Riley v. Debaer

562 S.E.2d 69, 149 N.C. App. 520, 2002 N.C. App. LEXIS 270
CourtCourt of Appeals of North Carolina
DecidedApril 2, 2002
DocketCOA00-675-2
StatusPublished
Cited by4 cases

This text of 562 S.E.2d 69 (Riley v. Debaer) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riley v. Debaer, 562 S.E.2d 69, 149 N.C. App. 520, 2002 N.C. App. LEXIS 270 (N.C. Ct. App. 2002).

Opinions

BRYANT, Judge.

The evidence presented at trial is summarized in this Court’s prior opinion, Riley v. DeBaer, 144 N.C. App. 357, 547 S.E.2d 831 (2001) (Riley I). Although neither party has disputed whether the trial court lacked subject matter jurisdiction to hear this case, pursuant to remand from our Supreme Court, we now consider this issue. See Hedgepeth v. N.C. Div. of Servs. for the Blind, 142 N.C. App. 338, 341, 543 S.E.2d 169, 171 (2001) (stating that jurisdictional issues “can be raised at any time, even for the first time on appeal and even by a court sua sponte"f

The issue presented is one of first impression: Whether a workers’ compensation claimant’s (plaintiff’s) sole remedy for a claim of NIED against her vocational rehabilitation specialists lies pursuant to the Workers’ Compensation Act or whether our courts have subject matter jurisdiction to adjudicate this claim. Based on the holdings in Johnson v. First Union Corp., 131 N.C. App. 142, 504 S.E.2d 808 (1998) and Deem v. Treadaway & Sons Painting and Wallcovering, Inc., 142 N.C. App. 472, 543 S.E.2d 209, rev. denied by 354 N.C. 216, 553 S.E.2d 911 (2001), we hold that the instant case must be dismissed for lack of subject matter jurisdiction.

In Johnson, the case arose from an allegation of on-the-job injuries suffered by plaintiffs. In 1992 and 1993, the plaintiffs filed separate claims with the Industrial Commission seeking workers’ [522]*522compensation benefits for repetitive motion disorders they allegedly suffered in the course of their employment for First Union Corporation and/or First Union Mortgage Corporation. Both plaintiffs were initially diagnosed with job-related repetitive motion disorders, and both subsequently had their claims rejected. The rejection of their workers’ compensation claims were apparently based in part on a videotape defendants prepared to illustrate the nature of plaintiffs’ jobs.

The plaintiffs contested that the videotape did not accurately portray the requirements of their jobs. They also asserted that defendants made the videotape with the intention of deceiving the plaintiffs’ physician. The plaintiffs further contended that, based on the inaccurate videotape, their physician withdrew diagnoses that plaintiffs’ disorders were job-related.

Plaintiff Smith alleged that the defendants made material alterations in a workers’ compensation Form 21 that she had previously signed. Smith asserted that defendants deliberately concealed the alteration from her and her attorney. Smith also said that the Industrial Commission subsequently notified her that defendants had submitted the Form 21 with material alterations. Allegedly, the Industrial Commission also told Smith that the Form 21 agreement might be voided or set aside and that she might be entitled to full restoration of compensation.

The plaintiffs filed suit against the employer and insurer alleging fraud, bad faith refusal to pay or settle a valid claim, unfair and deceptive trade practices, IIED and civil conspiracy. The trial court dismissed the complaint pursuant to N.C. R. Civ. P. 12(b)(6), stating that the complaint failed to state a claim for which relief could be granted. The plaintiffs appealed and the defendants cross-appealed stating that the trial court was correct in dismissing the appeal, but asserting that the dismissal should have been granted based on lack of subject matter jurisdiction pursuant to N.C. R. Civ. P. 12(b)(1). Defendants contended that the Workers’ Compensation Act gave the Industrial Commission exclusive jurisdiction over workers’ compensation claims and all related matters, including the issues raised in the case at bar. The Johnson Court agreed.

The Johnson Court stated:

Through the Workers’ Compensation Act, North Carolina has set up a comprehensive system to provide for employees who suffer [523]*523work-related illness or injury. “The purpose of the Act, however, is not only to provide a swift and certain remedy to an injured workman, but also to insure a limited and determinate liability for employers.”
The purpose of the act is to provide compensation for an employee in this State who has suffered an injury by accident which arose out of and in the course of his employment, the compensation to be paid by the employer, in accordance with the provisions of the act, without regard to whether the accident and resulting injury was caused by the negligence of the employer, as theretofore defined by the law of this State. The right of the employee to compensation, and the liability of the employer therefor, are founded upon mutual concessions, as provided in the act, by which each surrenders rights and waives remedies which he theretofore had under the law of this State. The act establishes a sound public policy, and is just to both employer and employee. As administered by the North Carolina Industrial Commission, in accordance with its provisions, the act has proven satisfactory to the public and to both employers and employees in this State with respect to matters covered by its provisions.
Plaintiffs in this case assert that their injuries are work-related. The Workers’ Compensation Act gives jurisdiction for such cases to the North Carolina Industrial Commission. Plaintiffs must pursue their remedies through the Commission.

Johnson, 131 N.C. App. at 144-45, 504 S.E.2d at 809-10 (citations omitted). The Johnson Court affirmed the decision of the trial court to dismiss plaintiff’s complaint.

In Deem, plaintiff was an employee of defendant Treadaway & Sons Painting when he fell off a ladder and suffered injury. Plaintiff filed a workers’ compensation claim against Treadaway Painting and its workers’ compensation carrier, Montgomery Mutual Insurance Company. Montgomery Mutual hired an independent adjusting company headed by R.E. Pratt (R.E. Pratt & Co.), to handle plaintiff’s workers’ compensation claim. Defendant Goad was Pratt’s adjuster assigned to plaintiff’s claim.

Plaintiff returned to work in November 1994 as a paint foreman but later, his condition worsened and he was taken out of work on 3 [524]*524January 1996. About the same time, Montgomery Mutual and Pratt hired defendant Concentra Managed Care to provide plaintiff with vocational rehabilitation counseling. Defendants Smith, Wertz and Seltzer were employees of Concentra. On 20 February 1996, plaintiffs attending physician released plaintiff to work, however the release was conditioned upon a number of restrictions. Thereafter, Treadaway Painting notified Concentra that plaintiffs job was no longer vacant. Treadaway Painting offered the job of laborer to plaintiff, which plaintiff accepted.

On 11 July 1997, plaintiff entered into an agreement of final settlement and release with Treadaway Painting, Montgomery Mutual and Pratt. Pursuant to this agreement, the plaintiff agreed to release and discharge all claims available under the Worker’s Compensation Act relating to this injury in exchange for payment of $100,000.

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Related

Driskell v. Summit Contracting Grp., Inc.
325 F. Supp. 3d 665 (W.D. North Carolina, 2018)
Freeman v. Rothrock
657 S.E.2d 389 (Court of Appeals of North Carolina, 2008)
Riley v. Debaer
562 S.E.2d 69 (Court of Appeals of North Carolina, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
562 S.E.2d 69, 149 N.C. App. 520, 2002 N.C. App. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-v-debaer-ncctapp-2002.