Onstad v. Payless Shoesource

2000 MT 230, 9 P.3d 38, 301 Mont. 259, 16 I.E.R. Cas. (BNA) 1209, 57 State Rptr. 943, 2000 Mont. LEXIS 233
CourtMontana Supreme Court
DecidedAugust 24, 2000
Docket99-462
StatusPublished
Cited by30 cases

This text of 2000 MT 230 (Onstad v. Payless Shoesource) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Onstad v. Payless Shoesource, 2000 MT 230, 9 P.3d 38, 301 Mont. 259, 16 I.E.R. Cas. (BNA) 1209, 57 State Rptr. 943, 2000 Mont. LEXIS 233 (Mo. 2000).

Opinions

CHIEF JUSTICE TURNAGE

delivered the Opinion of the Court.

¶1 A Thirteenth Judicial District Court, Yellowstone County, jury awarded Katie Onstad $500,000 in compensatory damages and $1 million in punitive damages on her complaint that her employer, Payless ShoeSource, failed to provide her with a safe place to work. Payless appeals. We affirm.

¶2 The issues are:

¶3 1. Whether the District Court erred in rejecting Payless’s workers’ compensation exclusive remedy defense.

¶4 2. Whether the court erroneously allowed police officers to give expert opinion testimony when they were never qualified as experts.

¶5 3. Whether the court erroneously gave conflicting instructions as to causation and intervening superseding cause.

¶6 4. Whether the compensatory damage award is excessive and unsupported by the evidence.

¶7 5. Whether the court erred in approving punitive damages.

¶8 On September 23, 1997, Katie Onstad was assaulted by a stranger, later identified as Timothy Luplow, while she was working as a clerk at a Payless shoe store in Billings, Montana. Onstad, then eighteen years old, was working alone at about 7 p.m. when Luplow entered the store. He grabbed her waist and squeezed her “butt” from behind as she was stocking shelves. Onstad told him not to touch her and went into the back storeroom to call for help on the telephone, but [262]*262Luplow forced his way into the storeroom with her. She then ran and hid in the employee bathroom, locking the door.

¶9 After about five minutes, Onstad heard the bell ring at the front of the store and assumed that either Luplow had left or another customer had entered the store. She came out of the bathroom only to be assaulted again by Luplow. Luplow restrained Onstad by grabbing her from behind and holding his hand over her mouth, demanding sex with threats to kill her if she refused. She resisted, and they struggled. He finally knocked her to the floor and stood over her masturbating, then ejaculated on her. Afterward, he left through the front of the store.

¶10 Onstad ran out the store’s back door to a nearby restaurant for help, eluding Luplow in the alley on the way. She was taken by ambulance to a hospital where she was interviewed by police and then released in the care of her father. Based upon Onstad’s description, Luplow was apprehended and arrested.

¶ 11 In this action, Onstad alleged that Payless was negligent in failing to provide a safe place for her to work. Citing prior incidents in which a female Billings Payless employee had been “flashed” by a male exhibitionist at work, Onstad complained that Payless took no steps to warn her of that danger, to instruct her on how to avoid such danger while at work, or to take adequate safety and security precautions at the store. Onstad alleged that she suffered from posttraumatic stress syndrome as a result of Luplow’s attack.

¶12 In a three-day jury trial, Onstad presented evidence of two prior incidents in which an assailant, later identified as Luplow, had exposed himself to a female employee in Billings Payless stores. Both incidents had occurred within nineteen months prior to the attack on Onstad, and the second incident had occurred in the same store where Onstad was assaulted. Onstad also presented evidence of the armed robbery of a Billings Payless store in February of 1997. She contended that following those events, Payless should have stepped up precautions for its employees’ safety in the affected stores by such means as double-staffing and supplying employees with personal alarm signal devices. Payless took the position that the attack on Onstad was a random, unpredictable event.

¶13 The jury uniformly and unanimously found in favor of Onstad and against Payless. In a special verdict, the jury found that Payless was negligent; that Onstad suffered serious or severe emotional distress and that Payless’s negligence was a cause of that distress; that [263]*263there was no superseding, intervening cause that cut off Payless’s liability; that Onstad sustained $500,000 in compensatory damages; and that Payless’s conduct amounted to malice, thereby making it hable to Onstad for punitive damages. After presentation of further evidence addressed to the punitive damage issue, the jury awarded Onstad an additional $1 million in punitive damages. The District Court affirmed that award and denied Payless’s motion for a new trial.

Issue 1

¶14 Did the District Court err in rejecting Payless’s workers’ compensation exclusive remedy defense?

¶15 Section 39-71-411, MCA, provides that an employer is not liable for the death of or injury to an employee covered by the Workers’ Compensation Act. However, in 1987, Montana’s legislature amended the workers’ compensation statutes to expressly exclude from workers’ compensation coverage claims for injury arising from “emotional or mental stress” or “a nonphysical stimulus or injury.” See § 39-71-119(3), MCA. Moreover,

[i]t is the intent of the legislature that stress claims, often referred to as “mental-mental” claims and “mental-physical claims,” are not compensable under Montana’s workers’ compensation and occupational disease laws.... [N]ot all injuries are compensable under the present system[.]

Section 39-71-105(5), MCA. The viability of Payless’s exclusive remedy defense hinges upon whether Onstad’s injury was covered by workers’ compensation, in which case this tort action would be prohibited.

¶16 As a threshold argument on appeal, Payless asserts that the Workers’ Compensation Court, not the District Court, should have made the initial determination of whether Onstad’s injuries were covered by workers’ compensation. Payless points out that because Onstad never filed a workers’ compensation claim, the Workers’ Compensation Court has not had the opportunity to consider the present case.

¶17 This Court has stated that a district court has jurisdiction to hear tort claims as well as any affirmative defenses thereto, including the defense of workers’ compensation exclusivity. Brown v. Ehlert (1992), 255 Mont. 140, 145-46, 841 P.2d 510, 514. Payless distinguishes Brown from the present case on the basis that Brown involved failure to plead the exclusivity defense, resulting in its waiver. However, Payless has not shown any reason why the foregoing rule stated in Brown would not remain good law. Nor has Payless cited au[264]*264thority which would require Onstad to seek and be denied workers’ compensation benefits before her tort claim may be heard.

¶18 Payless has cited authority from other jurisdictions which would support a ruling that the Workers’ Compensation Court must make the initial determination of compensability. See Bubnell v. Holmes Ambulance Service Corp. (N.Y. App. Div. 1990), 562 N.Y.S.2d 533 (it is “well-settled” that where there exists a mixed question of law and fact concerning the applicability of workers’ compensation law, the matter should be decided by the Workers’ Compensation Board); Yount v. Davis (Mo. Ct. App. 1993), 846 S.W.2d 780 (a trial court lacked subject matter jurisdiction to determine whether an employer’s alleged sexual harassment and assault were acts arising out of and in the course of employment); Winters v.

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Cite This Page — Counsel Stack

Bluebook (online)
2000 MT 230, 9 P.3d 38, 301 Mont. 259, 16 I.E.R. Cas. (BNA) 1209, 57 State Rptr. 943, 2000 Mont. LEXIS 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/onstad-v-payless-shoesource-mont-2000.