Island Tile & Marble, LLC v. Bertrand

57 V.I. 596, 2012 WL 5499863, 2012 V.I. Supreme LEXIS 81
CourtSupreme Court of The Virgin Islands
DecidedNovember 7, 2012
DocketS. Ct. Civil No. 2012-0050
StatusPublished
Cited by41 cases

This text of 57 V.I. 596 (Island Tile & Marble, LLC v. Bertrand) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Island Tile & Marble, LLC v. Bertrand, 57 V.I. 596, 2012 WL 5499863, 2012 V.I. Supreme LEXIS 81 (virginislands 2012).

Opinion

OPINION OF THE COURT

(November 7, 2012)

Hodge, Designated Judge.

The Superior Court, in a June 22, 2012 Order, certified several issues addressed in its prior interlocutory orders for immediate appellate review pursuant to the procedure set forth in title 4, section 33(c) of the Virgin Islands Code. For the following reasons, we affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

On April 29, 2008, Jacques-Pierre Bertrand, an employee of Island Tile and Marble, LLC (“Island Tile”), died from injuries sustained on April 17, 2008, while unloading marble slabs at Island Tile’s warehouse. His mother, Beryl Bertrand (“Mrs. Bertrand”), filed suit against Island Tile and several other defendants for wrongful death and other causes of action on September 25, 2008,2 solely in her capacity as administratrix of [604]*604his estate, see 5 V.I.C. §§ 76-77, which consisted of his parents, his twin brother, and his sister (“the Estate”). After various proceedings unrelated to this interlocutory appeal, on March 2, 2009, Island Tile filed a motion to dismiss the complaint pursuant to Federal Rule 12(b)(6)3 on the grounds that it was immune from suit pursuant to the exclusive remedy provisions of Virgin Islands Workers’ Compensation Act (“VIWCA”). Rather than oppose the motion, the Estate entered into a stipulation of dismissal with Island Tile on March 9, 2009, advising the Superior Court that the Estate had agreed to dismiss, with prejudice, all claims against Island Tile, and that both parties would bear their own costs and attorney’s fees. For reasons not clear from the record, the Superior Court did not approve the stipulation until April 6, 2010.4

For the following year, the Estate continued to actively litigate the matter with respect to the remaining defendants. However, on April 5, 2011, the Estate filed a document captioned as “Plaintiff’s Motion for Leave of Court to File Motion for Reconsideration Out of Time, Motion for Reconsideration, and Memorandum of Law,” which stated that it was being brought “pursuant to the LRCl 7.3, Superior Court Rule 7, and Federal Rules of Civil Procedure 6,” and in a footnote further cited Federal Rule 54(b) as applicable authority. (J.A. 64.) In its motion, the Estate requested — among other forms of relief not relevant to this interlocutory appeal — that the Superior Court set aside its April 6, 2010 Order approving the parties’ stipulation to dismiss Island Tile from the litigation. As grounds for this request, the Estate stated that Island Tile — through its sole owner and manager, Michael Cordiner — falsely represented that Island Tile was duly insured under the VIWCA, and that the Estate’s claim was thus barred by its exclusive remedy provision. See V.I. CODE Ann. tit. 24, § 284(a) (“When an employer is insured under this [605]*605chapter, the right herein established to obtain compensation shall be the only remedy against the employer.”). According to the Estate, Cordiner’s January 10, 2011 deposition revealed that Island Tile’s workers’ compensation reports for the 2006, 2007, and 2008 calendar years contained significant misrepresentations that resulted in Island Tile substantially underpaying the workers’ compensation premiums it owed to the Government.

Island Tile timely filed its opposition to the Estate’s motion on April 19, 2011. In its opposition, Island Tile did not dispute that the reports it submitted to the Virgin Islands Commissioner of Finance contained inaccuracies, or that those inaccuracies caused it to understate its premiums. Rather, Island Tile, relying on this Court’s decision in Beachside Assocs., LLC v. Fishman, 53 V.I. 700 (V.I. 2010), contended that Federal Rule 60(b), made applicable through Superior Court Rule 50, governed the motion, and that the Estate failed to meet its burden of establishing that the Superior Court should set aside the April 6, 2010 Order.

The Superior Court, in a June 27, 2011 Opinion and Order, ultimately granted the Estate’s motion and permitted it to amend its complaint to reinstate its claims against Island Tile. Bertrand v. Island Tile & Marble, LLC, 55 V.I. 267, 271-72 (V.I. Super. Ct. 2011). Relying on this Court’s unpublished opinion in Hagley v. Hendricks, S.Ct. Civ. No. 2007-0026, 2007 V.I. Supreme LEXIS 8 (V.I. 2007), the Superior Court rejected Island Tile’s argument that Federal Rule 60(b) governed the Estate’s motion, and held that Federal Rule 54(b), made applicable through Superior Court Rule 7, represented the applicable legal standard. Id. at 273-75. While the Superior Court also concluded that the fourteen-day limitations period set forth in LRCl 7.3 applies when a party seeks relief under Federal Rule 54(b), it found that the Estate established good cause to extend the fourteen-day filing period. Id. at 275-76. As to the merits, the Superior Court found, taking all of the Estate’s allegations as true, that Island Tile fell within the VIWCA’s definition of “uninsured employer,” see 24 V.I.C. § 272(c), because it underpaid its premiums, and thus could not benefit from the VIWCA’s immunity provisions, even though the Estate accepted and received payments from the Administrator of the Workers’ Compensation Administration. Id. at 284-85.

On July 11, 2011, Island Tile filed a motion for the Superior Court to reconsider its June 27, 2011 Opinion. Again, Island Tile argued that the [606]*606Beachside Associates decision compelled it to apply Superior Court Rule 50 and Federal Rule 60(b) to the exclusion of Federal Rule 54. In addition, Island Tile contended that the Superior Court erred when it accepted all of the Estate’s allegations as true for purposes of determining whether to set aside the dismissal, given that the claims against Island Tile had not been dismissed because the Superior Court granted a motion to dismiss for failure to state a claim pursuant to Federal Rule 12(b)(6), but due to the parties entering into a joint stipulation to dismiss Island Tile with prejudice. According to Island Tile, this effectively shifted the burden of persuasion from the Estate and onto Island Tile. Additionally, Island Tile contended that even if Rule 54(b) constitutes the applicable legal standard, revisiting the stipulation was not warranted given, among other things, the strong preference in favor of settling civil litigation. Finally, Island Tile argued that the Superior Court misinterpreted the VIWCA, since the Workers’ Compensation Administration had issued it a “Certificate of Government Insurance” for the time of the accident, and the VIWCA contains no explicit provision authorizing a court to invalidate coverage due to a “paperwork error.” (J.A. 451.)

The Superior Court, in a February 10, 2012 Opinion and Order, denied Island Tile’s motion for reconsideration. First, the Superior Court explained that Beachside Associates involved the appeal of a final judgment — albeit under the collateral order doctrine — and thus Superior Court Rule 50 applied to that case, but that Superior Court Rule 50 would not apply to the instant matter since the April 6, 2010 Order granting the stipulation for dismissal was not appealable to this Court.

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Bluebook (online)
57 V.I. 596, 2012 WL 5499863, 2012 V.I. Supreme LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/island-tile-marble-llc-v-bertrand-virginislands-2012.