Brabander v. Western Cooperative Electric

811 P.2d 1216, 248 Kan. 914, 1991 Kan. LEXIS 115
CourtSupreme Court of Kansas
DecidedMay 24, 1991
Docket65539
StatusPublished
Cited by12 cases

This text of 811 P.2d 1216 (Brabander v. Western Cooperative Electric) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brabander v. Western Cooperative Electric, 811 P.2d 1216, 248 Kan. 914, 1991 Kan. LEXIS 115 (kan 1991).

Opinion

The opinion of the court was delivered by

McFarland, J.:

In this appeal, a single narrow issue of statutory interpretation is raised. Specifically, does K.S.A. 1990 Supp. 44-504(d) require the trial court to reduce an employer’s workers compensation subrogation interest: (1) by the percentage of fault attributed to the employer by the factfinder; or (2) by the percentage of the damage award itself attributable to the employer’s negligence? The trial court interpreted K.S.A. 1990 Supp. 44-504(d) to require the employer’s subrogation to be reduced by the percentage of fault attributed to the employer. David Brabander, the injured worker herein, appeals from this determination.

The background facts may be summarized as follows. On July 12, 1987, David Brabander was employed by Wayne’s Trucking of Great Bend. He was engaged in setting a battery of oil tanks at an oil lease site near Utica. The truck utilized in the work was equipped with a boom, and the boom came in contact with a power line owned by Western Cooperative Electric Association, *915 Inc. As a result thereof, Brabander was severely injured. Brabander filed a third-party action against Western Cooperative pursuant to 44-504.

The jury found Brabander’s employer, Wayne Trucking, to be 53 percent at fault and Western Cooperative to be 47 percent at fault. Damages were fixed at $327,876.46. Pursuant to K.S.A. 1990 Supp. 44-501 and K.S.A. 1990 Supp. 60-258a, the trial court reduced Brabander’s damage award by the 53 percent fault attributed to the employer, leaving a net judgment of $154,101.93. No complaint is made in regard to such reduction. Workers compensation benefits of $176,441.45 had been paid to Brabander by his employer’s workers compensation insurance carrier, Commercial Union Insurance, which company had a subrogation interest in said amount. The trial court applied K.S.A. 44-504(d) by reducing Commercial’s subrogation interest by 53 percent, the percentage of fault attributed to the employer. This fixed Commercial’s subrogation interest in the $154,101.93 judgment at $72,427.91. Brabander contends Commercial’s subrogation interest should have been reduced by the percentage of the damage award attributable to the employer ($327,876.46 times .53 equals $173,774.52). This would have reduced the subrogation interest to $2,666.93 ($176,441.45 minus $173,774.52 equals $2,666.93).

K.S.A. 1990 Supp. 44-504(d), which is identical to K.S.A. 44-504(d), in effect at the time of the accident, provides:

“If the negligence of the worker’s employer or those for whom the employer is responsible, other than the injured worker, is found to have contributed to the party’s injury, the employer’s subrogation interest or credits against future payments of compensation and medical aid, as provided by this section, shall be diminished by the percentage of the damage award attributed to the negligence of the employer or those for whom the employer is responsible, other than the injured worker.” (Emphasis supplied.)

In its memorandum decision, the trial court stated:

“The method of computation is indirectly addressed in Anderson v. National Carriers, Inc., 240 Kan. 101 [727 P.2d 899 (1986)]. In that case, the method of computation urged by the insurance company was approved by the Supreme Court even though the method of computation was not the specific issue being resolved.
“The statute is easier to read and its meaning, I believe, is more clear if it is stated as follows: ‘If the negligence of the . . . employer . . . contributed ... to the . . . injury, the . . . subrogation inter *916 est . . . shall be diminished by the percentage of the damage award attributed to the negligence of the employer . . . .’ The Plaintiffs construction of this statute would require the critical words to read as follows: shall be diminished by the amount of the damage award attributed to the negligence of the employer.
“I find the statute to be ambiguous and extremely poorly worded. The critical language would be more meaningful and easily understood if it were to read, ‘shall be reduced by the percentage of the fault attributable to the employer . . .’or ‘shall be reduced by the amount of damages attributable to the employer . . . .’
“However, the headnote in Anderson is controlling and the motion is resolved in favor of the Insurance Company and the Insurance Company’s counsel is directed to prepare an order reflecting this determination and setting out the correct amounts of distribution in accordance herewith.”

The central issue in Anderson v. National Carriers, Inc., 240 Kan. 101, 727 P.2d 899 (1986), was whether the 1982 amendment to 44-504 which, for the first time, authorized a diminution of an employer’s subrogation interest based upon fault of the employer was to be applied prospectively or retrospectively. The injury in Anderson had occurred prior to the amendment and the settlement with the third party had occurred after the amendment. The syllabus in Anderson, however, does state:

“In an appeal by the workers’ compensation insurance carrier and lien claimant from a judgment apportioning the recovery made by the injured worker against a third-party tortfeasor, it is held that the trial court did not err (1) in reducing the subrogation lien by the percentage of fault attributed to the employer, pursuant to K.S.A. 1985 Supp. 44-504(d), or (2) in awarding attorney fees to be paid proportionately by the employer and the injured worker. It is further held that the trial court did err in awarding all of the post-judgment interest to the injured worker and in failing to award the employer post-judgment interest on the amount of the subrogation lien.” (Emphasis supplied.)

The mechanics of how the amendment should be applied in reducing an employer’s subrogation interest was not an issue in Anderson and, accordingly, Anderson is neither controlling nor persuasive on the question before us.

At this point, certain principles of statutory construction need to be stated.

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Cite This Page — Counsel Stack

Bluebook (online)
811 P.2d 1216, 248 Kan. 914, 1991 Kan. LEXIS 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brabander-v-western-cooperative-electric-kan-1991.