Leeman v. Boylan

590 A.2d 610, 134 N.H. 230, 1991 N.H. LEXIS 38
CourtSupreme Court of New Hampshire
DecidedMay 3, 1991
DocketNo. 90-277
StatusPublished
Cited by20 cases

This text of 590 A.2d 610 (Leeman v. Boylan) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leeman v. Boylan, 590 A.2d 610, 134 N.H. 230, 1991 N.H. LEXIS 38 (N.H. 1991).

Opinion

BROCK, C.J.

The issue presented on this appeal is whether an injured employee, having received workers’ compensation benefits, can maintain an action to recover for his injuries against his employer’s parent corporation based on an allegation that the parent had the “primary overall responsibility for the safety of [its subsidiary’s employees].” The plaintiffs, Albert Leeman, Sr., and his wife, Yvonne Leeman, challenge the Superior Court’s (Temple, J.) granting of defendants’ motion to dismiss their negligence suit against Boston Sand and Gravel Co., Inc. (BS&G), which is the parent corporation of Mr. Leeman’s employer, Ossipee Aggregates Corp. (OA). The superior court ruled that the plaintiffs’ pleadings failed to allege adequately a breach of duty owed by BS&G that was sufficiently distinct from OA’s duty, as Mr. Leeman’s employer, to provide a safe workplace, and that Rounds v. Standex International, 131 N.H. 71, 550 A.2d 98 (1988), therefore barred recovery. For the reasons that follow, we reverse.

[232]*232Because this appeal is taken from a dismissal on the pleadings, we take our facts from the plaintiffs’ writ, accepting them as true and construing all reasonable inferences therefrom in the light most favorable to the plaintiffs. Collectramatic, Inc. v. Kentucky Fried Chicken Corp., 127 N.H. 318, 320, 499 A.2d 999, 1000 (1985); Jarvis v. Prudential Ins. Co., 122 N.H. 648, 651, 448 A.2d 407, 409 (1982). According to the plaintiffs, OA is a New Hampshire corporation which operates a gravel and sand pit in Ossipee. While working as a truck driver for OA, Albert Leeman injured his knee when he struck it against the sharp corner of the fender of a truck that he was driving for OA. The plaintiffs claim that the truck had a missing step up to the driver’s seat, and, as a result, when Mr. Leeman attempted to enter the truck, he hit his knee on the truck’s fender.

After collecting workers’ compensation benefits from OA, the plaintiffs filed a multi-count writ in negligence against OA, against OA’s parent corporation, BS&G, and against Dean Boylan, Sr., and Dean Boylan, Jr., as corporate officers of BS&G and OA, respectively. The defendants moved to dismiss the entire writ, arguing that either the employer immunity provision of New Hampshire’s workers’ compensation statute, see RSA 281-A:8 (Supp. 1990), protected them from suit or, alternatively, that the defendants owed the plaintiffs no duty under our decision in Rounds supra, thus precluding the plaintiffs’ action. Focusing on our decision in Rounds, the trial court agreed with the defendants, and dismissed all of the plaintiffs’ claims.

On appeal, the Leemans contest only the dismissal of the count brought against BS&G as the parent corporation of OA and raise two issues for our consideration. First, may an employer’s parent corporation claim the protection of the employer immunity provision under New Hampshire’s workers’ compensation statute? See RSA 281-A:8,1(a) (Supp. 1990). Second, does our holding in Rounds, that employers have the nondelegable duty to keep their workplaces safe for their employees, Rounds, 131 N.H. at 76-77, 550 A.2d at 101-02, foreclose an injured employee from seeking recovery from the employer’s parent corporation based on an allegation that the parent had “the primary overall responsibility for the safety of [its subsidiary’s employees]”?

In New Hampshire an employee who is eligible to receive workers’ compensation benefits is “conclusively presumed ... to have waived all rights of action whether at common law or by statute or otherwise: Against [his or her] employer. . . .” RSA 281-A:8, [233]*233I(a)(Supp. 1990). In the context of our Workers’ Compensation Law, we have said that a private employment relationship refers to ‘“any contract of hire, express or implied, oral or written____'" Swiezynski v. Civiello, 126 N.H. 142, 144, 489 A.2d 634, 636 (1985) (quoting RSA 281:2, III, current version at RSA 281-A:2, VI (Supp. 1990)). Whether such a relationship exists requires an examination of “the employer’s right to the employee’s labor and [its] right to control the employee’s performance, and the employee’s corresponding right to compensation.” Id. at 145, 489 A.2d at 637. The plaintiffs argue that BS&G, simply by virtue of its position as OA’s parent corporation, cannot claim that Mr. Leeman was its employee in order to gain the protection of the statutory bar from suit. We agree.

In Tanguay v. Marston, 127 N.H. 572, 503 A.2d 834 (1986), the plaintiff, after having collected workers’ compensation benefits from his corporate employer, brought suit to recover for his job-related injuries against a defendant who was the principal shareholder and president of the corporate employer. Id. at 574, 503 A.2d at 835. The defendant successfully argued before a master that, as a matter of law, the employer immunity provision of the workers’ compensation statute barred the plaintiff’s suit against him. Id. at 576, 503 A.2d at 836. In reversing the master’s finding, we recognized that, as a corporation, the plaintiff’s employer was a separate legal entity from its principal shareholder. As such, we held that “[a]n individual such as the defendant will share a corporation’s employer immunity only when he is the alter ego of the corporation and is performing corporate responsibilities.” Id.

We find this holding applicable to the present case. Although BS&G is a corporation and not a person, it is a separate legal entity from its subsidiary, OA, Mr. Leeman’s employer. Thus, the fact that OA is owned by BS&G “is not conclusive to establish a single employer unit between two corporations [for workers’ compensation purposes].” 1 W. Fletcher, Fletcher Cyclopedia of the Law of Private Corporations § 43.80, at 788 (1990). As one court has noted:

“[A] business enterprise has a range of choice in controlling its own corporate structure. . . . The owners may take advantage of the benefits of dividing the business into separate corporate parts, but principles of reciprocity require that courts also recognize the separate identities of the enterprises when sued by an injured employee. . . . [T]he tort [234]*234system should not deny recovery ... to an injured employee due to the fortuitous circumstance that the [alleged] tortfeasor is not a stranger but is controlled by the same business enterprise that controls his immediate employer.”

Boggs v. Blue Diamond Coal Co., 590 F.2d 655, 662 (6th Cir.), cert. denied, 444 U.S. 836 (1979) (applying Kentucky law).

Accordingly, unless BS&G can demonstrate that it is the alter ego of its subsidiary, it cannot claim the employer immunity of the workers’ compensation statute. Because this appeal is taken from a decision on the pleadings, the factual question of whether BS&G is OA’s alter ego remains. See Tanguay, supra at 576, 503 A.2d at 836; Stevens v. Lewis, 118 N.H.

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Bluebook (online)
590 A.2d 610, 134 N.H. 230, 1991 N.H. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leeman-v-boylan-nh-1991.