Kevin Littlepage v. Century Aluminum Co.

712 F. App'x 550
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 8, 2017
Docket17-5486
StatusUnpublished

This text of 712 F. App'x 550 (Kevin Littlepage v. Century Aluminum Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kevin Littlepage v. Century Aluminum Co., 712 F. App'x 550 (6th Cir. 2017).

Opinion

OPINION

JOHN K. BUSH, Circuit Judge.

Defendant Century Aluminum Company (“Century”) is a publicly traded Delaware corporation that produces aluminum. Century Aluminum Sebree (“Sebree”), Century’s wholly owned subsidiary, operates an aluminum-smelting facility in Henderson, Kentucky. Plaintiff Kevin Littlepage was employed as a pot worker at that facility when he slipped on a walkway and fell, causing his right foot to contact molten aluminum. His boot caught fire, he suffered burns, and he lost his right foot and portions of his right leg.

Littlepage has received over $300,000 in workers’ compensation payments. In this action, Littlepage sued Century for negligence and gross negligence, claiming that Century was in direct control of the smelting facility and that debris and residue on the walkway caused his fall. But because Century is immune from tort liability under a Kentucky statute that makes workers’ compensation Littlepage’s exclusive remedy, Ky. Rev. Stat. § 342.690(1), the district court granted summary judgment in favor of Century. For the same reason, we affirm.

I

We review the district court’s grant of summary judgment de novo. See Gradisher v. City of Akron, 794 F.3d 674, 682 (6th Cir. 2015). We draw all reasonable inferences in favor of Littlepage. See Slusher v. Carson, 540 F.3d 449, 453 (6th Cir. 2008). If, on “the record taken as a whole,” no rational trier of fact could find for Little-page, then there is no genuine issue for trial, and Century is entitled to judgment as a matter of law. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); see Fed. R. Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Street v. J.C. Bradford & Co., 886 F.2d 1472, 1479 (6th Cir. 1989). Kentucky law governs this appeal, and we apply Kentucky law in accordance with the controlling decisions of the Kentucky Supreme Court. See Allstate Ins. Co. v. Thrifty Rent-A-Car Sys., Inc., 249 F.3d 450, 454 (6th Cir. 2001). If the Kentucky Supreme Court has not yet addressed an issue presented, we predict how that court would rule in light of the decisions of the Kentucky Court of Appeals and other “relevant data.” Ibid. (quoting Kingsley Assocs., Inc. v. Moll PlastiCrafters, Inc., 65 F.3d 498, 507 (6th Cir. 1995)).

II

Kentucky’s Workers’ Compensation Act provides guaranteed insurance to workers, paying benefits to employees who sustain work-related injuries, “without regard to fault.” Ky. Rev. Stat. § 342.610(1). The Act imposes liability for those compensation payments upon the employer, also without fault, and, in exchange, grants employers immunity from tort claims arising from covered injuries. That immunity extends on equal terms to the “employer’s carrier.” Ky, Rev. Stat. § 342.690(1). It is undisputed that Sebree (and not Century) was Lit-tlepage’s employer. The question before us is whether Century is immune from suit as Sebree’s carrier.

“Carrier,” as defined by statute, “means any insurer, or legal representative thereof, authorized to insure the liability of employers under this chapter and includes a self-insurer.” Ky. Rev. Stat. § 342.0011(6). A “self-insurer” is an employer that has been authorized under the Act to bear its own liability for workers’ compensation claims — that is, an employer approved by the Kentucky Department of Workers’ Claims to be exempt from purchasing external insurance to cover workers’ compensation liability. Ky. Rev. Stat, § 342.0011(6). When a subsidiary corporation wishes to apply to be self-insured as to workers’ compensation, it must obtain and file “a guarantee from the subsidiary’s parent corporation on Form SI-01, Self-Insurers’ Guarantee Agreement.” 803 Ky. Admin. Regs. 25:021 § 3(1)(i).

It is undisputed that Sebree (and not Century) was such a self-insurer and that Century executed Form SI-01, thereby guaranteeing Sebree’s workers’ compensation liability and allowing Sebree to be a self-insurer.

Century argues that because it was Se-bree’s guarantor, it was Sebree’s “insurer” and thus Sebree’s “carrier” immune from suit. Littlepage argues that Century’s status as a guarantor is insufficient to make it a carrier; Littlepage further argues that because Century was not a self-insurer as to its o%m workers’ compensation liability, Century cannot be a “carrier.”

The Kentucky Supreme Court’s recent decision in Falk v. Alliance Coal, LLC, 461 S.W.3d 760 (Ky. 2015), forecloses Little-page’s arguments. In that case, surviving widows and children of deceased miners sued the miners’ two employers and also sued Alliance Coal, the parent company and sole owner of both employers. Like Sebree, the subsidiary employers in Falk were self-insurers for the purpose of workers’ compensation, and Alliance, the parent, was their guarantor, having executed the same Form SI-01 that Century executed here. And, as in this case, the plaintiffs in Falk argued that Alliance “was not a ‘carrier,’ but a ‘guarantor,’ and that guarantors have no immunity.” Falk, 461 S.W.3d at 764. The Kentucky Supreme Court held, unanimously, that Alliance did have immunity as the subsidiary employers’ carrier, even though (as the court recognized) a narrow interpretation of “carrier” might include only insurance companies and not parent corporations acting as guarantors. See id. at 794-95 (“The legislature could have more narrowly defined carrier as an insurance company, which it did when it defined ‘insurance carrier.’ ... Furthermore, the legislature could have stated that only an insurance carrier is immune from liability. However, the legislature chose to define carrier more broadly, thus extending immunity beyond insurance companies[.]”) (citation omitted).

The Kentucky Supreme Court articulated the reasons why its result was a sensible reading of the workers’ compensation statute:

[O]ur holding is in harmony with one of the purposes of the Act, to extend benefits to employees without the need to prove fault, while protecting employers from tort liability.
The Workers’ Compensation Act is social legislation, a product of compromises by workers and employers.. Workers agree to forego common law remedies in exchange for statutory benefits awarded without regard to fault.

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Related

Henderson v. Texas Eastern Gas Pipeline Co.
932 F.2d 968 (Sixth Circuit, 1991)
Slusher v. Carson
540 F.3d 449 (Sixth Circuit, 2008)
Labor Ready, Inc. v. Johnston
289 S.W.3d 200 (Kentucky Supreme Court, 2009)
Malkiewicz v. R.R. Donnelley & Sons Co.
703 F. Supp. 49 (M.D. Tennessee, 1989)
Malkiewicz v. R.R. Donnelley & Sons Co.
794 S.W.2d 728 (Tennessee Supreme Court, 1990)
Falk v. Alliance Coal, LLC
461 S.W.3d 760 (Kentucky Supreme Court, 2015)
Boggs v. Blue Diamond Coal Co.
590 F.2d 655 (Sixth Circuit, 1979)

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Bluebook (online)
712 F. App'x 550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kevin-littlepage-v-century-aluminum-co-ca6-2017.