Whitson v. Oklahoma Farmers Union Mut. Ins. Co.

• Decision Date: 31 January 1995
• Docket Number: No. 80860,80860
• Citation: 1995 OK 4,889 P.2d 285
• Parties: Paul D. WHITSON, Appellant, v. OKLAHOMA FARMERS UNION MUTUAL INSURANCE COMPANY, and Bill Spears, individually, Appellees.
• Court: Oklahoma Supreme Court

Page 285

889 P.2d 285

1995 OK 4

Paul D. WHITSON, Appellant, v. OKLAHOMA FARMERS UNION MUTUAL INSURANCE COMPANY, and Bill Spears, individually, Appellees.

No. 80860.

Supreme Court of Oklahoma.

Jan. 31, 1995.

Certiorari to the Court of Appeals, Division No. 2;

The District Court of Oklahoma County, Honorable Dan Owens, Trial Judge, granted summary judgment to defendants, Oklahoma Farmers Union Mutual Insurance Company and Bill Spears. Plaintiff, Whitson, was employed as an adjuster by the Lawton office of OFU from April through August 1989. Whitson filed a workers' compensation claim

on May 18, 1990 in which he claimed that on June 20, 1989 he had suffered an on the job injury in Frederick, Oklahoma. Spears, who was OFU's Oklahoma City claims manager and Whitson's supervisor, denied that OFU had received notice of Whitson's injury within the sixty days required by law. Whitson also alleged that Spears instructed other OFU employees to deny that OFU had received notice of Whitson's claim. Nevertheless, on April 18, 1991, the Workers' Compensation Court rejected OFU's contention that it had not received notice within sixty days and awarded Whitson benefits. On June 20, 1991, Whitson filed this suit seeking damages for Spears's bad faith conduct. Whitson alleged that Spears had falsely denied, and instructed another OFU employee to deny, knowledge of Whitson's injury. The Court of Appeals, Division 2, reversed the trial court's summary judgment for the defendants and held that the defendants' bad faith had been established by certain affidavits filed by Whitson. The Court of Appeals remanded the case for trial on damages only. We granted certiorari on September 26, 1994.

CERTIORARI PREVIOUSLY GRANTED; COURT OF APPEALS OPINION VACATED; TRIAL COURT'S JUDGMENT AFFIRMED.

Everett J. Sweeney, Norman, for appellant.

Phillip P. Owens, II, Teresa Cauthron, Tom L. King, King, Roberts & Beeler, Oklahoma City, for appellees.

OPINION

WATT, Justice.

The question before us is whether a successful workers' compensation claimant may later assert a tort claim against his employer for the manner in which the employer defended the worker's compensation claim. We hold that he may not.

FACTS AND PROCEDURAL HISTORY

Plaintiff, Paul D. Whitson, was employed as an adjuster by the Lawton office of Oklahoma Farmers Union Mutual Insurance Company from April through August 1989. Whitson filed a workers' compensation claim on May 18, 1990 in which he claimed that on June 20, 1989 he had twisted his left knee in Frederick, Oklahoma while working for OFU. Bill Spears, who was OFU's Oklahoma City claims manager and Whitson's supervisor, told OFU's insurance carrier that OFU did not receive notice of Whitson's injury within the sixty days required by law. Whitson also alleged that Spears instructed other OFU employees to deny that OFU had received notice of Whitson's claim. The record reflects that, despite Spears's actions, OFU's agent in Frederick confirmed Whitson's accident to the investigator for the workers' compensation carrier early in his investigation. On April 18, 1991, the Workers' Compensation Court rejected OFU's contention that it had not received notice within sixty days of Whitson's accident, and awarded Whitson $21,625.00. OFU's insurance carrier paid Whitson's award in full on May 17, 1991.

On June 20, 1991, Whitson filed this suit seeking damages against OFU and Spears. Whitson contended that Spears's conduct was actionable on the grounds of fraud and bad faith. The District Court of Oklahoma County, Honorable Dan Owens, Trial Judge, granted summary judgment to OFU and Spears. The Court of Appeals, Division 2, reversed on the ground that the defendants' bad faith had been established by affidavits filed by Whitson, and remanded the case for trial on damages only. OFU and Spears sought, and we granted, certiorari.

DISCUSSION

Whitson's Claims of Negligence and Fraud

Whitson claims that he has causes of action in negligence and for fraud. We disagree. Title 85 O.S.1991 § 12 provides that the liability created by the Workers' Compensation Act "shall be exclusive and in place of all other liability of the employer and any of his employees." Whitson, therefore, has no right to claim damages for negligence here. Harter Concrete Products, Inc. v. Harris, 592 P.2d 526 (Okla.1979).

Whitson's fraud claim must also fail. In order to establish a cause of action for fraud one must plead and prove: (1) a material false representation, (2) made with knowledge of its falsity, or recklessly made without knowledge of its truth, and as a positive assertion, (3) with the intention that it be relied upon by another, (4) reliance thereon by another party to its injury, and (5) that all elements be proven with a reasonable degree of certainty. Austin v. Cockings, 871 P.2d 33, 35 (Okla.1994). Clearly, Spears did not intend for Whitson to rely on his statements to OFU's workers' compensation insurer, and Whitson did not rely on them. Thus, Whitson failed to state a cause of action for fraud.

Whitson's Tortious Interference With Contract Claim

Whitson has no cause of action for tortious interference with contract because OFU was a party to the insurance contract with which Whitson claims OFU interfered. "A cause of action for wrongful interference with contract can arise only when one who is not a party to a contract interferes with that contract." [Emphasis added.] Ray v. American National Bank & Trust Company of Sapulpa, 894 P.2d 1056, 1994 WL 375943 (Okla.1994). Further, Whitson sought, and was paid the compensation that he sought. Thus, he suffered no damages.

The Exclusivity of the Workers' Compensation Remedy

Whitson contends that the exclusivity provision of 85 O.S.1991 § 12 does not apply here because Spears's conduct was intentional, not negligent. Whitson relies on two Court of Appeals opinions, Pursell v. Pizza Inn Inc., 786 P.2d 716 (Okla.App.1990), and Thompson v. Madison Machinery Co., 684 P.2d 565 (Okla.App.1984). Without passing upon the propriety of either of these Court of Appeals opinions, we find that neither is applicable to the facts before us today. In both Pursell and Thompson, the Court of Appeals allowed workers injured as the result of intentional misconduct to sue at common law. Those workers, however, had been paid no workers' compensation benefits. Here, in contrast, Whitson sued OFU and Spears after receiving a $21,625.00 Workers' Compensation Court award. Thus, neither Pursell nor...