Roy v. Providence Metalizing Co.

381 A.2d 1051, 119 R.I. 630, 1978 R.I. LEXIS 593
CourtSupreme Court of Rhode Island
DecidedJanuary 24, 1978
Docket77-151-Appeal
StatusPublished
Cited by12 cases

This text of 381 A.2d 1051 (Roy v. Providence Metalizing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roy v. Providence Metalizing Co., 381 A.2d 1051, 119 R.I. 630, 1978 R.I. LEXIS 593 (R.I. 1978).

Opinion

*632 Doris, J.

This is an employer’s appeal from a final decree of the Workmen’s Compensation Commission enforcing a compensation agreement between the parties. The employer unilaterally terminated payments under the agreement upon learning that the employee had received a substantial settlement in a malpractice suit against a physician and hospital involved in the treatment of his injury.

The petitioner, Ronald Roy, sustained a back injury on January 18, 1971, during the course of employment with respondent, Providence Metalizing Company. On March 24, 1971, the parties entered into an agreement to pay petitioner compensation benefits for total incapacity due to “back strain.” The petitioner left work at that time and did not return. Subsequently, in April 1971, surgical procedures were performed upon petitioner’s back. Thereafter, petitioner brought an action for malpractice against the neurosurgeon who operated on him and the hospital in which the surgery took place. The suit was settled before trial for $150,000. The respondent-employer suspended payments under the agreement at that time. The respondent did not seek a decree from the Workmen’s Compensation Commission (the commission) allowing this suspension of benefits, nor did the parties execute a compensation suspension agreement and receipt.

The employee then filed a petition with the commission to enforce the terms of the agreement. The trial commissioner found respondent in contempt for failure to pay the compensation benefits and entered a decree ordering payments in accordance with the agreement. The findings of fact 1 and orders in that decree were subsequently affirmed in *633 a final decree of the full commission. The respondent-employer sought and we granted a stay of the final decree of the commission pending the outcome of this appeal.

The respondent raises two issues on appeal. First, it contends that the commission erred in finding that G.L. 1956 (1968 Reenactment) §28-35-58 of the Workmen’s Compensation Act (the Act) concerning third-party liability and employer indemnity does not apply to recoveries for malpractice. Secondly, respondent argues that an employer may, by operation of law, unilaterally terminate payments to an employee who has recovered damages from a third party for malpractice in the treatment of his injury.

Underlying both of the issues in this case is the problem of causal relation between the original compensable injury and the condition for which the allegedly negligent surgery was performed. The petitioner-employee argues that the compensation benefits were being paid for “back strain,” but that the surgery performed was a disc operation. Therefore, petitioner contends that respondent could have no interest in the malpratice settlement as the treatment was for an injury other than back strain. He further asserts that the compensation payments should not have been terminated since he still suffers from the work-related disability. However, the testimony of petitioner himself reveals that he was under the care of the same doctor from the time of the back strain through the surgery and allowed respondent’s insurance carrier to pay both the doctor’s bill and the hospital bill. This the compensation carrier did in accordance with §§28-33-5 and 28-33-8, apparently presuming that all of petitioner’s medical treatment arose out of the work-connected back strain. Clearly, previous to the malpractice suit, both petitioner and respondent believed *634 that the surgical procedures would be paid for out of the benefits accruing as a result of the original disability.

We have had recently before this court a case in which a disc operation has been paid for under an agreement to compensate the employee for reasonable medical and hospital bills for “low back strain.” See McAree v. Gerber Products Co., 115 R.I. 243, 245-46, 342 A.2d 608, 610 (1975). In McAree we not only found a disc operation to be causally related to back strain incurred in the course of employment, but also allowed compensation for drug addiction resulting from long treatment of the injury. Clearly, the Act is remedial in nature and has been interpreted broadly by this court. Perron v. ITT Wire & Cable Div., 103 R.I. 336, 343, 237 A.2d 555, 559 (1968). Therefore, it would be inconsistent with both the facts of this case and legislative policy to find that petitioner’s surgery was not causally connected to his work-related back strain. To find otherwise would be to handicap employees seeking just compensation for their disabilities.

However, what is not clear is that respondent should be entitled to be indemnified from the malpractice settlement simply because the surgery was treatment for the original injury. The respondent asserts that those responsible for malpractice are no different from other third-party tortfeasors, and that according to §28-35-58, the employee must reimburse the compensation carrier out of any funds recovered from the malpractitioners. The respondent supports this proposition by citing cases from several jurisdictions which indicate that aggravation of an injury by malpractice is compensable so long as the chain of causation is not broken. In fact, there is only a small minority of jurisdictions which do not afford compensation for aggravation through malpractice. See 2A Larson, Workmens Compensation Law §72.60 (1976). However, what is not universally accepted by the jurisdictions that have addressed the problem is that the employer is entitled to full indemnification *635 from the proceeds of a malpractice judgment or settlement. Apparently, at least two jurisdictions would allow the employee to receive compensation for the aggravation by malpractice and to keep the full recovery resulting from a malpractice suit. See Froid v. Knowles., 95 Colo. 223, 36 P.2d 156 (1934); Wis. Stat. Ann. §102.29(3) (1973).

The problem in interpreting third-party liability provisions to encompass malpractice situations is that generally the third parties contemplated are liable for the entire injury, whereas the malpractitioner is usually responsible for only a part of the disability. 2A Larson, supra, at §72.65. As petitioner argues in this case, to allow the employer to be reimbursed from the malpractice recovery for his entire outlay is unjust when the employer’s negligence was a cause of the original injury. In effect, the employer would be recovering compensation paid for his own wrong out of the employee’s money. Id.

A more logical approach would be to allow the employer to be subrogated to the employee’s rights in a malpractice suit to the extent that the compensation paid or payable is attributable to the malpractice itself.

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Bluebook (online)
381 A.2d 1051, 119 R.I. 630, 1978 R.I. LEXIS 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roy-v-providence-metalizing-co-ri-1978.