In a May 2024 ruling, the Oklahoma Supreme Court allowed a deceased worker’s estate to pursue a claim in federal court because, in this case, the Workers’ Compensation exclusive remedy provision did not apply.
The deceased worker’s estate was previously restricted from suing due to exclusive remedy, but the worker should have been covered under his company’s uninsured motorist policy.
What Are the Pertinent Facts?
The incident addressed in this court case occurred on March 24, 2020. These are the relevant facts of the case (a more complete account is available in the full case record):
- Michael Brian Smith was a passenger in a company vehicle owned by Fixtures & Drywall Company of Oklahoma (FADCO) driven by his coworker, Duane Clark, when they were involved in a single-car accident.
- Smith’s estate, led by his next of kin, Nancy Anaya-Smith, alleges that the co-employee driver’s negligence caused the fatal accident.
- At the time of the accident, FADCO had insurance policies with Federated Mutual Insurance Company, providing liability coverage totaling $7 million resulting from the use of a covered automobile.
- During this time, Federated offered FADCO the option to purchase uninsured motorist (UM) insurance coverage for all employees. FADCO decided to reject UM coverage for all employees by executing a specific form provided by Federated, as outlined in the statutory requirements.
- Additionally, FADCO elected to purchase UM coverage up to $1,000,000 for specific individuals and their family members while rejecting UM coverage for all other insured individuals.
What Was the Initial Ruling?
Mr. Smith was killed as a passenger in an employer-owned vehicle that had $7,000,000 of liability insurance and cannot recover under the policy because the Worker’s Compensation exclusive remedy provision of 85A O.S. § 5, bars suit against the employer. However, did the company vehicle qualify as an uninsured motor vehicle under 36 O.S. § 3636(C)?
What Is the Exclusive Remedy Provision?
The exclusive remedy provision of the Administrative Workers’ Compensation Act is found in 85A O.S. §5(A), which basically prevents injured employees from suing employers for additional compensation after filing a claim. This provision shields the employer from ongoing lawsuits and guarantees that the injured worker receives prompt assistance.
What Is the Supreme Court Ruling?
Ms. Anaya-Smith claimed that the co-worker’s negligence led to an accident. She alleged that the employer’s insurer, Federated Mutual Insurance Co., unfairly denied her uninsured motorist claim and that their coverage scheme violated Oklahoma law by not considering the victim an insured.
Despite the fact that the vehicle involved was covered and the driver was insured, Ms. Anaya-Smith was not allowed to sue the employer under its commercial and umbrella policies. Instead, she sought recovery of uninsured motorist benefits.
The court ruled that the co-worker should have been considered insured under the uninsured motorist policy, allowing Ms. Anaya-Smith to pursue her claim despite the limitations imposed by the company’s policies.
- When a liability policy on an employer-owned vehicle is inaccessible as a source of recovery because the employer is immune from lawsuits under the state’s Workers’ Compensation statute, the vehicle is considered “uninsured” for Uninsured Motorist purposes.
- Oklahoma’s Uninsured Motorist statute does not permit a company to purchase a policy and elect UM coverage for one class of insureds while rejecting UM for other insureds under the same policy.
What Does This Ruling Mean to You?
If a co-worker injures you on the job, your Oklahoma employer’s insurance company could be liable for your injuries in a civil lawsuit beyond the scope of Workers’ compensation. An Oklahoma Workers’ Compensation Lawyer in Tulsa from The Armstrong Law Firm, PLC, can review your case to determine the facts, who is liable for the accident, how insurance coverage should provide benefits, and how the law applies.
If you have questions about an injury you received at work, contact us at (918) 582-2500 or complete the contact form to request a free consultation.