Malkiewicz v. RR Donnelley & Sons Co., 3-87-0147.
Citation | 703 F. Supp. 49 |
Decision Date | 05 January 1989 |
Docket Number | No. 3-87-0147.,3-87-0147. |
Parties | John MALKIEWICZ, et al. v. R.R. DONNELLEY & SONS COMPANY. |
Court | United States District Courts. 6th Circuit. United States District Court of Middle District of Tennessee |
F. Dulin Kelly, Kelly & Jones, Hendersonville, Tenn., for plaintiffs.
Stafford McNamee, Jr., Bass, Berry & Sims, Nashville, Tenn., for defendant.
An "employer" under Tennessee's Workers' Compensation Law is liable for workers' compensation benefits only. See Tenn. Code Ann. § 50-6-108 (1983). Tennessee law extends this immunity to the employer's insurer. See Tenn.Code Ann. § 50-6-102(a)(3) (1983) ( ); Spears v. Morris & Wallace Elevator Co., 684 S.W.2d 620, 622 (Tenn. Ct.App.1984). Tennessee also allows employers satisfying certain requirements to become self-insured for workers' compensation purposes. See Tenn.Code Ann. § 50-6-405 (1983). This Court must decide whether the guarantor of a self-insured employer's obligations is entitled to the same immunity as a workers' compensation insurer.
This is a model case for certification. The issue is one of first impression and is critical to Tennessee's workers' compensation scheme. Tennessee, however, lacks a certification procedure by which the issue could be resolved decisively. This Court therefore must divine state law and hope that a Tennessee court someday does not disavow today's divination.
Donnelley Printing Company (Donnelley Printing) owns and operates a printing plant in Gallatin, Tennessee. Donnelley Printing is a wholly-owned subsidiary of defendant R.R. Donnelley & Sons, Inc. (Donnelley & Sons). Donnelley Printing is self-insured for workers' compensation purposes in Tennessee. See Def.Exh. 1. Donnelley & Sons is the guarantor of Donnelley Printing's obligations to its injured employees. See id.
Plaintiffs John Malkiewicz and Tim Lemons were injured in the course of their employment at Donnelley Printing's Gallatin plant in early 1986. They and their spouses assert in this action that, among other things, Donnelley & Sons was negligent in providing safety services at its subsidiary's plant. This Court grants defendant's motion to dismiss this action. Defendant, as guarantor of Donnelley Printing's workers' compensation obligations, is immune from liability under the Tennessee Workers' Compensation Law.1
Granting guarantors the same immunity as insurers is the only outcome compatible with Tennessee's statutory scheme. This Court finds no principled distinction between an employer's insurer and the guarantor of a self-insured employer. The employer is primarily liable in either case. The insurer or guarantor merely assures that injured employees receive the benefits to which they are entitled. The Self-Insurance Division of Tennessee's Department of Commerce and Insurance thus required Donnelley & Sons to guarantee Donnelley Printing's obligations to its employees before granting Donnelley Printing self-insured status. See id.
The Tennessee Legislature had good reason for granting immunity to insurers. Workers' compensation insurers have an economic incentive to assist their clients in providing a safer work environment. This behavior is desirable; everyone benefits when insurers apply their experience and expertise to reduce work hazards.
The law discourages this desirable activity absent immunity. Insurers have no legal duty to prevent accidents. But by attempting to improve worker safety insurers may become liable to those employees who are injured. See, e.g., Restatement (Second) of Torts § 324A (1965). The result is obvious. Kotarski v. Aetna Cas. & Sur. Co., 244 F.Supp. 547, 558-59 (E.D.Mich. 1965), aff'd, 372 F.2d 95 (6th Cir.1967), disavowed as a statement of Michigan law, Ray v. Transamerica Ins. Co., 10 Mich. App. 55, 158 N.W.2d 786 (Mich.Ct.App. 1968). See also Kifer v. Liberty Mutual Ins. Co., 777 F.2d 1325, 1334 (8th Cir.1985) (...
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