Lead Opinion
We must first address appellee’s contention that the appellants’ claims are barred by R.C. 4123.74. R.C. 4123.74 provided, in pertinent part, “Employers who comply with section 4123.35 of the Revised Code shall not be liable to respond in damages at common law or by statute for any injury, or occupational disease, or bodily condition, received or contracted by any employee in the course of or arising out of his employment * * *.” 128 Ohio Laws 1334. Appellee claims that under this statute, the appellants may not bring any cause of action against it except those authorized by this court in Van Fossen v. Babcock & Wilcox Co. (1988),
There are several difficulties with appellee’s argument. First, it assumes that appellant’s injury is an injury within the meaning of R.C. 4123.74, that is, within the definition of “injury” in R.C. 4123.01. We are not prepared to so
Since this court’s ruling in Ryan, supra, the legislature has not amended the definition of “injury” in R.C. 4123.01(C) to include psychiatric ailments resulting solely from stressful workplace conditions. In fact, R.C. 4123.01(C) now specifically states that “injury does not include * * * psychiatric conditions except where the conditions have arisen from an injury or occupational disease.” In light of this limitation, we are not prepared to assume that psychological disturbances arising solely from emotional stress in the workplace fit within the definition of “injury” in R.C. 4123.01.
If the workers’ compensation scheme were adjudged to be the exclusive remedy for claims based upon sexual harassment in the workplace, as appellee urges, victims of sexual harassment would often be left without a remedy. Generally, injured employees receive coverage only for economic losses resulting from their accidents — medical bills, lost wages, and diminished earning capacity. However, aside from expenses which they may incur for psychiatric care, victims of sexual harassment generally do not suffer economic loss. Their injuries are much less tangible and often are not susceptible to a neat compensatory formula. Thus, even if this court were to hold that psychiatric conditions resulting solely from emotional stress in the workplace are compensable under the workers’ compensation scheme, most victims would not obtain appropriate or sufficient relief.
The mismatch between the workers’ compensation laws and claims arising out of sexual harassment in the workplace was recently recognized by the Florida Supreme Court in Byrd v. Richardson-Greenshields Securities, Inc. (Fla.1989),
The scope and purpose of Ohio’s workers’ compensation scheme do not differ from Florida’s in any aspect which is relevant to the question before us. As in Florida, it would contravene the legislative intent behind the workers’ compensation laws for this court to hold that those laws provide the exclusive remedy for victims of workplace sexual harassment. Consequently, we reject appellee’s argument that the appellants’ claims are barred by R.C. 4123.74.
Appellee argues that even if appellants’ claims are not barred by R.C. 4123.74, appellee cannot be held liable for its employee’s intentional acts since the activities which form the basis of the complaint took place outside the scope of the perpetrator's employment. Appellee contends that because it did not hire Levine to sexually harass female employees, and because Levine’s actions in no way facilitated appellee’s business, it may not be held liable for the harm which resulted from his egregious behavior. In support of this contention, appellee invokes this court’s decision in Byrd v. Faber (1991),
Our response to this argument is twofold. First, we find that there is a genuine issue of material fact as to whether Levine’s actions took place within the scope of his employment with the Porter Paint Company. In determining whether to impose liability based on respondeat superior on an employer for the sexually harassing acts of one of its employees, federal courts have employed traditional agency principles. Specifically, they have held that where an employee is able to sexually harass another employee because of the authority or apparent authority vested in him by the employer, it may be said that the harasser’s actions took place within the scope of his employment. Meritor Sav. Bank, FSB v. Vinson (1986),
Moreover, even if Levine’s activities took place outside the scope of his employment, summary judgment against appellants’ claims would not be proper. 2 Restatement of the Law 2d, Torts (1965) 125, Section 317, provides as follows:
“A master is under a duty to exercise reasonable care so to control his servant while acting outside the scope of his employment as to prevent him from intentionally harming others or from so conducting himself as to create an unreasonable risk of bodily harm to them, if
“(a) the servant
“(i) is upon the premises in possession of the master or upon which the servant is privileged to enter only as his servant, or
“(ii) is using a chattel of the master, and
“(b) the master
“(i) knows or has reason to know that he has the ability to control his servant, and
“(ii) knows or should know of the necessity and opportunity for exercising such control.”
On the basis of this principle, both state and federal courts have held that an employer may be liable for failing to take appropriate action where that employer knows or has reason to know that one of its employees poses an unreasonable risk of harm to other employees. In Ford v. Revlon, Inc. (1987),
The Georgia court of appeals reached a similar conclusion in Cox v. Brazo (1983),
Following the reasoning put forth in the aforementioned cases, we hold that where a plaintiff brings a claim against an employer predicated upon allega
In the case at bar, there is an abundance of evidence indicating that Porter Paint knew or should have known of Levine’s perverse sexual proclivities and the danger he posed toward female employees. One of the women who preceded Kerans as a decorator at the Kenwood store testified by means of deposition that she informed company management on four different occasions that Levine was grabbing her breasts. She stated that on two separate occasions she requested a transfer from company management but that in both cases her request was denied. As to the company’s reaction, she testified that the company’s only response was to call a meeting with Levine at which the district manager casually dismissed the supervisor’s behavior with the statement that “boys will be boys.” When Levine’s behavior continued without response from the management, she left the company.
Another company employee, Donald William Ross, Jr., provided testimony regarding an incident which occurred a few years prior to Levine’s alleged harassment of Kerans. According to Ross, Levine sexually molested another female employee at that time. When the incident was reported to company management, the manager told Ross to “take A1 to Newport and let him get his rocks off, take him over and show him a good time in Newport.” According to Ross’s testimony, the manager said nothing about disciplining, firing, or even simply reprimanding Levine. Ross also testified that there were four or five other incidents involving sexual molestation by Levine which were reported to the Porter Paint management prior to the incident involving Kerans.
We reach a different conclusion as to the appellants’ first claim for relief. Specifically, we find that the trial court was correct in dismissing the appellants’ first claim for relief. Appellants’ first claim provides, in pertinent part,
“2. On or about 9/5/85, plaintiff Sally Kerans while in the course and scope of her employment with defendant Porter Paint Co. and/or otherwise lawfully upon premises owned and/or operated by defendant Porter Paint Company was deliberately, intentionally, unlawfully, wantonly, and/or negligently sexually fondled, touched, expressed, assaulted, threatened, harassed, and/or otherwise traumatically violated, and/or otherwise injured by defendant Levine while acting within the course, scope, and/or apparent authority of his employment with defendant Porter Paint Co.
“3. Said defendants knew and/or should have known of defendant Levine’s propensity to engage in such conduct with said plaintiff and/or other employees and either intentionally, wilfully, wantonly, and/or negligently maintained a policy of encouraging, permitting, and/or condoning such sexual conduct or harassment by defendant Levine * * *.”
As an initial matter, we note that we cannot accept the rationale offered by the court of appeals for dismissing the appellants’ first claim. Although the trial court simply dismissed the entire complaint without stating its reasons, on appeal the parties raised the issue of whether the first claim in the complaint met the standards for an “employer intentional tort” enumerated in Van Fossen v. Babcock & Wilcox Co., supra, and its progeny. Appellee has argued that appellant cannot satisfy the Van Fossen test because there is no evidence indicating that appellant’s injury was “substantially certain to occur.” Appellants counter that Porter Paint’s awareness of Levine’s past history of sexually sordid behavior raises a genuine issue of material fact as to whether the appellee knew that the injury appellant suffered was “substan
We find that Van Fossen and its progeny are totally inapplicable to appellants’ first cause of action. We reach this conclusion for several reasons. Initially, we note that appellants’ first claim alleges that the appellee acted intentionally, willfully, wantonly, and/or negligently in allowing one of its employees to sexually molest other employees. Van Fossen and its progeny apply only in cases where the employer’s conduct is solely intentional. Summary judgment may not be granted in favor of a defendant on the basis of the strict intent standard laid out in Van Fossen where the plaintiff’s claim contains allegations of employer negligence arising out of sexually harassing conduct in the workplace.
Secondly, this court has never applied Van Fossen and its progeny to purely emotional injuries which have psychological, but no physical, consequences. We are not prepared to take that step today since the issue has not been squarely presented to us. Moreover, when the test set forth in Van Fossen is applied to the question of an employer’s knowledge of an employee’s sexually harassing behavior, it becomes glaringly obvious that this tort was not under consideration when the test was formulated. For example, a plaintiff must prove “knowledge by the employer of the existence of a dangerous process, procedure, instrumentality or condition within its business operation.” Id. at paragraph five of the syllabus. There is no reference in this language to a human being and this court believes that even the most abstract thinkers would have to stretch their imaginations to new limits to conceive of Levine as a “process, procedure, or instrumentality.”
Finally, there is no legitimate policy reason for subjecting a plaintiff who experiences sexual harassment in the workplace to the heightened intent standards enumerated in Van Fossen. The passage of Section 2000e et seq., Title 42, U.S.Code, the enactment of R.C. Chapter 4112, and this court’s recent decision in Helmick v. Cincinnati Word Processing, Inc. (1989),
Nevertheless, we conclude that the appellants have failed to state a separate claim for relief in their first count. As far as it pertains to appellee, appellants’ first claim for relief is essentially duplicative of their other claims.
The judgment of the court of appeals is affirmed in part and reversed in part and the cause is remanded to the trial court for further proceedings consistent with this opinion.
Judgment affirmed in part, reversed in part and cause remanded.
Notes
. The common pleas court’s decision denying appellant’s application for workers’ compensation benefits is not before the court at this time. However, in order for this court to find that the workers’ compensation statute provides the exclusive remedy for appellant’s injury, we must, find that it is theoretically possible for her to recover under the statute, i.e., that she has suffered the type of injury which is compensable under the statute.
. This decision was followed in Coleman v. Hous. Auth. of Americus (1989),
Dissenting Opinion
dissenting. I am in sympathy with the majority in its attempt to benefit individuals who have been victimized by some form of sex-based harassment; however, I cannot join the majority in its creation of a new tort against an employer which has no foundation in common law.
As a threshold to this discussion, I should point out that the majority has failed to define what conduct constitutes a cause of action for “sexual harassment.” Thus, I am unable to discern what elements constitute a cause of action for this new tort.
Common-Law Remedies
The majority states that “there is no legitimate policy reason for subjecting a plaintiff who experiences sexual harassment in the workplace to the heightened intent standards enumerated in Van Fossen [v. Babcock & Wilcox Co. (1988),
There is clearly no common-law remedy for sexual harassment, in and of itself, in Ohio. The majority cites no case law establishing such a remedy.
As noted by the majority, there is a viable issue in this case as to whether the employer is liable based upon the doctrine of respondeat superior. Generally, common-law principles of agency govern relationships in which one person acts for another by the latter’s authority. These principles provide that an employer may be subject to liability for the wrongful acts of its employees committed while in the scope of their employment. Restatement of the Law 2d, Agency (1958) 481, Section 219(1). And, even where the acts are not in the scope of employment, a master can still be held liable if he was negligent or reckless.
II
Exclusivity Provisions of Section 35, Article II of the Ohio Constitution and R.C. 4123.74
In Van Fossen v. Babcock & Wilcox (1988),
“The workers’ compensation system is based on the premise that an employer is protected from a suit for negligence in exchange for compliance with the Workers’ Compensation Act. The Act operates as a balance of mutual compromise between the interests of the employer and the employee whereby employees relinquish their common law remedy and accept lower benefit levels coupled with the greater assurance of recovery and employers give up their common law defenses and are protected from unlimited liability. But the protection afforded by the Act has always been for negligent acts and not for intentional conduct.” (Emphasis added and footnotes omitted.) See, also, Van Fossen, supra,
In reviewing counts one through five of the complaint in the case sub judice, I find allegations of intentional and negligent or wanton conduct attributed to the employer. The query before this court is how to characterize the plaintiff’s claims in order to ascertain whether a cause of action has been set forth.
Clearly, Kerans is prohibited from maintaining a negligence action against her employer as alleged in counts one, three and four, since such actions are barred by the exclusivity provisions of R.C. 4123.74 and Section 35, Article II of the Ohio Constitution, notwithstanding a determination that Kerans is ineligible to receive workers’ compensation. This, however, would not prevent
As for the intentional conduct alleged in counts one, three and four of the complaint (since the majority has characterized count two of the complaint as alleging assault and/or battery, I see nothing precluding the Keranses from maintaining this action as discussed supra in fn. 6 and the preceding discussion therein), the Keranses seemingly are not entitled to bring a common-law action outside the Workers’ Compensation Act due to the exclusivity provisions contained in R.C. 4123.74 and Section 35, Article II of the Ohio Constitution.
This court should be very reluctant to adopt wholesale exceptions to the exclusive-remedy rule established by the General Assembly and framers of the Ohio Constitution. Traditionally, we have been reluctant to adopt exceptions to the exclusive-remedy rule and this position has come from an unwillingness to tamper with the terms of a legislative bargain provided in exchange for the relinquishment of some prior vested rights. Either an expansive interpretation of the intentional tort exception or the development of new negligent tort actions would thwart the basic purpose of the statutory and constitutional scheme by eroding the exclusivity of remedy provided by the Workers’ Compensation Act. See Van Fossen, supra,
Accordingly, I would not permit the Keranses to proceed on those claims against the employer which allege common-law intentional misconduct either directly or vicariously through one of its employees (except for those claims alleging assault and/or battery), and I would dismiss both the negligence and intentional tort claims (except for count two of the complaint) as being precluded by R.C. 4123.74 and Section 35, Article II of the Ohio Constitution.
. It is impossible to state with any precision what conduct constitutes “sexual harassment.” In light of federal law, two elements seem necessary. One, the alleged conduct must be conduct which would not occur but for the sex of the employee or conduct that is sexual in nature (either manifested physically or psychologically). See rules of the United States Equal Employment Opportunity Commission, Section 1604.11(a), Title 29, C.F.R. (sexual harassment requires “conduct of a sexual nature”); see, also, McKinney v. Dole (C.A.D.C.1985),
. The majority alludes to Helmick v. Cincinnati Word Processing, Inc. (1989),
“R.C. Chapter 4112 was intended to add protections for victims of sexual harassment rather than reduce the protections and remedies for such conduct. While discretionary hiring practices, discriminatory promotions and discriminatory discharges are not actionable at common law absent an express contract, the express purpose of R.C. Chapter 4112 is to deter these practices and provide a remedy where none existed under state law. * * * [I]t would defy logic to conclude that the General Assembly intended to make it impossible for victims of sexual harassment to obtain damages when an employer’s conduct constitutes a common-law tort, regardless of the motivation for such conduct.” Id. at 135,
. Examples of exceptions to the exclusivity rule for the intentional torts of assault and battery may be found in the following cases: Boek v. Wong Hing (1930),
. Liability for negligence or reckless conduct would ordinarily be precluded in Ohio due to the exclusivity clause contained in R.C. 4123.74 and Section 35, Article II of the Ohio Constitution.
. R.C. 4123.74 provides:
“Except as authorized in section 4121.80 of the Revised Code, employers who comply with section 4123.35 of the Revised Code shall not be liable to respond in damages at common law or by statute for any injury, or occupational disease, or bodily condition, received or contracted by any employee in the course of or arising out of his employment, or for any death resulting from such injury, occupational disease, or bodily condition occurring during the period covered by such premium so paid into the state insurance fund, or during the interval of time in which such employer is permitted to pay such compensation directly to his injured employees or the dependents of his killed employees, whether or not such injury, occupational disease, bodily condition, or death is compensable under sections 4123.01 to 4123.94 of the Revised Code.” (Emphasis added.)
. The remedy provided under the workers’ compensation laws was made the exclusive remedy by the amendment to Section 35, Article II, effective January 1, 1924, which provides in pertinent part:
“ * * * Such compensation shall be in lieu of all other rights to compensation, or damages, for such death, injuries, or occupational disease, and any employer who pays the premium or compensation provided by law * * * shall not be liable to respond in damages at common law or by statute for such death, injuries or occupational disease.” (Emphasis added.)
