Wagner v. Allied Chemical Corp.

623 F. Supp. 1412, 1985 U.S. Dist. LEXIS 12682
District Court, D. Maryland·Decided December 17, 1985·No. Civ. Nos. Y-84-59, Y-84-2354·Published·Cited by 5 cases

Opinion

MEMORANDUM

JOSEPH H. YOUNG, District Judge.

Plaintiffs in this case are 22 former employees at defendant Allied Corporation’s former pesticide plant at 2000 Race Street, Baltimore City, and some of their spouses. Plaintiffs allege that they were injured as a result of exposure to chemicals at the pesticide plant and have sued Allied Corporation (“Allied”) and fourteen chemical suppliers (“supplier defendants”) under five different theories—negligence and gross negligence, nuisance, strict liability, breach of warranty, and “fraud, concealment and misrepresentation.” Some of the employee-plaintiffs and their spouses have joined together in a derivative claim under a sixth theory of loss of consortium.

On January 27,1984 and October 9,1984, employee-plaintiffs filed Workmen’s Compensation claims against Allied. At hearings in March, 1985, the testimony of all but two of the claimants was produced, and the proceedings continued on May 28, 1985 with the testimony of plaintiffs’ expert witness, Dr. Margit Bleecker. On June 12 and June 18, 1985, the Commission entered orders denying each claim. Sixteen of the claims were denied on the basis of statute of limitations, with alternative findings that “claimant did not sustain the occupational disease of bilateral carpal and tarsal tunnel syndrome arising out of and in the course of employment.” Four of the claims were denied solely on the latter basis—that these plaintiffs did not sustain an occupational disease arising out of their employment. The two remaining actions were also dismissed: the first, because plaintiff Charles E. Cookson denied signing the claim form, and the second dismissal was based upon the Commission’s finding that plaintiff Joseph J. Barnes did not “sustain an occupational disease.”

On the basis of these compensation proceedings, Allied moved for summary judgment and the supplier defendants moved for partial summary judgment.1 Allied asserts that the compensation remedy is an exclusive one under Maryland law. Allied further asserts that even if it were optional, each of the plaintiffs elected a remedy as against Allied, the employer, by filing compensation claims and pursuing them to a final judgment. Supplier defendants’ motion argues that collateral estoppel applies to the twenty plaintiffs who have already fully and fairly litigated the causation issue during the Workmen’s Compensation proceedings and received adverse decisions. Similarly, plaintiff Barnes litigated the issue of existence of the claimed condition to a final judgment and should be estopped from proceeding further.

[1414]*1414Plaintiffs filed a memorandum in opposition to the defendants’ motions, contending that it is too late to assert the affirmative defense of collateral estoppel and that defendants attempts to amend their answers to the complaints are unduly prejudicial. Plaintiffs also assert that causation was not fully litigated and decided for plaintiffs whose adverse rulings were based upon the statute of limitations because the alternative rulings were hypothetical and not final. Furthermore, plaintiffs argue that none of the Commission’s findings on “occupational disease” are subject to collateral estoppel because the issues decided by the Commission are not identical to the issues before the Court, and causation was never specifically decided.

AMENDMENT OF ANSWER

An initial issue is whether it would be unduly prejudicial to plaintiffs to allow defendants to plead exclusive remedy and collateral estoppel at this late date. Plaintiffs’ argument on this issue has no merit. Although defendants did wait until the completion of the compensation proceedings before asserting these affirmative defenses, this cannot be viewed as a dilatory or prejudicial tactic. Defendants were not unreasonable in pleading these affirmative defenses after receiving a final judgment in the compensation proceedings, when their arguments were applicable. In contrast, plaintiffs could easily anticipate that defendants might plead the affirmative defense and could riot reasonably view defendants’ delay as a waiver. Thus, defendants’ motions based on their affirmative defenses will be considered at this time.

ALLIED’S MOTION FOR SUMMARY JUDGMENT

Maryland’s compensation statute, Md. Ann.Code art. 101 (1957) (hereafter “the Act”), was designed as an exclusive remedy for injured employees. Knoche v. Cox, 282 Md. 447, 385 A.2d 1179 (1978); Athas v. Hill, 54 Md.App. 293, 297-99, 458 A.2d 859, aff'd., 300 Md. 133, 476 A.2d 710 (1984). It substituted an absolute but limited liability regardless of fault for the employer’s common law liability for negligence, which was subject to a range of common law defenses. Cox v. Sandler’s Inc., 209 Md. 193, 198-99, 120 A.2d 674 (1955). There are some specific exceptions to the exclusivity, such as Section 44 of the Act, which allows workers an option to either take benefits under the Act or sue under common law where it is alleged an injury or death results from the deliberate intention of the employer. In other words, workers may elect one of the two possible remedies under specified conditions for intentional injury. If this § 44 exception is applicable to any of the plaintiffs, and they have not already chosen to pursue their remedy under the Act, then they may pursue their claim under common law in this Court.

It is unnecessary to determine whether plaintiffs’ complaints properly fall within the scope of the § 44 exception for deliberate injury because a preliminary issue is the election of remedies. Twenty-one of the plaintiffs received final adverse decisions under the Act from the Commission in June, 1985. In Maryland, the pursuit of a compensation claim to a final judgment constitutes an election of one of the two options provided in § 44 of the Act. Haynie v. National Gypsum Corp., 62 Md. App. 528, 490 A.2d 724 (1985).

“In order to make an election under the doctrine of election of remedies, the remedies available to a party must be coexisting and inconsistent. Further, a party must actually bring an action seeking one of the remedies available ... (and) must pursue the action to final judgment.”

Id. at 533, 490 A.2d 724. See Surratts Association v. Prince George’s County, 286 Md. 555, 567-68, 408 A.2d 1323 (1979) (describing doctrine of election of remedies).

The Haynie reasoning applies in this case. Plaintiffs had the option of two [1415]*1415possible remedies against their employer: actions under either common law or under workers’ compensation laws. These remedies were coexisting, and because the worker could recover under only one of the two, they were inconsistent. Therefore, those plaintiffs who did in fact pursue their claims to a final ruling by the Commission are precluded from disregarding that § 44 choice and pursuing common law claims against the same employer for the same injury. Haynie v. National Gypsum Corp.,

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Wagner v. Allied Chemical Corp., 623 F. Supp. 1412, 1985 U.S. Dist. LEXIS 12682 (D. Md. 1985).

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