Birklid v. Boeing Co.

904 P.2d 278, 127 Wash. 2d 853, 11 I.E.R. Cas. (BNA) 97, 1995 Wash. LEXIS 231
Washington Supreme Court·Decided October 26, 1995·No. No. 62530-1·Published·Cited by 123 cases

Opinion

Talmadge, J.

While Washington law has recognized that industrial insurance is the exclusive remedy of the employee injured in the course of employment and barred lawsuits by employees against employers, by its enactment of the Industrial Insurance Act (IIA), the Legislature also established an exception to the rule of exclusivity for circumstances in which an employer deliberately injures an employee. In those circumstances, an employee retains the right to sue the employer.

In a case involving a conflict between the exclusivity provision of Washington’s Industrial Insurance Act, RCW 51.04.010, and the deliberate intent to injure exception found in RCW 51.24.020, the United States Court of Appeals for the Ninth Circuit certified the following two questions to this court:

1. Whether the evidence produced by the plaintiffs in their response to the motion for summary judgment could, under Washington law, justify a jury in finding the "deliberate intention” exception specified in RCW 51.24.020, and, if so, the requirements of Washington law to permit such a finding?
2. Whether the evidence produced by the plaintiffs in their [856]*856response to motion for summary judgment could, under Washington law, justify a finding of "outrageous conduct” that would avoid the preclusion of RCW 51.04.010, and, if so, the requirements of Washington law to permit such a finding?

"We hold under the circumstances of this case that the plaintiffs have established a claim for deliberate intention to injure under RCW 51.24.020, and have stated a limited cause of action for the tort of outrage.

Facts

Boeing began employing a new woven fiberglass cloth impregnated with phenol-formaldehyde resin in 1987 to meet FAA regulations on flammability. This material was used to make highly contoured interior parts of airplanes. Before it began using the material in production, Boeing did preproduction testing on it at its Auburn fabrication facility, Building 17-02. In February 1987, a Boeing general supervisor, Dan Johnson, wrote:

During MR&D layup of phenolic pre-preg, obnoxious odors were present. Employees complained of dizziness, dryness in nose and throat, burning eyes, and upset stomach. We anticipate this problem to increase as temperatures rise and production increases.

Clerk’s Papers at 115. Johnson requested improved ventilation, but Boeing management denied the request at that time, apparently for economic reasons:

The odor level of the phenolic pre-pregs relative to other materials currently used in Shop A-3210 [Building 17-02] does not warrant expenditure of funds at this time.

Clerk’s Papers at 115. The air in the production facility was "white with dust.” Clerk’s Papers at 118.

As Boeing’s supervisor predicted, when full production began, workers experienced dermatitis, rashes, nausea, headaches, and dizziness. Workers passed out on the job. Mr. Johnson said he knew these complaints were reactions to working with the phenolic material.

[857]*857Boeing contended that the workers were not exposed to toxic chemicals beyond safe levels. Answer of Def. The Boeing Company at 3. The plaintiffs note, however, that regardless of so-called "safe” levels of exposure, Boeing anticipated that those levels would make its workers sick, and, in fact, the workers became sick. Reply Br. of Appellants at 2 n.2.

In addition to injury from exposure to toxic substances, the workers alleged misconduct constituting the tort of outrage by Boeing, including removal of labels on the chemicals and denial of access to Material Safety Data Sheets,1 harassment of employees who requested protective equipment or availed themselves of medical treatment,2 alteration of workplace conditions during government safety tests to manipulate test results and disguise the harm of the chemicals, and experimental exposure of workers to toxic chemicals without their informed consent.3

[858]*858The plaintiffs, fourteen workers, at the Auburn facility, filed a complaint in King County Superior Court in 1991 alleging personal injuries and disabilities resulting from the deliberate and outrageous actions of their employer (Boeing), and the Ferro Company, the manufacturer of the phenolic resin, including Boeing’s intentional, knowing, and repeated injurious exposure of workers to known toxic chemicals, including the phenolic resin.4 The workers also alleged Boeing was liable for the tort of outrage and intentional infliction of emotional distress. Ferro subsequently settled with the plaintiffs and was dismissed.

Boeing removed the case to the United States District Court for the Western District of Washington, asserting federal jurisdiction because the complaint contained allegations under federal discrimination statutes and the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq. Boeing also alleged federal preemption under the Labor-Management Act, 29 U.S.C. §§ 157 et seq. The state law claims were cognizable in federal court under pendent jurisdiction.

Boeing moved for summary judgment. The district court determined the allegations in the plaintiffs’ affidavits were "insufficient to create a prima facie case of specific intent to injure” under Washington law, and ordered dismissal of the plaintiffs’ claims against Boeing. Clerk’s Papers at 142. On appeal, the Court of Appeals for the Ninth Circuit heard oral argument on October 6, 1994, and by its Order [859]*859of February 6, 1995, certified the two questions of law to this court.

Analysis

A. Deliberate Intention To Injure Under RCW 51.24.020

Washington’s IIA was the product of a grand compromise in 1911. Injured workers were given a swift, no-fault compensation system for injuries on the job. Employers were given immunity from civil suits by workers.5 Stertz v. Industrial Ins. Comm’n, 91 Wash. 588, 590-91, 158 P. 256 (1916).

At the same time, however, employers who deliberately injured their employees would not enjoy the immunity from suits.6 This policy has sound roots. Employees’ remedies for deliberate injury by employers should not be limited by the IIA. Employers who engage in such egregious conduct should not burden and compromise the industrial insurance risk pool. RCW 51.16.035

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Birklid v. Boeing Co., 904 P.2d 278, 127 Wash. 2d 853, 11 I.E.R. Cas. (BNA) 97, 1995 Wash. LEXIS 231 (Wash. 1995).

904 P.2d 278 (Birklid v. Boeing Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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