Berna-Mork v. Jones

498 N.W.2d 221, 174 Wis. 2d 645, 1993 Wisc. LEXIS 356
CourtWisconsin Supreme Court
DecidedMarch 24, 1993
Docket90-1626
StatusPublished
Cited by25 cases

This text of 498 N.W.2d 221 (Berna-Mork v. Jones) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berna-Mork v. Jones, 498 N.W.2d 221, 174 Wis. 2d 645, 1993 Wisc. LEXIS 356 (Wis. 1993).

Opinions

JON P. WILCOX, J.

This is a review under sec. (Rule) 809.62, Stats., of a published court of appeals decision, Berna-Mork v. Jones, 165 Wis. 2d 661, 478 N.W.2d 301 (Ct. App. 1991), affirming a judgment dismissing Lumbermen's Mutual Casualty Company's complaint against West Bend Mutual Insurance Company. The issue is whether a worker's compensation carrier has the right to reimbursement for benefits it paid to an employee when reimbursement is sought from the uninsured motorist coverage available to the employee. We [649]*649conclude that under sec. 102.29(1), Stats.,1 a worker's compensation carrier does not have the right to reimbursement from uninsured motorist coverage available to an employee because the employee's uninsured motorist claim is based on contract. We affirm.

On August 6, 1986, Jennifer Berna-Mork was injured in an automobile accident. Berna-Mork was a passenger in an automobile operated by her co-employee, Jane Jones. Jones and Berna-Mork were returning to work from lunch. While the Jones automobile was stopped in traffic, an automobile driven by Keith Plasky struck the rear of the Jones vehicle and injured Berna-Mork. The Plasky vehicle was not insured and Plasky was granted a discharge in bankruptcy.

Berna-Mork filed a worker's compensation claim for benefits on account of her injuries. Lumbermen's is the worker's compensation insurer of her employer. Lumbermen's paid worker's compensation benefits to Berna-Mork pursuant to an order of the Department of Industry, Labor and Human Relations.

Berna-Mork brought a third-party action in tort against Plasky, Jones and Jones' liability and uninsured motorist carrier, West Bend Mutual Insurance Company. Lumbermen's commenced an action against West Bend to participate in the third-party action. Lumbermen's alleges that pursuant to sec. 102.29(1), Stats, it is entitled to reimbursement from West Bend's uninsured motorist coverage for worker's compensation benefits Lumbermen's paid to Berna-Mork. The two actions were consolidated.

[650]*650The trial court granted summary judgment dismissing Lumbermen's action against West Bend on grounds that the grant of authority for subrogation found in sec. 102.29(1), Stats., does not extend to actions involving uninsured motorist coverage because such actions are contractual as opposed to actions in tort. Lumbermen's appealed. The court of appeals affirmed. The court of appeals held that Lumbermen's had no right to subrogation against West Bend under sec. 102.29(1) because the employee's right to uninsured motorist coverage is contractual.

When reviewing a summary judgment decision, this court is required to apply the standards set forth in sec. 802.08, Stats., in the same manner as the trial court. Voss v. City of Middleton, 162 Wis. 2d 737, 748, 470 N.W.2d 625 (1991).

The question before this court involves the interpretation and application of sec. 102.29(1), Stats. A question of statutory interpretation is a question of law which this court decides independently and without deference to the reasoning of the lower courts. Voss, 162 Wis. 2d at 749.

In this case we are asked to determine whether sec. 102.29(1), Stats., permits a worker's compensation carrier to seek reimbursement from the uninsured motorist coverage available to the injured employee. The aim of all statutory interpretation is to discern the intent of the legislature. Id. In ascertaining that intent, the first resort is to the language of the statute itself. Id. If it clearly and unambiguously sets forth the legislative intent, it is the duty of the court to apply that intent to the case at hand and not look beyond the language of the [651]*651statute to ascertain its meaning. Id. However, if the language of the statute does not unambiguously set forth the legislative intent, the court will resort to judicial construction of the statute to ascertain and carry out the legislative intent. Id.

The language of sec. 102.29(1), Stats., is clear and unambiguous. The statute provides that, ”[t]he employer or compensation insurer ... shall have the same right to make a claim or maintain an action in tort against any other party. ..." (Emphasis added.) The statutory language clearly and unambiguously sets forth that the sub-rogation rights of the employer or compensation insurer are limited to claims in tort. Claims based on contract are not permitted.

An action on uninsured motorist coverage is based on contract; although in order to recover, the insured must prove the negligence of the uninsured motorist. Sahloff v. Western Casualty & Surety Co., 45 Wis. 2d 60, 70, 171 N.W.2d 914 (1969); Employers Health Insurance v. General Casualty Company of Wisconsin, 161 Wis. 2d 937, 951, 469 N.W.2d 172 (1991). Lumbermen's cannot maintain an action against West Bend's uninsured motorist coverage because such an action is based on contract and precluded under sec. 102.29(1), Stats.

We hold that under sec. 102.29(1), Stats., an employer or compensation insurer has no right to subro-gation against uninsured motorist benefits available to the employee because an action for uninsured motorist benefits is based on contract not tort. The majority of jurisdictions that have considered this issue agree with our conclusion and reasoning. See March v. Pekin Ins. Co., 465 N.W.2d 852 (Iowa 1991); Barker v. Palmarin, [652]*652799 S.W.2d 117 (Mo. Ct. App. 1990); Jones v. Firemen's Relief and Pension Board, 738 P.2d 1068 (Wash. Ct. App. 1987); Merchants Mut. Ins. Group v. Orthopedic Professional Assoc., 480 A.2d 840 (N.H. 1984); Bill Hodges Truck Co., Inc. v. Humphrey, 704 P.2d 94 (Okla. Ct. App. 1984); Cooper v. Younkin, 339 N.W.2d 552 (Minn. 1983); Knight v. Insurance Co. of North America, 647 F.2d 127 (10th Cir. 1981); State Compensation Insurance Fund v. Commercial Union Ins. Co., 631 P.2d 1168 (Colo. Ct. App. 1981); State Farm Mut. Ins. Co. v. Fireman's Fund American Ins. Co., 550 S.W.2d 554 (Ky. 1977); Courson v. Maryland Casualty Co., 475 F.2d 1030 (8th Cir. 1973); Travelers Ins. Co. v. National Farmers Union Property and Casualty Co., 480 S.W.2d 585 (Ark. 1972);

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Bluebook (online)
498 N.W.2d 221, 174 Wis. 2d 645, 1993 Wisc. LEXIS 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berna-mork-v-jones-wis-1993.