Smith v. Bethlehem Steel Corp.

492 A.2d 1286, 303 Md. 213, 1985 Md. LEXIS 595
Court of Appeals of Maryland·Decided June 3, 1985·No. Misc. No. 10, September Term, 1984·Published·Cited by 43 cases

Opinions

RODOWSKY, Judge.

This opinion addresses two questions involving limitations in the context of the law of products liability-occupational disease. The questions have been certified to us by the United States District Court for the District of Maryland pursuant to the Uniform Certification of Questions of Law Act, Md.Code (1974, 1984 Repl.Vol.), §§ 12-601 to -609 of the Courts and Judicial Proceedings Article (Courts Article). The first question essentially asks how § 58 of the Maryland workers’ compensation act affects limitations. Md. Code (1957, 1979 Repl.Vol., 1984 Cum.Supp.), Art. 101, § 58 deals with actions against third parties to the employer-employee relationship. The second paragraph of § 58, which we are here called upon to construe, reads:

When any employee has a right of action under this section against a third party, the period of limitations for such action, as to such employee, shall not begin to run until two months after the first award of compensation made to such employee under this article, and this section shall apply to past and future rights of action under this section.

For reasons hereinafter set forth we shall hold that this paragraph tolls the running of unexpired limitations during the period when provisions in the first paragraph of § 58 [217]*217limit to the employer the authorization to institute a civil action asserting the liability of a third party to the injured worker.

The second question asks: “Where a plaintiff has previously filed a complaint seeking tort recovery for asbestosis, does Pierce v. Johns-Manville Sales Corp., 296 Md. 656, 464 A.2d 1020 (1983), preclude the plaintiff from subsequently asserting a new tort claim for cancer against a defendant as to whom the plaintiffs asbestosis claim is time-barred?” In part II of this opinion we explain why our answer is “No,” if the allegations, and ultimately the proof, demonstrate that the cancer is a latent disease which is medically separate and distinct from the asbestosis.

Plaintiffs in the federal court action are Glen D. Smith (Glen) and his wife, Audrey C. Smith. Glen was employed as a bricklayer by Bethlehem Steel Corporation (Bethlehem) at its Sparrows Point, Maryland plant from 1948 to 1981. There Glen worked with and around asbestos and products containing asbestos. The Smiths’ suit originally named fifteen defendants. These included eleven producers and distributors of asbestos products, three physicians, and Bethlehem as to whom Glen’s legal position is that his asbestosis resulted “from the deliberate intention of [Bethlehem] to produce such injury....” Art. 101, § 44. It was only after the Smiths had filed their original complaint in federal court that Glen filed a claim with the Maryland Workmen’s Compensation Commission (the Commission). Proceedings on that compensation claim have been stayed at Glen’s request. In the federal action Bethlehem, responding to a discovery order, on September 1, 1982, identified three additional suppliers of products which may have been associated with Glen’s work environment and which may have contained asbestos. Those three suppliers are Quigley Company (Quigley), Kaiser Aluminum & Chemical Corporation (Kaiser), and International Minerals & Chemical Corporation (IMC). The Smiths amended their federal complaint to join these three additional defendants and were [218]*218met with a limitations defense which has generated the certified questions. In its order of certification the federal court has designated the Smiths as appellants and Quigley, Kaiser, and IMC as appellees (the Appellees).

The relevant chronology is presented below.

March 12, 1979 Glen discovers that he has asbestosis.
July 23, 1980 Glen’s physician advises him not to do strenuous work. Glen continues working at Sparrows Point.
February 26, 1981 Glen stops working and is admitted to the hospital.
March 10, 1981 Glen is discharged from the hospital.
August 21, 1981 The Smiths institute the federal court action.
March 18, 1982 Glen claims workers’ compensation benefits for an occupational disease.
June 8, 1982 Counsel for Glen requests the Commission to stay proceedings on the worker’s compensation claim because it may become moot depending on the outcome of the third-party action.
July 8, 1982 The federal court orders Bethlehem to produce certain information.
September 1, 1982 Bethlehem’s production identifies the Appellees.
November 30, 1983 The Smiths amend their federal court complaint to join the Appellees as defendants to the claims for damages for asbestosis.
December 20, 1983 Glen is diagnosed as having cancer of the colon.

When the Appellees moved for summary judgment in the federal action on the ground that the statute of limitations had run on the Smiths’ claims against them, the Smiths countered by contending that their claims were not untimely by virtue of the second paragraph of § 58.

[219]*219I

The proper construction of § 58’s second paragraph presents a question of first impression.1 The second paragraph was added to the third-party claims section of the compensation act by Ch. 588 of the Acts of 1955. There is no legislative history. There have never been any amendments to the second paragraph. When the paragraph was added in 1955 the first paragraph of the section, then Md.Code (1951), Art. 101, § 59, read in relevant part as follows:

Where injury or death for which compensation is payable under this Article, was caused under circumstances creating a legal liability in some person other than the employer to pay damages in respect thereof, the employee ... may proceed either by law against that other person to recover damages or against the employer for compensation under this Article, or in the case of joint tortfeasors against both;[2] and if compensation is [220]*220claimed and awarded or paid under this Article, any employer ... may enforce for their benefit, as the case may be, the liability of such other person; provided, however, if damages are recovered in excess of the compensation already paid or awarded to be pa'id under this Article, ... then any such excess shall be paid to the injured employee.... If any such employer ... shall not, within two months from the passage of the award of this Commission, start proceedings to enforce the liability of such other person, the injured employee ... may enforce the liability of such other person, provided, however, that if damages are recovered the injured employee ... may first retain therefrom the expenses and costs of action ... and the employer ... shall be reimbursed for the compensation already paid or awarded ... except Court costs and counsel or attorney’s fees, which shall be paid by the injured employee ... and the employer ... in the proportion that the amount received by each shall bear to the whole amount paid in settlement of any claim or satisfaction of any judgment obtained in the case, and the balance in excess of these items shall inure to the injured employee ... and the amount thus received by the injured employee ...

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Smith v. Bethlehem Steel Corp., 492 A.2d 1286, 303 Md. 213, 1985 Md. LEXIS 595 (Md. 1985).

492 A.2d 1286 (Smith v. Bethlehem Steel Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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