Duncan v. Wal-Mart Stores, Inc.

226 Cal. Rptr. 3d 300, 18 Cal. App. 5th 460
CourtCalifornia Court of Appeal, 5th District
DecidedNovember 14, 2017
DocketG054220
StatusPublished
Cited by3 cases

This text of 226 Cal. Rptr. 3d 300 (Duncan v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duncan v. Wal-Mart Stores, Inc., 226 Cal. Rptr. 3d 300, 18 Cal. App. 5th 460 (Cal. Ct. App. 2017).

Opinion

ARONSON, J.

*465Respondent Denise Michelle Duncan sued Wal-Mart Stores, Inc. (Wal-Mart) for personal injuries she sustained at one of Wal-Mart's stores while acting within the course and scope of her employment with Acosta, Inc.

*466(Acosta). The trial court entered judgment finding Wal-Mart liable for Duncan's injuries. Under Labor Code sections 3852 and 3856,1 appellant Hartford Accident & Indemnity Company (Hartford) applied for a lien on Duncan's judgment to obtain reimbursement for the workers' compensation benefits it paid Duncan, including medical expenses and temporary disability payments for lost wages. Although the judgment included compensation for Duncan's medical expenses, it did not include compensation for Duncan's lost wages because she did not seek those damages at trial. The court granted Hartford a lien on Duncan's judgment, but reduced the lien amount to exclude the indemnity payments for lost wages.

Hartford appeals the trial court's postjudgment order, arguing the court exceeded its authority by reducing the lien amount for any item other than reasonable attorney fees and costs. We agree because section 3856's plain language and the case law applying it grant Hartford a first lien on the judgment in the amount it paid Duncan for worker's compensation benefits. Duncan's choice not to seek lost wages at trial does not diminish Hartford's lien rights under the workers' compensation statutory scheme. We therefore modify the order granting the lien to include the amount of lost wages Hartford paid Duncan and affirm the postjudgment order as modified.

I

FACTS AND PROCEDURAL HISTORY

In August 2012, Duncan was acting within the course and scope of her employment with Acosta when she fell and injured herself on Wal-Mart's premises. Hartford was Acosta's workers' compensation insurer and paid Duncan more than $152,000 in benefits, including more than $115,000 in medical expenses and roughly $37,000 in temporary disability indemnity for Duncan's lost wages.

In July 2014, Duncan filed this lawsuit against Wal-Mart seeking recovery for her medical expenses, lost wages and earning capacity, and pain and suffering. Following a three-day bench trial, the court found Wal-Mart 100 percent at fault and entered judgment against Wal-Mart for $355,000, including $178,000 in past medical expenses, $102,000 in future medical expenses, and $75,000 in past and future pain and suffering. Although Duncan's complaint sought lost wages and earning capacity, the court did not award Duncan damages for these items because she did not ask for them at trial.

Hartford filed a notice and application for a lien on the judgment based on the workers' compensation benefits it paid Duncan. The trial court issued an *467order to show cause why it should not grant the requested lien. Duncan filed an opposition, arguing the court should reduce the lien amount by the nearly $37,000 Hartford sought for the temporary disability benefits it paid because Duncan did not present evidence regarding those payments at trial and therefore the court did not award her that amount as damages. According to *303Duncan, Hartford is entitled to a lien on the judgment solely to prevent her from recovering the same damages from both Wal-Mart and Hartford, and because she did not recover the disability indemnity from Wal-Mart, Hartford is not entitled to a lien for those payments. Duncan also argued she was entitled to an offset against the lien for the reasonable amount of attorney fees and costs she incurred in suing Wal-Mart. In reply, Hartford argued it had a statutory right to a lien in the full amount of the workers' compensation benefits it paid Duncan regardless of whether she sought and obtained those damages from Wal-Mart. Hartford also disputed the amount of Duncan's attorney fees and costs.

After a hearing, the trial court found the reasonable amount of attorney fees and costs Duncan incurred was roughly $63,000, and granted Hartford a lien on the judgment for nearly $53,000. The court provided no explanation on how it determined the amount of the lien, but the parties agree the court excluded from the lien the disability indemnity payments Hartford made because the amount Hartford sought ($152,489.99) minus both the reasonable attorney fees and costs the court found ($62,623.66) and the disability indemnity payments ($36,929.32) equals the amount of the lien allowed by the court ($52,937.01). This appeal followed.

II

DISCUSSION

A. Legal Background

Under the workers' compensation statutes (§ 3200, et seq.), an employee who suffers an injury during the course and scope of employment may recover compensation benefits from the employer without regard to the negligence of either the employee or the employer. (§ 3600; see Abdala v. Aziz (1992) 3 Cal.App.4th 369, 374, 4 Cal.Rptr.2d 130 ( Abdala ).) With few exceptions, the employee's claim for compensation benefits is the employee's exclusive remedy against the employer; the employee generally may not sue the employer to recover in tort. (§§ 3601, 3602; see Abdala , at p. 374, 4 Cal.Rptr.2d 130.)

"The policy [underlying this system] is that workers do not have to prove fault, adjudication is swift, but the benefits are smaller than might be obtained as tort damages. [Citations.] The law: (1) spreads the cost of industrial *468injuries to goods and services; (2) provides prompt, limited compensation to injured workers, regardless of fault; (3) increases industrial safety; and (4) insulates employers from tort liability." ( Fremont Comp. Ins. Co. v. Sierra Pine (2004) 121 Cal.App.4th 389, 395, 17 Cal.Rptr.3d 80 ( Fremont ).)

The workers' compensation statutes, however, do not limit the injured employee's right of action for damages against any person other than his or her employer. ( Abdala , supra , 3 Cal.App.4th at p. 374, 4 Cal.Rptr.2d 130 ; Tate v. Superior Court (1963) 213 Cal.App.2d 238, 243-244, 28 Cal.Rptr. 548 ( Tate ).) "Where the tort of a third party causes injury to an employee, ... section 3852 permits the employee to sue the tortfeasor for all

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Cite This Page — Counsel Stack

Bluebook (online)
226 Cal. Rptr. 3d 300, 18 Cal. App. 5th 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duncan-v-wal-mart-stores-inc-calctapp5d-2017.