Rodgers v. Workers' Compensation Appeals Board

682 P.2d 1068, 36 Cal. 3d 330, 204 Cal. Rptr. 403, 49 Cal. Comp. Cases 513, 1984 Cal. LEXIS 192
CourtCalifornia Supreme Court
DecidedJuly 5, 1984
DocketS.F. 24594
StatusPublished
Cited by9 cases

This text of 682 P.2d 1068 (Rodgers v. Workers' Compensation Appeals Board) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodgers v. Workers' Compensation Appeals Board, 682 P.2d 1068, 36 Cal. 3d 330, 204 Cal. Rptr. 403, 49 Cal. Comp. Cases 513, 1984 Cal. LEXIS 192 (Cal. 1984).

Opinions

Opinion

KAUS, J.

In this workers’ compensation matter, petitioner Arthur Rodgers, the employee, contends that the Workers’ Compensation Appeals Board (WCAB) used the wrong formula in determining the credit against future workers’ compensation payments to which his employer is entitled under Labor Code section 38611 as interpreted in Associated Construction & Engineering Co. v. Workers’ Comp. Appeals Bd. (1978) 22 Cal.3d 829 [150 Cal.Rptr. 888, 587 P.2d 684], As we explain, the WCAB’s approach is totally faithful to the rationale of Associated Construction and, in addition, is consistent with a line of post-Associated Construction decisions which have addressed a very similar question in the context of an employer’s right to reimbursement for compensation benefits that have already been paid. Accordingly, we conclude that the WCAB decision should be upheld.

I

On March 4, 1974, Rodgers, a truck driver employed by Transcon Lines, Inc. (Transcon), was injured when he fell from a loading dock owned and operated by Melvin Sosnick Company (Sosnick). Shortly thereafter, Rodgers applied for workers’ compensation benefits from Transcon and filed a civil action against Sosnick. After furnishing Rodgers with temporary disability benefits, Transcon intervened in the civil action, seeking reimbursement from Sosnick for the benefits it had provided to Rodgers. Rodgers’ workers’ compensation proceeding against Transcon was held in abeyance pending the outcome of the civil action.

At the trial in the civil action, the jury found that Rodgers had sustained total damages of $25,500 as a result of his injury, and that Sosnick, Rodgers and Transcon were all partially responsible for the injury, with Sosnick bearing 70 percent of the fault, Rodgers 25 percent and Transcon 5 percent. [333]*333From the gross amount of Rodgers’ recovery from Sosnick,2 the trial court deducted the amounts attributable to attorneys’ fees and to the other expenses designated in section 3861, the statutory credit provision at issue here (see fn. 1, ante), and certified that Rodgers’ “net recovery” in the civil action amounted to $7,734.28. The parties apparently agree that this is the appropriate net recovery figure for purposes of section 3861.

After the civil action was concluded, the proceedings in the related workers’ compensation matter went forward. The parties stipulated that Transcon had fully paid all temporary disability benefits that were due, and that Rodgers had sustained a permanent disability of 20*4 percent, entitling him to permanent disability benefits of $5,022.50. The only issue on which the parties could not agree was how the employer’s section 3861 credit was to be applied in this setting.

The parties recognized that our decision in Associated Construction sets forth the general, controlling principles in this area. In that decision we held that when an employer which is partially at fault for its employee’s injury seeks to invoke the credit of section 3861, the WCAB should “deny the employer credit until the ratio of his contribution to the employee’s damages corresponds to his proportional share of fault. Once the employer’s workers’ compensation contribution reaches this level, he should be granted a credit for the full amount available under section 3861.” (22 Cal.3d at p. 843.)

Under this formulation, both parties acknowledged that Transcon was entitled to the full statutory credit—$7,734.28—once it had paid Rodgers some threshold amount in compensation benefits. The parties disagreed, however, on how that threshold should be computed. Transcon maintained that it should become eligible for the statutory credit once it had paid benefits equal to its own proportional share of the employee’s total civil damages—i.e., 5 percent of $25,500 or $1,275. Rodgers, by contrast, took the [334]*334position that Transcon should not be able to invoke the credit until it had paid benefits equal to the proportion of the civil damages attributable to both the employer and the employee—in this case, 30 percent of $25,500 or $7,650.

The WCAB, finding no justification for imputing the negligence of the employee to the employer in this context, concluded that the threshold figure should be determined by reference to the employer’s own degree of fault. Accordingly, it entered an order which provides that after Transcon pays Rodgers compensation benefits of $1,275, it will be entitled to a credit of $7,734.28.3 Rodgers now challenges that order.

II

The logical starting point of analysis, of course, is our decision in Associated Construction. In that case, we reviewed at some length the legislative and judicial background of employers’ subrogation rights within California’s workers’ compensation system, and it is unnecessary to retrace that ground in detail here. For our purposes, a very brief synopsis will suffice.

Under the workers’ compensation statutes, an employee who is injured in the course of his employment may recover compensation benefits from his employer without regard to the negligence of either party. (§ 3600.). Except in certain limited circumstances, the employee’s compensation claim is his exclusive remedy against his employer. (§ 3601.) At the same time, the pertinent statutes provide that the availability of workers’ compensation benefits does not preclude an injured employee from pursuing an ordinary civil action “against any person other than the employer”—e.g., a third party tortfeasor—who may be responsible for his injury. (§ 3852.) In addition, when a third party is liable for the employee’s injuries, the controlling statutes grant the employer the right (1) to obtain reimbursement from the third party for workers’ compensation benefits which the employer has already paid (§§ 3852, 3853, 3856, subd. (b)) and (2) to obtain a credit-based on its employee’s recovery from the third party—against its future workers’ compensation liability. (§ 3861.) It is, of course, this latter credit which is at issue in this case.

From their inception, the statutory provisions relating to reimbursement and credit have provided no explicit guidance on the question of whether [335]*335an employer’s negligence affects its right to obtain such benefits. In Witt v. Jackson (1961) 57 Cal.2d 57 [17 Cal.Rptr. 369, 366 P.2d 641] and Roe v. Workmen’s Comp. Appeals Bd. (1974) 12 Cal.3d 884 [117 Cal.Rptr. 683, 528 P.2d 771], our court—drawing, in part, on the philosophy underlying the then-prevailing all-or-nothing contributory negligence doctrine—held that where the employer’s negligence was a concurrent, proximate cause of the injury, the employer was totally barred from obtaining any such reimbursement or credit.

In Associated Construction, however, we faced the question whether the adoption of comparative negligence principles in Li v. Yellow Cab Co. (1975) 13 Cal.3d 804 [119 Cal.Rptr. 858, 532 P.2d 1226, 78 A.L.R.3d 393] and American Motorcycle Assn. v. Superior Court

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Rodgers v. Workers' Compensation Appeals Board
682 P.2d 1068 (California Supreme Court, 1984)

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Bluebook (online)
682 P.2d 1068, 36 Cal. 3d 330, 204 Cal. Rptr. 403, 49 Cal. Comp. Cases 513, 1984 Cal. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodgers-v-workers-compensation-appeals-board-cal-1984.