Lead Opinion
Billie Jo Warden filed this wrongful death action against Hoar Construction Company for the death of her husband. The trial court ruled that Hoar was immune from tort liability as a statutory employer under the Workers’ Compensation Act and granted summary judgment to it. Warden asks us to overturn the holding in Wright Associates v. Rieder
Leonard Eddie Warden died from injuries after he fell through a roof while building a church in Duluth. His widow received workers’ compensation benefits from his employer Fulton Roofing, a subcontractor of Hoar. Mrs. Warden then sued Hoar, the general contractor, for wrongful death, and the fund that paid the benefits sued Hoar for subrogation. After the trial court granted summary judgment to Hoar, Warden appealed to this Court based on her claim that our interpretation of the exclusive remedy statute in Rieder violates due process.
1. This case involves the construction of two provisions of the Workers’ Compensation Act. OCGA § 34-9-8 provides that a principal, intermediate, or subcontractor shall be liable for compensation
OCGA § 34-9-11, the exclusive remedy provision, provides that the employee’s rights and remedies under the Workers’ Compensation Act exclude all other rights of the employee due to injury, loss of service, or death except the right to bring an action against a third-party tort-feásor. This code provision creates three express exceptions to the employee’s right to sue a third party, granting immunity from tort liability to employees of the same employer,
In Wright Associates v. Rieder, this Court created a fourth exception. In that case, we held that the injured employee of a subcontractor could not maintain a tort action against the principal contractor, even when the principal contractor did not pay workers’ compensation benefits. We reasoned that the principal contractor should receive the benefit of tort immunity under § 34-9-11 because it was liable to pay workers’ compensation benefits under § 34-9-8. “The quid pro quo for the statutory employer’s potential liability is immunity from tort liability.”
The Court of Appeals has consistently followed our holding in Rieder and held that a general contractor who is a statutory employer is immune from tort liability despite never having paid benefits to the injured worker.
2. Although acknowledging the current status of the law, the plaintiffs ask this Court to revisit our holding in Rieder in light of a new subrogation statute. In 1992, the Georgia General Assembly adopted OCGA § 34-9-11.1 giving “the employer” or “the employer’s insurer” a subrogation lien for benefits paid to the injured employee. The lien occurs only when the injured employee or the employee’s survivor has a right to action against “other persons, except as precluded by Code Section 34-9-11 or otherwise.”
This subrogation statute does not grant any new substantive rights to injured employees or change the immunity from tort liability provided in § 34-9-11. On the contrary, the new code section expressly incorporates the tort immunity granted by § 34-9-11 and granted “otherwise” by this Court’s interpretation of that statute in Rieder. Rather than addressing employees’ rights, the subrogation statute gives employers or insurers the right to recover the amount of benefits or expenses that they have paid. Thus, the subrogation provision helps fulfill the legislature’s goal in 1992 to contain the costs of workers’ compensation without diminishing benefits to the injured worker.
Despite several opportunities to declare that this Court’s interpretation in Rieder was contrary to legislative intent, the legislature chose not to change the law related to statutory employers or their tort immunity.
3. Because this Court’s interpretation of the exclusive remedy provision in Rieder is reasonably related to a legitimate legislative purpose, OCGA § 34-9-11 does not violate due process.
Judgment affirmed.
Notes
Id. at 497; Haygood v. Home Transportation Co.,
See Long v. Marvin M. Black Co.,
OCGA § 34-9-11 (a).
Rieder,
See id. at 499-500; 6 Arthur Larson and Lex K. Larson, Larson’s Workers’ Compensation Law, § 72.31 (b) at 14-231 to 14-232.
See, e.g., Holton v. Georgia Power Co.,
See 1990 Ga. Laws 1164, 1165 (including construction design professionals among persons receiving immunity); 1995 Ga. Laws 352 (extending immunity to businesses using temporary help or employee leasing).
Larson’s Workers’ Compensation Law, supra, n. 6, § 72.31 (b) at 14-209, 14-217, 14-224 (citing cases from 18 states).
OCGA § 34-9-11.1 (a).
See G. Mark Cole, Labor and Industrial Relations, 9 Ga. St. U. L. Rev. 285, 288 (1992) (describing legislative changes based on work of Georgia Task Force for Workers’ Compensation Reform).
Cf. Horton v. Hinely,
Smith v. Employers’Fire Ins. Co.,
See Georgia Dep’t of Human Resources v. Joseph Campbell Co.,
Concurrence Opinion
concurring specially.
OCGA § 34-9-8 (a) provides that, for purposes of imposing liability for workers’ compensation benefits, either the principal, intermediate, or subcontractor can be considered the statutory employer of an injured employee. Under OCGA § 34-9-11 (a), the right to recover workers’ compensation benefits is an injured employee’s exclusive remedy, “provided, however, that no employee shall be deprived of any right to bring an action against any third-party tort-feasor. . . The issue in this case is whether a statutory employer who has not been required to pay workers’ compensation benefits under OCGA § 34-9-8 (a) is nevertheless entitled to the immunity from tort liability granted by OCGA § 34-9-11 (a). If this were an issue of first impression, I would hold that a statutory employer with no actual liability for workers’ compensation benefits has no immunity from potential tort liability. In Wright Assoc. v. Rieder,
The underlying policy of the Workers’ Compensation Act (Act) is to insure that an employee who suffers an on-the-job injury can recover benefits, without regard to any issue of negligence, contributory negligence or assumption of the risk. Pardue v. Ruiz,
The majority points out the existence of a “marked trend” toward the grant of tort immunity to a statutory employer who incurs no actual liability for workers’ compensation benefits. It should be noted, however, that this trend apparently includes cases from states wherein “the applicable workers’ compensation law specifically requires immunity.” Bence v. Pacific Power & Light Co.,
However, this issue was resolved in Rieder wherein a majority of this Court adopted a contrary construction of the relevant provisions of the Act. As the majority indicates, subsequent to the decision in Rieder 17 years ago, the General Assembly has amended the Act extensively, but has not redefined “third-party tort-feasor” so as to include a statutory employer who incurs no actual liability for workers’ compensation benefits. Therefore, under that principle of stare decisis to which I subscribe, I am compelled to concur in the majority’s affirmance of the grant of summary judgment in this case. Abernathy v. City of Albany,
I am authorized to state that Chief Justice Benham and Justice Hunstein join in this opinion.
