Vandemark v. Southland Corp.

525 N.E.2d 1374, 38 Ohio St. 3d 1, 1988 Ohio LEXIS 216
CourtOhio Supreme Court
DecidedJuly 13, 1988
DocketNo. 87-714
StatusPublished
Cited by14 cases

This text of 525 N.E.2d 1374 (Vandemark v. Southland Corp.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vandemark v. Southland Corp., 525 N.E.2d 1374, 38 Ohio St. 3d 1, 1988 Ohio LEXIS 216 (Ohio 1988).

Opinions

Sweeney, J.

The defendant-appellant contends that plaintiff has failed to state a claim for relief, and that under Greenwalt, supra, the injured employee is solely responsible for the filing of his workers’ compensation claim. Defendant submits that the instant action is barred under R.C. 4123.84 by the lapse of more than two years from the date of the injury.

Plaintiff-appellee argues that defendant, as a self-insured employer,1 was ultimately responsible for the submission of his claim to the bureau under former Ohio Adm. Code 4121-9-03(K), once plaintiff had submitted his claim to the employer. Plaintiff asserts that he did all that was required in order to submit a claim for work-related injuries to a self-insured employer, and that it was logical for him to believe that he was being paid workers’ compensation benefits after his injury since he completed an application for benefits and submitted the same to his employer. Plaintiff fur[4]*4ther argues that defendant’s statute-of-limitations defense is irrelevant because the instant complaint seeks redress for the employer's breach of duty in not submitting his claim to the bureau; it does not seek workers’ compensation benefits.

In reviewing the allegations of plaintiff’s complaint, it should be noted that the allegation charging that the injury was aggravated by defendant’s premature return-to-work order states no redressable cause of action. Plaintiff does not allege intentional conduct in this regard, and any aggravation of his injuries caused by Ms return to work was sustained in the course of his employment. Therefore, with respect to this particular allegation, the employer is immune from suit pursuant to R.C. 4123.74.

Notwithstanding the foregoing determination, we do not believe that R.C. 4123.74 provides immumty to defendant-employer with respect to the essential allegations set forth in plaintiff’s complaint for the simple reason that the remaimng allegations do not seek entitlement to workers’ compensation benefits. In view of plaintiff’s complaint, we agree with the conclusion of the court of appeals that the central cause alleged herein falls outside the scope of the workers’ compensation statutes. The injury alleged in this regard is not a physical injury sustained in the course of employment; rather, it is in the nature of a financial injury that resulted from the employer’s alleged failure to process a workers’ compensation claim back in 1980. The injury alleged in plaintiff’s complaint occurred when plaintiff discovered that defendant had not processed the prior claim. The failure of defendant to do so precludes plaintiff from “re-opening” Ms prior claim since the bureau has no prior claim to re-open.

R.C. 4123.35 was amended in 1977 (136 Ohio Laws, Part I, 1075, 1133, 1135) to require the Industrial Commission to adopt rules establishing a mirnmal level of performance as a criterion for an employer to gain permission to self-insure in the area of workers’ compensation. The adopted rules embodied in the Ohio Admimstrative Code provided that the self-insured employer notify the Bureau of Workers’ Compensation as to recognized medical conditions within thirty days of submission of the claim. Ohio Adm. Code 4121-9-03(M) (10).

Since the instant action was determined on a Civ. R. 12(C) motion, the party against whom the motion is made is entitled to have all the material allegations in the complaint, with all reasonable inferences to be drawn therefrom, construed in Ms favor as true. Peterson v. Teodosio (1973), 34 Ohio St. 2d 161, 165-166, 63 O.O. 2d 262, 264, 297 N.E. 2d 113, 117. Under such circumstances, the courts below were correct in presuming that the defendant, as a self-insured employer, failed to satisfy its duty to notify the bureau of any recognized medical condition within thirty days of submission of the claim by the injured employee under Ohio Adm. Code 4121-9-03(M)(10). Nevertheless, if paragraph two of the syllabus in Greenwalt, supra, is still good law, the plaintiff herein will be unable to state a cogmzable cause of action in tort against the defendant-employer. Therefore, we believe that a re-examination of this court’s prior decision in Greenwalt is in order.

A review of .the facts in Greenwalt, supra, indicates a strong resemblance to the facts sub judice. See Egan v. Natl. Distillers & Chemical Corp. (1986), 25 Ohio St. 3d 176, 182, 184-185, 25 OBR 243, 248, 250, 495 [5]*5N.E. 2d 904, 909, 911 (Douglas, J., concurring in judgment only). In Greenwalt, the plaintiff became permanently and totally disabled due to work-related injuries. After submitting a workers’ compensation claim with his self-insured employer, employee Greenwalt was led to believe that the subsequent payments he was receiving were the result of his workers’ compensation claim. In reality, Greenwalt’s employer was paying him compensation out of its own pocket for approximately two years. At the end of two years, the employer stopped the payments to Greenwalt, and Greenwalt obtained counsel whereupon he discovered that the employer had never submitted Greenwalt’s workers’ compensation application with the Industrial Commission. Upon filing his claim directly with the Industrial Commission, Greenwalt was informed that his application was denied because it had not been filed within two years of the date the injuries were sustained. Greenwalt then commenced an action for damages against his former employer for its failure to submit his workers’ compensation claim to the Industrial Commission. The trial court dismissed Greenwalt’s complaint upon the employer’s demurrer, and the court of appeals affirmed the dismissal. Upon appeal before this court, a bare four-to-three majority upheld the lower courts’ judgments. In arriving at its decision, the majority opined that the Workers’ Compensation Act provided Greenwalt with his exclusive remedy.

Predictably, the law enunciated in Greenwalt, supra, was subjected, and continues to be subjected, to harsh criticism. In a dissenting opinion to the majority decision in Greenwalt, Judge William L. Hart stated:

“In my opinion the cause of action here asserted has nothing to do with liability of the employer under the Workmen’s Compensation Act. If a lawyer had undertaken to prosecute the plaintiff’s claim and the lawyer had failed to file the claim until after the expiration of the period prescribed by the statute of limitations, he would be liable to the plaintiff for negligence as in an action for malpractice. * * *” Id. at 8, 57 O.O. at 60, 128 N.E. 2d at 121.

In addition, Judge Charles B. Zimmerman offered his own dissenting viewpoint:

«* * * [W]here an employee sustains an injury through the negligence or misconduct of his employer, which is clearly outside the scope of the Workmen’s Compensation Act, he may maintain an action against his employer to recover damages therefor.” Id. at 9, 57 O.O. at 61, 128 N.E. 2d at 121.

One of the foremost commentators in the area of workers’ compensation has characterized the Greenwalt decision as “distasteful,” and that it is related to an “extreme position.” 2A Larson, Workmen’s Compensation (1988) 13-9, Section 68.32(b), fn. 46.2, at 13-97 to 13-98.

The court of appeals’ opinion in Delamotte v. Midland Ross (1978), 64 Ohio App. 2d 159, 163, 18 O.O. 3d 117, 119-120, 411 N.E. 2d 814, 817, determined that Greenwalt

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Cite This Page — Counsel Stack

Bluebook (online)
525 N.E.2d 1374, 38 Ohio St. 3d 1, 1988 Ohio LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vandemark-v-southland-corp-ohio-1988.