Laundree v. AMCA International

908 F.2d 43
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 6, 1990
DocketNo. 89-2058
StatusPublished
Cited by1 cases

This text of 908 F.2d 43 (Laundree v. AMCA International) 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
Laundree v. AMCA International, 908 F.2d 43 (6th Cir. 1990).

Opinion

WELLFORD, Circuit Judge.

Plaintiff Ronald Laundree, a Michigan resident, sued defendant employer, AMCA International (AMCA), and its insurance carrier, Travelers Insurance Company (Travelers), following plaintiffs work-related injury. Jurisdiction in the district court was based on diversity of citizenship. Plaintiff was injured when another employee, who was allegedly drunk, failed to operate a crane properly. Plaintiff maintains that numerous members of AMCA’s management team knew that Phelps, the crane operator, regularly reported to work drunk, and knew that Phelps was drunk on the date in question.

The accident in AMCA’s workplace occurred on January 21, 1987. The Michigan Supreme Court shortly before this date had occasion to decide whether intentional torts by an employer might take a work-related injury outside the broad scope of Michigan’s workmen’s compensation law in Beauchamp v. Dow Chemical Co., 427 Mich. 1, 398 N.W.2d 882 (1986). Intentional torts were held to be outside the scope of the workmen’s compensation law, and would therefore give rise to a traditional suit against the employer in tort:

An intentional tort is not ... limited to consequences which are desired. If the actor knows that the consequences are certain, or substantially certain, to result from his act and still goes ahead, he is treated by the law as if he had in fact desired to produce the result. It does not matter whether the employer wishes the injury would not occur or does not care whether it occurs. If the injury is substantially-certain to occur as a consequence of actions the employer intended, the employer is deemed to have intended the injuries as well.

Beauchamp, 398 N.W.2d at 891-92 (footnotes and internal quotations omitted).

Following Beauchamp, the legislature amended the Michigan workmen’s compensation act to allow separate suits for intentional torts, an area in which the act had previously been silent. The legislature’s definition of intentional tort, however, was stricter than that adopted by the Michigan Supreme Court in Beauchamp.

An intentional tort shall exist only when an employee is injured as a result of a deliberate act of the employer and the employer specifically intended an injury. An employer shall be deemed to have intended to injure if the employer had actual knowledge that an injury was certain to occur and willfully disregarded that knowledge. The issue of whether an act was an intentional tort shall be a question of law for the court. This subsection shall not enlarge or reduce rights under law.

M.S.A. § 17.237(131), M.C.L. § 418.131 (emphasis added).

This revised statute became law on May 14, 1987, four months after the injury complained of by plaintiff. Ruling against Laundree from the bench on defendants’ motion to dismiss, the district court indicated (1) that plaintiff failed to meet even the more liberal Beauchamp standard, and (2) that the amended statute is properly viewed as retroactive in its application. Plaintiff asserts that the district court was wrong on both scores, and appeals the adverse judgment.

1. Is plaintiff’s claim barred because the amendment is retroactive?

Appellant argues that a split of authority exists in the Michigan courts of appeals on the retroactivity issue. In Schefsky v. Evening News Ass’n, 169 Mich. [45]*45App. 223, 425 N.W.2d 768 (1988), the court flatly held that the amended version of the workmen’s compensation statute should be applied retroactively, because it is “remedial or procedural in nature.” 425 N.W.2d at 770.

A statute which operates in furtherance of a remedy already existing and which neither creates new rights nor destroys existing rights is held to operate retroactively unless a contrary legislative intent is manifested. Allstate Ins. Co. v. Vaulhaber, 157 Mich.App. 164, 167, 403 N.W.2d 527 (1987); Joe Dwyer, Inc. v. Jaguar Cars, Inc., 167 Mich.App. 672, 681, 423 N.W.2d 311 (1988).

425 N.W.2d at 770-71. The court’s conclusion that the statute’s amendment neither created new rights nor destroyed existing ones was bolstered by the actual language of the statute: “This subsection shall not enlarge or reduce rights under law.” 425 N.W.2d at 770.

In Bowden v. McAndrew, 173 Mich.App. 591, 434 N.W.2d 195 (1988), the court acknowledged the retroactivity decision of the Schefsky panel, and concluded:

We agree [that the amendment should be applied retroactively]. In any event, using either the “substantial certainty” standard set forth in Beauchamp or the amendatory language, we believe that plaintiff’s complaint sets forth a cause of action sounding in negligence, not an intentional tort and, thus, is barred by the exclusive remedy provision of ... § 131.

Temple v. H.J. Heinz Co., 180 Mich.App. 138, 446 N.W.2d 869 (1989), further strengthened the effect of Schefsky, holding:

We follow our Court’s previous decision in Schefsky ..., which held that the amendment operates retroactively since it is procedural in nature, as by its terms “[t]his subsection shall not enlarge or reduce rights under law,” and was apparently prompted by the Legislature’s desire to correct or clarify uncertainty regarding the original act....
Additionally, we find the holding of Schefsky unchanged by our Supreme Court’s recent plurality in White v. General Motors Corp., 431 Mich. 387, 429 N.W.2d 576 (1988), which essentially held that [a different amendment to the workmen’s compensation act] operated prospectively only for injuries occurring on or after the effective date. The Court found that the amendment ...

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Laundree v. Amca International
908 F.2d 43 (Sixth Circuit, 1990)

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908 F.2d 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laundree-v-amca-international-ca6-1990.