Mulder v. Acme-Cleveland Corp.

290 N.W.2d 276, 95 Wis. 2d 173, 1980 Wisc. LEXIS 2526
CourtWisconsin Supreme Court
DecidedApril 1, 1980
Docket77-432
StatusPublished
Cited by114 cases

This text of 290 N.W.2d 276 (Mulder v. Acme-Cleveland Corp.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mulder v. Acme-Cleveland Corp., 290 N.W.2d 276, 95 Wis. 2d 173, 1980 Wisc. LEXIS 2526 (Wis. 1980).

Opinion

HEFFERNAN, J.

This third party action had its origin in a worker’s compensation claim which arose out of an injury to Leo Mulder while he was in the course of his employment at the Kohler Company. Compensation payments were made by the Kohler Company. Subsequently Leo Mulder and his wife brought a third party action against Acme-Cleveland Corporation and General Electric Company alleging that Leo Mulder’s injuries were the result of the negligence of Acme-Cleve *175 land in designing and manufacturing a molding machine and that General Electric was negligent in respect to the design and manufacture of a photoelectric safety device. Acme-Cleveland brought a third party action against the Kohler Company, and General Electric filed a cross-complaint against the Kohler Company for contribution and indemnity because of the Kohler Company’s alleged negligence in respect to the employee Mulder.

Because the Kohler Company paid worker’s compensation to Mulder, as provided by ch. 102, Stats., Kohler moved to dismiss Acme’s third party complaint and General Electric’s cross-complaint, asserting the defense that sec. 102.08(2), Stats., 1 gives it immunity from any liability other than worker’s compensation. The trial court granted the Kohler Company’s motion and dismissed the third party action brought by Acme and the cross-complaint of General Electric. General Electric brings this appeal. We affirm the order of the trial court.

The facts indicate that Mulder was injured on August 26, 1974, while operating a molding machine on the premises of the Kohler Company. Mulder’s amended complaint states that a photoelectric safety device manufactured by General Electric failed to deactivate the molding machine when Mulder attempted to remove a broken casting; and, as a consequence, he was pinned against the hot dies in the machine and was badly burned. In addition, the amended complaint alleged that Acme-Cleveland and General Electric were liable for producing and marketing defective devices.

Both Acme-Cleveland and General Electric demanded contribution or indemnification from the Kohler Com *176 pany. The trial court accepted the Kohler Company’s argument that its exclusive responsibility was to pay worker’s compensation. Accordingly, it dismissed the complaint and cross-complaint against the Kohler Company demanding contribution or indemnification. Only General Electric has appealed.

General Electric acknowledges that the trial court’s dismissal of its claim for contribution against the Kohler Company is consistent with the uniform holdings of this court. General Electric argues, however, that the interpretation given to the statute by this court over a period of years, and the trial court in the instant case, deprives General Electric of property without due process of law in violation of the Fifth and Fourteenth Amendments to the United States Constitution and deprives General Electric of a remedy for a wrong in violation of art. I, sec. 9, of the Wisconsin Constitution. 2

As a sequel to this argument of unconstitutionality, General Electric urges that this court modify its longstanding construction of sec. 102.08(2), Stats., the exclusive-remedy provision, to reflect the principle underlying Wisconsin’s comparative negligence scheme that losses should be allocated in proportion to fault. We decline to hold that the past construction placed upon the exclusive-remedy provision is unconstitutional, and we decline to modify our construction of that statute.

Nevertheless, the problem posed by General Electric’s argument is real. Although sec. 102.03(2), Stats., makes it clear that an injured employee can only recover compensation payments against an employer, the employee may maintain a tort action against a third party whose *177 negligence caused or contributed to the injury. Sec. 102.29(1). That same section of the statutes allows the employee to retain one-third of the recovery against the third party and reimburses the employee for out-of-pocket collection costs. In addition, it gives the employee the balance of the tort action award remaining after the employer is reimbursed for the full amount of the worker’s compensation benefits originally paid the employee. Under that statute, both the employer and the worker’s compensation insurer can join the employee’s third party action or commence one on their own initiative.

This court has uniformly construed sec. 102.03(2), Stats., as denying any remedy of a third party tortfeasor against an employer, because the statute makes the payment of worker’s compensation the employer’s exclusive liability for work-related injuries. Thus, where a negligent third party is held liable to an injured worker, it cannot require contribution from an employer even though the employer was substantially more at fault than the third party. A. O. Smith Corp. v. Associated Sales & Bag Co., 16 Wis.2d 145, 113 N.W.2d 562 (1962); Wisconsin Power & Light Co. v. Dean, 275 Wis. 236, 81 N.W.2d 486 (1957); Buggs v. Wolff, 201 Wis. 533, 230 N.W. 621 (1930). This result is premised on the reasoning that, because an employee cannot bring a tort action against his employer, there is no common liability; and the employer cannot be impleaded for contribution as a joint tortfeasor. Because the employer’s liability is determined by statute, which makes that liability exclusive, and not by principles of common law negligence, this court has reasoned that the common liability between third parties and the employer requisite for a joint tortfeasor status is absent. The same rationale bars an action for indemnification absent a specific *178 and express agreement. Lampada v. State Sand & Gravel Co., 58 Wis.2d 315, 206 N.W.2d 138 (1973).

Federal courts, in applying the Wisconsin worker’s compensation law, have also construed sec. 102.03(2), Stats., as barring third party tortfeasor’s actions for contribution or indemnity against employers subject to the Wisconsin act. E.g., Schuldies v. Service Machine Co., Inc., 448 F. Supp. 1196 (E.D. Wis. 1978).

It is clear that the rule prohibiting contribution or indemnity in a third party action arising out of a worker’s compensation claim is not completely consistent with the general common law principles now accepted by this court. Generally, Wisconsin common law permits a plaintiff to collect the total damages from any of several parties whose negligence combined to cause the injury and also permits the operation of comparative-negligence principles for the allocation of contribution between joint tortfeasors. Bielski v. Schulze, 16 Wis.2d 1, 114 N.W.2d 105 (1962).

The United States District Court case of Schuldies, supra,

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Bluebook (online)
290 N.W.2d 276, 95 Wis. 2d 173, 1980 Wisc. LEXIS 2526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mulder-v-acme-cleveland-corp-wis-1980.