American Power Conversion v. Benny's, Inc.

740 A.2d 1265, 1999 R.I. LEXIS 211, 1999 WL 1080187
CourtSupreme Court of Rhode Island
DecidedNovember 23, 1999
Docket98-379-M.P.
StatusPublished
Cited by1 cases

This text of 740 A.2d 1265 (American Power Conversion v. Benny's, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Power Conversion v. Benny's, Inc., 740 A.2d 1265, 1999 R.I. LEXIS 211, 1999 WL 1080187 (R.I. 1999).

Opinion

OPINION

FLANDERS, Justice.

This workers’ compensation case calls upon us to construe a provision of the Workers’ Compensation Act (the act), G.L. 1956 § 28-34-8, 1 concerning the liability of employers to pay for the total compensation benefits due to an employee disabled *1267 by an occupational disease. This statute requires such an employee to recover the total compensation due from “the employer who last employed the employee in the employment to the nature of which the disease was due and in which it was contracted.” Section 28-34-8. (Emphasis added.) However, it also allows this last employer, which is “made liable” for such benefits, to petition the Workers’ Compensation Court (WCC) to apportion the amount of compensation liability “among the several employers who since the contraction of the disease shall have employed the employee in the employment to the nature of which the disease was due.” Id.

Consonant with one of the overriding purposes of the act, § 28-34-8 expedites the payment of disability benefits to an employee who suffers from an occupational disease. The employee is allowed to collect from the employee’s last employer all compensation then 'due to him or her when a work-related disease has disabled the employee from continued employment. See Esmond Mills, Inc. v. American Woolen Co., 76 R.I. 214, 219, 68 A.2d 920, 923 (1949). In furtherance of this legislative purpose we hold that, under the act, when the last employer of an employee disabled by an occupational disease either binds itself to such liability via an appropriate memorandum of agreement (MOA) 2 or is found liable by an order or decree of the WCC, that employer is thereby “made liable” for the compensation due to the employee. Thereafter, such an employer may petition to apportion its total compensation costs among the employee’s previous employers. Consequently we reverse the WCC’s decree in this case to dismiss the last employer’s apportionment petition.

Facts and Travel

On November 2, 1995, the employee, David Sherman, became disabled while he was employed by plaintiff, American Power Conversion (APC or American Power). In April, 1996 APC filed an MOA binding itself to liability for the total compensation benefits due to the employee after he contracted an occupational disease. However, APC asserted that the employee first contracted the disease while he was employed by the defendant, Benny’s, Inc. (Benny’s), a prior employer. American Power then filed a petition for apportionment pursuant to § 28-34-8, asserting that, in whole or in part, Benny’s was liable for paying compensation benefits to the disabled employee. Benny’s moved to dismiss the apportionment petition.

A WCC trial judge granted Benny’s motion because, she ruled, APC had not been “made liable” as required by § 28-34-8; instead APC had bound itself to liability voluntarily by filing an MOA that effectively settled the employee’s WCC claims against APC. The trial judge’s dismissal was rooted in her belief that, as a prerequisite for a last employer to seek apportionment relief from other potentially liable employers, § 28-34-8’s “made liable” language requires a judicial determination holding the last employer liable for the employee’s total compensation. American Power appealed to the WCC’s Appellate Division contending that the trial judge erred in her construction of § 28-34-8’s “made hable” language. In a two-to-one decision, a three-judge panel of the Appellate Division upheld the trial judge’s decision and adopted this same reasoning. 3 *1268 American Power petitioned for a writ of certiorari from this decree, and we issued the writ to review this ruling.

Analysis

To determine whether APC is precluded from seeking apportionment under § 28-34-8, we look first and foremost to the language of the act. When a statute is unambiguous and expresses a clear and sensible meaning, “this Court must interpret the statute literally and must give the words of the statute their plain and ordinary meanings.” Accent Store Design, Inc. v. Marathon House, Inc., 674 A.2d 1223, 1226 (R.I.1996). But when the statutory provisions are unclear or ambiguous, we examine the statute in its entirety to “glean the intent and purpose of the Legislature * ⅜ * ‘keeping in mind [the] nature, object, language and arrangement’ of the provisions to be construed.” In re Advisory to the Governor, 668 A.2d 1246, 1248 (R.I.1996).

The legal issue at bar is whether an employer is “made hable” only after it is adjudged to be so after litigating a WCC adversary proceeding to an adjudicated conclusion. Or, conversely, is an employer also “made liable” when it voluntarily agrees to bind itself, via an MOA, for the total compensation due to an incapacitated employee? Section 28-34-8’s “made liable” language does not provide a clear and unambiguous answer to this question. Thus, we look to the act in its entirety to ascertain the Legislature’s intent. In re Advisory to the Governor, 668 A.2d at 1248.

In Esmond Mills, Inc., 76 R.I. at 219, 68 A.2d at 923, this Court articulated the legislative intention that applies to the statutory provisions that are before us in this ease:

“[T]he legislature evidently considered it advisable in the interest of the employee and in the speedy enforcement of his rights that he should be allowed to collect all compensation then due from the employer for whom he was working when he became incapacitated; and that such employer should then have the right to ask for proportionate apportionment from those employers for whom the employee had previously worked in the same employment and had contracted or had been exposed to the occupational disease which finally caused his disability.”

We are of the opinion that the panel majority’s interpretation of § 28-34-8 is contrary to the above-stated intent of the General Assembly. Conversely, we agree with the WCC judge who dissented from the panel’s decree and who noted that § 28-34-8 serves two purposes: (1) to provide monetary assistance to a qualified employee in a speedy manner, and (2) to provide, if necessary, for successive hearings to apportion liability among the potentially liable employers. We conclude that the panel’s majority failed to accord sufficient weight to the underlying “speedy enforcement” intent of § 28-34-8. If we were to follow the panel majority’s reasoning that a last employer must engage in an adversary proceeding before it can be *1269 “made liable” under § 28-34-8, then the Legislature’s “speedy enforcement” intent would be compromised.

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Cite This Page — Counsel Stack

Bluebook (online)
740 A.2d 1265, 1999 R.I. LEXIS 211, 1999 WL 1080187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-power-conversion-v-bennys-inc-ri-1999.