SOUTHLAND CONS., INC. v. Greater Orlando Aviation

860 So. 2d 1031, 2003 Fla. App. LEXIS 18395, 2003 WL 22867638
CourtDistrict Court of Appeal of Florida
DecidedDecember 5, 2003
Docket5D02-3389
StatusPublished
Cited by13 cases

This text of 860 So. 2d 1031 (SOUTHLAND CONS., INC. v. Greater Orlando Aviation) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SOUTHLAND CONS., INC. v. Greater Orlando Aviation, 860 So. 2d 1031, 2003 Fla. App. LEXIS 18395, 2003 WL 22867638 (Fla. Ct. App. 2003).

Opinion

860 So.2d 1031 (2003)

SOUTHLAND CONSTRUCTION, INC., Appellant,
v.
GREATER ORLANDO AVIATION, et al., Appellees.

No. 5D02-3389.

District Court of Appeal of Florida, Fifth District.

December 5, 2003.

*1033 Mary Ann Stiles and Rayford H. Taylor, of Stiles, Taylor & Grace, P.A., Tallahassee, for Appellant.

Timothy C. Conley, and David W. McCreadie, of Lau, Lane, Pieper, Conley & McCreadie, P.A., Tampa, for Appellee, Peoples Gas System.

No Appearance for Appellee Greater Orlando Aviation.

GRIFFIN, J.

This is the appeal of an order dismissing the claim of Southland Construction, Inc. ["Southland"] to recover attorney's fees and increases in its workers' compensation insurance premiums, which Southland claims resulted from the death of a Southland employee due to the negligence of Peoples Gas System ["Peoples Gas"] in failing to mark a gas line.

Southland sued the defendants below, the Greater Orlando Aviation Authority ["GOAA"] and Peoples Gas[1] on a theory of negligence. The complaint alleged that GOAA and Southland entered into a contract on February 2, 2000, for the construction of drainage modifications and access roads at the Orlando International Airport. On May 9, 2000, a Southland employee breached an unmarked Peoples Gas line with construction equipment, causing a fire that resulted in the death of one Southland employee and the injury of another. Southland alleged it had transmitted an underground utility locate request to GOAA and Peoples Gas prior to the accident and had received an "all clear" from each company. Southland alleged that Peoples Gas owed Southland a duty to notify it of the location of underground utility lines in the area and that Peoples Gas was negligent in failing to do so. Southland claimed that, as a result of the accident, its workers' compensation carrier had to pay substantial benefits to the families of the workers which, in turn, caused Southland's workers' compensation insurance premiums to increase. It further alleged it incurred $6,752.00 in attorneys' fees for the successful defense of an OSHA citation arising out of the accident.

Peoples Gas moved for dismissal of the amended complaint, asserting that, as a matter of law, the claim for increased workers' compensation insurance premiums and attorney's fees were not recoverable because such damages were too remote and unforeseeable. Peoples Gas also asserted that an employer's rights to recover damages under Florida's Workers' Compensation Law is limited to that which is contained in Chapter 440. Finally, as to the OSHA citation claim, they asserted that fees were not compensable because there was no contract or statute authorizing recovery of attorneys' fees. After a hearing on the motion to dismiss, the court dismissed both the claim for attorneys' fees and the claim for the increase in insurance premiums. The trial court explained during the hearing that the damages were too remote as a matter of law to be recoverable by Southland. Southland urges on appeal that the trial court erred. We affirm.

Although there is no Florida case on the issue, courts in other jurisdictions uniformly have found no such entitlement to recovery of workers' compensation insurance premium increases as a matter of law, based on the remoteness and the lack of legal foreseeability of such claims. Fischl v. Paller & Goldstein, 231 Cal.App.3d 1299, 282 Cal.Rptr. 802 (1991); RK Constructors, Inc. v. Fusco Corp., 231 Conn. 381, 650 A.2d 153, 157 (1994); Unique Paint Co. v. Wm. F. Newman Co., 201 *1034 Ga.App. 463, 411 S.E.2d 352, 353 (1991); Anderson Plasterers v. Meinecke, 543 N.W.2d 612-14 (Iowa 1996); Pro-Staffers, Inc. v. Premier Mfg. Support Servs., Inc., 252 Mich.App. 318, 651 N.W.2d 811 (2002); Northern States Contracting Co. v. Oakes, 191 Minn. 88, 253 N.W. 371, 372 (1934);[2]Whirley Indus., Inc. v. Segel, 316 Pa.Super. 75, 462 A.2d 800, 804 (1983); Canada Dry Bottling Co. v. Mertz, 264 Pa.Super. 480, 400 A.2d 186 (1979); Higbie Roth Constr. Co. v. Houston Shell & Concrete, 1 S.W.3d 808, 812 (Tex.App.1999).

The Court of Appeals of Texas recently addressed this issue in Higbie Roth Construction Co. v. Houston Shell & Concrete, 1 S.W.3d 808. The Texas court found no negligence cause of action existed, explaining:

To recover for increased workers' compensation premiums from Houston Shell..., Higbie must show a duty to prevent that increase. Duty under a set of facts is a question of law for the court. In determining whether to impose a duty, courts consider the risk, foreseeability, and likelihood of injury to the plaintiff, and weigh those factors against the social utility of the defendant's conduct, the magnitude of guarding against the injury, and the consequences of placing that burden on the defendant. Foreseeability of harm is a primary factor in evaluating whether a duty is owed. Higbie's pleadings, when construed broadly and after indulging all inferences in Higbie's favor, do not support a claim against Houston Shell ... for wrongful increase in workers' compensation insurance premiums arising out of their allegedly negligent injury of Ramos. The negligence cause of action fails because the injuries for which Higbie seeks recovery ... were not foreseeable by Houston Shell ... as a matter of law.

Id. at 812-813 (citations omitted).

The Higbie court relied in part on the Pennsylvania case of Whirley Industries, Inc. v. Segel, 462 A.2d 800:

In Whirley Industries, the Pennsylvania Superior Court concluded that third parties whose negligence may have caused injury to a worker did not owe a duty to the worker's employer to foresee that increased insurance premiums would result from compensating the worker for the third parties' negligence. 316 Pa.Super. at 82, 462 A.2d at 804. The Pennsylvania Superior Court concluded that a third party cannot reasonably foresee that its conduct would cause increased premiums because premium rates result from many concurring factors, many of which are entirely unrelated to the third party's alleged negligence in injuring a particular worker. Id. These factors include the employer's prior loss experience and the internal financial practices of the particular insurance carrier. Id.

Id. at 812-813. See also Canada Dry Bottling Co. v. Mertz, 400 A.2d 186. Southland has cited to no case in the United States that has allowed recovery of workers' compensation premium increases in such a context.

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Cite This Page — Counsel Stack

Bluebook (online)
860 So. 2d 1031, 2003 Fla. App. LEXIS 18395, 2003 WL 22867638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southland-cons-inc-v-greater-orlando-aviation-fladistctapp-2003.