Bi-State Dev. Agency v. Watson

• Decision Date: 27 March 2001
• Citation: 40 S.W.3d 403
• Parties: (Mo.App. E.D. 2001) Bi-State Development Agency, Plaintiff/Appellant and Arcelia Cannon, Plaintiff/Respondent v. Richard Watson, Defendant. ED77358 0
• Court: Missouri Court of Appeals

40 S.W.3d 403 (Mo.App. E.D. 2001)

Bi-State Development Agency, Plaintiff/Appellant and Arcelia Cannon, Plaintiff/Respondent v. Richard Watson, Defendant.

ED77358

Missouri Court of Appeals Eastern District

03/27/2001

Appeal From: Circuit Court of the City of St. Louis, Hon. David C. Mason

Counsel for Appellant: Debbie S. Champion

Counsel for Respondent: William E. Sorrell and Arthur F. Clark

Opinion Summary: Injured employee, who received workers' compensation benefits, recovered a judgment from third party for her injuries. Trial court found that employer had waived its subrogation interest and entered judgment for employee.

Division Five holds: (1) Trial court erred in finding employer waived its subrogation interest because Section 287.150 does not provide for a waiver of the employer's rights based on wrongful behavior. (2) Case is remanded for a determination of who effected the recovery and to determine the proper allocation of the recovery.

PER CURIAM

Plaintiff, an employee bus driver, sustained injuries in a bus accident in the course of her employment for which she received workers' compensation benefits. She obtained a judgment in the amount of $8,200 against the other driver in the accident. The trial court denied her employer and co-plaintiff's motion to amend the judgment to reflect its subrogation interest under Section 287.150 RSMo (1994). Employer appeals. We reverse for the reason that employer was entitled to its subrogation interest. We remand to the trial court to determine who effected the recovery and to determine the proper allocation of the recovery.

Plaintiff, Arcelia Cannon, a bus driver for co-plaintiff, Bi-State Development Agency (Bi-State), was injured when a car driven by defendant, Richard Watson, collided with her bus. Bi-State paid Cannon $6,194.51 for medical expenses and $7,822.93 for temporary disability pursuant to the workers' compensation statute.

Roger Shell, a passenger on Cannon's bus, filed a lawsuit against Watson, Cannon, and Bi-State. Bi-State filed an answer, affirmative defense, and cross claim on behalf of itself and Cannon against Watson. Shell's case was dismissed and the case proceeded on Bi-State's and Cannon's claims against Watson. Watson filed an offer of judgment on June 29, 1999. On August 23, 1999 the trial court refused to approve the settlement on the grounds that the same attorney represented both Bi-State and Cannon, which it found to be a conflict of interest. The trial court ordered Cannon to find an attorney within 60 days and proceed to trial. A new attorney subsequently entered his appearance on behalf of Cannon.

After a two-day trial, the jury returned a verdict for Cannon in the amount of $5,500. Cannon moved for additur on the grounds that her medical bills and lost wages were undisputed and exceeded $18,000. The court granted the motion and entered judgment in the amount of $8,200. Bi-State moved to amend the judgment to award to it its subrogation interest. The trial court denied this motion on the grounds that Bi-State had waived its subrogation interest by engaging in a conflict of interest when its attorney represented Cannon.

Bi-State first asserts that the trial court erred when it failed to award Bi-State its workers' compensation subrogation interest. Bi-State argues that Section 287.150 mandates that it recover its subrogation interest, and that its actions before or during the trial are irrelevant to its right to recover under Section 287.150. Bi-State is correct and Cannon does not dispute this point.

The workers' compensation statutes provide a no-fault...