Sanchez v. Brooke

204 Cal. App. 4th 126, 138 Cal. Rptr. 3d 507, 77 Cal. Comp. Cases 261, 2012 Cal. App. LEXIS 273
California Court of Appeal·Decided March 8, 2012·No. No. B224835·Published·Cited by 15 cases

Opinion

Opinion

SUZUKAWA, J.

—An injured employee (plaintiff Lydia Sanchez, a home health care worker) filed a personal injury action against the trustees of the estate of a third party tortfeasor (the late Dorothea B. Kavanaugh, the elderly woman for whom Sanchez had provided care). The trustees (defendants Darrell G. Brooke and Darryl Denning) asserted as an affirmative defense the comparative negligence of Sanchez and her employer (Glendale Adventist Health, also known as Western Health Resources (Western or employer)). Western, which is not a party to this action, filed a workers’ compensation lien against Sanchez’s potential recovery.1

The jury found that Kavanaugh, Western, and Sanchez all were negligent, but that Sanchez’s negligence was not a substantial factor in causing her own injuries. The jury apportioned 50 percent of the fault to Kavanaugh and 50 percent to Western. Based on the jury’s finding that Sanchez had sustained total damages of $903,000, the trial court calculated Kavanaugh’s share and entered a judgment against defendants for $570,949.87.

Sanchez and defendants filed separate appeals, which we consolidated. In Sanchez’s appeal from the order denying her motion for judgment notwithstanding the verdict, she challenges the sufficiency of the evidence to support the finding of employer negligence. We conclude that because the finding was supported by substantial evidence, the motion was properly denied.

In defendants’ appeal from the judgment, they contend that the judgment should be further reduced to reflect the fact that, under the workers’ compensation law, an injured employee’s medical expenses must be paid in full by the employer, and the employee is not liable for any unpaid balance. [131] We conclude that defendants are correct. This case is analogous to and is therefore governed by the California Supreme Court’s recent decision in Howell v. Hamilton Meats & Provisions, Inc. (2011) 52 Cal.4th 541 [129 Cal.Rptr.3d 325, 257 P.3d 1130] (Howell), which was issued while this appeal was pending. The court in Howell held that an injured person’s recovery of past medical expenses as economic damages was limited to the discounted amount that the medical providers accepted as payment in full from the injured person’s private health insurance carrier.

We conclude that the same result applies where an injured employee’s medical provider accepts a discounted amount as payment in full from the employer under the workers’ compensation law. In both situations, because the injured person/employee is not liable for the undiscounted sum stated in the provider’s bill, the unpaid balance does not represent an economic loss to the plaintiff and is not recoverable as damages. We therefore reverse the judgment in part as to the amount of damages only and remand for a limited rehearing and recalculation of damages.

BACKGROUND

Sanchez, a home health aide employed by Western, was working as Kavanaugh’s live-in caregiver when a fire broke out in Kavanaugh’s bedroom at around midnight on September 20, 2006. The evidence at trial showed that the fire was caused by Kavanaugh’s negligent smoking in bed, and that Sanchez was injured while attempting to rescue Kavanaugh, who died in the fire.2

The jury found that Sanchez suffered total damages of $903,000, which included $300,000 in noneconomic damages and $603,000 in economic damages. The jury also found that the economic damages consisted of $575,000 in past medical expenses and $28,000 in lost earnings.

Given that Western was apportioned 50 percent of the liability and had paid $272,622.38 in workers’ compensation benefits to Sanchez, the trial [132] court had to determine defendants’ share of the total damages of $903,000. Based on the following calculations, the trial court entered a judgment against defendants for $570,949.87.

The first calculation addressed the effect of the employer’s (Western’s) concurrent negligence on a third party defendant’s (Kavanaugh’s) liability for noneconomic damages. Under Proposition 51 (as codified in Civ. Code, § 1431.2), a finding of employer negligence eliminates a third party defendant’s joint and several liability for noneconomic damages attributable to the fault of the employer. (DaFonte v. Up-Right, Inc. (1992) 2 Cal.4th 593, 596 [7 Cal.Rptr.2d 238, 828 P.2d 140]; C.J.L. Construction, Inc. v. Universal Plumbing (1993) 18 Cal.App.4th 376, 387 [22 Cal.Rptr.2d 360].) In light of the jury’s apportionment of 50 percent of the liability to Western, the trial court concluded that under Civil Code section 1431.2, defendants are responsible for only 50 percent of the $300,000 noneconomic damages award, or $150,000. Although Sanchez challenges the finding of employer negligence, neither party disputes the mathematical computation of the $150,000 noneconomic damages award.

The second calculation addressed the effect of a concurrently negligent employer’s (Western’s) payment of workers’ compensation benefits on a third party defendant’s (Kavanaugh’s) liability for economic damages. The relevant rule is that because “the injured employee may not be allowed double recovery, his [or her economic] damages must be reduced by the amount of workmen’s compensation he [or she] received.” (Witt v. Jackson (1961) 57 Cal.2d 57, 73 [17 Cal.Rptr. 369, 366 P.2d 641].) Under Witt v. Jackson and its progeny, an employee’s economic damages award is properly reduced by the amount of any workers’ compensation benefits received from a concurrently negligent employer that properly are attributable to economic damages.3 (Engle v. Endlich (1992) 9 Cal.App.4th 1152, 1156 [12 Cal.Rptr.2d 145]; C.J.L. Construction, Inc. v. Universal Plumbing, supra, 18 Cal.App.4th at p. 387.) This reduction is commonly referred to as the Witt v. Jackson offset. It is calculated by multiplying the workers’ compensation benefits by the percentage of the jury verdict attributable to economic damages. The product of that equation (the Witt v. Jackson offset) is the amount of the workers’ compensation benefits presumptively attributable to economic damages, and is subtracted from the jury’s award of economic damages to prevent the injured employee’s double recovery. (See Scalice v. Performance Cleaning [133] Systems (1996) 50 Cal.App.4th 221, 225-238 [57 Cal.Rptr.2d 711] [Witt v. Jackson offset calculation explained].)

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

Sanchez v. Brooke, 204 Cal. App. 4th 126, 138 Cal. Rptr. 3d 507, 77 Cal. Comp. Cases 261, 2012 Cal. App. LEXIS 273 (Cal. Ct. App. 2012).

204 Cal. App. 4th 126 (Sanchez v. Brooke) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gonzalez v. Hettinga Transportation CA5
California Court of Appeal, 2024
Petersen v. Alvocado CA4/2
California Court of Appeal, 2023
Elsner v. San Diego Gas & Electric Co. CA4/1
California Court of Appeal, 2023
De Jong v. Beach CA3
California Court of Appeal, 2021
Galvin v. Vu CA4/3
California Court of Appeal, 2021
Webster v. Claremont Yoga
California Court of Appeal, 2018
Webster v. Claremont Yoga
236 Cal. Rptr. 3d 802 (California Court of Appeals, 5th District, 2018)
Hikida v. Workers' Comp. Appeals Bd.
California Court of Appeal, 2017
Hikida v. Workers' Comp. Appeals Bd.
219 Cal. Rptr. 3d 654 (California Court of Appeals, 5th District, 2017)
Christ v. Schwartz
2 Cal. App. 5th 440 (California Court of Appeal, 2016)
Wong v. Barber CA1/2
California Court of Appeal, 2016
In re Cellphone Termination Fee Cases CA1/5
California Court of Appeal, 2015
Ricardez v. Tedesco CA2/6
California Court of Appeal, 2013
Luttrell v. Island Pacific Supermarkets, Inc.
215 Cal. App. 4th 196 (California Court of Appeal, 2013)