O'Dea v. J.A.L., Inc.

569 N.E.2d 841, 30 Mass. App. Ct. 449, 1991 Mass. App. LEXIS 237
CourtMassachusetts Appeals Court
DecidedApril 12, 1991
DocketNo. 90-P-1078
StatusPublished
Cited by35 cases

This text of 569 N.E.2d 841 (O'Dea v. J.A.L., Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Dea v. J.A.L., Inc., 569 N.E.2d 841, 30 Mass. App. Ct. 449, 1991 Mass. App. LEXIS 237 (Mass. Ct. App. 1991).

Opinion

Dreben, J.

An employer required to maintain workers’ compensation insurance who does not do so (or fails to become a licensed self-insurer), is liable in tort to an injured employee without proof of negligence. G. L. c. 152, §§ 66 & 67. LaClair v. Silberline Mfg. Co., 379 Mass. 21, 26 (1979). Thorson v. Mandell, 402 Mass. 744, 746 (1988). If the employer has such insurance, the injuries are compensable under the Massachusetts Workers’ Compensation Act, G. L. c. 152, §§ 1 et seq., and the act provides an exclusive remedy. See G. L. c. 152, §§ 23-24. Foley v. Polaroid Corp., 381 Mass. 545, 547 (1980).

This tort action was brought by the plaintiff after his employer’s insurer claimed that the employer’s policy had lapsed. A judge of the Superior Court found damages for the employee in the amount of $675,000. Only after the entry of final judgment under Mass.R.Civ.P. 54(b), 365 Mass. 821 (1974), did the insurer agree to accept coverage. Thereupon, on motion of the employer, the judge vacated the judgment for the employee on the ground that the court “must dismiss this matter because it does not have subject matter jurisdiction.” We reverse.

The procedural history of this action is complex. As indicated, after the compensation insurer of the defendant (the employer, J.A.L., Inc.) disclaimed coverage, the plaintiff brought this action under G. L. c. 152, § 66. The case was tried on the basis that the defendant, although required to carry workers’ compensation insurance, failed to have such coverage on January 8, 1987, when the plaintiff was severely injured. After a hearing on damages — the defendant had been defaulted on liability2 — the judge, on July 20, 1989, [451]*451made findings, assessed damages of $675,000, and entered judgment for the plaintiff.* *3

On September 5, 1989, the defendant filed a motion for relief from judgment on the ground of lack of jurisdiction, citing Mass.R.Civ.P. 12(h)(3) and 60(b)(4), 365 Mass. 757, 829 (1974).4 The judge declined to act on the motion until the defendant’s “former” compensation insurer was made a party. The defendant filed an amended third-party complaint5 (see note 2, supra), and, after service, the insurer filed an answer in which it asserted: “Due to the failure of [the defendant] to make payments as required under the term[s] of its policy, said coverage was cancelled.”

After considerable discovery and a review of its files, the insurer wrote to the plaintiff’s counsel on March 13, 1990, offering to place the plaintiff on workers’ compensation.6 In its responses to requests for admissions by the defendant (third-party plaintiff), the insurer, on April 20, 1990, suggested that it may have given improper notice of cancellation7 and repeated its March 13th offer to accept the plaintiff’s workers’ compensation claim.

On July 5, 1990, the defendant renewed its September 5, 1989 motion for relief from judgment and requested that the action be “dismissed for lack of subject matter jurisdiction.” [452]*452It argued that, since the insurer had now accepted the plaintiff’s claim for compensation, and since under G. L. c. 152, § 24, the statutory provisions for compensation are exclusive, the plaintiff’s action must be dismissed — the court lacked subject matter jurisdiction. The judge, after hearing, adopted the defendant’s arguments and dismissed the action in July, 1990, giving the reasons set forth in the margin.8 He regarded dismissal as mandatory.

1. Dismissal not a proper remedy. Contrary to the defendant’s contention,9 Mass.R.Civ.P. 12(h)(3) does not apply, and the judge incorrectly termed his judgment as one of dismissal. Since final judgment had entered, and no appeal had been taken,10 the only appropriate vehicle for consideration of the defendant’s claim of lack of subject matter jurisdiction was Mass.R.Civ.P. 60(b)(4) (“void judgment”). See Marin v. University of P.R., 377 F. Supp. 613, 631 (D. P.R. 1974); 5A Wright & Miller, Federal Practice and Procedure § 1350, at 200-202 (2d ed. 1990). We, therefore, review the action of the judge under that rule.

[453]*4532. The plaintiffs tort action is not barred. The defendant argues lack of subject matter jurisdiction on the basis of the exclusive statutory remedies of the employee under G. L. c. 152. First, it urges that the plaintiffs injuries were covered by workers’ compensation because the insurer, in March, 1990, accepted his claim. Moreover, even if the plaintiff was not covered by the defendant’s policy, it argues that the plaintiff has another exclusive statutory remedy under G. L. c. 152, § 65(2)(e), the workers’ compensation trust fund, which allows employees to submit claims under the Workers’ Compensation Act against uninsured employers.

a. The uninsured trust fund does not provide an exclusive remedy. The rules of the Department of Industrial Accidents, 452 Code Mass. Regs. § 3.02 (1986),11 at all relevant times specifically provided that “[a]n employee of an uninsured employer shall be entitled, without election, to the compensation and other benefits” of the trust fund. “The employee may also proceed to enforce the liability of an uninsured employer under M.G.L. c. 152, §§ 66 and 67.” See also Locke, Massachusetts Workers’ Compensation Reform Act § 13.1, at 170 (Supp. 1990). Thus, contrary to the defendant’s contention, an uninsured employee is not limited to a claim under G. L. c. 152, § 65(2)(e).

b. Belated acceptance of the claim does not remove jurisdiction. The defendant’s challenge to subject matter jurisdiction based on the belated acceptance of the claim by the defendant’s carrier also fails. A court is not ousted of jurisdiction by subsequent events — jurisdiction once attached is not impaired by what happens later. Thus, in a diversity case where, after the plaintiff died, his representative was substituted, Federal jurisdiction was not defective although, because of the representative’s domicil, there was no longer diversity of citizenship. Smith v. Sperling, 354 U.S. 91, 93 n.1 (1957). In that case, the Supreme Court quoted Chief Justice Marshall in Molían v. Torrance, 22 U.S. (9 [454]*454Wheat.) 537, 539 (1824): “It is quite clear, that the jurisdiction of the Court depends upon the state of things at the time of the action brought, and that after vesting, it cannot be ousted by subsequent events.” See also Dunn v. Clarke, 33 U.S. (8 Pet.) 1, 3 (1834); Lugo-Vina v. Pueblo Intl., Inc., 574 F.2d 41, 42 n.l (1st Cir. 1978).

While the cases previously cited do not address what happens where it is subsequently shown that the facts were not as assumed at the time the action was brought, we think the facts known at the time of the bringing of the action should govern, at least in a workers’ compensation case. The purpose of the statute providing mandatory insurance coverage for most employers is to make sure “that financial assistance is readily and speedily available to their injured employees.” Brown v. Leighton, 385 Mass. 757, 761 (1982).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Merlini v. Canada
926 F.3d 21 (First Circuit, 2019)
APEM, Inc. v. Applied Res. Corp.
111 N.E.3d 1113 (Massachusetts Appeals Court, 2018)
Maestranzi v. Ambrose
104 N.E.3d 683 (Massachusetts Appeals Court, 2018)
Massachusetts Insurers Insolvency Fund v. Berkshire Bank
62 N.E.3d 56 (Massachusetts Supreme Judicial Court, 2016)
Merchants Insurance Group v. Spicer
38 N.E.3d 1018 (Massachusetts Appeals Court, 2015)
Gianareles v. Zegarowski
5 N.E.3d 1213 (Massachusetts Supreme Judicial Court, 2014)
Adoption of Rory
954 N.E.2d 22 (Massachusetts Appeals Court, 2011)
Reznik v. Yelton
2011 Mass. App. Div. 1 (Mass. Dist. Ct., App. Div., 2011)
Southwick v. Planning Board
891 N.E.2d 239 (Massachusetts Appeals Court, 2008)
Wang v. Niakaros
852 N.E.2d 699 (Massachusetts Appeals Court, 2006)
Bortone v. Liberty Mutual Insurance
21 Mass. L. Rptr. 317 (Massachusetts Superior Court, 2006)
Bornstein v. Sunstate Equities, Inc.
2005 Mass. App. Div. 67 (Mass. Dist. Ct., App. Div., 2005)
Resmini v. M.J.M. Associates, Inc.
2005 Mass. App. Div. 76 (Mass. Dist. Ct., App. Div., 2005)
Curly Customs, Inc. v. Pioneer Financial
814 N.E.2d 1176 (Massachusetts Appeals Court, 2004)
Adams v. Lamarine
2004 Mass. App. Div. 36 (Mass. Dist. Ct., App. Div., 2004)
New England Phoenix Co. v. Buckley
15 Mass. L. Rptr. 53 (Massachusetts Superior Court, 2002)
Pena v. Geszpenc
14 Mass. L. Rptr. 637 (Massachusetts Superior Court, 2002)
Lee v. International Data Group
769 N.E.2d 761 (Massachusetts Appeals Court, 2002)
McCracken v. Sears, Roebuck & Co.
744 N.E.2d 102 (Massachusetts Appeals Court, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
569 N.E.2d 841, 30 Mass. App. Ct. 449, 1991 Mass. App. LEXIS 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/odea-v-jal-inc-massappct-1991.