Opinion
MOSK, J.
Section 3600 of the Labor Code provides that an employer is liable for injuries to its employees arising out of and in the course of employment, and section 3601 declares that where the conditions of [468]*468workers’ compensation exist, the right to recover such compensation is the exclusive remedy against an employer for injury or death of an employee.1 The issue to be decided in this proceeding is whether an employee is barred by these provisions from prosecuting an action at law against his employer for the intentional torts of fraud and conspiracy in knowingly ordering the employee to work in an unsafe environment, concealing the risk from him, and, after the employee had contracted an industrial disease, deliberately failing to notify the state, the employee, or doctors retained to treat him, of the disease and its connection with the employment, thereby aggravating the consequences of the disease.
[469]*469We conclude that while the workers’ compensation law bars the employee’s action at law for his initial injury, a cause of action may exist for aggravation of the disease because of the employer’s fraudulent concealment of the condition and its cause.
Reba Rudkin, real party in interest (hereinafter plaintiff), brought an action against Johns-Manville Products Corporation, his employer for 29 years (defendant) and others,2 alleging as follows:
Defendant is engaged in mining, milling, manufacturing, and packaging asbestos. Plaintiff worked in its Pittsburg, California, plant for 29 years beginning in February 1946, and he was continuously exposed to asbestos during that period. As a result of the exposure, he developed pneumoconiosis, lung cancer, or other asbestos-related illnesses.
The defendant corporation has known since 1924 that long exposure to asbestos or the ingestion of that substance is dangerous to health, yet it concealed this knowledge from plaintiff, and advised him that it was safe to work in close proximity to asbestos. It failed to provide him with adequate protective devices and did not operate the plant in accordance with state and federal regulations governing dust levels.
In addition, the doctors retained by defendant to examine plaintiff were unqualified, and defendant did not provide them with adequate information regarding the risk of asbestos exposure. It failed to advise these doctors of the development of pulmonary disease in plaintiff or of the fact that the disease was the result of the working conditions at the plant, although it knew that his illness was caused by exposure to asbestos. Finally, defendant willfully failed to file a First Report of Occupational Injury or Illness with the State of California regarding plaintiff’s injury, as required by law. Had this been done, and if the danger from asbestos had been revealed, plaintiff would have been pro[470]*470tected. Each of these acts and omissions was done falsely and fraudulently by defendant, with intent to induce plaintiff to continue to work in a dangerous environment. Plaintiff was ignorant of the risks involved, and would not have continued to work in such an environment if he had known the facts.
In a separate cause of action plaintiff alleged that defendant knowingly conspired with others to perpetrate the acts set forth above.
The complaint sought compensatory and punitive damages, including compensation for the cost of medical care which plaintiff was required to obtain in order to treat his illness.
Defendant filed an answer alleging, inter alia, that the action was barred under section 3601. It requested the trial court to take judicial notice of an application filed by plaintiff seeking workers’ compensation benefits for disability caused by “[ejxposure to asbestos.” Defendant moved for judgment on the pleadings on the ground that section 3601 bars the action. The trial court denied the motion. In this proceeding for a writ of mandate, defendant seeks to set aside the trial court’s order.
According to a brief filed on plaintiff’s behalf, he died of lung cancer after the petition for writ of mandate was filed. The issues presented are not moot, however, since an action for personal injuries survives the death of the plaintiff. (Prob. Code, § 573.)3
For purposes of reviewing the trial court’s denial of defendant’s motion, we must accept as true the allegations of plaintiff’s complaint. (Colberg, Inc. v. State of California ex rel. Dept. Pub. Wks. (1967) 67 Cal.2d 408, 411-412 [62 Cal.Rptr. 401, 432 P.2d 3].)
The primary focus of the dispute between the parties centers upon the question whether section 4553 is intended to cover the intentional acts of employers which cause employee injuries.4 The section provides [471]*471that “compensation otherwise recoverable shall be increased one-half where the employee is injured by reason of the serious and willful misconduct” of the employer, not to exceed $10,000. Defendant urges that the penalty imposed upon employers by this section is a substitute for a common law right of action against an employer whose intentional misconduct results in injury, while plaintiff argues that such misconduct is distinguishable from the “serious and willful misconduct,” described in section 4553, and therefore his complaint alleging intentional acts by defendant is cognizable in an action at law.
Defendant relies upon both the legislative history of the Workers’ Compensation Act and cases interpreting the words “serious and willful misconduct” in support of its position.
Prior to 1917, the law allowed an employee a choice of remedies if an injury was caused by an employer’s gross negligence or willful misconduct. He could either claim workers’ compensation benefits or maintain an action at law for damages. (Stats. 1913, ch. 176, § 12(b), pp. 283-284.) In that year, however, this provision was deleted and a new section added specifying a one-half increase in compensation in the event of serious and willful misconduct by the employer. (Stats. 1917, ch. 586, § 6(b), p. 834.) This history, contends defendant, demonstrates that the right to seek additional compensation for injuries caused by the serious and willful misconduct of the employer was intended by the Legislature as a substitute for the right to seek damages in an action at law for such conduct.
Plaintiff claims that the reason for the amendment was a desire by the Legislature to equalize the treatment of employer and employee with regard to the commission of acts of serious and willful misconduct.5 However, the argument is not convincing because it does not account for the repeal of the provision allowing an employee to bring an action at law for the employer’s willful misconduct.
[472]*472We find the historical background cited by defendant to be persuasive. The clear implication is that the addition in 1917 of the “exclusive remedy” limitation and the provision for a penalty for the willful misconduct of the employer was a substitute for the previous right of an employee to bring an action at law.
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Opinion
MOSK, J.
Section 3600 of the Labor Code provides that an employer is liable for injuries to its employees arising out of and in the course of employment, and section 3601 declares that where the conditions of [468]*468workers’ compensation exist, the right to recover such compensation is the exclusive remedy against an employer for injury or death of an employee.1 The issue to be decided in this proceeding is whether an employee is barred by these provisions from prosecuting an action at law against his employer for the intentional torts of fraud and conspiracy in knowingly ordering the employee to work in an unsafe environment, concealing the risk from him, and, after the employee had contracted an industrial disease, deliberately failing to notify the state, the employee, or doctors retained to treat him, of the disease and its connection with the employment, thereby aggravating the consequences of the disease.
[469]*469We conclude that while the workers’ compensation law bars the employee’s action at law for his initial injury, a cause of action may exist for aggravation of the disease because of the employer’s fraudulent concealment of the condition and its cause.
Reba Rudkin, real party in interest (hereinafter plaintiff), brought an action against Johns-Manville Products Corporation, his employer for 29 years (defendant) and others,2 alleging as follows:
Defendant is engaged in mining, milling, manufacturing, and packaging asbestos. Plaintiff worked in its Pittsburg, California, plant for 29 years beginning in February 1946, and he was continuously exposed to asbestos during that period. As a result of the exposure, he developed pneumoconiosis, lung cancer, or other asbestos-related illnesses.
The defendant corporation has known since 1924 that long exposure to asbestos or the ingestion of that substance is dangerous to health, yet it concealed this knowledge from plaintiff, and advised him that it was safe to work in close proximity to asbestos. It failed to provide him with adequate protective devices and did not operate the plant in accordance with state and federal regulations governing dust levels.
In addition, the doctors retained by defendant to examine plaintiff were unqualified, and defendant did not provide them with adequate information regarding the risk of asbestos exposure. It failed to advise these doctors of the development of pulmonary disease in plaintiff or of the fact that the disease was the result of the working conditions at the plant, although it knew that his illness was caused by exposure to asbestos. Finally, defendant willfully failed to file a First Report of Occupational Injury or Illness with the State of California regarding plaintiff’s injury, as required by law. Had this been done, and if the danger from asbestos had been revealed, plaintiff would have been pro[470]*470tected. Each of these acts and omissions was done falsely and fraudulently by defendant, with intent to induce plaintiff to continue to work in a dangerous environment. Plaintiff was ignorant of the risks involved, and would not have continued to work in such an environment if he had known the facts.
In a separate cause of action plaintiff alleged that defendant knowingly conspired with others to perpetrate the acts set forth above.
The complaint sought compensatory and punitive damages, including compensation for the cost of medical care which plaintiff was required to obtain in order to treat his illness.
Defendant filed an answer alleging, inter alia, that the action was barred under section 3601. It requested the trial court to take judicial notice of an application filed by plaintiff seeking workers’ compensation benefits for disability caused by “[ejxposure to asbestos.” Defendant moved for judgment on the pleadings on the ground that section 3601 bars the action. The trial court denied the motion. In this proceeding for a writ of mandate, defendant seeks to set aside the trial court’s order.
According to a brief filed on plaintiff’s behalf, he died of lung cancer after the petition for writ of mandate was filed. The issues presented are not moot, however, since an action for personal injuries survives the death of the plaintiff. (Prob. Code, § 573.)3
For purposes of reviewing the trial court’s denial of defendant’s motion, we must accept as true the allegations of plaintiff’s complaint. (Colberg, Inc. v. State of California ex rel. Dept. Pub. Wks. (1967) 67 Cal.2d 408, 411-412 [62 Cal.Rptr. 401, 432 P.2d 3].)
The primary focus of the dispute between the parties centers upon the question whether section 4553 is intended to cover the intentional acts of employers which cause employee injuries.4 The section provides [471]*471that “compensation otherwise recoverable shall be increased one-half where the employee is injured by reason of the serious and willful misconduct” of the employer, not to exceed $10,000. Defendant urges that the penalty imposed upon employers by this section is a substitute for a common law right of action against an employer whose intentional misconduct results in injury, while plaintiff argues that such misconduct is distinguishable from the “serious and willful misconduct,” described in section 4553, and therefore his complaint alleging intentional acts by defendant is cognizable in an action at law.
Defendant relies upon both the legislative history of the Workers’ Compensation Act and cases interpreting the words “serious and willful misconduct” in support of its position.
Prior to 1917, the law allowed an employee a choice of remedies if an injury was caused by an employer’s gross negligence or willful misconduct. He could either claim workers’ compensation benefits or maintain an action at law for damages. (Stats. 1913, ch. 176, § 12(b), pp. 283-284.) In that year, however, this provision was deleted and a new section added specifying a one-half increase in compensation in the event of serious and willful misconduct by the employer. (Stats. 1917, ch. 586, § 6(b), p. 834.) This history, contends defendant, demonstrates that the right to seek additional compensation for injuries caused by the serious and willful misconduct of the employer was intended by the Legislature as a substitute for the right to seek damages in an action at law for such conduct.
Plaintiff claims that the reason for the amendment was a desire by the Legislature to equalize the treatment of employer and employee with regard to the commission of acts of serious and willful misconduct.5 However, the argument is not convincing because it does not account for the repeal of the provision allowing an employee to bring an action at law for the employer’s willful misconduct.
[472]*472We find the historical background cited by defendant to be persuasive. The clear implication is that the addition in 1917 of the “exclusive remedy” limitation and the provision for a penalty for the willful misconduct of the employer was a substitute for the previous right of an employee to bring an action at law.
Next, defendant contends that the term “serious and willful misconduct” as used in section 4553 has the same meaning as intentional misconduct, and plaintiff may not avoid the bar of section 3601 merely by characterizing defendant’s conduct as intentional. Defendant relies on Mercer-Fraser Co. v. Industrial Acc. Com. (1953) 40 Cal.2d 102, 117 [251 P.2d 955], in which the term “willful misconduct” as used in section 4553 was defined as conduct which “‘necessarily involves deliberate, intentional, or wanton conduct in doing or omitting to perform acts, with knowledge or appreciation of the fact. . . that danger is likely ' to result therefrom.’ [¶] ‘Wilfulness necessarily involves the performance of a deliberate or intentional act or omission regardless of the consequences.’”6 This definition expressly includes intentional conduct within the purview of section 4553.
Plaintiff counters that the Legislature recognized a difference between intentional misconduct and serious and willful misconduct because it has provided that an employee who is guilty of the former is precluded from recovering workers’ compensation (§ 3600, subds. (d), (e), (f), (g)), whereas if he is injured as the result of his own serious and willful misconduct he only suffers a one-half reduction in compensation benefits (§ 4551).
The contention misconstrues these provisions. The only intentional misconduct of an employee which excludes his right to compensation is the deliberate infliction of injury upon himself, his participation in an [473]*473altercation in which he is the aggressor, or where his injuries are caused by intoxication. (See fn. 1, ante, p. 468.) These provisions were obviously designed, at least in part, to prevent an employee from injuring himself in order to collect compensation, to deter physical aggression by employees, and to prevent injuries due to intoxication. The fact that the Legislature chose to except these particular types of intentional acts from compensation coverage does not imply that all types of employee misconduct which may be described as intentional will preclude recovery of compensation. If, for example, the employee deliberately performs an act “with knowledge or appreciation of the fact. . . that danger is likely to result therefrom”—conduct which constitutes serious and willful misconduct under section 4551 (Mercer-Fraser Co. v. Ind. Acc. Com., supra, 40 Cal.2d 102, 117)—he is not precluded from recovering compensation but is only subject to a reduction of his recovery by one-half.7
In sum, the provisions of section 4553 were designed to penalize intentional misconduct of an employer, and the injuries which result from such acts are compensable under that section.
However, while the case law cannot be described as consistent, it reveals that in some exceptional circumstances the employer is not free from liability at law for his intentional acts even if the resulting injuries to his employees are compensable under workers’ compensation. Indeed, in one unusual situation, despite the “exclusive remedy” provision of section 3601, an action at law was allowed for injuries incurred in the employment where the employer’s conduct was negligent rather than intentional.8
First we consider cases in which the intentional acts of the employer have been held not to justify an action at law. Compensation was determined to be the exclusive remedy for injuries suffered in a case in [474]*474which the employer concealed the dangers inherent in the material the employees were required to handle (Wright v. FMC Corp. (1978) 81 Cal.App.3d 111, 119 [146 Cal.Rptr. 740]) or made false representations in that regard (Buttner v. American Bell Tel. Co. (1940) 41 Cal.App.2d 581, 584 [107 P.2d 439].) The same conclusion was reached on the basis of allegations that the employer was guilty of malicious misconduct in allowing an employee to use a machine without proper instruction. (Law v. Dartt (1952) 109 Cal.App.2d 508, 509 [240 P.2d 1013].)
The reason for the foregoing rule seems obvious. It is not uncommon for an employer to “put his mind” to the existence of a danger to an employee and nevertheless fail to take corrective action. (See, e.g., Rogers Materials Co. v. Ind. Acc. Com., supra, 63 Cal.2d 717, 723.) In many of these cases, the employer does not warn the employee of the risk. Such conduct may be characterized as intentional or even deceitful. Yet if an action at law were allowed as a remedy, many cases cognizable under workers’ compensation would also be prosecuted outside that system. The focus of the inquiry in a case involving work-related injury would often be not whether the injury arose out of and in the course of employment, but the state of knowledge of the employer and the employee regarding the dangerous condition which caused the injury. Such a result would undermine the underlying premise upon which the workers’ compensation system is based. That system balances the advantage to the employer of immunity from liability at law against the detriment of relatively swift and certain compensation payments. Conversely, while the employee receives expeditious compensation, he surrenders his right to a potentially larger recovery in a common law action for the negligence or willful misconduct of his employer. This balance would be significantly disturbed if we were to hold, as plaintiff urges, that any misconduct of an employer which may be characterized as intentional warrants an action at law for damages. It seems clear that section 4553 is the sole remedy for additional compensation against an employer whose employee is injured in the first instance as the result of a deliberate failure to assure that the physical environment of the work place is safe.
Thus, if the complaint alleged only that plaintiff contracted the disease because defendant knew and concealed from him that his health was endangered by asbestos in the work environment, failed to supply [475]*475adequate protective devices to avoid disease, and violated governmental regulations relating to dust levels at the plant, plaintiffs only remedy would be to prosecute his claim under the workers’ compensation law.
But where the employer is charged with intentional misconduct which goes beyond his failure to assure that the tools or substances used by the employee or the physical environment of a workplace are safe, some cases have held that the employer may be subject to common law liability. A physical assault by the employer upon the employee has been held to justify an action at law against the employer. (Magliulo v. Superior Court (1975) 47 Cal.App.3d 760, 779 [121 Cal.Rptr. 621]; see Meyer v. Graphic Arts International Union (1978) 88 Cal.App.3d 176, 178 [151 Cal.Rptr. 597]; contra, Azevedo v. Abel (1968) 264 Cal.App. 2d 451, 458-460 [70 Cal.Rptr. 710].) In Ramey v. General Petroleum Corp. (1959) 173 Cal.App.2d 386, 402 [343 P.2d 787], it was held that an action for fraud could be maintained against an employer who made misrepresentations regarding the employee’s right to medical care and conspired with a third party to conceal from the employee that his injuries, which occurred while he was working, were caused by the third party against whom he had recourse. And in Unruh v. Truck Insurance Exchange (1972) 7 Cal.3d 616, 630 [102 Cal.Rptr. 815, 498 P.2d 1063], we allowed an action at law against an insurer for assault, battery, and intentional infliction of emotional distress, based upon its deceitful conduct in investigating a workers’ compensation claim.9
The reasons given in these cases for allowing a common law action for intentional misconduct of the employer vary. In Magliulo the rationale was based, at least in part, on the ground that since an employee may sue a fellow employee at law for assault (§ 3601, subd. (a)(1)), he should have the same right against his employer, and that an intentional assault by the employer has a questionable relationship to the general conditions of employment.
[476]*476Ramey held that even though the employee had previously recovered workers’ compensation for the physical injury arising from the employment, the injury from the fraudulent concealment of his cause of action was distinct from the industrial injury and did not occur while he was performing services growing out of or incidental to his employment. The court declared that the Legislature never intended that an employer’s fraud was a risk of the employment.
In Unruh, we recognized that an insurer ordinarily stands in the shoes of the employer when it investigates a claim for compensation (§§ 3850, 3852), and that its negligence in carrying out this duty must be remedied under the compensation law. However, we held that the immunity from common law liability was lost insofar as the insurer did not “remain in its proper role” but, rather, acted deceitfully in investigating the claim. A separate cause of action was allowed against the insurer for aggravation of the initial industrial injury, for which the plaintiff had already received compensation.10
The parties attempt to distinguish, harmonize, or explain these holdings. While we do not purport to find in them a tidy and consistent rationale, we perceive in Magliulo, Meyer and Unruh a trend toward allowing an action at law for injuries suffered in the employment if the employer acts deliberately for the purpose of injuring the employee or if the harm resulting from the intentional misconduct consists of aggravation of an initial work-related injury. In Magliulo, Meyer, Unruh, and Ramey, the alleged misconduct consisted of assault or fraud and deceit. Ramey and Unruh distinguished between an initial injury and a later injury which is separate from but related to the first injury (Ramey) or aggravates the initial injury (Unruh).
[477]*477In the present case, plaintiff alleges that defendant fraudulently concealed from him, and from doctors retained to treat him, as well as from the state, that he was suffering from a disease caused by ingestion of asbestos, thereby preventing him from receiving treatment for the disease and inducing him to continue to work under hazardous conditions. These allegations are sufficient to state a cause of action for aggravation of the disease, as distinct from the hazards of the employment which caused him to contract the disease.
This approach is not inconsistent with cases which hold that aggravation of an industrial injury by negligent treatment or the negligent failure to provide treatment may not be made the basis of an action at law against the employer or its insurer. (Deauville v. Hall (1961) 188 Cal.App.2d 535, 543-544 [10 Cal.Rptr. 511]; Noe v. Travelers Ins. Co. (1959) 172 Cal.App.2d 731, 735-737 [342 P.2d 976]; Hazelwerdt v. Industrial Indem. Exchange (1958) 157 Cal.App.2d 759, 761-765 [321 P.2d 831].) Unruh distinguished between negligent and intentional misconduct in this regard holding, as we have seen, that an insurer which engages in intentional misconduct following a compensable injury may be held liable in an action at law for aggravation of the injury. (7 Cal.3d 616 at pp. 626-628.)
In Magliulo it was said that although an employee might be willing to surrender his right to an action at common law for the ordinary type of work-related injuries, it is not equally clear that when he accepts employment he contemplates his employer might assault him or if an assault occurs he must be satisfied with the additional compensation provided by section 4553. So, here, it is inconceivable that plaintiff contemplated defendant would, as he alleges, intentionally conceal the knowledge that he had contracted a serious disease from the work environment, thereby aggravating the disease, and by accepting employment he would surrender his right to damages at law for such conduct.11__
[478]*478Moreover, defendant’s alleged actions are more blameworthy than the insurer’s conduct in using “evidence perfidiously” procured in Unruh, and, if established at trial, are so egregious and the societal interest in deterring similar conduct in the future is so great that there is justification for awarding punitive damages. Such a penalty, however, may be afforded only in an action at law.12
It bears emphasis that in allowing an action at law in this case we do not quarrel with the courts which have strictly construed section 3601 so as to “preserve the spirit of the act and to prevent distortion of its purposes.” (Eckis v. Sea World Corp. (1976) 64 Cal.App.3d 1, 7 [134 Cal.Rptr. 183]; Saala v. McFarland (1965) 63 Cal.2d 124, 130 [45 Cal.Rptr. 144, 403 P.2d 400]; Deauville v. Hall, supra, 188 Cal.App.2d 535, 546-547; Noe v. Travelers Ins. Co., supra, 172 Cal.App.2d 731, 737.) But we do not subscribe to the fears of defendant that a holding in plaintiff’s favor would open up a Pandora’s box of actions at law seeking damages for numerous industrial diseases. Restricting plaintiff’s damages to aggravation of the disease caused by the alleged fraud of defendant would substantially limit the number of such actions.
We conclude the policy of exclusivity of workers’ compensation as a remedy for injuries in the employment would not be seriously undermined by holding defendant liable for the aggravation of this plaintiff’s injuries, since we cannot believe that many employers will aggravate the effects of an industrial injury by not only deliberately concealing its existence but also its connection with the employment. Nor can we believe that the Legislature in enacting the workers’ compensation law intended to insulate such flagrant conduct from tort liability. Finally, although plaintiff filed an application for workers’ compensation and may receive an award in that proceeding, double recovery may be avoided by allow[479]*479ing the employer a setoff in the event plaintiff is awarded compensation for the aggravation of his injury in that proceeding and in the present case as well. (See Unruh v. Truck Insurance Exchange, supra, 7 Cal. 3d 616, 636.)
The writ is denied.
Bird, C. J., Tobriner, J., Manuel, J., and Newman, J., concurred.