The issue presented is whether an employer has a cause of action against a third party to recover benefits paid pursuant to
National Fruit alleged in its complaint that on December 8, 1978, two of its employees were seriously injured when the bulkhead door of a boxcar owned and operated by the defendants fell on thеm as they were preparing to load the boxcar. As a result of the defendants’ negligence, National Fruit alleges that it will be required to make increased payments into the Workers’ Compensation Fund to cover the benefits that will be received by the injured employees. National Fruit argues that it is entitled - to recover this increase in payments from the defendants under either a theory of implied indemnity or loss of еmployees’ services. 1
I.
The general rule that we have applied in summary judgment cases is stated in Syllabus Point 3 of
Aetna Casualty & Surety Co. v. Federal Ins. Co.,
“A motion for summary judgment should be granted only when it is clear that there is no genuine issue of fact to be tried and inquiry concerning the facts is not desirable to clarify the application of the law.”
See also
Syllabus,
Beverly Manor Assocs. v. West,
In examining an appeal from a summary judgment, we will view the facts in the light most favorable to the party against whom judgment was rendered, which in this case was National Fruit.
Beverly Manor Assocs. v. West, supra; Board of Education v. Van Buren & Firestone Architects, Inc.,
National Fruit concedes that the West Virginia Workers’ Compensation Act contains no provision authorizing an employer to recover workers’ compensation benefits paid to employees injured by negligent third parties. It is generally recognized that West Virginia, Georgia, and Ohio are the only states that have not by statute given employers the right, through subro-gation, to recover workers’ compensation benefits paid to employees injured by a third-party’s negligence. See 2A A. Larson, The Law of Workmen’s Compensation § 71.30 (1983). The statutory method for subrogation varies among the different state compensation acts, as shown by the following summary in 2A A. Larson, supra, § 74.00:
“The mechanics of subrogation vary between the states, some subrogating the payor of compensation absolutely, some allowing the subrogation right and the employee’s direct right to sue thethird party to stand side by side, and some establishing a sequence under which first one, then the other, has the right to bring the third-party suit. Under all forms, however, the ultimate result of following out the statutory procedure is approximately the same: reimbursement of the payor of compensation, with any excess — or most of the excess— going to the employee.”
Under a typical subrogation statute, the injured employee’s ability to recover in a separate action against the negligеnt third party is diminished by the amount of workers’ compensation benefits he receives. Thus, statutory subrogation precludes the injured employee from obtaining workers’ compensation benefits and at the same time recovering the total amount of his damages against the negligent third party. His rights under statutory subrogation are limited as against the negligent third party to the extent that his employer can recoup his compensаtion payments from any award obtained against the negligent third party.
The absence of a subrogation statute in West Virginia has been a critical factor in the few cases we have decided involving the right of employees to keep both their workers’ compensation benefits and any damages awarded in a negligence suit against a third party. In
Mercer v. Ott,
“Where a workman is killed by an accident arising in the course of and resulting from his employment, and a tort-fea-sor other than his employer is responsible therefor, the right to compensation from the workmen’s compensation fund by a dependent of the deceased is not lost by a recovery of damages against the tortfeasor, by the personal representative of the deceased.”
In our discussion in
Mercer,
“The compensation acts of a number of jurisdictions of the United States and of Canada provide, in substance, that where an employee has been injured by the negligence of a third person under such circumstances as to render him legally liable, and compensation for the injury has been paid by the employer, he is subrogated to the employee’s rights against such third person and may bring an action against the latter for damages ....
“The statute of this state does not in terms releasе the tort-feasor, or assign the right of action, when compensation is paid out of the workmen’s compensation fund.”
The comments we made in 1916 in Mercer are just as applicable to the present case because the legislature has yet to include a subrogation statute in our Workers’ Compensation Act.
In
Jones v. Appalachian Elec. Power Co.,
Similarly, we held in Syllabus Point 3 of
Jones v. Laird Foundation, Inc.,
“Workmen’s Compensation benefits for an original work related injury and for aggravation of an original injury, or for a separate injury occasioned by medical treatment administered for a work related injury, are within the ‘Collateral Source Rule’ in the same way as accident insurance, health insurance and life insurance, and, therefore, benefits from Workmen’s Compensation cannot be applied to reduce damages in an action against a successive tort-feasor such as a physician or hospital for injury caused by negligent or unskillful treatment of a compensable injury.” 2
Although not binding on this Court, the Fourth Circuit Court of Appeals in
Crab Orchard Improvement Co. v. Chesapeake & O. Ry. Co.,
“[T]he third party tort-feasor receives no benefit by the employer’s payment under the [Workers’ Compensation] Act. Furthermore, as the duty and obligation of the employer are different and distinct from the duty and obligation of the third party tort-fеasor, the requisites for the application of the indemnity principles are not met. A similar conclusion was reached in McCullough v. John B. Far- ick Co., [90 N.H. 409 , 412,10 A.2d 245 , 247 (1939)]:
‘Normally the right to indemnity arises only when there has been a discharge by one person of a duty also owed by another. * * *
‘Clearly this is not a case for indemnity within the principles thus stated. The duty of an employer to pay compensation under the statute is entirely separate and distinct from the duty оf a third person to pay damages to a servant for personal injuries caused by his negligence. * * *
Critical to the Fourth Circuit’s decision in
Crab Orchard
was its reliance on the general definition of indemnity contained in Section 76 of the Restatement of Restitution (1937): “A person who, in whole or in part, has discharged a duty which is owed by him but which as between himself and another should have been discharged by the other, is entitled to indemnity from the other, unless the payor is barred by the wrongful nature of his conduct.” The Fourth Circuit observed that “[n]ot only must a benefit be conferred upon the [third party] by a discharge of his duty or obligation, but the discharge must have occurred under circumstances in which the [employer] was, at the same time, discharging a personal obligation coextensive with that of the [third party].”
Crab Orchard,
The obligation or duty between the employer and the third party must be a common or coextensive obligatiоn as it relates to the employee before indemnity can be
National Fruit argues that under our definition of implied indemnity set out in Syllabus Point 2 of
Hill v. Joseph T. Ryerson & Son, Inc.,
“The generаl principle of implied indemnity arises from equitable considerations. At the heart of the doctrine is the premise that the person seeking to assert implied indemnity — the indemnitee — has been required to pay damages caused by a third party — the indemnitor. In the typical case, the indemnitee is made liable to the injured party because of some positive duty created by statute or the common law, but the actuаl cause of the injury was the act of the indemnitor.”
In
Sydenstricker v. Unipunch Products, Inc.,
In neither
Hill
nor
Sydenstricker
did we have occasion to deal with the concept of a common or coextensive joint obligation which underlies the implied indemnity theory, although we did state in
Hill,
“This is not to say that in an action for implied indemnity there is no need to analyze the relationship between the in-demnitee and indemnitor. It is this relationship inter se, as well as to the injured party, which must ultimately determine the right to implied indemnity and the defenses available to the indemnitor.”
We concur with the Fourth Circuit’s analysis in
Crab Orchard
that in order for an implied indemnity claim to arise, there must be a common or coextensive obligation existing between the employer and the negligent third party as it relates to the injured employee. With an employer’s obligation arising from the
The cases cited by National Fruit in support of its implied indemnity argument are inapplicable. In
Federal Marine Terminals, Inc. v. Burnside Shipping Co.,
In conclusion, we hold that a cause of action for indemnity cannot be implied from the relationship between an employer and a negligent third party so that the employer may recover benefits paid pursuant to the Workers’ Compensation Act to one of its employees who is injured by the negligence of such third party.
II.
National Fruit next argues that under
Coal Land Dev. Co. v. Chidester,
In Nemo, we rejected the employer’s suit for loss of an employee’s services who was negligently injured by a third party and concluded in the Syllabus:
“An employer may not maintain an action to recover damages from a tort-fea-sor for the loss of services of his employ ee when such action is based on the negligent injury of the employee by said tort-feasor.”
Our holding in
Nemo
is still the majority rule.
See Preiser Scientific, Inc. v. Piedmont Aviation, Inc.,
III.
Finally, National Fruit argues that we should judicially recognize a cause of action for an employer against a negligent third party to recover workers’ compensation benefit payments, but we decline to do so. Beginning with our decision in
Mercer v. Ott,
It is clear from examining the experiences of other states that this area of the law is best addressed by the legislature through the passage of detailed subrogation statutes. Our legislature has not acted, although it must be aware from our cases that we are one of three states that does not accord a statutory subrogation right in our Workers’ Compensation Act. We have traditionally stated that our workers’ compensation system is entirely a statutory creature 4 and for this reason we feel that judicial intrusion into the statutory framework, particularly on so complex an issue, is unwarranted. Subrogation statutes are of necessity extremely complex and detailed because they must be designed to anticipate all of the multifaceted problems that may occur. 5
We, therefore, conclude that National Fruit did not state a cause of action in this case and affirm the summary judgment entered against National Fruit by the Circuit Court of Berkeley County.
Affirmed.
Notes
. A third argument briefly addressed by National Fruit is that under the Safety Appliance Act, 45 U.S.C. § 14, and
Hallada v. Great N. Ry.,
. In his concurring opinion in
Laird Foundation,
"There may be serious doubt about the desirability of permitting double recovery even in this limited area of the law. This, however, is strictly a mаtter within the prerogative of the Legislature. The vast majority of our states prevent double recovery by their statutes — not by permitting a tort-feasor physi-dan to go free perhaps at the expense of an innocent employer who contributes to the fund but by apportioning the damages. This is accomplished principally by requiring election, subrogation or a similar device....
"... West Virginia is apparently one оf only two states which has no provision for election or subrogation in its workmen’s compensation laws_ Again, this is a legislative question, but, until the Legislature has balanced the equities, it is not for this Court to compound the inequity by permitting the negligent physician the protection of a government umbrella with the employer footing the bill.” (Citations omitted).
. The two other jurisdictions without subrogation statutes, Georgia and Ohio, have reached diffеrent conclusions on whether indemnity can be implied from the employer/third-party relationship to allow for recovery of workers’ compensation payments. In a series of terse opinions, Georgia has consistently refused to judicially recognize any equitable remedy, including indemnity, in this factual situation in the absence of a subrogation statute.
See Intex Products, Inc.
v.
Roper Corp.,
.
See Cummins v. State Workmen’s Compensation Comm’r,
. We have examined several subrogation statutes, particularly N.Y. Workers’ Compensation Law § 29 (McKinney 1978), on which several other jurisdictions have modeled their own statutes. The following is a list of some of the issuеs and problems addressed by subrogation statutes: (1) Is the employer’s action indepen dent of the injured employee’s right to sue or must it be combined with the employee's? (2) Does the employer recover the increase in premiums or the actual benefits paid to the injured employee? (3) Is the employer's right of subro-gation lost if it is also negligent or does a rule of comparative fault apply? (4) Does the third рarty have a right to offset the amount of workers’ compensation benefits paid to the employee? (5) Are the employee's damages adjusted if the estimated total amount of workers' compensation benefits payable to the employee is subsequently increased or decreased after the employer has already taken its subrogated share of the damages awarded against the third рarty? (6) Should the Workers' Compensation Fund along with employers and insurance carriers be authorized to recover workers' compensation benefit payments from third parties? (7) Will the entire amount of damages awarded to an employee against a third party be subject to subrogation or can the employee first subtract from the total the amount of money spent pursuing the suit, including attorney’s fees? (8) Is the emрloyee obligated to notify the employer, insurance carrier or the Workers’ Compensation Fund that he is suing a third party? (9) If the amount of damages awarded to an employee against a third party is inadequate to cover the estimated total amount of workers' compensation benefits payable to the employee, how will the damages be apportioned between the employee and the employer? (10) Does the employer or the Workers' Compensation Fund have the right to sue the third party if the employee has failed to sue the third party?
