CAROL A. WALTERS, individually as the Mother to her deceased son, Timothy Dwayne Walters and as Personal Representative of the Estate of Timothy Dwayne Walters, Plaintiff and Appellant, v. FLATHEAD CONCRETE PRODUCTS, INC., a Montana Corporation and its successors, and DOES 1-100, Defendant and Appellee.
No. DA 10-0185.
In the Supreme Court of the State of Montana
Decided March 16, 2011.
Argued December 8, 2010. Submitted December 14, 2010.
2011 MT 45 | 359 Mont. 346 | 249 P.3d 913
For Appellee: Todd A. Hammer; Angela K. Jacobs (argued); Hammer, Hewitt, Jacobs & Floch, PLLC; Kalispell.
For Amici Curiae: Lawrence A. Anderson (argued); Attorney at Law, P.C.; Great Falls; Amy Eddy; Bottomly & Eddy Trial Attorneys, PLLP; Kalispell (Attorney for Montana Trial Lawyers Association (MTLA)); Bradley J. Luck (argued), Isaac M. Kantor; Garlington, Lohn & Robinson, PLLP; Missoula; Steven W. Jennings; Crowley Fleck, PLLP; Billings (Attorney for Montana Defense Trial Lawyers Association (MDTL)); Kevin Braun, Curtis Larsen; Special Assistant Attorneys General; Helena (Attorneys for Montana State Fund).
JUSTICE RICE delivered the Opinion of the Court.
¶1 The Eleventh Judicial District Court, Flathead County, granted summary judgment to Flathead Concrete Products, Inc. (FCP), on the grounds that
¶2 We restate the issue as follows:
¶3 Did the District Court err in holding that Walters’ claims were barred by the exclusive remedy provision of the WCA and denying her claim that
FACTUAL AND PROCEDURAL BACKGROUND
¶4 On December 14, 2006, Tim was tragically run over and crushed
¶5 At his death, Tim was 42 years old, was not married, and had no children. He resided with his mother, Carol Walters, but did not provide support to her in an amount which would qualify her as his dependent as defined by
¶6 FCP provided workers’ compensation coverage to its employees through the Montana Contractor Compensation Fund (MCCF). Pursuant to FCP‘s coverage, MCCF assumed responsibility for Tim‘s medical and hospital bills related to his treatment and death under
¶7 Walters filed a complaint asserting survivorship and wrongful death claims against FCP, based upon alleged intentional and negligent acts and omissions by FCP. FCP moved for summary judgment on Walters’ claims based upon the exclusive remedy rule stated in
STANDARD OF REVIEW
¶8 On appeal from a district court‘s grant of summary judgment, our
¶9 This Court‘s review of constitutional questions is plenary. Alexander, ¶ 16 (citing Rohlfs v. Klemenhagen, LLC, 2009 MT 440, ¶ 7, 354 Mont. 133, 227 P.3d 42). The constitutionality of a statute is a question of law, and we review a district court‘s legal conclusions for correctness. Alexander, ¶ 16 (citing Rohlfs, ¶ 7).
DISCUSSION
¶10 Walters broadly states her issue on appeal as: “Is $3,000 for the death of a worker constitutional?” Under this issue, Walters presents several arguments challenging provisions of the WCA. She argues that because Tim did not receive wage loss benefits, the quid pro quo upon which the Act is based is eliminated as to Tim, and because the $3,000 payment she received as a non-dependent parent is “not fair and balanced,” the quid pro quo is eliminated as to her. Walters thus argues that the exclusive remedy provision,
¶11 The Montana Constitution sets forth the basis for the workers’ compensation exclusive remedy provision. Adsem v. Roske, 224 Mont. 269, 270-71, 728 P.2d 1352, 1353 (1986).
The administration of justice. Courts of justice shall be open to every person, and speedy remedy afforded for every injury of person, property, or character. No person shall be deprived of this full legal redress for injury incurred in employment for which another person may be liable except as to fellow employees and his immediate employer who hired him if such immediate employer
provides coverage under the Workmen‘s Compensation Laws of this state. Right and justice shall be administered without sale, denial, or delay.
[A]n employer is not subject to any liability whatever for the death of or personal injury to an employee covered by the Workers’ Compensation Act or for any claims for contribution or indemnity asserted by a third person from whom damages are sought on account of such injuries or death. The Workers’ Compensation Act binds the employee himself, and in case of death binds his personal representative and all persons having any right or claim to compensation for his injury or death, as well as the employer and the servants and employees of such employer ....
¶12 The exclusive remedy is the benefit which employers are to receive from the quid pro quo compromise when they provide workers’ compensation insurance coverage. Injured workers are to receive a no-fault recovery from the compromise:
“The purpose of the [WCA] is to protect both the employer and the employee by incorporating a quid pro quo for negligent acts by the employer. The employer is given immunity from suit by an employee who is injured on the job in return for relinquishing his
common law defenses. The employee is assured of compensation for his injuries, but foregoes legal recourse against the employer.”
State Farm Fire & Cas. Co. v. Bush Hog, LLC, 2009 MT 349, ¶ 13, 353 Mont. 173, 219 P.3d 1249 (citation omitted); accord Sitzman, 221 Mont. at 307-08, 718 P.2d at 659. As we explained in Stratemeyer II, “[t]he exclusive remedy rule is perhaps the most firmly entrenched doctrine in workers’ compensation law. The rationale for adopting workers’ compensation legislation was to guarantee workers with work-related injuries some form of compensation in exchange for relinquishing any potential tort claims against their employers.” Stratemeyer II, 276 Mont. at 74, 915 P.2d at 179 (internal citations omitted).
¶13 Walters argues that the quid pro quo bargain upon which the exclusive remedy is premised does not exist in this case, relying upon our decision in Stratemeyer II. Stratemeyer suffered a mental injury known as a “mental-mental” injury in his employment as a deputy sheriff. Stratemeyer II, 276 Mont. at 70, 75-76, 915 P.2d at 176, 180. We noted that “it is unequivocally clear that mental injuries, such as Stratemeyer‘s, are beyond the scope of coverage of the Workers’ Compensation Act” and Stratemeyer had “no possibility of recovery” under the Act. Stratemeyer II, 276 Mont. at 76, 915 P.2d at 180. We thus concluded that “there is no quid pro quo for workers who suffer ‘mental-mental’ injuries.... Absent the quid pro quo, the exclusive remedy cannot stand, and the employer is thus exposed to potential tort liability.” Stratemeyer II, 276 Mont. at 76, 915 P.2d at 180 (citations omitted). Stated conversely, “[t]he exclusive remedy rule applies only if the injury suffered by the worker is covered by the Act.” Stratemeyer II, 276 Mont. at 78, 915 P.2d at 181 (citations omitted).
¶14 FCP argues that, unlike the claimant in Stratemeyer II, Tim suffered an injury which is covered and compensable as defined by the Act. See
¶15 Maney was the mother of Jason Fogleson, an employee killed while working, and she brought tort claims against Fogleson‘s
[Section] 39-71-411, MCA, provides that “an employer is not subject to any liability whatever for the death of or personal injury to an employee covered by the ... Act ....” This language is clear and unequivocal. An employer has no liability for an employee‘s work-related injury or death which is compensable under the Act. The statute then states that, in case of an employee‘s death, the Act binds “all persons having any right or claim to compensation for his injury or death ....” This also is clear and unequivocal. In the case of an employee‘s death, the employer has no liability for any claim of any person for that injury and death.
Maney, ¶ 20 (emphasis added).
¶16 Like the injured worker in Maney, Tim sustained an injury which was covered and compensable under the Act. Thus, the claims made here for Tim‘s injury are distinguishable from those made in Stratemeyer II in the same manner as the claims made in Maney. The basis for the Court‘s conclusion in Stratemeyer II that the quid pro quo had failed—that the Act provided no coverage for the injury—is not present in this case. Tim‘s injury was covered by the Act, and he had “some possibility of recovery.” Stratemeyer II, 276 Mont. at 75, 915 P.2d at 179.
¶17 Walters also argues that the quid pro quo should be deemed to be nonexistent here because the amount of benefits paid under the Act is insufficient to sustain the bargain. She argues that “the Act is only viable if it is fair,” and that, here, “the ‘bargain’ is not fair and
¶18 We have explained substantive due process as follows:
“The essence of substantive due process is that the State cannot use its police power to take unreasonable, arbitrary or capricious action against an individual. In order to satisfy substantive due process guarantees, a statute enacted under a state‘s police power must be reasonably related to a permissible legislative objective.”
Town & Country Foods, ¶ 17 (quoting Raisler, 219 Mont. at 263, 717 P.2d at 541); accord Satterlee, ¶ 33. “Substantive due process primarily examines underlying substantive rights and remedies to determine whether restrictions are unreasonable or arbitrary when balanced against the purpose of a government body in enacting a statute, ordinance or regulation.” Town & Country Foods, ¶ 17 (citations omitted). “[I]n essence, substantive due process analysis requires that we decide (1) whether the legislation in question is related to a legitimate governmental concern, and (2) that the means chosen by the Legislature to accomplish its objective are reasonably related to the result sought to be attained.” Plumb v. Fourth Jud. Dist. Ct., 279 Mont. 363, 372, 927 P.2d 1011, 1016 (1996).
¶19 FCP objects to Walters’ substantive due process claim on the ground that Walters cannot “meet the threshold showing of a protected property interest.” Relying primarily on Germann v. Stephens, 2006 MT 130, 332 Mont. 303, 137 P.3d 545, FCP argues that it is “beyond dispute” that a substantive due process claim necessitates a threshold showing of a constitutionally protected property interest, and that the
¶20 In Germann, the plaintiff brought procedural and substantive due process claims, as well as federal and state takings and equal protection claims, against the City of Whitefish and City officials. Germann, ¶¶ 1, 17, 25. In discussing due process, we did not distinguish between substantive and procedural claims, stating generally and without specific analysis that “[s]tate due process and takings claims likewise require the plaintiff to first establish that it has a property interest.” Germann, ¶ 27. As support for this statement, we cited Montana Media, Inc. v. Flathead County, 2003 MT 23, ¶ 65, 314 Mont. 121, 63 P.3d 1129, a procedural due process case. Germann, ¶ 27.
¶21 The due process guarantee “has both a procedural and a substantive component.” State v. Egdorf, 2003 MT 264, ¶ 19, 317 Mont. 436, 77 P.3d 517. We have differentiated between these components as follows:
The process requirement necessary to satisfy procedural due process comes into play only after a showing that a property or liberty interest exists. ISC Distributors, Inc. v. Trevor (1995), 273 Mont. 185, 191, 903 P.2d 170, 173. Substantive due process bars arbitrary governmental actions regardless of the procedures used to implement them and serves as a check on oppressive governmental action. Englin v. Bd. of County Com‘rs, 2002 MT 115, ¶ 14, 310 Mont. 1, ¶ 14, 48 P.3d 39, ¶ 14.
Egdorf, ¶ 19. Consistent with this description, we have noted that “[e]ven though a plaintiff may have no property or liberty interest grounded in state law which is protected from arbitrary government action, such action still may be subject to review under substantive due process.” Powell v. State Compen. Ins. Fund, 2000 MT 321, ¶ 28, 302 Mont. 518, 15 P.3d 877 (quoting Newville v. State, Dept. of Fam. Servs., 267 Mont. 237, 249, 883 P.2d 793, 800 (1994)).
¶22 We find it incongruent for FCP to argue on the one hand that there was an exchange of interests sufficient to satisfy the quid pro quo bargain supporting the exclusive remedy, but to argue on the other hand that Walters lacks an interest sufficient to test whether the quid pro quo bargain satisfied substantive due process. We conclude that
¶23 Walters asserts that the failure to pay wage loss benefits for Tim, and payment of the small benefit of $3,000 to her, is insufficient to sustain the quid pro quo. She argues that, under
¶24 Walters’ arguments about the sufficiency of the benefits are focused, primarily, on the failure of FCP‘s coverage to provide wage loss payments. FCP and its amici criticize Walters’ approach as a “single benefit impeachment” of the Act and ask that we reject her “microscopic” inquiry in favor of a broader review of the overall compensation scheme, noting that our decision in Satterlee did not turn on eligibility for one particular benefit: “[W]hile the claimant who suffers a work related injury after becoming eligible for SSRI may not be able to qualify for PTD benefits, he or she is still eligible for benefits of sufficient significance to satisfy the quid pro quo principle.” Satterlee, ¶ 38.
¶25 We are not persuaded by Walters’ arguments that we are bound to look only at wage loss benefits in analyzing the quid pro quo issue. Wage loss benefits are important and serve an important purpose under the Act, but are not the only benefit provided by the Act. It is appropriate to consider these other benefits Tim may have been eligible to receive, as we did in Satterlee. Walters argues that wage loss benefits are mandated by
¶26 The Act provides for payment of a deceased worker‘s medical and hospital expenses related to his injury and death. Sections
¶27 Tim had none of these dependents. Although she was Tim‘s parent, Walters did not satisfy the federal definition of dependency incorporated into the Act which would have entitled her to wage loss payments. She thus received the payment provided by subsection 721(4), a lump sum payment of $3,000 paid to “the decedent‘s surviving parent or parents.”
¶28 Walters’ arguments fairly include both a facial and as-applied challenge to these provisions, and our analysis encompasses both. Though “[t]he purpose of the legislation does not have to appear on the face of the legislation or in the legislative history, but may be any possible purpose of which the court can conceive,” Satterlee, ¶ 34 (citation omitted), the Act expresses numerous purposes, and we have noted in previous cases the general governmental concerns underlying the WCA. The workers’ compensation system is “intended to be primarily self-administering. Claimants should be able to speedily obtain benefits, and employers should be able to provide coverage at reasonably constant rates.”
¶29 We have held that “[t]he power of the legislature to fix [the] amounts, time and manner of payment of workers’ compensation benefits is not doubted.” Satterlee, ¶ 34 (quoting Ingraham v. Champion Intl., 243 Mont. 42, 48, 793 P.2d 769, 772 (1990)). Here, the Legislature created a framework whereby medical, hospital, and burial benefits are paid for all deceased workers, but wage loss benefits are paid only to the worker‘s dependents—his or her surviving spouse, children, or other relatives. The challenged statutes evidence a legislative intention to manage resources by paying wage loss benefits only to those people who are dependent upon the deceased worker‘s wages. Spouses and minor children are automatically provided for, while other relatives, such as adult children, siblings, and parents, must satisfy dependency requirements before they can receive the deceased worker‘s wage benefits. As in Satterlee, where we said it was not irrational that the Legislature may have decided to protect “the most vulnerable claimants, those who do not qualify for SSRI” by allowing them to continue to receive PTD benefits even after they reached the age at which they would otherwise lose the benefit, here the Legislature clearly intended to limit wage loss benefits to people who depended upon the worker‘s wages—those who were made “most vulnerable” by reason of a worker‘s death. See Satterlee, ¶ 34.
¶30 Walters’ arguments focus on the small amount she received and, without question, the amount is minimal. However, she overlooks the overall purposes of the statutes addressing deceased workers, which provide medical, hospital, and burial benefits to all deceased workers, and provide wage benefits for a deceased worker‘s dependents. Here, she ignores a critical fact—she is not a dependent. She offers no challenge to the Act‘s method of determining dependency, arguing only that the benefit she received was insufficient. She offers no explanation about why the Legislature‘s determination to pay wage loss only to dependents, and to provide a small payment to non-dependents, in addition to the other benefits provided, is unreasonable. As has been noted to the contrary, about the need to protect dependents: “the [workers’ compensation] award itself is completely cut off in most jurisdictions when, through the death of the worker
¶31 Taylor v. Southeast-Harrison Western Corp., 694 P.2d 1160 (Alaska 1985), involved the death of a worker who had no statutory dependents. His estate brought an action for his wrongful death, challenging the exclusive remedy provision of the Workers’ Compensation Act on equal protection grounds. Taylor, 694 P.2d at 1161. The Alaska Supreme Court noted an “overwhelming weight of authority” upholding the exclusive remedy provision for non-dependents, Taylor, 694 P.2d at 1162, and stated:
Here the legislature has chosen to provide greater compensation to the estates of those deceased workers leaving dependents, i.e. persons, such as children and spouses, who are generally dependent, at least in part, upon the deceased worker‘s salary for their own support. The fact that they are entitled to favored treatment, over the estates of workers leaving no dependents, reflects a legislative determination that the former require greater compensation, because of the need to replace the income that provided support for those dependent upon the deceased worker prior to his death.
Taylor, 694 P.2d at 1162. The Court concluded that this legislative determination was reasonable, and the Act did not violate equal protection. Taylor, 694 P.2d at 1162-63.
¶32 We have stated the burden to be satisfied in constitutional challenges to legislation as follows:
“The constitutionality of a legislative enactment is prima facie presumed, and every intendment in its favor will be presumed, unless its unconstitutionality appears beyond a reasonable doubt. The question of constitutionality is not whether it is possible to condemn, but whether it is possible to uphold the legislative action which will not be declared invalid unless it conflicts with the constitution, in the judgment of the court, beyond a reasonable doubt.”
Powell, ¶ 13 (quoting Stratemeyer I, 259 Mont. at 150, 855 P.2d at 508-09). The party challenging a statute‘s constitutionality carries the burden of proving the statute unconstitutional beyond a reasonable doubt. Satterlee, ¶ 10 (citing Henry v. State Compen. Ins. Fund, 1999 MT 126, ¶ 11, 294 Mont. 449, 982 P.2d 456). If there is any doubt as to constitutionality, the resolution must be made in favor of the statute.
¶33 We have noted that “[a]s with all legislative compromises, the WCA is not infallible and the legislative decisions made in adopting the WCA are subject to honest debate.” Satterlee, ¶ 37. We certainly concur with that statement here. It is easy to opine that the Legislature could have done better in providing for family members after a worker‘s death, even those who are non-dependents of the worker. Work-related death is traumatic, final, and adversely impacts a family forever. However, the law requires us to recognize that “such a debate involves issues and decisions about public policy that are clearly of the sort much better suited to the halls of the legislature.” Satterlee, ¶ 38.
¶34 We conclude that the Act, in providing medical, hospital, and burial benefits, and providing wage loss benefits only to dependents of deceased workers, while providing a minimal payment to a non-dependent parent, is rationally related4 to the recognized legitimate government objectives of the Act. Out of available resources, the Legislature logically directed wage loss benefits to those persons who depended upon them, and paid a small amount to those who did not. Under the challenge presented here, the Act was not arbitrary or unreasonable, and satisfied substantive due process and the quid pro quo.
¶35 Affirmed.
CHIEF JUSTICE McGRATH, JUSTICE MORRIS and DISTRICT JUDGE LANGTON, sitting for former JUSTICE LEAPHART concur.
JUSTICE COTTER concurs.
¶36 I agree with the Court and Justices Wheat and Nelson that $3,000 is a paltry sum that bears no correlation to Tim‘s actual lost future earnings. However, I join the Court‘s Opinion because the quid pro quo extends to injured workers and their beneficiaries, as defined in the Workers Compensation Act. It does not extend to persons who are not beneficiaries of the deceased worker.
¶37 No one can dispute that the benefits available under the Act do not make injured workers—or their beneficiaries—whole. The Act acknowledges as much at
¶38 Justice Nelson may well be correct in observing that we will someday be presented with a case establishing that the quid pro quo no longer exists. In my judgment, this is not that case.
¶39 I therefore concur.
JUSTICE WHEAT dissents.
¶40 I dissent. In my opinion, the unavailability of wage loss benefits to a non-dependent parent violates the quid pro quo that supports the WCA. Furthermore, the $3,000 death benefit that is available to a non-dependent parent is unreasonable and also violates the quid pro quo.
¶41 Under the Act, the legislature has used “dependency” as a cut-off point for the recovery of wage loss benefits. Although Carol was partially dependent on Tim‘s wages, she did not meet the statutory definition, so her benefits were limited to a payment of $3,000. This paltry amount has no reasonable correlation to Tim‘s actual lost future earnings, which were nearly $800,000.
¶42 If Tim had been killed in a car crash caused by another person‘s negligence, Carol, as the personal representative, would have been able to recover damages in a survival action pursuant to
¶43 In my opinion, if there are no “dependency” beneficiaries, as defined by the Act, then the wage loss benefits that would have been available to a defined beneficiary should go to the decedent‘s estate for distribution to the heirs or as directed by his or her will. I cannot imagine that a working person being asked to give up what could be recovered in a survival action in exchange for worker‘s compensation benefits (the quid pro quo) would not want it this way.
¶44 I would reverse the District Court and find that the quid pro quo was violated in this case.
¶45 I agree with Justice Wheat‘s Dissent.
¶46
¶47 This case may not be the case which raises that issue. But, given the direction of workers’ compensation reform, there will likely come a case which presents this Court with the issue of whether the whole Workers Compensation Act, or significant parts of it, has been rendered unconstitutional under
¶48 I dissent.
