Bennett v. Mackinac Bridge Authority

808 N.W.2d 471, 289 Mich. App. 616
CourtMichigan Court of Appeals
DecidedAugust 31, 2010
DocketDocket No. 287628
StatusPublished
Cited by29 cases

This text of 808 N.W.2d 471 (Bennett v. Mackinac Bridge Authority) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bennett v. Mackinac Bridge Authority, 808 N.W.2d 471, 289 Mich. App. 616 (Mich. Ct. App. 2010).

Opinion

Jansen, J.

In this workers’ compensation case, plaintiff appeals as on leave granted1 the decision of the [618]*618Workers’ Compensation Appellate Commission (WCAC) affirming the magistrate’s dismissal of his claim against defendants, the Mackinac Bridge Authority (the Authority) and American Painting Company, Inc., on the ground of res judicata. We reverse the decision of the WCAC and remand this case to the magistrate for reinstatement of plaintiffs claim against defendants2 consistent with this opinion.

I

For more than 25 years, plaintiff worked as a painter on the Mackinac Bridge. Throughout that time, he worked for various employers. In May 2005, plaintiff was working for Allstate Painting Company, Inc. While at work on May 6 and 9, 2005, plaintiff injured his right knee. Allstate did not have workers’ compensation insurance.

Although plaintiff was apparently aware that his employer lacked workers’ compensation insurance at the time, he nonetheless filed a petition seeking benefits from Allstate. Allstate did not appear in the action. On May 26, 2006, the magistrate granted plaintiff an open award of benefits. Allstate did not appeal the magistrate’s decision. However, plaintiff was unable to collect under the magistrate’s award.

Plaintiff thereafter filed the instant action seeking benefits from American Painting and the Authority pursuant to § 171 of the Worker’s Disability Compensation Act (WDCA),3 MCL 418.171, the statutory employment provision. MCL 418.171(1) provides:

[619]*619If any employer subject to the provisions of this act, in this section referred to as the principal,

Defendants requested, among other things, that the magistrate dismiss plaintiffs § 171 claim against them because res judicata barred plaintiffs second action. In response, plaintiff argued that res judicata did not bar his second action because no mandatory joinder of parties exists in workers’ compensation cases, because defendants had not been parties to the first action, and because defendants were not in privity with Allstate.

The magistrate acknowledged that a plaintiff is not generally required to bring all possible workers’ compensation claims in one single action. Nevertheless, she [620]*620noted that a broad application of res judicata would bar certain workers’ compensation claims that a plaintiff could have brought, but did not bring, in the first action. The magistrate concluded that plaintiff could have brought his § 171 claim against defendants in the earlier action:

The statutory employer theory was available for pursuit in the original litigation against Allstate Painting... if Plaintiff had “exercised reasonable diligence” and added the alleged statutory employers to that litigation. Plaintiff testified at his first trial that he has worked painting the Mackinaw Bridge for approximately 27 years and has worked for a number of different employers, whether private companies or the State of Michigan directly. That fact, in combination with Plaintiff’s knowledge that Allstate Painting lacked Michigan Worker’s Compensation Insurance coverage would give a reasonable man pause to consider exploring the theory of statutory employment to identify a contractor with insurance coverage. Therefore, reasonable diligence by Plaintiff and his counsel would have revealed that the State of Michigan and A[merican] Painting had insurance coverage and could have and should have been added to the original litigation.
Additionally, the litigation Plaintiff advanced against Allstate Painting is the same transaction for which Plaintiff is now trying to advance against American Painting Inc. and Mackinaw Bridge Authority... . [T]he same facts are being asserted in the case against American Painting and Mackinaw Bridge Authority as were asserted against Allstate Painting. These facts arise out of the same time, space, and origin. The only difference is the motivation.
Plaintiff admits in his brief that the motivation for pursuing the current litigation against American Painting and Mackinaw Bridge Authority is that Allstate Painting has failed to pay benefits pursuant to the Open Award authored by [the initial magistrate]. Plaintiff is now seeking enforcement of the Order through Circuit Court. This is not a sufficient legal explanation for Plaintiffs failure to add American Painting and Mackinaw Bridge Authority to the original litigation against Allstate Painting.
[621]*621“Res judicata bars every claim arising from the same transaction that the parties, exercising reasonable diligence, could have raised but did not.” Adair [v Michigan, 470 Mich 105, 123; 680 NW2d 386 (2004)]. For the reasons outlined above, the pending litigation of Ricky S. Bennett versus American Painting and Mackinaw Bridge Authority is hereby dismissed pursuant to res judicata.

Plaintiff appealed the magistrate’s dismissal of his claim to the WCAC, which affirmed in a 2-1 decision. The WCAC majority agreed with the magistrate’s determination that res judicata barred plaintiffs action against the alleged statutory employers:

We agree with the magistrate. The claims against the direct employer and the statutory employers sire virtually the same. Both claims involve the same two alleged knee injuries, occurring on the same two alleged dates. They involve the same medical, disability and wage loss proofs. Both claims seek weekly wage loss benefits and medicals benefits for the same time periods. The claims against the direct employer and the statutory employers certainly would have made a convenient trial unit.
The plaintiff does not even argue there was an impediment to adding the statutory employers in the first litigation. He knew the direct employer was uninsured, but did not add the statutory employers until he was unable to collect against the uninsured employer. [Bennett v Mackinac Bridge Auth, 2008 Mich ACO 163, p 9.]

In his arguments to the WCAC, plaintiff relied on Viele v DCMA,

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Bluebook (online)
808 N.W.2d 471, 289 Mich. App. 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bennett-v-mackinac-bridge-authority-michctapp-2010.