Seawright v. U.S. Fidelity and Guaranty Co., 81-148

• Decision Date: 08 February 1982
• Docket Number: No. 81-148,81-148
• Citation: 275 Ark. 96,627 S.W.2d 557
• Parties: A. M. SEAWRIGHT, Jr., Appellant, v. UNITED STATES FIDELITY AND GUARANTY COMPANY, et al., Appellees.
• Court: Arkansas Supreme Court

Page 557

627 S.W.2d 557

275 Ark. 96

A. M. SEAWRIGHT, Jr., Appellant, v. UNITED STATES FIDELITY AND GUARANTY COMPANY, et al., Appellees.

No. 81-148.

Supreme Court of Arkansas.

Feb. 8, 1982.

Frederick S. "Rick" Spencer, Mountain Home, for appellant.

Bill H. Walmsley, Batesville, for appellee.

HOLT, Justice.

This appeal is from a circuit court's order granting appellee's motion to dismiss appellant's complaint because of the exclusive remedy provisions of the Workers' Compensation Law, Ark.Stat.Ann. § 81-1304 (Repl.1976) and for failure to state a cause of action. Appellant insists the court erred in holding the Act as being the exclusive remedy for the asserted fraudulent conduct of the insurer inasmuch as the employer-insured was also the husband of the claimant. Therefore, the court erred in dismissing his complaint as not stating a cause of action.

The appellant, the insured, brought this independent action against appellee, his insurance carrier, for fraud or deceit, bad faith in tort, breach of a fiduciary relationship and intentional interference with a protected property interest in handling a workers' compensation claim. Appellee had accepted the claim of appellant's employee-wife as a compensable one, paying only certain medical expenses. However, it is alleged that the appellee's agent fraudulently misrepresented the extent or scope of the insurance coverage to appellant employer. As a result of the fraudulent misrepresentation, the appellant and his wife were lulled into not filing a claim for additional benefits within the statute of limitations to the detriment of the employee-wife and also to the detriment of her husband, the insured employer. He alleged that he had sustained substantial compensable losses which included workers' compensation benefits; i.e., his wife's past and future medical, hospital and disability benefits. Also, he had suffered "other economics losses" in amounts not fully ascertained and reserved the right to amend his complaint according to the proof.

This separate action by appellant was filed while his wife's claim for additional benefits was pending before the Workers' Compensation Commission. The court of Appeals affirmed the Commission's finding that her claim for additional benefits was barred by the statute of limitations and there was nothing in the record to "show that the appellee insurance carrier, because of something it had done or failed to do, caused the appellant (wife) to fail to timely file her claim with the Arkansas Workers' Compensation Commission." Seawright v. Seawright Super Saver et al, 1 Ark.App. 26, 613 S.W.2d 102 (1981).

Here, appellant argues that he is bringing this action for fraud and deceit as the employer-insured; therefore, his cause of action is not barred by the exclusive remedy provisions of the Workers' Compensation Law. § 81-1304, supra. That section provides:

The rights and remedies herein granted to an employee ... on account of injury or death, shall be exclusive of all other rights and remedies of such employee, his legal representative, dependents, or next of kin, or any one otherwise entitled to recover damages from such employer ....

Clearly, this act provides an exclusive remedy to recover damages from an employer based on an employee's injury. Odom v. Arkansas Pipe & Scrap Material Company, 208 Ark. 678, 187 S.W.2d 320 (1945). This type of statute is generally inclusive of common law...