity from tort actions under the Workmen’s if protects its insurance carrier the insurer is alleged to have in fraud engaged deprive injured and deceit to an employee his worker’s In v. PMA Insur- Co., ance 578 A.2d 1285 we held that the employer’s immunity from tort actions of workers extended to the insurance carrier in such instances. nowWe holding Kuney conclude that our also encompasses those individuals or entities who or assist in perform performing the functions of the in handling insurance carrier workmen’s com- claims as pensation agents employees of the carrier. Kuney, petition filed claim after sustain- ing injury during employment. The employer’s insur- carrier, PMA, ance to pay any refused benefits its despite alleged that he knowledge compеnsation. was entitled to He was awarded total disability benefits a referee. The refer- ee also awarded interest on the past-due compensation pay ordered the insurance carrier to the employee’s litigation and counsel PMA expenses appealed fees. and continued to payment, allegedly .withhold in order to impose extreme finan- cial hardship employee. damages PMA for filed civil action of his handling of PMA’s a result

sustained PMA were sustained objections ‍‌​​‌‌‌​‌‌‌‌‌‌‌​​​‌‌​​​‌​​‌​​‌​‌​​​​‌​‌​​‌‌​​‌​‌‌‍filed Preliminary claim. *6 sole employee’s that the the trial court on the basis by Act. Compensation provided was the Workmen’s PMA, Pa.Super. 379 Kuney reversed.1 Superior Court (1988). the allocatur and reversed granted We 550 A.2d 1009 Superior the Court. order of the exclusivity clause of

We stated that the 481(a), Act, quid § the historical Compensation reflects P.S. the whereby and quo pro between an fault for a work-related liability without employer assumes damage of larger of the injury, possibility but is relieved benefits from in a law action. The verdict common forgoes recov- compensation, of payment the expеditious damages. employer’s liability of An ery of elements some gov- compensation exclusively its carrier are liability the of Act. Compensation erned the Workmen’s out of the arising claim analyzing employee’s whether the was of his benefits allegedly handling fraudulent Compen- remedies of the Workmen’s subject to the exclusive established provisions the penalty we examined sation system of comprehensive that “... the therein. We concluded substantive, comprising and remedial laws procedural, fo- be the exclusive compensation system should work injuries any way of in related to the rum for redress 175-176, 1287, citing 578 A.2d at Kuney, 525 at place.” 168, 172, 74 Kligerman, Co. v. Casualty American (1950). claim that held that an We of benefits delayed payment wrongfully insurance carrier the framework the statute. must considered within be Kuney dispositive We find that our decision attempts Appellant instant case. The issue raised that the defen- Kuney the basis distinguish case service, or vocational rehabilitation physician not a dant was explicitly overruled its 1. The Court’s decision See, Paul, аl., et case. Alston v. St. later decision in the instant (1989). Pa.Super. 567 A.2d 663 and that no penalties prescribed are in the Workmen’s Com- pensation parties. Act for third This attempted distinction blatantly disregards agency relationship existing between the insurance and the carrier vocational rehabilitation service physician. Kuney,

As in crux lawsuit Alstons’ is that agents insurance carrier and its wrongfully delayed receipt of compensation benefits. The Workmen’s establishes forum resolving disputes the exclusive regard- ing right the employee’s and the or delay compensation sys- discontinuance of The workmen’s tem all encompasses disputes coverage over payment benefits, they whether arise from aсtions taken carrier, or the insurance agents. carrier’s Only employer or *7 employer’s insurance carrier may seek terminate an em- Therefore, ployee’s it no significance is of that no penalties prescribed are for the the agents of carrier, for insurance such the penalties against are available employer or its insurance carrier.

The order of the is affirmed. CAPPY, J., a concurring opinion. files ‍‌​​‌‌‌​‌‌‌‌‌‌‌​​​‌‌​​​‌​​‌​​‌​‌​​​​‌​‌​​‌‌​​‌​‌‌‍LARSEN, J., files a in dissenting which opinion PAPADAKOS, J., joins.

CAPPY, Justice, concurring. I concur in the result offered in I majority opinion. the write separately express my with majori- dissatisfaction v. Poyser Company, Newman & Inc. 514 Pa. ty decision PMA Insurance 522 A.2d 548 which Co., (1990) now, 578 A.2d 1285 the decision sub judice, emanate.

In Poyser, Court, majority clear this interpreting language of the Workmen’s Compensation determined that an employee suing employer barred from whose intentional conduct employee. tortious had harmed the majority opined that exclusive remedy was hand, Act itself other On the compensation. for an employee may sue a fellow employee that an provides to the exception animus” “personal tort under the intentional Lunch, Act. Dolan v. Linton’s provision of the exclusivity 411(1)1 (1959); § Thus the 114, 152 A.2d 887 77 P.S. Pa. exclusivity provision exception animus” “personal Poyser; same incongruous holding Act is with employer had if employer could not sue his employee him, that co- the identical intentional committed had committed. Larsen and view, filed Mr. Justice the dissent my which Poyser, emphasized joined Papadakos Mr. Justice Act was intended fact that the Workmen’s and not negligence for employer exclusive remedies provide same committed tortious acts I a member Had been preferred interpretation. Larsen. time, joined Mr. Justice I would have Court at However, Larsen failed Mr. Justice еxpressed by the view as the law of majority Poyser stands gain support, Co., v. PMA Insurance Poyser, Kuney From Pennsylvania. (1990) follows, to wit: naturally A.2d 1285 accountable independently held since an cannot be acts, intentional tortious insurance carrier. the employer’s neither can to immun- it would be ludicrous Poyser reasoning, Under the carrier. ize in the chain Today, logical step takes the next majority If Poyser employers, their which with the rationale. began *8 was in order to resolve issues as between Since the Act written 1. legislature employee, only would employer and it is rational that employ explicitly except tortious conduct of fellow have to consequences of expect еmployer to bear the one could not an ees since employer in some of fellow unless an intentional act a to It seems me way directly the intentional tortious conduct. facilitated specifically exempt intentional was no commensurate need to that there since, aptly employer as of the Mr. Justice Larsen tortious conduct notes, legislation purpose of kind of was to restrict "... this employee against compensation, to to available parties, employee, any to recourse and third close Co., 504 negligence.” tort Kline v. Arden H. Verner in for his). 254-255, (1983). (emphasis A.2d 159-660 compensation agents carriers and the employees carriers’ immune, fortiori, are compensation independent carriers’ contractors2 also otherwise, are immune. To in light hold of Poyser reasoning, inconsistent, not only would be but also contradictory, legislature since the seen explicitly has not fit to grant right for an sue either compensation insurance or agents. carriers their

I believe that this an instance where thе logical extension of a well may intentioned interpretation only lead not absurdity injustice. Nevertheless, but also correc- absent now, Poyser legislation, tive for the law Pennsylva- remains ‍‌​​‌‌‌​‌‌‌‌‌‌‌​​​‌‌​​​‌​​‌​​‌​‌​​​​‌​‌​​‌‌​​‌​‌‌‍and, case, nia in the judice the case sub as falls squarely alone, within its ambit. For that reason I am join constrained to in result offered majority. LARSEN, Justice, dissenting. majority hоlds that an employer’s immunity

tort actions of workers under the Compen- Workmen’s sation not only extends the employer’s compensation carrier also to “those or individuals entities who or perform performing assist the functions of the insurance in handling carrier compensation workmen’s as agents claims employees carrier,” intentional, or of the who commit active upon fraud deceit order to them deprive fact, these alleged “agents employees” independent are I contractors. believe that the Act should not provide and, therefore, such far reaching immunity should bar action. I Accordingly, dissent. Inc.,

In Poyser v. Neuman Company, & 32, 40, the majority held that the Workmen’s Compensation Act does not preserve right “the of an employee to sue his injury where the employer’s caused intentional wrongdoing is no such provision [in t]here Zappala categorizes 2. I note Mr. Justice the Vocational Rehabilita- "agents” tion Service and Dr. Williams as insur- carrier, However, generalized using concept agree ance agency. I designation аppellees with Mr. Justice indepen- Larsen’s of these two dent contractors. *9 at Poyser Act.” Compensation Pennsylvania The Workmen’s However, Poyser 38, my dissent at 551. 514 Pa. A.2d “ of J.), purpose I ‘the out (joined by Papadakos, pointed Act] Compensation legislation [the this kind of the against to an employee the available remedy to restrict the employee, to close to compensation, in tort against the any recourse parties, to third Co., 251, 254- H. v. Arden Verner negligence.’ Kline added).” (1983) (emphasis Subse- 159-160 Co., 525 Pa. PMA Insurance quently, Kuney v. Poyser so majority expanded

A.2d 1285 the wrongdoing for the intentional right to sue preclude carrier, which of employer’s of carrier’s includes the insurance necеssity J.), I (joined Papadakos, my agents. dissent the Work- stated that an should be barred an action tres- maintaining men’s from at hands of separate he has incurred pass for the insurance carrier. employer’s compensation Now, majority extending bar insurance carriers’ tort actions in Pennsylvania: This is first independent contractors. having of contraсtors independent independent contractors of the Act immunity underlying purpose principal. immunity to such attenuated by extending is not served course, majority present If remains on its extremes. immune everyone will be and the em- liability, inten- have matter how ployee will no whatsoever —no despicable injury. tional or the act that caused the Accordingly, I would reverse order Court, affirming grant appellees’ summary motion for proceedings. for further judgment and remand PAPADAKOS, J., joins dissenting opinion. in this

Case Details

Case Name: Alston v. St. Paul Insurance Companies
Court Name: Supreme Court of Pennsylvania
Date Published: Jun 17, 1992
Citation: 612 A.2d 421
Docket Number: 59 E.D. Appeal Docket 1991
Court Abbreviation: Pa.
AI-generated responses must be verified and are not legal advice.