Stuart v. Colorado Interstate Gas Co.Stuart v. Colorado Interstate Gas Co.
Plaintiff-Appellant Gerald Shane Stuart appeals from the district court’s dismissal of his negligence claim against Defendant Appellee Colorado Interstate Gas Company (CIG). The district court’s jurisdiction was based on
Background
CIG, a Delaware corporation with its principal place of business in Colorado, owns property in Weld County, Colorado, used for the production and development of natural gas. CIG contracted with Northwinds of Wyoming, Inc. (North-winds), a construction company based in Wyoming, to install pulsation bottles on natural gas pipelines at the Weld County Facility (“the Facility”). Although a Wyoming resident, Mr. Stuart went directly to the Facility in Colorado and sought employment. The Project Superintendent, a Northwinds employee, hired Mr. Stuart just for the work to be performed at the Facility in Colorado, but Northwinds issued Mr. Stuart’s paychecks from its office in Wyoming. The contract with CIG required Northwinds to carry workers’ compensation insuranсe for all of its employees. As part of this contractual requirement, Northwinds named CIG as an insured on its workers’ compensation policy which covered all of its employees, including Mr. Stuart.
An explosion occurred at the Facility, resulting in second and third degree burns to Mr. Stuart, as well as a broken hip and pelvis. After applying for and receiving workers’ compensation benefits from Wyoming, Mr. Stuart filed this cause of action, alleging negligence and gross negligеnce on the part of CIG.
CIG responded with a motion to dismiss Mr. Stuart’s claim under
Appropriateness of 12(b)(1) Dismissal and Standard of Review
The district court dismissed the case under
Discussion
The primary issue in this case is the proper choice of applicable law. A federal court sitting in diversity must apply the choice of law rules of the forum in which it sits.
Klaxon Co. v. Stentor Elec. Mfg. Co.,
Extraterritorial Application of the Wyoming Act
The district court rested its decision that the Colorado Act applied in this case, and therefore its exclusive remedy provision, largely on its analysis of § 27-14-301 of the Wyoming Workers’ Compensation Act
(a) [The Wyoming Act] applies to all injuries and deaths occurring in Wyoming ... if the employment is principally localized in Wyoming and to all injuries and deaths occurring outside of Wyoming ... under the following conditions:
(i) The employment is principally localized in Wyoming
(b) For purposes of this sectiоn, employment is principally localized where:
(i) The employer has a principal place of business within the state established for legitimate business-related purposes; and
(ii) The employee regularly works at or from that place of business.
Although there may be a question as to whether the Wyoming Legislature intended
Mr. Stuart asserts that because Northwinds issued his paychecks and performed other administrative tasks related to his employment from its Wyoming office, and further, because Northwinds has no other “place of business,” he must have worked “at or from” Northwinds’ Wyoming office. In supporting this assertion, Mr. Stuart cites to
Wessel v. Mapco, Inc.,
If an employee [suffers an injury outside the state for which] he ... would have been entitled to the benefits provided by this act had the injury occurred within this state, the employee ... [is] entitled to the benefits provided by this act, if at the time of the injury:
(i) His employment is principally localized in this state.
W.S.1977 § 27-12-208(a) (1983 Repl. Pam.). The court concluded that the employment was principally localized in Wyoming, and therefore, that application of the Wyoming Act prevented recognition of the Colorado Act’s еxclusive remedy provision.
1
Wessel,
Mr. Stuart claims that this interpretation of the statute renders the language “at or from” superfluous, because, given that Northwinds only has a “place of business” in Wyoming, Mr. Stuаrt in effect works “at or from” nowhere. We disagree and think it sufficient to point out that the purpose of the statute is to reveal those employment relationships to which the Wyoming Act applies, not to define every conceivable employer-employee relationship that might exist in the modern-day working world.
Comity
Even were we to find that
When no decision of a state’s highest court has addressed an issue of that state’s law, the federal court confronted with that issue “must predict how [the State’s] highest court would rule.”
FDIC v. Schuchmann,
CIG refers to the
Wheeler
case as one supporting the conclusion that the Wyoming Supreme Court would recognize the Colorado Act’s statutory employer immunity. In
Wheeler,
the Wyoming Supreme Court addressed a certified question asking if Wyoming would apply principles of comity to recognize the exclusive remedy provision of the Oregon Workers’ Compensation laws.
Mr. Stuart contends that the Wheeler case is inapposite because recognizing statutory employer immunity to a third-party such as CIG is repugnant to the Wyoming Constitution. Specifically, Mr. Stuart points to Article 10, § 4 of the Wyoming Constitution, which provides, in pertinent part,
No law shall be enacted limiting the amount of damages to be recovered forcausing the injury or death of any person. ... The right of each employee to compensation from [the Wyoming workers’ compensation] fund shall be in lieu of and shall take the place of any and all rights of action against any employеr contributing ... to the fund.
When we consider the weight of Colorado’s interests agаinst the weight of Wyoming’s interests in this case, we are convinced that recognition of the Colorado Act’s bar to Mr. Stuart’s cause of action against CIG would not violate Wyoming public policy. The injury occurred in Colorado, Mr. Stuart effected his employment contract with Northwinds in Colorado, and as far as any relationship between Mr. Stuart and CIG is concerned, the reasonable expectations of the parties must have been such that all would havе anticipated Colorado law to apply.
See Allstate Insur. Co. v. Hague,
Indeed, our consideration of the interests of Colorado and Wyoming in this case compels us to decide that the Wyoming Supreme Court would hold that principles of comity should be applied to recognize the Colorado Act’s exclusive remedy provision. Although Wyoming may have an interest in recouping the costs of workers’ compensation benefits from non-employers,
see
Mr. Stuart cites
Braxton v. Anco Elec., Inc.,
It is generally held that, if a damage suit is brought in the forum state by the employee against the employer or statutory employer, the forum state will enforce the bar ... of a state that is liable for workers’ compensation as the state of employment relation, contract, or injury-
Arthur Larson & Lex K. Larson, Larson’s Workers’ Compensation Law § 144.01[2], at 144-2 (2000). Mr. Stuart cherry-picks from one treatise when he quotes,
[A] defendant will be accorded immunity from tort ... if he is given such immunity by the workmen’s compensation statute of any state under which he is required to provide insurance against the particular risk and under which the plaintiff has already obtained an award for the injury.
Aplt. Br. at 21 (quoting Restatement (Second) of Conflict of Laws § 184 cmt. b (1971) (emphasis added by appellant)). That comment, however, goes on to state,
Even if no workmen’s сompensation award has as yet been obtained, a defendant will also be accorded immunity from tort ... if he is given such immunity by the workmen’s compensation statute of a state under which he is required to provide insurance against the particular risk and under which the plaintiff could obtain an award for the injury if this state is the state (a) where the injury occurred....
Restatement (Second) of Conflict of Laws § 184 cmt. b (1971). As this provision of the Restatement clearly applies to this case, as well as the general rule stated in Larson, supra, our decision is therefore rеinforced by the relevant authorities on this issue.
Because we have affirmed the decision of the district court on other grounds, we need not reach the constitutional issue of whether the Full Faith and Credit Clause,
Mr. Stuart’s motion for certification of questions of state law is DENIED. The judgment of the district court is AFFIRMED.
Notes
. The
Wessel
court also apparently assumed without deciding that the word "benefits” as used in the statute included the right to bring a common-law cause of action.
Cf. Shaw v. Layton Const. Co.,