Commercial Union Companies v. Graham

495 A.2d 243, 1985 R.I. LEXIS 546
CourtSupreme Court of Rhode Island
DecidedJuly 3, 1985
Docket82-257-Appeal
StatusPublished
Cited by12 cases

This text of 495 A.2d 243 (Commercial Union Companies v. Graham) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Union Companies v. Graham, 495 A.2d 243, 1985 R.I. LEXIS 546 (R.I. 1985).

Opinion

OPINION

BEVILACQUA, Chief Justice.

This is an appeal by the defendant, Doris A. Graham, from a judgment in the Superi- or Court granting Commercial Union Companies’ motion for summary judgment pursuant to Rule 56 of the Superior Court Rules of Civil Procedure.

Commercial Union (plaintiff) filed a complaint in Providence County Superior Court, seeking reimbursement of workers’ compensation benefits it had paid to defendant pursuant to its subrogation rights under G.L.1956 (1979 Reenactment) § 28-35-58.1

A reading of the record in the light most favorable to defendant reveals the following facts. The defendant was the wife and sole dependent of William J. Graham. During a lifetime of working in the asbestos industry for several employers, William Graham contacted asbestosis. He died as a result of this disease. As the dependent of the decedent, defendant received workers’ compensation benefits in the amount of $31,764 from plaintiff, through Brand Insulation, Inc., William Graham’s last employer. Thereafter, defendant herein brought an action in the United States District Court for the District of Rhode Island against several asbestos suppliers and asbestos container manufacturers, alleging that their negligence was responsible for the death of her husband. The suit was settled prior to trial, and a portion of the settlement amounting to $31,764 was placed in an escrow account pending a legal determination of the subrogation rights of plaintiff.

Shortly after this suit was commenced, defendant filed a motion to dismiss the complaint pursuant to Rule 12(b)(6) for failure to state a claim for which relief could be granted. The motion was denied by a justice of the Superior Court. Thereafter, plaintiff moved for summary judgment. No affidavits were filed, but after reviewing the pleadings and the response to requests for admissions, the trial justice granted plaintiff’s motion for summary judgment.

The defendant on appeal raises several issues including (1) whether the trial justice erred in granting the motion for summary judgment because genuine issues of material fact remain to be resolved; (2) whether the failure of the parties to execute an agreement bars plaintiff’s claim; (3) whether this suit could be brought against defendant in light of our opinion in Fireman’s Fund Insurance Co. v. Lubash, 95 R.I. 311, 186 A.2d 722 (1962); and (4) whether defendant is entitled to deduct attorney’s fees and expenses from the money due plaintiff.

[245]*245I

The defendant contends that summary judgment was inappropriate in this case because there are genuine issues of material fact to be decided and plaintiff was not entitled to judgment as a matter of law. The plaintiff contends that the factual issues raised by defendant are not material and that furthermore, as a matter of law, they are entitled to judgment.

In deciding on a motion for summary judgment, we must keep in mind that the granting of such a motion is a drastic remedy that should be cautiously applied. The trial justice conducts an examination of the pleadings, affidavits, admissions, answers to interrogatories, and other appropriate evidence in a light most favorable to the party opposing the motion. Steinberg v. State, — R.I. —, —, 427 A.2d 338, 340 (1981); Hodge v. Osteopathic General Hospital of Rhode Island, 107 R.I. 135, 142, 265 A.2d 733, 737 (1970). If after the submission of the appropriate evidence there is an actual dispute about the facts, then a genuine issue of material fact exists that cannot be resolved by a motion for summary judgment. See Lennon v. MacGregor, — R.I. —, —, 423 A.2d 820, 822 (1980). However, where “there is no genuine issue as to any material facts, and the moving party is entitled to judgment as a matter of law, summary judgment properly issues.” Ardente v. Horan, 117 R.I. 254, 257, 366 A.2d 162, 164 (1976).

On review, we apply the same standards. This court must test such a finding in a light most favorable to the opposing party. Julian v. Zayre Corp., 120 R.I. 494, 497, 388 A.2d 813, 815 (1978); Russo v. Cedrone, 118 R.I. 549, 555, 375 A.2d 906, 909 (1977).

Section 28-35-58 grants to a compensation carrier the right to seek reimbursement when an employee has received benefits under the Workers’ Compensation Act and has also recovered damages for the same injury. In this case defendant had admitted that compensation benefits were paid and that damages were collected in a settlement with the asbestos suppliers and manufacturers. Therefore, there was no dispute concerning the facts, and plaintiff was entitled to summary judgment as a matter of law.

II

The defendant claims that this action cannot be maintained, however, without proof of an agreement between plaintiff and defendant to pay reimbursement out of any recovery against third parties. In Colarusso v. Mills, 99 R.I. 409, 208 A.2d 381 (1965), we held that an employee can bring suit against a wrongdoer for damages only after the employee has agreed “to reimburse his employer for the compensation received out of any recovery he may obtain in his suit for damages or if the employer has refused so to agree.” Id. at 417, 208 A.2d at 386. The purpose of the agreement, like the statute, is to ensure “full recovery to an injured party without at the same time subjecting the wrongdoer to being held liable twice for the same tortious conduct.” Id. at 416, 208 A.2d at 385. In Brimbau v. Ausdale Equipment Rental Corp., 119 R.I. 14, 376 A.2d 1058 (1977), we reiterated the need for a reimbursement agreement:

“The reason for requiring such action on the part of the one who has paid compensation is to protect the third-party tort-feasor. This protection is necessary because the carrier who pays compensation is subrogated to that extent to the injured employee’s right of action against the tortfeasor. Unless the carrier consented to be repaid by the injured employee out of any tort recovery, this right of subrogation would persist. A tortfeasor who paid the injured employee in full would still be subject to suit by the carrier, on the basis of its subrogated rights, to recover any compensation payments previously made to the employee.” Id. at 21, 376 A.2d at 1062.

The escrow account was established between defendant herein and the alleged [246]*246tortfeasors for the purpose of protecting the tortfeasor from twice being held liable for the same tortious conduct.2 It is our opinion that because the escrow account serves the same purpose and policy of a reimbursement agreement, it satisfies the agreement requirement.

Ill

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Bluebook (online)
495 A.2d 243, 1985 R.I. LEXIS 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-union-companies-v-graham-ri-1985.