Spokane Methodist Homes, Inc. v. Department of Labor & Industries

501 P.2d 589, 81 Wash. 2d 283, 1972 Wash. LEXIS 733
CourtWashington Supreme Court
DecidedOctober 5, 1972
Docket41982
StatusPublished
Cited by13 cases

This text of 501 P.2d 589 (Spokane Methodist Homes, Inc. v. Department of Labor & Industries) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spokane Methodist Homes, Inc. v. Department of Labor & Industries, 501 P.2d 589, 81 Wash. 2d 283, 1972 Wash. LEXIS 733 (Wash. 1972).

Opinions

Rosellini, J.

The petitioner, Joseph E. Loiselle, was employed by the respondent, a charitable corporation operating a retirement home for elderly people. On October 25, 1967, he was injured when a furnace which he was tending in the basement of the home exploded. He filed a claim with the Department of Labor and Industries, which denied that he was covered under the Industrial Insurance Act; but on appeal to the Board of Industrial Insurance Appeals, his claim was reinstated. The employer appealed to the superior court, which affirmed the holding of the board. A further appeal, taken by the employer to the Court of Appeals, Division Three, culminated in a reversal of the superior court and an affirmance of the decision reached by the director of the Department of Labor and Industries. 4 Wn. App. 598, 483 P.2d 168 (1971).

It had been the contention of the petitioner, sustained by the Board of Industrial Insurance Appeals and the superior court, that this court, in abandoning the doctrine of charitable immunity in Friend v. Cove Methodist Church, Inc., 65 Wn.2d 174, 396 P.2d 546 (1964) and Pierce v. Yakima Valley Memorial Hosp. Ass'n, 43 Wn.2d 162, 260 P.2d 765 (1953), had also reversed its interpretation of the Industrial Insurance Act, rendered in Thurston County Chapter, American Nat’l Red Cross v. Department of Labor & Indus., 166 Wash. 488, 7 P.2d 577 (1932). The Court of Appeals, on the other hand, held that those decisions' purported to affect and did in fact abrogate only the common-law doctrine of charitable immunity, and did not alter any statute or statutory interpretation theretofore rendered by this court.

[285]*285We granted the employee’s petition for; review upon the assumption that the question presented in the case is one of wide public concern. However, after the granting of the petition, it was brought to our attention that the legislature in Laws of 1971, 1st Ex. Sess., ch. 289, §§ 1 through 3, had amended RCW 51.12 to include within the coverage of the act paid employees of charitable institutions'. Thus the impact of our decision upon the rights of employees in this state will not be extensive, and its significance lies largely in its reaffirmation of certain rules of statutory construction.

Rockwood Manor is owned and operated by Spokane Methodist Homes, Inc., a division of the United Methodist Church. Once an applicant is admitted, he is admitted for life. The applicant pays a basic fee for the right to live in the unit of his choice. He is charged a service fee based upon the cost of operation. The monthly service fee entitles the resident to his meals, with dietary supervision, weekly maid service, telephone exclusive of long distance calls, laundry for bed linen and towels, and also entitles him to 10 days of infirmary in each calendar month on a noncumulative basis without additional charges. The home provides a central dining room. Residents are served breakfast from 7:30 to 9 a.m., lunch from 11:30 a.m. to 1 p.m., and dinner from 5:30 to 7 p.m. An entertainment program is provided, which includes motion pictures, musical programs and speakers of various kinds, and is under the control of the residents. There are vesper services each Sunday afternoon. Recreational therapy is also provided.

Rockwood Manor operates a 30-bed infirmary which is located upon the premises. It is licensed under state law as a nursing home. It provides typical nursing service which includes supervision by registered nurses.

If a resident becomes bedridden he is provided full care for the same service fee. The additional cost of providing services in the infirmary is absorbed by the corporation.

At present there are approximately 249 residents. Three of the present residents are on public welfare and 69 other [286]*286residents do not pay the full monthly fee. The service fee is $170 per month and if an individual who is a resident cannot pay the service fee, it is' paid out of the corporate funds or limited endowment funds.

Rockwood Manor has never made a profit. The purpose of the corporation is to provide elderly persons, including those without adequate means, with housing facilities and services designed to meet their physical, social and psychological needs on a nonprofit or charitable basis.

Rockwood Manor is basically a retirement home with an infirmary facility for elderly people. It is substantially different from an apartment house in that it has an infirmary, a common dining area, and common social and religious activities. Only retired persons are eligible for admission. It is unlike a condominium in that there is no common ownership of hallways and other common areas, and, more importantly, residents do not own their units.

It is fundamental that the rules of common law which are court-made rules, can be changed by the court when it becomes convinced that the policies upon which they are based have lost their validity or were mistakenly conceived. It was this principle which led to our rejection of the doctrine of charitable immunity in Friend v. Cove Methodist Church, Inc., supra, and Pierce v. Yakima Valley Memorial Hosp. Ass’n, supra. We found that experience had proved invalid the assumption that the courts should subsidize charitable institutions, at the expense of their employees, by denying such employees the right to recover for wrongful or negligent acts of their employers, or their agents or servants, resulting in injury to those employees. The immunity that we dealt with there was a common-law immunity from a duty imposed by the common law. We were not concerned with the interpretation of any statute.

On the other hand, in the earlier case of Thurston County Chapter, American Nat’l Red Cross v. Department of Labor & Indus., supra, we were solely concerned with the interpretation of a statute—a statute which granted rights not provided for in the common law. This statute [287]*287expressed a legislative policy that all employees in certain industries defined as extrahazardous should be entitled to compensation in the event they were injured in the course of their employment, regardless of the fault of the employer. The employer was relieved of his common-law liability for tortious injuries to his employees and in its place was substituted a duty to pay insurance premiums which would constitute his proportionate share of the cost of compensation for injuries suffered by those employees covered by the act.

It was this legislation which this court was called upon to interpret, to decide whether the legislature intended that charitable organizations should fall within its coverage.

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Spokane Methodist Homes, Inc. v. Department of Labor & Industries
501 P.2d 589 (Washington Supreme Court, 1972)

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Bluebook (online)
501 P.2d 589, 81 Wash. 2d 283, 1972 Wash. LEXIS 733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spokane-methodist-homes-inc-v-department-of-labor-industries-wash-1972.