Webb v. Montana Masonry Construction Co.

761 P.2d 343, 233 Mont. 198, 45 State Rptr. 1420, 1988 Mont. LEXIS 227
CourtMontana Supreme Court
DecidedAugust 11, 1988
Docket87-344
StatusPublished
Cited by9 cases

This text of 761 P.2d 343 (Webb v. Montana Masonry Construction Co.) 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
Webb v. Montana Masonry Construction Co., 761 P.2d 343, 233 Mont. 198, 45 State Rptr. 1420, 1988 Mont. LEXIS 227 (Mo. 1988).

Opinions

THE HONORABLE GORDON R. BENNETT, District Judge, sit[199]*199ting for MR. JUSTICE GULBRANDSON

delivered the Opinion of the Court.

Honorable Paul G. Hatfield, United States District Judge for the District of Montana, has certified to this Court under Rule 44 of the Montana Rules of Appellate Procedure the following question:

“Where a general contractor is compelled, pursuant to Section 39-71-405(1), Montana Code Annotated, to pay workers’ compensation benefits to an employee of an uninsured subcontractor, is that general contractor’s liability limited, by Section 39-71-411, Montana Code Annotated, to compensation under the Workers’ Compensation Act?”

The statutes referred to provide:

“39-71-405. Liability of employer who contracts work out. (1) An employer who contracts with an independent contractor to have work performed of a kind which is a regular or a recurrent part of the work of the trade, business, occupation, or profession of such employer is liable for the payment of benefits under this chapter to the employees of the contractor if the contractor has not properly complied with the coverage requirements of the Workers’ Compensation Act. Any insurer who becomes liable for payment of benefits may recover the amount of benefits paid and to be paid and necessary expenses from the contractor primarily liable therein.

“39-71-411. Provisions of chapter exclusive remedy nonliability of insured employer. For all employments covered under the Workers’ Compensation Act or for which an election has been made for coverage under this chapter, the provisions of this chapter are exclusive. Except as provided in part 5 of this chapter for uninsured employers and except as otherwise provided in the Workers’ Compensation Act, an employer is not subject to any liability whatever for the death of or personal injury to an employee covered by the Workers’ Compensation Act or for any claims for contribution or indemnity asserted by a third person from whom damages are sought on account of such injuries or death. The Workers’ Compensation Act binds the employee himself, and in case of death binds his personal representative and all persons having any right or claim to compensation for his injury or death, as well as the employer and the servants and employees of such employer and those conducting his business during liquidation, bankruptcy, or insolvency.”

The following facts are stipulated:

“1. In 1985, Aldinger Construction, Inc. (hereinafter referred to as [200]*200“Aldinger”), was the general contractor hired by the Bainville School District to remove an existing building and construct a new school building. Montana Masonry Construction Company (hereinafter referred to as “Montana Masonry”) was a subcontractor on the project. Rocky L. Webb (hereinafter referred to as “Webb”) was an employee of Montana Masonry.

“2. On or about September 11, 1985, Webb was injured in an accident which arose out of and in the course of his employment with Montana Masonry.

“3. By reason of the employer-employee relationship between Webb and Montana Masonry, Montana Masonry was required by Montana law to provide workers’ compensation insurance coverage for Webb. Montana Masonry failed to provide said coverage for the accident which occurred on or about September 11, 1985.

“4. On the date of the accident, Aldinger did carry workers’ compensation coverage through the State Compensation Insurance Fund.

“5. Since Montana Masonry had not properly complied with the coverage requirements of the Workers’ Compensation Act, the State Compensation Insurance Fund became liable for payment of benefits by reason of the provisions of Section 39-71-405(1), MCA.

“6. On or about December 22, 1986, Webb initiated the present action. Webb is seeking compensation for his injuries from Montana Masonry and Aldinger on the grounds that they failed to comply with the requirements of the Montana Scaffold Act and also failed to provide a safe place to work as provided by Section 50-71-201 et seq., MCA.

“7. As of the date of the Joint Motion, Montana Masonry has not been served with the lawsuit. However, Aldinger has been served and has filed an Answer denying liability. In addition, Aldinger has asserted in its Third Affirmative Defense that since it was required to and did pay compensation and medical benefits to Webb, an employee of Montana Masonry, pursuant to the provisions of the Workers’ Compensation Act, Aldinger is entitled to the insulation provided employers under the Workers’ Compensation Act, including those provisions of Section 39-71-411, MCA.”

Section 39-71-412, MCA, provides in pertinent part:

“The right to compensation ... is not affected by the fact that the injury ... is caused by the negligence of a third party other than the employer .... Whenever such event ... is caused by the act or omission of some persons or corporations other than his employer [201]*201. . ., the employee,... in addition to the right to receive compensation under this chapter, [has] a right to prosecute any cause of action he may have for damages against such persons or corporations.”

The question here is whether Webb may maintain an action for negligence against Aldinger under the above statute and circumstances. We hold that he can, and that the answer to the question certified is, therefore, “no.”

The question upon which this answer turns is whether Aldinger becomes clothed with immunity under Section 39-71-411, MCA, by becoming liable under Section 39-71-405(1), MCA, due to the failure of Montana Masonry to provide coverage under the Workers’ Compensation Act. The question is not without difficulty or a considerable history.

The Act, originally passed in 1909 (Chapter 67, Laws of 1909), was found unconstitutional because it did not protect an employer who furnished compensation under it from being sued by the injured worker. Because no provision was made for reimbursement, in whole or in part, the Court found that the employer against whom an action was successfully prosecuted would be compelled to pay twice. The Court saw this as a violation of the employer’s right to equal protection of the laws. See, Cunningham v. Northwestern Improvement Co. (1911), 44 Mont. 180, 119 P. 554. The legislature tried again in 1915, providing specifically for immunity for any employer who elected to pay compensation under the Act (Section 3, Chapter 96, Laws of 1915). The new Act passed constitutional muster in Shea v. North-Butte Mining Co. (1919), 55 Mont. 523, 179 P. 499, wherein it was held the Act did not offend the Constitution by closing the courts to injured workmen who had chosen to become subject to the Act. Shea, 55 Mont. at 533-534, 179 P. at 503.

The question of an owner’s or general contractor’s reciprocal immunity arising from liability for a noncomplying subcontractor did not arise until after the 1965 legislature amended the definition of an independent contractor by adding:

“But the legal defense of independent contractor shall not bar otherwise compensable industrial accident claims against employers except when such defense is interposed on behalf of a party who has previously required the claimant’s immediate employer to come within the workman’s compensation act.”

Chapter 49, Laws of 1965, amending Section 92-438, R.C.M. 1947.

In Ashcraft v. Montana Power Co. (1971), 156 Mont.

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Webb v. Montana Masonry Construction Co.
761 P.2d 343 (Montana Supreme Court, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
761 P.2d 343, 233 Mont. 198, 45 State Rptr. 1420, 1988 Mont. LEXIS 227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webb-v-montana-masonry-construction-co-mont-1988.