State Ex Rel. First National Bank & Trust Co. v. District Court of the First Judicial District

505 P.2d 408, 161 Mont. 127, 1973 Mont. LEXIS 581
CourtMontana Supreme Court
DecidedJanuary 9, 1973
Docket12401
StatusPublished
Cited by7 cases

This text of 505 P.2d 408 (State Ex Rel. First National Bank & Trust Co. v. District Court of the First Judicial District) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. First National Bank & Trust Co. v. District Court of the First Judicial District, 505 P.2d 408, 161 Mont. 127, 1973 Mont. LEXIS 581 (Mo. 1973).

Opinion

MR. JUSTICE HASWELL

delivered the Opinion of the Court.

Relator seeks through this original proceeding a writ of supervisory control to require the respondent court to vacate its order denying summary judgment on its behalf.

*129 Relator is one of the defendants named in cause No. 35473, filed on December 10, 1971, in the district court of Lewis & Clark County, entitled John W. Foster, Plaintiff, v. First National Bank & Trust Co. of Helena, et al., Defendants, wherein plaintiff seeks damages for personal injuries suffered during the course of his employment in the construction of drive-in parking facilities for the Bank of Helena.

Relator Bank contracted with American Building Company, the general contractor, to construct some drive-in banking facilities. In the construction contract, the Bank required American to carry workmen’s compensation insurance protecting American from injury claims of its own employees, or the employees of any subcontractors. American then subcontracted with Allen Electric Company to perform part of the work, American in turn required Allen to carry workmen’s compensation on Allen’s employees. Plaintiff was an employee of Allen.

The accident took place on February 5, 1971. Plaintiff was working on a ladder when a car driven by Hazel Anderson, the other defendant, ran into a ladder and knocked plaintiff to the ground, causing certain alleged injuries. Hazel Anderson was a bank customer utilizing the drive-in banking facilities which the Bank had required to remain in operation throughout the construction.

Plaintiff has received workmen’s compensation benefits for the injuries resulting from this accident and now brings this common law action for damages against the Bank, American, and Hazel Anderson, alleging negligence. In particular, the complaint alleges the Bank to have been negligent in that “the attendant provided by said bank negligently failed and omitted to direct traffic entering said drive-in facility, and particularly the defendant Hazel Anderson, so as to protect plaintiff engaged in work on said driveway.”

To put the case in proper perspective, we review the central theory behind the Workmen’s Compensation Act. In Yurkovich v. Indus. Acc. Bd., 132 Mont. 77, 314 P.2d 866, cited in *130 Buerkle v. Montana Power Co., 157 Mont. 57, 61, 482 P.2d 564, 566, we said:

“ * * This act is fundamental legislation enacted first for the protection and benefit of the injured workman, his wife and children, and other dependents. By force of the law the employee surrenders his right of an action in tort for injury or death. The act however assures him and his dependents of the protection of certain benefits in case of injury or death.
“ ‘Secondly, the act fixes a limited liability of the employer so that the economic loss caused by such accidents shall not rest upon the employee or the public, but that the industry in which the accident occurs shall pay in the first instance for the loss occasioned by such accident.
“ ‘In construing a statute the whole act must be read together, and. where there are several provisions or particulars such a construction is, if possible, to be adopted as will give effect to all ’.”

Of particular importance is the quid pro quo concept that in return for workmen’s compensation benefits the employer receives immunity from common law negligence actions such as that brought by the plaintiff in the instance case. According to this principle the concept is that although such compensation benefits are the sole remedy against the employer, yet the injured employee is nevertheless prmittd to bring a common law ngligence action against “third parties’’ — i.e., parties other than his employer.

Both of these concepts are embodied in section 92-204, R.C.M. 1947, which states:

“Where both the employer and employee have elected to come under this act, the provisions of this act shall be exclusive, and such election shall be held to be a surrender by such employer and the servants, and employees of such employer and such employees, as among themselves, of their right to any other method, form or kind of compensation, or determination thereof, or to any other compensation, or kind of determination *131 thereof, or cause of action, action at law, suit in equity, or statutory or common-law right or remedy, or proceeding whatever, for or on account of any personal injury to or death of such employee, except as such rights may be hereinafter specifically granted * * *. Provided, that whenever such employee shall receive an injury while performing the duties of his employment and such injury or injuries so received by such employee, are caused by the act or omission of some persons or corporations other than his employer, or the servants or employees of his employer, then such employee, or in ease of his death his heirs or personal representatives, shall, in addition to the right to receive compensation under the Workmen’s Compensation Act, have a right to prosecute for damages against such persons or corporations, causing such injury * *

Both the Bank and American moved for summary judgment in their behalf. The motion was granted in favor of American, but denied as to the Bank. The Bank now seeks through this writ to review and reverse this denial of summary judgment to the Bank. The principal question presented is whether the Bank is a “person or corporation other than his employer” — i.e., a “third party”. If so, then the Bank is not immune from a common law negligence action.

The word “employer” is defined in the act as anyone “* * * who has any person in service, in hazardous employment, under any appointment or contract of hire, expressed or implied, oral or written, and the legal representative of any deceased employer or the receiver or trustee thereof.” Section 92-410, R.C.M. 1947.

Plaintiff claims that the Bank cannot be considered to be the “employer” of plaintiff, since there was no direct contract between the two. See Sullivan v. City of Butte, 117 Mont. 215, 157 P.2d 479. However, the employer’s liability for compensation and corresponding immunity from third party suits does not depend solely on the above definition of “employer”; it also encompasses the concept of “statutory employer” so *132 that if a person is deemed to be a “stautory employer” he is liable for compensation and thus immune from third party suits.

• We note that the employees of a subcontractor seldom have a direct contractual relationship with the general contractor or owner, and for this reason cannot be considered actual employees of the latter. However, most states impose a special compensation liability upon an employer who contracts out if the subcontractor fails to insure compensation of his own employees. For a discussion of this see Larson on Workmen’s Compensation, Vol. 1A, § 49, p. 853.

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Bluebook (online)
505 P.2d 408, 161 Mont. 127, 1973 Mont. LEXIS 581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-first-national-bank-trust-co-v-district-court-of-the-mont-1973.