Lead Opinion
SUTTON, J., dеlivered the opinion of the court in which BOGGS, J., joined. CLAY, J. (pp. 586-93), delivered a separate dissenting opinion.
OPINION
Steve Black, a truck driver for Western Express, drove a load of raw paper materials to a factory operated by Dixie Consumer Products in Bowling Green, Kentucky. During the unloading process, a careless Dixie employee ran over Black’s foot with a forklift. Black received workers’ compensation from Western due to the injury. He then filed a tort claim against Dixie and its parent company, Georgia-Pacific. The district court denied Dixie and Georgia-Pacific’s motion for summary judgment. Because Kentucky’s workers’ compensation statutes provide an exclusive remedy for injuries of this sort, we reverse the decision of the district court.
I.
Dixie makes paper cups and plates out of raw paper material. Forty-eight different truck and freight service providers carry the raw paper to the Bowling Green factory. One of them is Western, which agreed to “transport and deliver shipments of contract freight from facilities or other designated locations to the various destination points.” R. 14-2 at 2.
On the day of the accident, Black drove a Western truck, loaded with 41,214 pounds of pulpboard, to the factory. Ten-pound rubber mats separated the heavy paper rolls and secured the load on its journey to Bowling Green. After parking his truck, Black received permission from Larry Chinn, the Dixie forklift operator, to enter the loading dock through a locked cage designed to keep pedestrians off the loading dock. It was “[cjommon practice,” as Black understood, for the truck driver to unload the rubber mats' so that the Dixie forklift operator did not “have to get off each time and get” them himself. R. 84-12 at 7,12.
Chinn and Black soon got “into a rhythm” in unloading the materials. R. 84-9 at 22. Chinn would remove a layer of paper rolls with his forklift. And Black would remove the rubber mats and walk them to the trash compactor. At some unfortunate point, they fell out of rhythm, and Chinn ran over Black’s foot with the forklift, leading to a below-the-knee amputation of Black’s leg.
Black received workers’ compensation from Western due to the injury.
He then filed this tort action against Dixie and Gеorgia-Pacific, seeking $1,850,000 in damages.
Dixie and Georgia-Pacific answered that the exclusive nature of the Kentucky Workers’ Compensation Act barred Black’s claims. See Ky. Rev. Stat. §§ 342.610(2), .690. “After minimal discovery,” the district court agreed. Black v.
Our court reversed because the record was insufficiently developed. In particular, the evidence did not show whether “the work Black performed at the time of his injury was a regular or recurrent part of [Dixie’s] work.” Black,
On remand, the parties introduced additional evidence about the nature of this transport service. As the district court saw this evidence, it did not show that Dixie and Georgia-Pacific were entitled to immunity from this lawsuit and thus it denied their motion for summary judgment.
II.
Denials of summary judgment are not final orders. And we have jurisdiction only over “final decisions of the district courts.” 28 U.S.C. § 1291. But there are a few exceptions, a few times when the cоurts of appeals will review non-final orders on an interlocutory basis. The key exception is the collateral-order doctrine. Under it, a party may appeal a non-final order only “if it (1) conclusively determines the disputed question; (2) resolves an important issue separate from the merits of the action; and (3) is effectively unreviewable on appeal from a final judgment.” Mohawk Indus., Inc. v. Carpenter,
The Supreme Court has frequently applied the collateral-order doctrine in the context- of decisions rejecting immunity-from-suit defenses. The best known, and most frequently invoked, immunity-from-suit cases involve claims of sovereign immunity, absolute immunity, and qualified immunity raised by governmental entities and individuals. In all three settings, the losing party may appeal the rejection of an immunity defense immediately because the core point of “immunity is its possessor’s entitlement not to have to answer for his conduct in a civil damages action.” Mitchell v. Forsyth,
Not all invocations of the word “immunity,” however, satisfy this exception. What matters is the “nature of the protection,” as opposed to “the loose ability of an attorney to use the term ‘immunity.’ ” Kelly v. Great Seneca Fin. Corp.,
Under Kentucky law, a contractor has immunity from negligence actions (in return for providing backup workers’ compensation coverage) when “the worker was injured while performing work that was of a kind which is a regular or recurrent part of the work оf the trade, business, occupation, or profession of the owner,” no matter whether “the immediate employer actually provided workers’ compensation coverage.” Cain, 236 S.W.3d at 585. Often called “up-the-ladder” contractor immunity, it establishes an immunity from suit, not just from liability. Black concedes as much. See Appellee’s Br. 5, 20. Dixie and Georgia-Pacific agree. See Appellant’s Br. 36, 44-45. Kentucky courts agree, too. The Supreme Court of Kentucky describes up-the-ladder immunity as “a contractor’s immunity from tort lawsuits.” Beaver v. Oakley,
Kentucky courts, it is true, at times refer to contractor immunity as “immunity from liability,” Beaver,
True, Dixie and Georgia-Pacific are private companies. True also, the collateral-order exception “typically involves claims of immunity from suit by government officials,” as Black points out. Appellee’s Br. 3. But that does not make public-official claims of immunity the only ones available
Other courts of appeals have applied the exception to private defendants as well. The Ninth Circuit, for example, exercised jurisdiction over an appeal by companies and individuals claiming intellectual property rights to Superman when the district court denied “a motion to strike pursuant to California’s anti-SLAPP statute” — a law that “stop[s] [ ] lawsuits early in the litigation process” when they are “brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances.” DC Comics v. Pac. Pictures Corp.,
We have jurisdiction to review this interlocutory order.
III.
The parties share common ground about most of the legal parameters concerning this appeal. They agree we give fresh review of the district court’s order denying statutory immunity, as with its order denying summary judgment. Cain,
“If Georgia-Pacific and Dixie are ‘contractors’ under § 342.610(2),” as wé previously explained, “they are immune from tort liability because Black was able to secure workers’ compensation benefits from Western.” Black,
All of this leaves us with a three-part inquiry to determine immunity from suit under the Kentucky Workers’ Compensation Act. First, was Western “hired to perform” this work for Dixie? Cain,
Dixie meets each requirement. First, Dixie and Georgia-Pacific hired Western to transport and deliver paper rolls to Dixie’s Bowling Green factory. The carriage agreement required Western to “transport and deliver shipments of contract freight from facilities or other designated locations to the various destination points.” R. 14-2 at 2. And it specified that Western had a duty “to provide transportation services” to “GP and any GP subsidiary,” such as Dixie. Id.
It matters not that the carriage agreement does not spell out every step of the “transport and deliver[y]” process. Id. What matters is what Black acknowledges: He was “[w]orking and helping in the transportation of freight” while unloading the rubber mats. R. 84-9 at 21. Western was hired “to transport safely and deliver undamaged all freight.” R. 14-2 at 3. The rubber mats “insur[ed] that each load [was] properly loaded and secured,” a requirement of the carriage agreement. Id. If Black had not assisted in the unloading process by removing the rubber mats, Chinn would have had to do it himself. Even if “unloading the materials off the trucks was not one of [Black’s] job duties,” Black,
Second, unloading materials at the Bowling Green factory “is a ‘customary, usual, or normal’ part of Dixie’s business or ‘work that [Dixie] repeats with some degree of regularity.’ ” Black,
Third, the answer to the key-question, the one that needed more evidence on remand, turns on whether the transportation and delivery of raw paper materials amount to “work that Dixie or similar businesses would normally perform or be expected to perform with employees.” Black,
“Even though” Dixie “may never perform that particular job with [its] own employees, [it] is still a contractor if the job is one that is usually a regular or rеcurrent part of [its] trade or occupation.” Fireman’s Fund Ins. Co. v. Sherman & Fletcher,
While this application of Kentucky law helps Dixie and Georgia-Pacific in the near term, it should help other workers in the long term. The premise of our decision is that someone injured in this setting will receive workers’ compensation no matter what — no matter whether the contractor (here the trucking company) contributes to the system or not. Because we treat the kind of work Black was doing as part and parcel of what Dixie does, that means a worker injured in this setting will receive compensation regardless of fault by a company in Dixie’s shoes or one in Western’s shoes. And that means Black (or someone like him) will always receive workers’ compensation. All of this also means that the immunity from a further lawsuit applies as well. This burden and this benefit lie at the heart of the trade-off built into any workers’ compensation system, as Black’s counsel acknowledged at oral argument. For one cannot “assure that contractors and subcоntractors provide workers’ compensation coverage” for all workers without also assuring that they receive immunity from suit in return. Cain,
For these reasons, we reverse.
DISSENT
Dissenting Opinion
dissenting.
The majority would bestow upon this Circuit the dubious distinction of becoming the first circuit -in the nation to hold that a denial of an affirmative defense of state workers’ compensation immunity is immediately appealable. In its apparent eagerness to reach the merits, the majority ignores the plain language of the Kentucky Workers’ Compensation Act, overlooks a
The circumstances giving rise to this appeal from a denial of immunity at the summary judgment stage are somewhat atypical: Defendants Dixie and Georgia-Pacific are private parties in a diversity action asserting immunity only under state law. Specifically, Dixie and Georgia-Pacific seek a finding that they are entitled to so-called “exclusive remedy immunity” and “up-the-ladder immunity” under provisions of a Kentucky stаtute requiring a covered employer to pay workers’ compensation benefits to its own employees or the employees of subcontractors for on-the-job injuries without regard to fault; “[i]f an employer secures payment of compensation as required by this chapter, the liability of such employer under this chapter shall be exclusive and in place of all other liability.” Ky. Rev. Stat. § 342.690(1). The district court ruled that Dixie and Georgia-Pacific had not made out their affirmative defense of immunity under the Kentucky Workers’ Compensation Act (the “Act”), and denied summary judgment. Dixie and Georgia-Pacific took an immediate appeal seeking reversal of that finding.
Before we address whether Dixie and Georgia-Pacific аre entitled to up-the-ladder immunity, we must first address our jurisdiction. Federal law, including decisions of the Supreme Court regarding appeals from non-final orders, governs our jurisdiction to hear this appeal in a federal forum, and state law supplies the substance of the immunity we are called upon to analyze. Range v. Douglas,
Determining whether a state statute provides immunity frоm liability or immunity from suit for purposes of interlocutory appellate jurisdiction naturally entails a review of the relevant statutory provisions and case law. Where we are “required to determine issues that rest upon Kentucky law, we must apply Kentucky law in accordance with the controlling decisions of the Kentucky Supreme Court.” Snow Pallet, Inc. v. Clinton Cty. Indus. Dev. Auth.,
Insofar as neither party seems to fully grasp the analysis by which we assess interlocutory appellate jurisdiction in the federal courts, some initial review may be in order. “By statute, Courts of Appeals ‘have jurisdiction of appeals from all final decisions of the district courts of the United States ... except where a direct review may be had in the Supreme Court.’ ” Mohawk Indus., Inc. v. Carpenter,
The.collateral order doctrine is a limited practical application of this rule allowing appeals from non-final orders that “finally determine claims of right separable from, and collateral to, rights asserted in the action, too important to be denied review and too independent of the cause itself to require that appellate consideration be deferred until the whole case is adjudicated.” Johnson v. Jones,
Recently, the Supreme Court described the conditions for a collateral appeal as follows:
The justification for immediate appeal must therefore be sufficiently strong to overcome the usual benefits of deferring appeal until litigation concludes.... That a ruling may burden litigants in ways that are only imperfectly reparable by appellate reversal of a final district court judgment ... has never sufficed. Instead, the decisive consideration is whether delaying review until the entry of final judgment would imperil a substantial public interest or some particular value of a high order.
Mohawk Industries,
In order to determine whether this this type of immunity constitutes an immunity from liability or an immunity from suit altogether, federal courts must look to the language of the state statute and the cases construing it. World Trade Ctr.,
(2) A contractor who subcontracts all or any part of a contract ... shall be . liable for the payment of compensation to the employees of the subcontractor unless the subcontractor primarily liable for the payment of such compensation has secured the payment of compensation ... Any contractor ... who shall become liable for such compensation may recover the amount of such compensation, paid and necessary expenses from the subcontractor primarily hable therefor. A person who contracts with another:
(b) To have work performed of a kind which is a regular or recurrent part of the work of the trade, business, occupation, or profession of such person shall for the purposes of this section be deemed a contractor, and such other person a subcontractor.
Ky. Rev. Stat. § 342.610.
The Kentucky Supreme Court has described the Act as “a product of compromises by workers and employers” whereby “[w]orkers agree to forego common law remedies in exchange for statutory benefits awarded without regard to fault” and “[e]mployers agree to pay such benefits and to forego common law defenses in exchange for immunity from tort liability.” Labor Ready, Inc. v. Johnston,
discourage a contractor from subcontracting work that is a regular or recurrent part of its business to an irresponsible subcontractor in an attempt to avoid the expense of workers’ compensation benefits. KRS 342.610(2)(b) accomplishes its purpose by viewing an up-the-ladder contractor as being the employer of an uninsured subcontractor’s employees ... KRS 342.690(1) provides both direct and statutory employers with immunity from tort liability for work-related injuries.
Doctors’ Associates, Inc. v. Uninsured Employers’ Fund,
[Wjhether an owner is entitled to “exclusive remedy” immunity depends upon whether the worker was injured while performing work that was “of a kind which is a regular or recurrent part of the work of the trade, business, occupation, or profession” of the owner. If so, the owner is immune; if not, the owner is subject to tort liability.
Gen. Elec. Co. v. Cain,
Notably, the relevant statutory provisions speak exclusively in terms of the “liability of [an] employer” as being “exclusive” under the Act, or, alternately, in terms of whether the employer is “liable for the payment of compensation.” In various semantic formulations, the cases cited above echo the statutory language by referring to this type of state law immunity
Ignoring these precedents, the majority nonetheless selectively characterizes exclusive remedy immunity and up-the-ladder-immunity under Kentucky workers’ compensation law as providing immunity from suit, as opposed to immunity from liability. The majority rests its finding of jurisdiction on the “reality that up-the-ladder immunity insulates contractors from lawsuits, not just liability” — a skewed contention it constructs on the basis of a footnote to a single decision ,of the Kentucky Supreme Court and a decision оf the Kentucky Court of Appeals granting an interlocutory appeal from a denial of up-the-ladder immunity. See Beaver v. Oakley,
Although the classification of up-the-ladder immunity as “immunity from suit” seems mostly not to have taken hold, the majority is thus quick to seize on a few instances in which Kentucky courts have referred to exclusive remedy liability as “immunity from suit” — a term that occasionally appears to have been used interchangeably with “immunity from liability” — and cites a single mention of “absolute immunity” in a lone case of the Kentucky Court of Appeals, Ervin Cable. Beaver, for instance, discussed whether a construction manager could be “considered a contractor and qualify for up-the-ladder immunity from tort liability,” and added an explanatory footnote stating that “[i]n Kentucky, ‘up-the-ladder immunity’ refers to a contractor’s immunity from tort lawsuits where the plaintiff was injured at work and workers’ compensation benefits are the plaintiffs exclusive remedy under Kentucky Revised Statutes (KRS) 342.690.” Beaver,
The majority treats the case of Ervin Cable as dispositive authority for the fact
Ordinarily, a trial court’s order denying summary judgment is not immediately reviewable on appeal since such an order is considered interlocutory. However, in this case Ervin Cable moved for summary judgment on grounds of absolute immunity, the denial of which is subject to immediate appeal since immunity is designed to free the possessor not only from liability, but also from the costs of defending an action. Breathitt County Bd. of Educ. v. Prater,292 S.W.3d 883 (Ky. 2009). In other words, the denial of a substantial claim of immunity is an exception to the finality rule that interlocutory orders are not immediately ap-pealable. Id. As a result, this court has jurisdiction to address Ervin Cable’s claim that the trial court improperly denied its motion for summary judgment.
Id. at 423.
Ervin Cable was decided six years after Beaver, and the Kentucky Supreme Court has yet to weigh in on whether Kentucky courts allow interlocutory appeals of denial of up-the-ladder immunity. A sole decision from a state intermediate appellate court allowing an interlocutory appeal under state procedures should not obviate the necessary analysis of the statutory language and case law, which should guide this Court’s inquiry. See World Trade Ctr.,
Relying heavily on Ervin Cable, Dixie and Georgia-Pacific argue that “[bjecause this is a diversity jurisdiction lawsuit, the law of the forum state, Kentucky, controls. Significantly, Kentucky law recognizes and permits an immediate appeal of a denial of the same immunities raised by Dixie in this case — an appeal prior to the entry of final judgment.” (Defs.’ Br. at 46.) This argument obscures the fact that our analysis of our own jurisdiction is concerned solely with principles of federal law — an issue on which a sole decision of the Kentucky Court of Appeals, assessing its jurisdiction under state law, is anything but dispositive. See Budinich,
McMahon v. Presidential Airways, Inc.,
No such strong claim to immunity from suit, nor so compelling a justification from relieving the defendants from the burdens of litigation' — in which they have participated for the past eight years — exists in this case. Citing only highly inapposite Supreme Court cases and no Kentucky cases whatsoever, Dixie and Georgia-Pacific assert in their reply brief that “the immunity legal ruling would be effectively unreviewable on appeal from a final judgment ... and the public interest affected is the defendants’ right to be free from trial in exchange for the exclusive remedy of workers’ compensation' — a government-controlled insurance system to protect injured workers.” (Def.’s Reply Br. at 7.) This is just the sort of avoidance-of-trial argument of whiсh we are supposed to be wary, and which has so often been rebuffed over the years. Will instructs that “[tjhose seeking immediate appeal ... naturally argue that any order denying a claim of right to prevail without trial” is effectively unreviewable if not immediately
The extreme wariness with which we are to “apply[] ‘the blunt, categorical instrument of [a] § 1291 collateral order appeal’ ” likewise counsels against expanding the class of collaterally appealable orders to include denials of up-the-ladder immunity under Kentucky law. Mohawk Indus.,
Notes
. Black appears to believe, incorrectly, that only governmental defendants are entitled to collateral appeals. Cohen, which concerned the district court's refusal to post security as required for a shareholder derivative action under New. Jersey law, involved private parties. See
. Footnote 1 of Beaver was cited by this Court in Dilts v. United Grp. Servs., LLC,
