Kendrick v. Federal Express

1993 OK CIV APP 147, 868 P.2d 748, 65 O.B.A.J. 569, 1993 Okla. Civ. App. LEXIS 184, 1993 WL 574164
CourtCourt of Civil Appeals of Oklahoma
DecidedAugust 24, 1993
DocketNos. 79631, 79836
StatusPublished
Cited by1 cases

This text of 1993 OK CIV APP 147 (Kendrick v. Federal Express) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kendrick v. Federal Express, 1993 OK CIV APP 147, 868 P.2d 748, 65 O.B.A.J. 569, 1993 Okla. Civ. App. LEXIS 184, 1993 WL 574164 (Okla. Ct. App. 1993).

Opinion

BRIGHTMIRE, Judge.

The dispositive question is whether the district court erred in exercising jurisdiction over, and ordering the apportionment and disbursement of, proceeds derived from the settlement of a workers’ compensation claimant’s third-party claim.

We hold that the court did not err and sustain its order.1

I

The operative facts are not in dispute. The plaintiff-claimant, Matella Kendrick, sustained personal injuries November 15, 1990, as a result of a motor vehicle accident while driving a delivery truck for the defendant-employer, Federal Express.

Kendrick filed her Form 3 January 22, 1991. While receiving medical treatment and temporary total disability benefits from the employer she unilaterally negotiated a settlement with a third-party defendant’s automobile liability insurance carrier for the policy limits of $10,000 — a settlement which was approved by the Workers’ Compensation Court on July 12, 1991, over the objection of Federal Express.

On September 3, 1991, Kendrick filed suit in the District Court of Tulsa County against Federal Express asking that court to apportion the proceeds resulting from the settlement. A few days later Federal Express moved to dismiss the district court action on two grounds: (1) Plaintiff Kendrick’s petition failed to state a valid claim for relief under the terms of 85 O.S.1991 § 44 — the statute she relied on; and (2) the district court lacked subject matter jurisdiction because the matter is vested exclusively in the Workers’ Compensation Court by 85 O.S.1991 § 12. The motion was denied on October 1, 1991, in an order which also stated that the subrogation interest of defendant Federal Express in the recovered proceeds would not be determined until after the Workers’ Compensation Court had made a final determination of workers’ compensation benefits.

The following January, Kendrick’s workers’ compensation claim was -tried. Federal Express says it asked the trial judge “to make a specific finding as to whether the employer herein is responsible only for the deficiency between the amount actually collected from the third party and the amount of compensation provided for by the Workers’ Compensation Act.”2 The Workers’ Compensation Court judge, in an order filed February 5, 1992, awarded to the claimant the amount of $15,913 for permanent partial disability, but made no mention of Federal Express’ request for a deficiency finding. Federal Express appealed to the three-judge panel on February 11, 1992.

On April 21, 1992, the District Court of Tulsa County entered an “Order for Apportionment of Funds” which apportioned the entire $10,000 to plaintiff Kendrick.

Federal Express appealed this order May 14, 1992, and it was given number 79,631.

Then on June 2, 1992, the Workers’ Compensation Court three-judge panel sustained the workers’ compensation trial court in an order which Federal Express complains was also silent about “whether a deficiency existed between the amount actually collected from the third party and the amount of compensation provided for by the Workers’ Compensation Act.” Federal Express also appealed this order on June 18, 1992, and it bears appeal No. 79,836.

On July 20,1992, the supreme court issued an order consolidating the two appeals under No. 79,631.3

[750]*750II

Federal Express’ first “Proposition” relates to an error raised in appeal No. 79,886. Since that appeal has been dismissed pursuant to Civil Appellate Procedure Rule 1.104(b), it is not reviewable.4

III

The second “Proposition” advanced by Federal Express is a question, viz.: “Does 85 O.S.[1991] § 44 create an independent cause of action between an injured employee and the employer which is separate and apart from an employee’s action against a negligent third party?”

Federal Express’ ensuing discussion suggests it is of the opinion that the question should be answered in the negative. It evidently takes the position that the jurisdiction conferred on the district court by § 44(a) must be invoked by first filing a lawsuit against the third-party tortfeasor.

This, however, is not what § 44(a) says. The relevant last paragraph reads:

“In the event that recovery is effected by compromise settlement, then in that event the expenses, attorneys fees and the balance of the recovery may be divided between the employer of insurance company having paid compensation and the employee or his representatives as they may agree. Provided, that in the event they are unable to agree, then the same shall be apportioned by the district court having jurisdiction of the employee’s action against such other person, in such manner as is just and reasonable.”

When the phrase “shall be apportioned by the district court having jurisdiction of the employee’s [third-party] action” is considered in context of the first sentence, it is clear that the legislative intent was to place the responsibility for apportioning third-party claim recoveries in the district court, as distinguished from the Workers’ Compensation Court, whether a third-party lawsuit is filed or not. And this makes sense because it tends to maintain a consistency of jurisdiction and forum with respect to both filed and unfiled third-party claims.

Thus our answer to the question Federal Express poses is that to the extent § 44 provides for submitting a compromise settlement recovery of an unfiled claim to the court for apportionment between the employee and employer it does, by implication, create a claim for such statutory relief.

IV

Having established that the district court’s jurisdiction was properly invoked by employee Kendrick, we turn to Federal Express’ last contention which reads in its entirety as follows:

“Alternatively, the District Court has committed error as a matter of law by awarding one hundred percent (100%) of the funds received from the third party insurer to Ms. Kendrick. The employer should have received a portion of these proceeds as mandated in Prettyman v. Halliburton Company, No. 63,557 (Okla. May 5, 1992).”5

We disagree. Prettyman involved a factual situation significantly different from the one we deal with in the case sub judice. In Prettyman the workers’ compensation carrier had paid out some $152,986.95 for work-related injuries the employee sustained as a result of a third-party tortfeasor. The guardian for the seriously injured worker elected to bring a third-party action against the tortfeasor, Halliburton Company, seeking eleven million dollars. The claim was eventually settled for two million dollars — a figure which the plaintiff considered to be one-third of the value of the case. To satisfy the compensation carrier’s subrogation claim the employee’s guardian asked the district court to apportion the recovery by awarding the carrier one-third of the amount it had paid out — $50,485.69—to equate with the plaintiffs settling for one-third of the estimated [751]*751value of his claim, less $21,280.21 for the carrier’s share of the attorney’s fee and expenses, leaving a net reimbursement in the amount of $29,205.48. The trial court found this figure to be “just and reasonable” as required by § 44(a).

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Cite This Page — Counsel Stack

Bluebook (online)
1993 OK CIV APP 147, 868 P.2d 748, 65 O.B.A.J. 569, 1993 Okla. Civ. App. LEXIS 184, 1993 WL 574164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kendrick-v-federal-express-oklacivapp-1993.