Legal Corner

Workers Compensation
Termination of benefits for positive drug test upheld - Missouri

In Crowley v. Clarco, an employee began experiencing symptoms of bilateral carpal tunnel syndrome and was placed in a job wrapping tape on caskets. When she reported pain and numbness, she was required to take a drug test under the company's injury policies. She tested positive for amphetamine and methamphetamine and was fired. She then filed a workers comp claim and an ALJ issued a temporary award. After the company argued it was not liable for temporary disability benefits because the worker was terminated for post-injury misconduct, the ALJ agreed and the company was entitled to a credit for the TTD that had been paid. The employee's appeal was denied because of "serious deficiencies in her briefing and preservation issues."

Defendants don't meet definition of statutory employer and civil case can proceed - Missouri

In Brooks v. Laurie, a superintendent of a construction company was cutting down trees at a hunting resort, Big Buck, and was injured when a tree cut by a shareholder and member, William Laurie, fell on him. He collected workers comp from his employer and filed a civil suit against Laurie, Big Buck, and Crown Center Farms Inc, which managed parts of the hunting area and regularly used the services of the construction company.

The defendants moved for summary judgment, contending that Crown Center was Brooks' statutory employer and protected by the exclusive remedy of work comp. While a trial judge agreed, the Court of Appeals noted that a statutory employer is defined as any person who has someone work under contract in the operation of the "usual business," which involved work done on a regular and frequent schedule. The court found that the clearing of trees only occurred roughly once a year in preparation for hunting season and, therefore, summary judgment was inappropriate.

High court overturns denial of death benefits to widow - North Carolina

The state Supreme Court reversed a ruling of the Industrial Commission and Appeals Court that was cited in the January 2022 Advisory. In McAuley v. North Carolina A&T State University, an injured worker filed a timely workers comp claim but died 10 days later and his widow did not file for death benefits for more than two years after his death. In overturning the lower court ruling that the widow's claim was separate from her husband's and time-barred, the court noted... "a separate claim for death benefits is not required and that an employee's filing of a claim within two years after an accident satisfies any condition precedent to the Industrial Commission acquiring jurisdiction with regard to a subsequent claim for death benefits."

Independent contractor status nixes fatal claim for WC benefits - Pennsylvania

In Tiwanna v. Jatt Friends, Inc., a truck driver signed an independent contractor agreement with a dispatch company. The driver paid a dispatch fee and leased a tractor from the company, could turn down jobs, did not have specified hours, and was paid by the load, job, mile, or percentage of the transported load. While making a delivery to a company that had prohibited the dispatch company from using independent contractors in its contract, the driver was in a traffic accident and died. His mother filed a fatal claim petition for worker's compensation benefits.

The court noted the company only controlled what would be delivered, and when and where it would be delivered and the driver was responsible for results, paid by the job, supplied the tools, and the agreement established an independent contractor relationship.

WC policy exclusion in commercial automobile liability insurance policy cannot limit liability coverage - West Virginia

In Ball vs. United Financial Casualty Co., employees of a hardware store were working at a private home and the hardware company owner authorized the homeowner to move one of the company trucks, which was blocking the driveway. When he did, he pinned a worker against another truck and caused serious injury.

The motor vehicle insurance provided up to $1 million in liability coverage "to any person using Milton Hardware's vehicles" with permission, but also contained a workers' compensation exclusion and an exclusion for employee indemnification in such circumstances. The case went through a series of appeals and the Supreme Court found that the statute requires all motor vehicle insurance policies to cover permissive users of insured vehicles against liability for injury, provisions that purport to "limit, reduce or nullify" the liability coverage mandated are void and unenforceable in their entirety, and the insurance policy must provide coverage to the permissive user up to the full limits of liability coverage.

Supervisors have immunity and widow limited to comp death benefits - West Virginia

In Edwards v. Star, a widow of a city worker who died in a trench collapse sued his supervisors claiming they were liable for his death because of deliberate intent and reckless conduct. Overturning a trial court decision, the Supreme Court found that the widow did not prove intent. In workers comp, an exception to immunity only exists if there is a deliberate attempt to cause the specific injury or death. While the widow argued the supervisors "intentionally and recklessly" breached their duties to her husband, this "does not equate to an allegation that they desired to kill him."