Fleetwood Enterprises, Inc. v. Workers' Compensation Appeals Board

37 Cal. Rptr. 3d 587, 134 Cal. App. 4th 1316, 2005 Daily Journal DAR 14553, 70 Cal. Comp. Cases 1659, 2005 Cal. Daily Op. Serv. 10661, 2005 Cal. App. LEXIS 1920
California Court of Appeal·Decided December 16, 2005·No. E037314·Published·Cited by 7 cases

Opinion

*1319 Opinion

RICHLI, P. J.

Following the completion of the expressly “business” portion of a trip to Europe, John Moody (applicant), accompanied by his wife, extended their stay for additional sightseeing in Italy. While driving from Rome towards Düsseldorf, Germany, where the rental car was to be returned and the homeward flight boarded, the Moodys were involved in an automobile accident. Applicant suffered severe injuries. We are asked to determine whether, on the particular facts of this case, applicant’s injuries either arose out of his employment or were suffered in the course of his employment. We conclude that they did not and that applicant’s employer, Fleetwood Enterprises, Inc., is not obliged to provide workers’ compensation benefits with respect to the accident. We also conclude that the Workers’ Compensation Appeals Board (Board) erred in ruling that the presumption of compensability established by Labor Code section 5402 1 applies in this case. 2

STATEMENT OF FACTS

Fleetwood manufactures recreational vehicles (RV’s). Applicant was employed by Fleetwood as a design manager, and at file time of the accident had worked for Fleetwood for about 30 years. In the fall of 1999, along with two other Fleetwood employees, applicant was assigned to attend a major RV show in Düsseldorf. Following the show, they were to visit a German RV manufacturer, and then go on to Italy to meet with a fiberglass supplier.

At the Düsseldorf airport, applicant picked up the rental car, which had been arranged by Fleetwood. The car had to be returned to Düsseldorf.

After obtaining Fleetwood’s permission, applicant had arranged to have his wife meet him in Geneva after the RV show and the visit to the German manufacturer. Fleetwood’s travel office handled Mrs. Moody’s arrangements as well as those for its employees. After applicant drove to Geneva to pick up his wife (the others remained in a small town for the day), the Moodys, the other Fleetwood employees, and their German guide traveled to Italy for the next meeting in the city of Ferrara. This visit involved not only a plant tour but also socializing with the local manufacturer’s representatives and sightseeing in and near Ferrara.

*1320 When the business in Ferrara was complete, applicant’s coworkers returned to the United States, leaving from Milan, Italy. Applicant and his wife, however, remained in Italy with the rental car. They traveled to Florence and Rome, staying overnight in each city (two nights in Rome), before heading north towards Germany and Düsseldorf. 3 At the time, there were three days before their return flight, and the Moodys had no specific itinerary but intended a rambling route as the fancy took them. However, both were in fact tired of travel and testified that they would have liked to leave from Rome right then if the vehicle had not been due in Düsseldorf.

The accident occurred about 3:00 in the afternoon after they left Rome. Their vehicle was struck by a car that had crossed the center line of the roadway.

In an attempt to establish that he was still performing job duties at the time of the accident, applicant testified that his job as design manager required him to be familiar with all updates and innovations from other RV manufacturers. Although the primary method for obtaining information about competitors was to attend trade shows, he also routinely kept an eye open for RV’s made by others, both on the road and at campgrounds, often speaking with the owners to determine which features they liked or disliked. He continued this practice during the subject trip to Europe, photographing “unusual” European RV’s during the post-business or vacation portion of the trip. He was particularly interested in finding examples of a “seats-on-top” feature that European manufacturers had recently brought out, and in seeing how European manufacturers coped with the smaller dimensions practical in European cities and on European roads. Mrs. Moody confirmed that when they traveled, they looked not only at other RV’s, but at any “artistic design” they thought might be adaptable for use in an RV.

During the trip, applicant used an American Express card in his name, but which was actually a Fleetwood business card. As a rule, when he used the card both for business and personal reasons, he was responsible for the personal charges. However, Fleetwood apparently paid all the charges for the subject trip and did not ask applicant to reimburse it for his post-business expenses.

*1321 After the accident, Fleetwood took charge of applicant’s medical care and expenses, sending an Italian-speaking employee to Italy to assist and eventually chartering an air ambulance to expedite his return. These expenses were primarily funded through Fleetwood’s group health program rather than workers’ compensation, although Fleetwood apparently directly paid some of the extraordinary expenses and care upgrades. During the critical period, Fleetwood’s representatives repeatedly assured applicant and Mrs. Moody that they would be taken care of and that whatever they needed would be provided.

The accident occurred on October 8, 1999. Applicant returned to work in April of 2000 but was laid off in November of 2002. He had not prepared a workers’ compensation claim form until May of 2002. Fleetwood denied the claim by letter dated August 1, 2002.

DISCUSSION

A.

The petition initially presented a potentially troublesome question concerning section 5402. Respondent Board 4 was persuaded that because 1) Fleetwood had immediate knowledge that the injury might be work related, and 2) it was undisputed that Fleetwood did not give applicant the required claim form and information at any time prior to the filing of the actual claim (§ 5401), then 3) the 90-day period for denial set out in section 5402 actually began to run shortly after the accident. Under this analysis, of course, Fleetwood obviously failed to deny the claim in a “timely” manner, and the presumption would apply. 5

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Fleetwood Enterprises, Inc. v. Workers' Compensation Appeals Board, 37 Cal. Rptr. 3d 587, 134 Cal. App. 4th 1316, 2005 Daily Journal DAR 14553, 70 Cal. Comp. Cases 1659, 2005 Cal. Daily Op. Serv. 10661, 2005 Cal. App. LEXIS 1920 (Cal. Ct. App. 2005).

37 Cal. Rptr. 3d 587 (Fleetwood Enterprises, Inc. v. Workers' Compensation Appeals Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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