Liberty Mutual Insurance Company v. Stevenson

368 S.W.2d 760, 212 Tenn. 178, 16 McCanless 178, 1963 Tenn. LEXIS 410
CourtTennessee Supreme Court
DecidedJune 4, 1963
StatusPublished
Cited by86 cases

This text of 368 S.W.2d 760 (Liberty Mutual Insurance Company v. Stevenson) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Mutual Insurance Company v. Stevenson, 368 S.W.2d 760, 212 Tenn. 178, 16 McCanless 178, 1963 Tenn. LEXIS 410 (Tenn. 1963).

Opinion

MR. Chiep Justice Bubnett

delivered the opinion of the Court.

This is a workmen’s compensation suit brought under the provisions of sec. 50-901 et seq., T.C.A. The Chancellor awarded the petitioner thirty-five (35%) per cent permanent partial disability to the body as a whole. To this award no exception has been taken. In addition to the above award the sum of $2,500.00 punitive damages was awarded on the ground that the insurance company, appellant here, refused to pay compensation for a period of approximately five (5) months immediately prior to the trial. The further decree was that if these compensation payments were not immediately started the punitive damages would be raised to $5,000.00.

The only question presented on this appeal is does the court in a workmen’s compensation case have the *180 right and authority to award to the petitioning’ employee, in addition to such compensation benefits as he may be entitled to, punitive damages?

Of course, there could be no argument about the fact that the terms, “punitive damages”, “exemplary damages”, “vindictive damages” and “smart money” are all synonymous terms. For one to obtain this type of damages it is necessary in this State, and in most other states, that a predicate must have first been laid wherein actual damages have been awarded. Allen v. Melton, 20 Tenn.App. 387, 99 S.W.2d 219; annotation, 17 A.L.R.2d 527. Damages of this type are placed upon a defendant for his wrongful conduct and with a view to prevent similar wrongs in the future. They are not allowed as a matter of course, but only where there are some features of aggravation as where the wrong is done wilfully and maliciously, under circumstances of rudeness or oppression, or in a manner which evinces a wanton and reckless disregard of the plaintiff’s rights.

We will not go into the factual situation in the instant case because the question can, and should be, determined in a workmen’s compensation case of whether or not such action is permissible regardless of the gravity of the factual situation upon which damages of this sort have been placed upon a party. We will thus try to confine ourselves purely to the legal aspects of the question.

The suit was brought herein for workmen’s compensation benefits, and in addition to the workmen’s compensation benefits it was alleged that complainant was entitled tQ punitive damages as- allowed for various and sundry reasons. In Tennessee a suit under our Workmen’s Compensation Act pursuant to sec. 50-908, T.C.A., is exclu *181 sive of all rights, or in the words of the Act, “shall exclude all other rights and remedies of such employee, * * *” and denies him the right of action “at common law or otherwise” for any injuries or death that might occur. The exclusiveness of this Act has thus been applied in a number of instances in this State as in Napier v. Martin, 194 Tenn. 105, 250 S.W.2d 35, wherein other cases are cited. When the employer and the employee elect to operate under this Act, that is the Workmen’s Compensation Act, these benefits and rights the employee gets under the Act are exclusive. Section 50-903, T.C.A., provides that every employer and employee shall be presumed to have accepted the provisions of this Act for any injuries, etc., that might arise out of the Act, and elect to be bound by the provisions of the Act unless they have given notice, etc., prior thereto. The action, it is true, is a contractual action where in fact there are three parties to the action, the employee, the employer and the State. There are certain provisions of the Act which give a case filed for compensation precedence in court, and the right to a direct appeal from the trial court to the Supreme Court where the case shall be advanced on the docket (sec. 50-1018, T.C.A.). The petitioners are also given other rights wherein if the compensation isn’t paid within, or action taken within, due time the Commissioner of Labor is empowered to take action and enforce the benefits of the Act (sec. 50-1028, T.C.A.). Thus, it is that when one has elected, as they have herein, to come under the Workmen’s Compensation Act and have elected to bring their suit for compensation under the Act, this remedy is exclusive. The statutory enactment is set forth in sec. 50-901 et seq., T.C.A., and contains no provision wherein the failure to comply with the terms of this Act *182 penalizes anyone any more than the right that the Commissioner of Labor might exercise in seeing that the employers comply with the provisions of the Act and pay compensation to laborers. This Act constitutes a complete substitute for previous remedies in tort on the part of an employee, and protects the employee in literally hundreds of ways whereby an employee and his family can get a scheduled amount for various and sundry injuries to feed and care for him while the employee is ailing from these injuries. The Legislature has made the rights of the employee and employer the exclusive remedy. When one accepts benefits under an Act of this kind they must likewise take the burdens. If the Legislature in enacting these different benefits under this Workmen’s Compensation Act had seen fit to penalize a delinquent or recalcitrant or an employer who came within the terms where punitive or damages of that kind would apply, they would have enacted such a statute. This statute has been on the books now for forty odd years. Of course, we know as a matter of practical knowledge that over the years many things of the kind have come up, but the Legislature evidently hasn’t thought this was a sufficient reason to make them speed up the rights and remedies of the employee or certainly they would have enacted something long since. There is no provision in the Act for punitive damages or any of its synonymous terms.

A case somewhat in point is that of Stricklen v. Pearson Const. Co., 185 Iowa 95,'169 N.W. 628. In this case the employee was awarded compensation under the Act of Iowa, but he felt that due to a factual situation therein that he was entitled to a claim for exemplary damages and brought a common law action for that purpose. That court held that the exemplary damages could only be *183 properly allowed where actual damages have been awarded, and that a servant having accepted the workmen’s compensation benefits can have no standing in court to assert a right for exemplary damages on the ground of gross and reckless negligence or whatnot. This court said in part:

“In this case the plaintiff concedes that he has been allowed and has accepted compensation for his injury under the Workmen’s Compensation Act, and by the express terms of that act his employer is thereby ‘relieved from other liability for the recovery of damages or other compensation for such personal injury.’ Code Supp. sec. 2477m. In short, plaintiff, having accepted compensation from his employer for the injuries of which he complains, can have no standing in court to assert the employer’s further liability to him on that account. ’ ’

The best reasoning we have seen on this proposition is contained in Larson’s Workmen’s Compensation, Yol. 2, beginning at page 138, sec. 65.30.

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Cite This Page — Counsel Stack

Bluebook (online)
368 S.W.2d 760, 212 Tenn. 178, 16 McCanless 178, 1963 Tenn. LEXIS 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-mutual-insurance-company-v-stevenson-tenn-1963.