McHargue v. Stokes Division of Pennwalt Corp.

649 F. Supp. 1388, 1986 U.S. Dist. LEXIS 16322
CourtDistrict Court, D. Colorado
DecidedDecember 17, 1986
DocketCiv. A. No. 86-A-1301
StatusPublished

This text of 649 F. Supp. 1388 (McHargue v. Stokes Division of Pennwalt Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McHargue v. Stokes Division of Pennwalt Corp., 649 F. Supp. 1388, 1986 U.S. Dist. LEXIS 16322 (D. Colo. 1986).

Opinion

MEMORANDUM OPINION AND ORDER GRANTING DEFENDANT CONTINENTAL INSURANCE COMPANIES’ MOTION FOR JUDGMENT ON THE PLEADINGS

ARRAJ, District Judge.

This action is before the court on defendant Continental Insurance Companies’ motion for judgment on the pleadings. The parties have submitted briefs and other documentation in support of their respective positions of this motion, and I have heard oral argument on the issues.

BACKGROUND

Defendant Stokes Division of Pennwalt Corporation (Stokes) is a Pennsylvania corporation in the business of producing plastic injection molding machines. Defendant Continental Insurance Companies (Continental), a New Jersey corporation, is the workmen’s compensation insurer for Denver Plastics, Inc., plaintiff Jeff McHargue’s employer.

On February 18, 1984, Jeff McHargue was removing parts from the mold cavity of a machine manufactured by defendant Stokes when the molding press unexpectedly closed, causing injuries to his hand and arm. Plaintiff’s injuries took place within the scope of his employment at Denver Plastics, Inc.

Plaintiff subsequently filed a workmen’s compensation claim with his employer and defendant Continental. Under this claim, plaintiff has received or will receive approximately $150,000.00 in compensation for his injuries.

On June 27, 1986, Jeff and Julia McHar-gue filed the present action against Stokes and Continental pursuant to Colo.Rev.Stat. § 8-52-108 (1986), which allows an injured employee to accept workmen’s compensation benefits and also proceed against a third person who caused the injury. Plaintiffs allege in their complaint that defendant Continental undertook or purported to undertake to provide safety inspection services of the molding machine pursuant to its capacity as workmen’s compensation carrier, and that it negligently performed this undertaking, causing the plaintiff’s injuries.

Defendant Continental then moved for judgment on the pleadings, on the ground that it is not subject to liability as a third-party tortfeasor under the Colorado Workmen’s Compensation Act, Colo.Rev.Stat. § 8-40-101 et seq. (1986). The parties submitted briefs in support of their respective positions on this motion, and oral argument was had on November 17, 1986. At that time, defendant Continental’s motion was taken under advisement, and the parties were granted twenty days to supplement their pleadings. Supplemental briefs have been received from defendants Stokes and Continental.

DISCUSSION

The sole issue presented by this motion is whether the Colorado Workmen’s Compensation Act prevents the bringing of a third-party action against the defendant, the workmen’s compensation carrier of the employer, for negligently conducted safety [1390]*1390inspections undertaken pursuant to defendant’s capacity as a workmen’s compensation carrier. For the reasons stated below, this court holds that it does.

This issue is one of first impression in Colorado. Where no state court has clearly addressed an issue, the federal court must use its own discretion to determine what the highest state court would probably hold were it called upon to decide the issue. Herndon v. Seven Bar Flying Service, Inc., 716 F.2d 1322, 1332 (10th Cir.1983), cert. denied 466 U.S. 958, 104 S.Ct. 2170, 80 L.Ed.2d 553 (1984). In doing so, this court may consider all relevant resources, including decisions of courts of the state, decisions of other state courts, federal decisions, and the general weight and trend of authority. Hartford v. Gibbons & Reed Co., 617 F.2d 567, 569 (10th Cir.1980).

The extension of the employers immunity from third-party suit to the workmen’s compensation insurance carrier is a question of statutory interpretation. Kifer v. Liberty Mutual Insurance Co., 777 F.2d 1325, 1331 (8th Cir.1985). The fundamental rule of statutory interpretation is that the court should give effect to the intention of the legislature, as expressed in the statute, and an unambiguous statute should be given effect according to its plain and obvious meaning. Christner v. Poudre Valley Cooperative Ass’n., 235 F.2d 946, 950 (10th Cir.1956); General Electric Company v. Webco Construction Co., 164 Colo. 232, 433 P.2d 760, 762 (1967).

A major concern of the Workmen’s Compensation Act is to provide a method whereby claims arising out of industrial accidents may be speedily resolved. Bellendir v. Kezer, 648 P.2d 645, 647 (Colo.1982). The Act grants the employee compensation from the employer, even though the employee may be negligent and even if the employer is not negligent. In return, the employer who is responsible under the Workmen's Compensation Act is granted immunity from common-law claims. Frohlick Crane Service, Inc. v. Mack, 182 Colo. 34, 510 P.2d 891, 893 (1973). Although the Workmen’s Compensation Act is to be liberally construed, its provisions must not be pushed beyond the clear limits of their purpose. Industrial Commission v. Baldwin, 139 Colo. 268, 338 P.2d 103, 105 (1959).

Plaintiff’s right to bring a third-party action is governed by Colo.Rev.Stat. § 8-52-108(1) (1986), which provides in relevant part that:

Nothing in this section shall be construed as limiting in any way the right of the injured employee to elect to take compensation under articles 40 to 54 of this title and also proceed against the third party causing the injury to recover any damages in excess of the subrogation rights described in this section.

The Colorado Supreme Court has interpreted the term “third party” to apply to anyone incurring a common law liability for injury to workmen not immune from suit under the Act. Industrial Commission v. Standard Insurance Co., 149 Colo. 587, 370 P.2d 156, 158 (1962); Continental Sales Corporation v. Stookesberry, 170 Colo. 16, 459 P.2d 566, 569 (1969).

The statutory section of the Colorado Workmen’s Compensation Act granting immunity is Colo.Rev.Stat. § 8-42-102 (1986), which states that:

An employer who has complied with the provisions of articles 40 to 54 of this title, including the provisions relating to insurance, shall not be subject to the provisions of section 8-42-101; nor shall such employer or his insurance carrier, if any, insuring the employer’s liability under said articles be subject to any other liability for the death of or personal injury to any employee, except as provided in said articles; and all causes of action, actions at law, suits in equity, proceedings, and statutory and common law rights and remedies for and on account of such death of or personal injury to any such employee and accruing to any person are abolished except as provided in said articles.

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Related

Frohlick Crane Service, Inc. v. MacK
510 P.2d 891 (Supreme Court of Colorado, 1973)
Industrial Commission v. Baldwin
338 P.2d 103 (Supreme Court of Colorado, 1959)
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648 P.2d 645 (Supreme Court of Colorado, 1982)
Savio v. Travelers Insurance Co.
678 P.2d 549 (Colorado Court of Appeals, 1984)
Travelers Insurance Co. v. Savio
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Industrial Commission v. Standard Insurance Co.
370 P.2d 156 (Supreme Court of Colorado, 1962)
General Electric Company v. Webco Construction Co.
433 P.2d 760 (Supreme Court of Colorado, 1967)
Horne v. Security Mutual Casualty Company
265 F. Supp. 379 (E.D. Arkansas, 1967)
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158 N.W.2d 786 (Michigan Court of Appeals, 1968)
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264 F. Supp. 697 (E.D. Missouri, 1966)
Pettigrew v. Home Insurance Co.
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Veverka v. Employers Mutual Liability Insurance
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Kotarski v. Aetna Casualty and Surety Co.
244 F. Supp. 547 (E.D. Michigan, 1965)
Gray v. Charles Beck MacHine Corp.
495 F. Supp. 250 (S.D. Georgia, 1980)
Reid v. Employers Mutual Liability Insurance
319 N.E.2d 769 (Illinois Supreme Court, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
649 F. Supp. 1388, 1986 U.S. Dist. LEXIS 16322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mchargue-v-stokes-division-of-pennwalt-corp-cod-1986.