Bailey v. McClelland

848 S.W.2d 46, 1993 Mo. App. LEXIS 280, 1993 WL 51153
Missouri Court of Appeals·Decided February 26, 1993·No. No. 18322·Published·Cited by 8 cases

Opinion

PREWITT, Judge.

Appellants appeal from an order of the Labor and Industrial Relations Commission denying their workers’ compensation claim against respondent, custodian of the Second Injury Fund. The parties on appeal agree that the findings of the administrative law judge, who initially denied appellants’ claim, correctly stated the relevant facts:

On May 26, 1983, the deceased, Morris A. Bailey, was killed when the motor vehicle he was operating for McClelland Lumber Transport, Inc., left the road and overturned. In November, 1983, a claim for compensation was filed with the Division of Workers’ Compensation by decedent’s wife, Sharon Bailey. The claim [47] was answered denying Morris Bailey was an employee. There was no claim against the Second Injury Fund.
On January 29, 1986, Sharon Bailey and the minor children of Morris Bailey filed a petition for wrongful death against McClelland Lumber Transport, Inc., in- the Circuit Court of Pulaski County. Defendants failed to appear, and on April 11, 1986, a judgment for the wrongful death of Morris A. Bailey was entered in favor of the plaintiffs against the employer relative to the May 26, 1983, fatal accident. The judgment remains unsatisfied..[1]
In February 1988, an amended claim for workers’ compensation was filed by Sharon Bailey against the Second Injury Fund alleging that at the time of Mr. Bailey’s death his employer did not have workers’ compensation insurance coverage.

The claim was denied by the Labor and Industrial Commission because claimants elected to proceed in the circuit court to judgment before continuing to prosecute the workers’ compensation claim. Appellants contend this determination was erroneous “because claimants filed their claim for workers compensation benefits before initiating an action in circuit court and the default judgment in circuit court remains unsatisfied, thus providing no gain to appellants nor prejudice to the employer, which is a prerequisite to a binding election of remedy.”

As the alleged employer was not insured and did not qualify as a self-insurer, under § 287.280, BSMo Supp.1982, appellants could “elect” to file a workers’ compensation claim or could bring suit in the circuit court. Appellants pursued both options. The workers’ compensation claim being first filed only against the employer and then a circuit court suit which was pursued to final judgment. Thereafter, the workers’ compensation claim was amended, seeking recovery through the Second Injury Fund. The “treasurer of the state of Missouri, as custodian of the second injury fund, shall have the same defenses to such claims as would the uninsured employer.” § 287.220.5, RSMo Supp.1982.

Appellants acknowledge in their brief that they “filed a claim for workers compensation benefits with the assistance of counsel prior to filing the circuit court action for wrongful death.” Appellants further state “[claimants counsel was aware of the significance of its filing with respect to election of remedies, and the workers compensation claim was never withdrawn or dismissed even during pendency of the circuit court action.”

Appellants argue that under Mays v. Williams, 494 S.W.2d 289 (Mo. banc 1973), and Neff v. Baiotto Coal Co., 361 Mo. 304, 234 S.W.2d 578 (1950), “the filing of the workers compensation claim and its continued prosecution establish an election by claimants to seek their remedies under Chapter [sic] 287.280 rather than at common law.” Neither Mays nor Neff control here.

In Mays there was no question regarding the election of remedies. The only claim brought was under the then denominated Workmen’s Compensation Act. The issue was the amount of the award, not which of the alternate remedies had been elected.

In Neff, the employee accepted benefits known by him to have been paid under the Workmen’s Compensation Law. Having done so, the court determined that he had elected to proceed under the Workmen’s Compensation Law and could not bring an action against his employer in the circuit court. Here, no benefits were received under the Workers’ Compensation Law and the claim filed under it was not pursued until after judgment had been obtained in the circuit court action.

Appellants abandoned their workers’ compensation claim against the employer and proceeded with a wrongful death action in circuit court. Appellants treated their right of election as still viable when they filed the circuit court action. It would [48] be inconsistent to now allow appellants to successfully argue that the suit filed in the circuit court had no effect on their election. It is apparent that claimants settled on their remedy when they pursued the circuit court suit to judgment and only when they were unable to collect by that remedy did they return to pursuing their workers’ compensation claim.

In the second aspect of appellants’ point, they assert they have no “gain” as the judgment is unsatisfied and as such the circuit court action does not foreclose them from electing to proceed under the workers’ compensation act. They primarily rely upon Knight v. Joines, 819 S.W.2d 79 (Mo.App.1991), and Lear v. Equitable Life Assur. Soc. of U.S., 798 F.2d 1128 (8th Cir. 1986), cert. denied 479 U.S. 1066, 107 S.Ct. 953, 93 L.Ed.2d 1001 (1987).

Appellants recite Knight’s quote from Grote Meat Co. v. Goldenberg, 735 S.W.2d 379, 386 (Mo.App.1987), stating “[m]ore-over, an election of remedies is not binding until there has been a gain by the plaintiff and a loss by the defendant.” 819 S.W.2d at 81. In Knight, there was neither a final judgment nor award. A binding election under the Workers’ Compensation Act is generally the same as in other areas of the law. Knight, 819 S.W.2d at 81.

Free access — add to your briefcase to read the full text and ask questions with AI

Bailey v. McClelland, 848 S.W.2d 46, 1993 Mo. App. LEXIS 280, 1993 WL 51153 (Mo. Ct. App. 1993).

848 S.W.2d 46 (Bailey v. McClelland) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Maravilla-Diego v. MBM Construction II, LLC
Superior Court of Delaware, 2015
Lewis Ex Rel. Brown v. Gilmore
366 S.W.3d 522 (Supreme Court of Missouri, 2012)
State Ex Rel. KCP & L Greater Missouri Operations Co. v. Cook
353 S.W.3d 14 (Missouri Court of Appeals, 2011)
Stroup v. Reno
530 N.W.2d 441 (Supreme Court of Iowa, 1995)
Brookman v. Henry Transportation
886 S.W.2d 213 (Missouri Court of Appeals, 1994)