Lead Opinion
| Appellant Brenda Hendrix, individually, and as the Special Administratrix of the Estate of Guy D. Hendrix, Deceased (the “estate”), appeals the amended judgment entered by the Saline County Circuit Court granting the motion to dismiss filed by appellee Alcoa, Inc.
The facts of this case are not disputed. The decedent, Guy D. Hendrix, worked for Alcoa from 1966 until his retirement in the fall of 1995. In June 2012, he received a diagnosis of mesothelioma, an asbestos-related cancer. In September 2012, Hendrix filed a claim against Alcoa for workers’ compensation benefits, alleging that he was exposed to asbestos during the course of his employment. On November 7, 2012, an administrative law judge found that the claim was barred under the provisions of Arkansas Code Annotated section 11—9— 702(a)(2) (Repl. 2012). This subsection of the statute provides in relevant part that
(A) A claim for compensation for disability on account of injury which is either an occupational disease or occupational infection shall be barred unless filed with the commission within two (2) years from the date of the last injurious exposure to the hazards of the disease or infection.
(B) However, a claim for disability on account of silicosis or asbestosis must be filed with the commission within one (1) year after the time of disablement, and the disablement must occur within three (3) years from the date of the last injurious exposure to the hazard of silicosis or asbestosis.
The law judge concluded that Hendrix’s claim was time-barred because it was not filed within three years of the last date of the injurious exposure. Hendrix did not appeal the law judge’s decision to the full commission.
Hendrix died in November 2013. In April 2014, the estate initiated this wrongful-death and survival action against Alcoa. Alcoa subsequently filed a motion to dismiss the estate’s amended complaint against it, asserting that the circuit court lacked jurisdiction [^because the claims fell within the exclusive-remedy provision of the Act. After a hearing, the circuit court entered an order dismissing the claims against Alcoa with prejudice. This appeal followed.
For reversal, the estate contends that the circuit court erred in dismissing its complaint against Alcoa. It asserts that a circuit court has jurisdiction to entertain a civil action against an employer when the employee has no remedy under the Act. More specifically, the estate maintains that Hendrix’s opportunity to obtain workers’ compensation benefits ceased before his claim accrued and that the Act provided no remedy for Hendrix’s occupational disease because the disease manifested after the limitations period had expired.
This case requires us to construe the exclusive-remedy provision of the Act in conjunction with section 11-9-702(a)(2)(B). The basic rule of statutory construction is to give effect to the intent of the General Assembly. Gerber Prods. Co. v. Hewitt,
The question of the correct application and interpretation of an Arkansas statute is a question of law, which this court decides de novo. Worsham v. Bassett,
The exclusive-remedy provision of the Act is found at Arkansas Code Annotated section ll-9-105(a), which states in part that
(a) The rights and remedies granted to an employee subject to the provisions of this chapter, on account of injury or death, shall be exclusive of all other rights and remedies of the employee, his legal representative, dependents, next of kin, or anyone otherwise entitled to recover damages from the employer[.]
We have said that this provision clearly indicates that any claim for injury or death against an employer may only be brought under the Act, thus eliminating an employer’s tort liability. Elam v. Hartford Fire Ins. Co.,
Because the exclusive-benefits provision of our compensation law favors both the employer and the employee, we have taken a narrow view of any attempt to seek damages beyond that favored, exclusive remedy. Honeysuckle v. Curtis H. Stout, Inc.,
6Next, in Davis v. Dillmeier Enterprises, Inc.,
We reached a similar result in Automated Conveyor Systems, Inc. v. Hill,
|7We agree with the estate that the common thread running through these decisions is that an employee may bring suit against his or her employer when there is no remedy available under,the Act. Thus, the question here is whether Hendrix had a remedy pursuant to the Act.
In his treatise, Professor Larson draws a distinction “between an injury which does not come within the fundamental coverage provisions of the act, and an injury which is in itself covered but for which, under the facts of the particular case, no compensation is payable.” 9 Lex K. Larson, Larson’s Workers’ Compensation pt. 11, scope (Matthew Bender, Rev. Ed.) (June 2014). Larson further instructs that
[t]he compensation remedy is exclusive of all other remedies by the employee or his dependents against the employer and insurance carrier for the same injury, if the injury falls within the coverage formula of the act. If it does not, as in the case where occupational diseases were deemed omitted because not within the concept of accidental injury, the compensation act does not disturb any existing remedy. However, if the injury itself comes within the coverage formula, an action for damages is barred even though the particular element of damage is not compensated for, as in the case of disfigurement in some states, impotency, or pain and suffering.
Id.
Our decision in Porocel Corp. v. Circuit Court of Saline County,
In Porocel, we left open the question that confronts us in the present case, which is whether the Act provides a remedy for an asbestos-related claim if the time of disablement does not occur within three years of the last injurious exposure, Porocel,
A statute of repose creates a substantive right in those protected to be free from liability after a legislatively determined period of time. Id. Statutes of limitations are motivated by considerations of fairness to defendants and are intended to encourage prompt resolution of disputes by providing a simple procedural mechanism to dispose of stale claims. Harig v. Johns-Manville Products Corp.,284 Md. 70 , 75,394 A.2d 299 (1978). Statutes of repose are based on considerations of the economic best interests of the public as a whole and are substantive grants of immunity based on a legislative balance of the respective rights of potential plaintiffs and defendants struck by determining a time limit beyond which liability no longer exists. Whiting-Turner [Contracting Co. v. Coupard], 304 Md. [340,]at 349-50,499 A.2d 178 [ (1985) ].
Id. at 218,
Although there is substantial overlap between the policies of the two types of statute, each has a distinct purpose and each is targeted at a different actor. Statutes of limitations require plaintiffs to pursue “diligent prosecution of known claims.” Black’s 1546. Statutes of limitations “promote justice by preventing surprises through [plaintiffs’] revival of claims that have been allowed to slumber until evidence has been lost, memories have faded, and witnesses have disappeared.” Railroad Telegraphers v. Railway Express Agency, Inc.,321 U.S. 342 , 348-349,64 S.Ct. 582 ,88 L.Ed. 788 (1944). Statutes of repose also encourage plaintiffs to bring actions in a timely manner, and for many of the same reasons. But the rationale has a different emphasis. Statutes of repose effect a legislative judgment that a defendant should “be free from liability after the legislatively determined period of time.” C.J.S. § 7, at 24; see also School Board of Norfolk v. United States Gypsum Co.,234 Va. 32 , 37,360 S.E.2d 325 , 328 (1987) (“[Sjtatutes of repose reflect legislative decisions that as a matter of policy there should be a specific time beyond which a defendant should no longer be subjected to protracted liability” (internal quotation marks omitted)). ImLike a discharge in bankruptcy, a statute of repose can be said to provide a fresh start or freedom from liability. Indeed, the Double Jeopardy Clause has been described as “a statute of repose” because it in part embodies the idea that at some point a defendant should be able to put past events behind him. Jones v. Thomas,491 U.S. 376 , 392,109 S.Ct. 2522 ,105 L.Ed.2d 322 (1989) (SCALIA, J., dissenting).
Id. at 2183.
Based on the nature of a statute of repose, the estate asserts that because the statute extinguished Hendrix’s remedy under the Act before it accrued, the exclusive-remedy provision no longer applies and that it is free to pursue its claims in the circuit court. We are constrained to reject this argument. Our case law dictates that an employee may seek relief against an employer in the circuit court only if the Act provides no remedy for the employee’s condition. Applying that logic here, the Act in general covers occupational diseases, and it specifically provides coverage, and thus a remedy, for asbestos-related claims. See Ark. Code Ann. §§ ll-9-601(a) & (g)(1)(B) and ll-9-702(a)(2)(B). Thus, the claim falls within the coverage formula of the Act, even though Hendrix was ultimately denied recovery on the ground that the claim was time-barred under section ll-9-702(a)(2)(B). As Larson instructs, and consistent with our decision in Porocel, supra, the temporal limitation on recovery does not equate to the absence of a remedy under the Act.
According to the authorities mentioned above, as a matter of public policy, a statute of repose creates a substantive right in those protected to be free from liability after a legislatively determined period of time. Mindful that we must strictly construe the provisions of the Act, section ll-9-702(a)(2)(B) represents a policy-driven, legislative judgment to shield an employer from such claims that arise three years after the last injurious exposure. Coupled with the exclusive-remedy provision, it could not have been the intent Inof the General Assembly to absolve an employer of liability for worker’s compensation after a period of time only to subject the employer to liability in tort after that period elapses. Any contrary holding would eviscerate the protection afforded by section ll-9-702(a)(2)(B) and defeat the legislative purpose for enacting the statute of repose. Accordingly, we affirm the circuit court’s dismissal of the complaint against Alcoa.
In conclusion, the remedy afforded by the Act certainly rings hollow under the facts of this case. The result smacks of unfairness, particularly when it is well known that the disease of mesothelioma has a long latency period. However, our General Assembly has seen fit to create a statute of repose with only a three-year duration. In Porocel, supra, we also recognized that the one-year limitations period operated harshly in that case. However, we observed that any inequity must be addressed by the General Assembly and that this court cannot refuse to give effect to the statute of limitations merely because it seems to operate harshly. “Whether three years, four years or five years—or more or less—is the correct or appropriate period, should not and cannot be the concern of the judiciary.” Carter v. Hartenstein,
Affirmed; motion to dismiss denied.
Notes
. The amended complaint filed by the estate includes claims against Breeding Insulation Co. and Darragh Co. The claims against these entities remain outstanding, and this appeal comes to us with a proper certificate under Rule 54(b) of the Arkansas Rules of Civil Procedure.
. During the course of the appeal, Alcoa filed a motion to dismiss. It submits that this court lacks jurisdiction because Hendrix failed to appeal to the commission the law judge's jurisdictional statement, based on the parties’ stipulation, that the "Arkansas Workers' Compensation Commission has jurisdiction of this claim.” In VanWagoner v. Beverly Enterprises,
. Our holding is consistent with the decisions of our sister states in Illinois, Iowa, and Kansas. See Folta v. Ferro Eng'g,
Dissenting Opinion
dissenting.
I respectfully dissent. When the Workers’ Compensation Act (“the Act”) does not provide a remedy for a worker's injury or death, the worker’s action is not barred by the exclusive-remedy provision. See Travelers Ins. Co. v. Smith,
Article 2, section 13 of the Arkansas Constitution states that “[ejvery person is entitled to a certain remedy in the laws for all injuries or wrongs he may receive in his person, property or character.” See also Automated Conveyor Sys. v. Hill,
With the passage of Act 796 of 1993, it was a new day. Act 796 changed the former practice and mandated that the Arkansas Workers’ Compensation Commission (“Commission”) and the courts construe the provisions of the Workers’ Compensation Act strictly. See Ark. Code Ann. § ll-9-704(c); Wheeler Constr. Co. v. Armstrong,
The Seventy-Ninth General Assembly realizes that the Arkansas Workers’ Compensation statutes must be revised and amended from time to time. Unfortunately many of the changes made by this act were necessary because Administrative Law Judges, the Workers’ Compensation Commission, and the Arkansas Courts have continually broadened the scope and eroded the purpose of the Workers’ Compensation statutes of this state_ When, and if, the Workers’ Compensation statutes of this state need to be changed the General Assembly acknowledges its responsibility to do so. It is the specific intent of the Seventy-Ninth General Assembly to repeal, annul, and hold for naught all prior opinions or decisions of any Administrative Law Judge, the Workers’ Compensation Commission, or courts of this state contrary to or in conflict with any provision in this act. In the future if such things as the Statute of Limitations; the standard of review by the Workers’ Compensation Commission or courts; the extent to which any physical condition, injury or 1 ^disease should be excluded from or added to coverage by the law; or the scope of the Workers’ Compensation statutes need to be liberalized, broadened, or narrowed it shall be addressed by the General Assembly and should not be done by Administrative'Law Judges, the Workers’ Compensation Commission or the courts.
See Wheeler Constr.,
Arkansas Code Annotated section 11-9-101 states that the purpose of the Act is to provide benefits to workers who suffer injuries in the scope and course of their employment. See Automated Conveyor Sys.,
If ... the exclusiveness defense is a “part of the quid pro quo by which the sacrifices and gains of employees and employers are to some extent put in balance,” it ought logically to follow that the employer should be spared damage liability only when compensation liability has actually been provided in its place, or, to state the matter from the employee’s point of view, rights of action for damages should not be deemed taken away except when something of value has been put in their place.
Travelers,
|1BIn this case, the Commission determined that Hendrix’s claim was barred by section ll-9-702(2)(B) because his disease manifested itself more than three years after his last occupational exposure to asbestos. The three-year provision is a statute of repose, not a statute of limitation. A statute of repose is a statute of duration and provides a date upon which the action no longer exists, whether it has accrued by the date or not. It entirely cuts off an injured person’s right of action before it even accrues. Ray & Sons Masonry Contractors, Inc. v. U.S. Fid. & Guar. Co.,
Black’s Law Dictionary defines “remedy” as “[t]he means of enforcing a right or preventing or redressing a wrong.” Black’s Law Dictionary 1485 (10th ed. 2014). In this case, Hendrix had no remedy under the Act because the Act provided him no means by which his injury could be redressed or compensated. Hendrix’s right of action under the Act was cut off because his condition did not manifest itself within the three-year statute of repose. Any potential right that he may have had under the Act ceased to exist before his disease was discovered and his claim accrued.
16The majority relies heavily on Porocel Corp. v. Circuit Court of Saline County,
It troubles me that the majority purports to be bound by strict construction of the Act and then goes on to assume what the legislature intended. In its opinion, the majority states,
Mindful that we must strictly construe the provisions of the Act .... [I]t could not have been the intent of the General Assembly to absolve an employer of liability for worker’s compensation after a period of time only to subject the employer to liability in tort after that period elapses. Any contrary holding would eviscerate the protection afforded by section ll-9-702(a)(2)(B) and defeat the legislative purpose for enacting the statute of repose.
Strict construction is narrow construction and requires that nothing be taken as intended that is not clearly expressed. See Sykes v. Williams,
117The majority holding deprives workers whose injuries and diseases do not manifest themselves during the three-year statute of repose of a remedy, essentially allowing employers to escape liability under both the Act and in common-law tort actions. This conclusion violates the quid pro quo and disrupts the balance between employers’ and employees’ interests. See Larson § 640, at 22. Moreover, it contradicts the original purpose of the Act and article 2, section 13 of the Arkansas Constitution.
In conclusion, the majority conveys sympathy to the estate in this harmful and unfair outcome but essentially claims that it is helpless when it comes to the legislature in this situation. While the majority attempts to hide behind and shift blame to the General Assembly for its holding, it is clear from our case law and our constitution that a worker whose injury is not covered by the Act is not precluded from filing a claim in tort against his employer. See Automated Conveyor Sys.,
Dissenting Opinion
dissenting.
Under the facts of this case, the Arkansas Workers’ Compensation Act (the “Act”) did not cover the asbestos-related disease, mesothelioma, that caused Guy D. Hendrix’s death. Thus, the estate’s only recourse was to 118bring a cause of action in circuit court. Accordingly, I respectfully dissent from the majority’s decision to affirm the circuit court’s dismissal of the lawsuit filed by his estate.
The Act provides that one of the “primary purposes of the workers’ compensation laws [is] to pay timely temporary and permanent disability benefits to all legitimately injured workers who suffer an injury or disease arising out of and in the course of their employment.” Ark. Code Ann. § 11—9—101(b) (Repl. 2012). We have further held that “[it] is clear from our case law and our constitution that a worker whose injury is not covered by the [Act] is not precluded from filing a claim in tort against his employer.” Automated Conveyor Sys. v. Hill,
Arkansas Code Annotated section 11-9-702(a)(2)(B) provides that “a claim for compensation for disability on account of ... asbestosis must be filed with the commission within one (1) year after the time of disablement, and the disablement must occur within three (3) years from the date of the last injurious exposure to the hazard of ... asbestosis.” Under the facts of this case, Hendrix’s disablement did not occur withiji three years of the last injurious exposure. The question then is whether the Act “covered” Hendrix’s disablement.
In its analysis, the majority readily acknowledges that section ll-9-702(a)(2)(B) is a statute of repose. The majority, however, does not consider the import of its conclusion. To understand how a statute of repose works, it may be compared to a statute of limitations. A cause of action accrues the moment the right to commence an action comes into existence. Ray & Sons Masonry Contractors, Inc. v. U.S. Fid. & Guar. Co.,
In Porocel Corp. v. Circuit Court of Saline County,
In contrast, a statute of repose is a statute of duration, and it provides a date upon which the action no longer exists, whether the action has accrued by that date or not. Id. at 217,
The statute at issue here operates as a statute of repose. Thus, under this statute of repose, the Act covers a claim if the disablement resulted within three years from the date of the last injurious exposure. A worker whose disablement did not occur within three years from the date of the last injurious exposure, however, would not have a claim covered by the Act because the claim was extinguished by the Act before it ever accrued.
In the case at bar, Hendrix never had a claim covered by the Act. First, because his disablement did not occur within three years from the date of the last injurious exposure, his cause of action did not accrue so that he could bring his claim under the Act. Second, when the disablement occurred more than three years from the date of the last exposure, the cause of action then accrued, but it had already been extinguished under the Act by the statute of repose before it accrued. Accordingly, because the claim was extinguished before it accrued, Hendrix never had a claim that was covered by the Act. Thus, his only option was to pursue a cause of action in circuit court.
As this court has stated in Automated Conveyor Systems, it is clear from our case law and our constitution that a worker whose injury is not covered by the Act is not precluded from filing a claim in tort against his employer. Automated Conveyor Sys.,
In fact, Hendrix’s position is analogous to that of the employee in Automated Conveyor Systems.
|⅞>1 note that while, generally, the Act covered neck injuries in Automated Conveyor Systems, the Act did not cover the employee’s particular gradual-onset neck injury, and thus the employee was allowed to bring a lawsuit in circuit court. Analogously, the Act generally covers occupational diseases, but in the case of asbestos-related diseases, only those where the claim accrues within three years from the date of the last injurious exposure. However, Hendrix’s claim, which did not accrue within three years from the date of the last injurious exposure, was not covered by the Act because Hendrix never had a claim under the Act. Thus, the Act did not cover Hendrix’s occupational disease.
The sum total of the majority’s analysis is that “the Act in general covers occupational diseases, and it specifically provides coverage, and thus a remedy, for asbestos-related claims,” and accordingly “the claim falls within the coverage formula of the Act, even though Hendrix was ultimately denied recovery on the ground that the claim was time-barred.” This reasoning, however, is flawed. Clearly, Hendrix never had a claim covered by the Act because it did not accrue_until after coverage under the Act had been extinguished. Furthermore, the majority’s reasoning that the Act in general covers occupational diseases and thus a remedy for asbestos-related claims is contrary to Automated Conveyor Systems and fails to recognize that coverage under, the Act is limited to asbestos-related diseases where the disablement occurred within three years from the date of the last injurious exposure to the hazard of asbestos.
Here, the majority apparently has confused this case with more common cases such as those where the Act covered the injury and provided a remedy but recovery was denied | ^because, as in Porocel,
Remarkably, even the majority recognizes that the “result smacks of unfairness, particularly when it is well known that the disease of mesothelioma has a long latency period.” The majority, knowing that the long latency period is from twenty to forty years, then attempts to absolve itself of this unfair result and concludes that any criticism of the result “lies at the feet of the General Assembly.” The unfairness of this result, however, lies squarely on the shoulders of the majority, which has failed to properly interpret our case law, the Act, and the Arkansas constitution. As one court addressing this issue has stated,
Indeed, the consequences of Employers’ proposed interpretation of the Act to prohibit an employee from filing an action at common law, despite the fact that employee has no opportunity to seek redress under the Act, leaves the employee with no remedy against his or her employer, a consequence that clearly contravenes the Act’s intended purpose of benefitting the injured worker. It is inconceivable that the legislature, in enacting a statute specifically designed to benefit employees intended to leave a certain class of employees who have suffered the most serious of work-related injuries without any redress under the Act or at common law.
Tooey v. AK Steel Corp.,
If ... the exclusiveness defense is a “part of the quid pro quo by which the sacrifices and gains of employees and employers are to some extent put in balance,” it ought | ^logically to follow that the employer should be spared damage liability only when compensation liability has actually been provided in its place, or, to state the matter from the employee’s point of view, rights of action for damages should not be deemed taken away except when something of value has been put in their place.
There must be a quid pro quo. If the cause of action accrues within three years, then the employee may bring a claim under the Act, and the employer is entitled to the defenses it may have under the Act. If the cause of action does not accrue
within three years, then the Act does not cover the claim, and the employee may bring a cause of action in circuit court. In that situation, the employer is entitled to the defenses he may have at common law, including bringing third parties into the lawsuit whose fault may be greater. As it will be now, while most of the citizens who were not employees but were exposed to asbestos—for instance, independent contractors who provided services for employers—may sue in circuit court for asbestos-related injuries that do not occur within three years from the date of the last injurious exposure to the hazard of asbestosis, the employees of Arkansas may not. The majority has chosen to deny this man and his family the constitutional guarantee found in article 2, section 13 of the Arkansas Constitution, which provides that “[e]very person is entitled to a certain remedy in the laws for all injuries or wrongs he may receive in his person, property or character; he ought to obtain justice freely, and without purchase; completely, and without denial; promptly and without delay; conformably to the laws.” Where a statute is open to two constructions, one of which will render it unreasonable and unconstitutional, while the other will harmonize with reason, justice, and constitutional prescriptions, the latter construction will be adopted. Stuart v. Elk Horn Bank & Trust Co.,
|¾1 am compelled to respectfully dissent.
. The majority's analysis of that case is remarkably general and fails to focus on important aspects of the court’s holding.
. In fact, the majority cites Porocel—a statute-of-limitations case—as controlling here.
