Greco v. Farago

477 A.2d 98, 1984 R.I. LEXIS 540
CourtSupreme Court of Rhode Island
DecidedJune 20, 1984
Docket82-510-Appeal
StatusPublished
Cited by13 cases

This text of 477 A.2d 98 (Greco v. Farago) 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
Greco v. Farago, 477 A.2d 98, 1984 R.I. LEXIS 540 (R.I. 1984).

Opinion

OPINION

KELLEHER, Justice.

The plaintiff in this Superior Court civil action, Lee R. Greco (Greco), was severely injured while employed at the New England Printed Tape Company (NEPTCO) when his hand lodged in the inner workings of a T-screen machine. As a result of this incident, Greco received workers’ compensation benefits, and he subsequently instituted this suit, in which he sued Peter, Alan, and Paul Farago (all three as corporate officers of NEPTCO as well as in the exercise of their managerial capacity) and two plant supervisors, Stephen Madden and Robert Jones. Greco is presently before us on an appeal from the grant by a Superior Court justice of the defendants’ motion for summary judgment.

The precise issue in this controversy is the reconciliation, if possible, of two provisions of the Workers’ Compensation Act. One is G.L.1956 (1979 Reenactment) § 28-29-20, which provides that the benefits provided by the act are “in lieu of all rights and remedies * * * now existing, either at common law or otherwise * * *”; 1 and the other is § 28-35-58, which permits an injured worker to pursue legal redress against a third party “other than the employer” whose liability caused the injury.

Before us, Greco, as he did before the Superior Court, relies to a great extent on the holding in Colarusso v. Mills, 99 R.I. 409, 208 A.2d 381 (1965), in which Colarusso, in suing Mills, was seeking to recover damages in a common-law negligence action for injuries she sustained when an automobile in which she was riding as a *99 passenger went off the highway and struck a traffic barrier. Mills was the operator of the vehicle, which was registered in her husband’s name but was owned by Colarus-so’s corporate employer. Mills and her husband were servants and officers of the employer. However, Mills was identified in the pleadings as Colarusso’s coemployee rather than as an officer or supervisor, and apparently she was treated as such by the litigants and this court.

The controversy came before this court on a challenge by Colarusso to the overruling of a demurrer that had been filed to the answer on behalf of Mills. The issue as framed in that case was whether Colarusso could have maintained the suit against her coemployee notwithstanding her prior recovery of workers’ compensation benefits for the same injury. 99 R.I. at 411, 208 A.2d at 383. The answer was yes if the employee could prove either that she had agreed with the employer that in the event her suit was successful, she would reimburse the employer for the prior compensation benefits she had received, or that the employer refused to enter into such an agreement. Id. at 417, 208 A.2d at 386.

Despite Greco’s contentions, Colarusso is not dispositive of the controversy now before us. His suit is against corporate officers and supervisors acting in their managerial capacity. It is not a suit against a fellow employee. Colarusso, therefore, is readily distinguishable from the case at bar; that suit was against Mills as a coemployee.

Greco contends that defendants’ negligence as supervisors makes them amenable to a civil action seeking damages. In responding to this contention, we must pay due heed to both the facts of this case and the public-policy considerations that led to the establishment of the Workers’ Compensation Act. The motivation for workers’ compensation is apparent from its name. The Legislature wanted employees to be compensated for work-related injuries with a minimum of delay absent the costs that are usually associated with a trial. The act, we said, provides an expeditious procedure by which an injured worker can receive recompense for his injuries. Cacchillo v. H. Leach Machinery Co., 111 R.I. 593, 596, 305 A.2d 541, 542-43 (1973). In return for the benefits they receive, employees forgo any rights they might have had at common law against their employers. Section 28-29-20. If, in addition to compensation benefits, an employee were allowed to sue his employer in tort, the employer would potentially become liable twice for the same injury, and the act clearly seeks to avoid this result.

The acts for which Greco seeks compensation are not for negligence, but for the failure to provide a safe place of employment. He seeks recovery based on defendants’ actions as supervisors. They are being sued in their individual capacities for their negligence in the design and use of the machine. Greco claims that since they have acted as individuals, they should not be immune from suit as they are “persons other than the employer.”

This proposition is mere sophistry. Clearly, a corporation cannot act alone. People must act for it. The issue to be resolved is what kind of activity a corporate officer or supervisor must perform before we can say he has doffed the cap of the employer and donned that of an employee.

This vexatious problem has arisen in many jurisdictions, and there appears to be an ostensible division of thought. However, analysis of the decided cases indicates that absent active negligence as a fellow employee, individuals such as defendants should not be subject to tort liability.

Kruse v. Schieve, 61 Wis.2d 421, 213 N.W.2d 64 (1973), is most representative of the majority analysis of this issue. The defendant in Kruse was an employee and vice president of the corporation for which the plaintiff worked. Id. at 429, 213 N.W.2d at 68. The plaintiff had received workers’ compensation for injuries her left hand received when it became caught in the rollers of a machine she was cleaning. The *100 defendant was charged with negligently supervising the maintenance and production in the factory. Id. at 423, 213 N.W.2d at 65.

The Wisconsin workers’ compensation scheme, as did Rhode Island’s under the former § 28-29-20, allows suit to be maintained against a negligent third party other than the employer. Wis.Stat.Ann. § 102.29 (West 1973). However, the defendant in Kruse, as the defendant here, defended against the action by claiming that the complaint was in reality directed against him as a corporate officer and not as a coemployee. 61 Wis.2d at 427, 213 N.W.2d at 67.

Kruse v. Schieve held that the cause of action in reality alleged a failure to provide a safe place of employment. This was a corporate responsibility and could not be delegated to officers or employees. Id. at 427, 213 N.W.2d at 67. In order for an officer or supervisor to be liable as a fellow employee, the duty owed to the injured party must be above and beyond that owed as a supervisor. Id. at 428, 213 N.W.2d at 67. The Wisconsin Supreme Court held that the failure to provide a safety guard for the machine was not a duty beyond the obligation to provide a safe place to work.

In Laffin v. Chemical Supply Co.,

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477 A.2d 98, 1984 R.I. LEXIS 540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greco-v-farago-ri-1984.