Braxton v. Anco Electric, Inc.

409 S.E.2d 914, 330 N.C. 124, 1991 N.C. LEXIS 746
Supreme Court of North Carolina·Decided November 7, 1991·No. 614PA90·Published·Cited by 17 cases

Opinions

MARTIN, Justice.

The plaintiff, Larry Gordon Braxton, a resident of Raleigh, North Carolina brought this tort action against the defendant, Anco Electric, Inc., on 22 February 1989, alleging that defendant’s negligence had proximately caused his injury on a construction site where he was working, and seeking punitive and compensatory damages.

Mr. Braxton was employed as a plumber’s helper by Dubberly & Son Plumbing, a North Carolina corporation and a subcontractor of Bailey and Associates, Inc., another North Carolina corporation and general contractor engaged in the construction of the South Hampton Shopping Center in Franklin, Virginia. The defendant, also a North Carolina corporation, was an electrical subcontractor of Bailey and Associates, Inc. for this project.

The plaintiff alleged that as he climbed a ladder in a building on the construction site in Virginia, he came into contact with an electrical wire, sending an electrical shock through his body and causing him to fall. The plaintiff alleged that defendant negligently caused the electrical wire to become exposed and that defendant was negligent in the installation, inspection, and utilization of electrical equipment, and in its failure to give adequate warning for the protection of the plaintiff.

[126]*126The plaintiff received workers’ compensation benefits pursuant to the North Carolina Workers’ Compensation Act for his injuries.

On defendant’s motion pursuant to N.C. R. Civ. P. 12(b)(6), the trial court ruled that because Virginia substantive law bars actions against another subcontractor by an employee for injuries negligently caused by an employee of such subcontractor, the plaintiff’s action was barred pursuant to the doctrine of lex loci delicti commissi. The Court of Appeals reversed, recognizing that Virginia law does bar such actions, but holding that North Carolina substantive law should apply because of overriding state interests and public policy reasons. We affirm, but for partially different and additional reasons.

In the present case we begin with a common law tort action for the personal injury of a North Carolina citizen. Since the injury occurred in the course of the plaintiff’s employment, we must look to statutory law on workers’ compensation to see whether there exists any prohibition or bar to such suit. Under North Carolina law, we find that an employee who is injured -by the negligence of a third-party subcontractor may bring a negligence action against that subcontractor because in interpreting our statute North Carolina courts have deemed such a subcontractor not to be a “statutory employer” of the plaintiff and therefore not shielded from liability by the “exclusive remedy bar” of our workers’ compensation statute. See Lewis v. Barnhill, 267 N.C. 457, 148 S.E.2d 536 (1966); Weaver v. Bennett, 259 N.C. 16, 129 S.E.2d 610 (1963).

However, since the injury occurred in the Commonwealth of Virginia, the case presents a conflict of laws question as to which state’s compensation law to apply in determining whether plaintiff’s cause of action is barred. The conflict arises from the divergence between our statute and the Commonwealth of Virginia’s workers’ compensation statute, Code § 65.1-40, which extends the definition of “statutory employer” to include all subcontractors working under the general contractor’s umbrella, thus shielding from liability a third-party tortfeasor such as the defendant in the present case.

Thus, this Court is faced with a novel question of first impression. The question is a threshold one of whether to apply Virginia’s or North Carolina’s compensation law in determining whether the action is statutorily barred. Under the law of Virginia, the action is barred; under the law of North Carolina, it is not. We do not hesitate in holding that as to the tort law controlling the rights [127]*127of the litigants in the lawsuit allowed by this decision, the long-established doctrine of lex loci delicti commissi applies, and Virginia law controls. Boudreau v. Baughman, 322 N.C. 331, 368 S.E.2d 849 (1988); Henry v. Henry, 291 N.C. 156, 229 S.E.2d 158 (1976); Young v. R.R., 266 N.C. 458, 141 S.E.2d 278 (1965). But in regard to the “exclusive remedy bar” imposed by statute, we turn to our own statute for an answer.

We hold that plaintiff, as a North Carolina worker covered by its workers’ compensation statute, is entitled to the protections afforded by our statute with regard to the question of whether his cause of action is eliminated by a particular workers’ compensation plan. The question we decide arises in the context of the “mutual concessions” inherent in the workers’ compensation design wherein an employee trades off his common law right of recovery in tort for the assurance that any work-related injury, regardless of fault, will be compensated. In this regard we view plaintiff as a beneficiary of the particular bargain which North Carolina has struck between the rights of employees as potential plaintiffs seeking to recover in tort for work-related injuries and the rights of employers and third parties as potential tortfeasors seeking to escape liability by virtue of the blanket provision of compensation for such injuries. To determine whether the law says that plaintiff, in return for collecting workers’ compensation benefits, has traded away his right to sue in this situation, we look to the law which guarantees his receipt of those benefits, which is the law of North Carolina.

Public policy considerations point to the same result. All the parties are North Carolina citizens; the plaintiff’s contract of employment and the contracts giving rise to the workers’ compensation coverage were signed here; and the plaintiff was receiving benefits under our workers’ compensation statute. Under these circumstances, North Carolina’s interests in implementing the protections afforded by our statute are paramount. Mr. Braxton’s temporary presence in Virginia so as to carry out his employment contract does not strip him of the rights he otherwise enjoys under the North Carolina workers’ compensation statute with regard to the breadth of our state’s exclusive remedy bar on common law actions in tort.

Various courts when faced with conflict of laws questions arising from multistate workers’ compensation situations with nonemployer tortfeasors have resolved them similarly. See, e.g., [128]*128Hynes v. Indian Trails, Inc., 181 F.2d 668 (7th Cir. 1950); Liberty Mutual Insurance Co. v. Goode Construction Co., 97 F. Supp. 316 (E.D. Va. 1951); Miller v. Yellow Cab Co., 31 N.E.2d 406 (Ill. App. Ct. 1941).

Both parties argue Leonard v. Johns-Manville Sales Corp., 309 N.C. 91, 305 S.E.2d 528 (1983), in support of their causes.

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

Braxton v. Anco Electric, Inc., 409 S.E.2d 914, 330 N.C. 124, 1991 N.C. LEXIS 746 (N.C. 1991).

409 S.E.2d 914 (Braxton v. Anco Electric, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

SciGrip, Inc. v. Osae
Supreme Court of North Carolina, 2020
Demetres v. East West Construction, Inc.
995 F. Supp. 2d 539 (E.D. Virginia, 2014)
Martinez v. National Union Fire Insurance
911 F. Supp. 2d 331 (E.D. North Carolina, 2012)
Burton v. Phoenix Fabricators & Erectors, Inc.
670 S.E.2d 581 (Court of Appeals of North Carolina, 2009)
Gobble v. International Paper Co.
207 F. Supp. 2d 423 (M.D. North Carolina, 2002)
Stuart v. Colorado Interstate Gas Co.
271 F.3d 1221 (Tenth Circuit, 2001)
Anderson v. Piedmont Aviation, Inc.
68 F. Supp. 2d 682 (M.D. North Carolina, 1999)
Eades v. United States
Fourth Circuit, 1999
Gbye v. Gbye
503 S.E.2d 434 (Court of Appeals of North Carolina, 1998)
In Re Aircrash Disaster Near Roselawn, Indiana
948 F. Supp. 747 (N.D. Illinois, 1996)
Frugard v. Pritchard
450 S.E.2d 744 (Supreme Court of North Carolina, 1994)
Shaw v. Layton Const. Co., Inc.
872 P.2d 1059 (Court of Appeals of Utah, 1994)
Frugard v. Pritchard
434 S.E.2d 620 (Court of Appeals of North Carolina, 1993)
Pasquale v. Ohio Power Co.
418 S.E.2d 738 (West Virginia Supreme Court, 1992)
Black v. Leatherwood Motor Coach Corp.
606 A.2d 295 (Court of Special Appeals of Maryland, 1992)
Braxton v. Anco Electric, Inc.
409 S.E.2d 914 (Supreme Court of North Carolina, 1991)