Acker v. Ray Angelini, Inc.

259 F. Supp. 3d 305
District Court, E.D. Pennsylvania·Decided August 16, 2016·No. CIVIL ACTION No. 14-0019·Published·Cited by 3 cases

Opinion

MEMORANDUM

McHugh, United States District Judge

This is a straightforward case arising out of a construction site accident, brought by a Pennsylvania worker who was injured on a public works project in New Jersey. The general contractor responsible for the project is a New Jersey corporation, and the roofing firm that employed Plaintiff was retained under .a subcontract specifically calling for the application of New Jersey law. Despite this Jersey nexus, these two parties now seek to cross back over the Delaware River and win summary judgment through the application of Pennsylvania law, claiming employer immunity. Because I conclude that New Jersey law applies, both Motions will be denied.

[309] I. Pacts

The controlling issue is choice of law, and for that reason, the material facts involve the domicile of the parties, the relationship between them, and their respective relationships with the interested states. Defendant Ray Angelini, Inc. (RAI) is a New Jersey Corporation that contracted with the County of Salem, New Jersey to act ás the general contractor for' the construction of a county office complex. RAI then subcontracted with “Union Roofing,” 1 a Pennsylvania corporation, to provide labor, materials, tools, and equipment to complete the roofing portions of the project.2 Plaintiff Matthew Acker, a Pennsylvania citizen, was an employee of Union Roofing. While working on the project iri March 2012, Acker fell through decking on the roof and sustained serious injuries. He received benefits under the Pennsylvania workers’ compensation statute through Union Roofing, his direct employer, and its workers compensation insurer. He also filed suit against RAI, as general contractor, and one of the subcontractors involved in construction of the roof decking. RAI in turn joined Plaintiffs employer under an indemnity clause in its subcontract. Both RAI and Union Roofing claim immunity as Plaintiffs employer under Pennsylvania law — RAI as a “statutory employer” and Union Roofing as a direct employer.

II. Discussion

A Controlling Standard

These Motions are governed by the well-established test set forth in Federal Rule of Civil Procedure 56(a), as amplified by Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Because no material fact is in dispute, the issues are purely ones of law.

B, RAI’s Motion for Summary • Judgment — Statutory Employer Defense

RAI moves for summary judgment on the ground that it was Plaintiffs “statutory employer” and is therefore entitled to immunity from tort claims for work-related injuries under Pennsylvania’s Workers’ Compensation Act. A statutory employer is one who has secondary liability for payment of compensation to’an injured'worker if the direct employer does not meet its obligation under Pennsylvania law to do so, and who therefore enjoys a concomitant immunity from liability in tort. 77 Pa. Stat. § 462; Patton v. Worthington Assocs., Inc., 625 Pa. 1, 4-5, 89 A.3d 643, 645 (2014). Plaintiff does not contest that RAI would meet Pennsylvania’s legal definition of a statutory employer, but he argues that the matter is controlled by New Jersey law, which does not confer immunity , on a statutory employer on facts such as these.3

[310] A federal court exercising diversity jurisdiction must apply the choice of law rules of the forum state. Klaxon Co. v. Stentor Elec. Mfg. Co., 318 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). Pennsylvania uses a two-part4 test when determining which state’s laws apply in a conflict of laws problem. First, a court must determine if there is an “actual or real conflict between the potentially applicable laws,” such that the application of each state’s respective substantive law produces a contrary result. Hammersmith v. TIG Ins. Co., 480 F.3d 220, 230 (3d Cir. 2007). In the first instance, the question is whether the laws of the competing jurisdictions would treat the matter differently.

Facially, a conflict exists in this case. Under Pennsylvania law, because a general contractor stands behind an injured worker’s direct employer with a contingent responsibility to provide benefits, the general contractor is entitled to immunity from suit by the injured worker as the “statutory employer” even where it is not actually called upon to provide compensation. Patton, 625 Pa. at 4-5, 89 A.3d at 645; 77 Pa. Stat. § 462. New Jersey has made a different policy choice. Unless the general contractor is in fact required to step into the shoes of a subcontracting employer and pay benefits, an injured worker retains the right to sue the general contractor for a full measure of third-party damages. Wilson v. Faull, 27 N.J. 105, 141 A.2d 768, 772-73 (1958); N.J. Stat. Ann. § 34:15-40.

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Acker v. Ray Angelini, Inc., 259 F. Supp. 3d 305 (E.D. Pa. 2016).

259 F. Supp. 3d 305 (Acker v. Ray Angelini, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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