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Frank D. Shade, Appellant, v. The Ash Grove Lime and Portland Cement Company, Appellee

Kansas Supreme Court1914-04-11No. No. 18,793
92 Kan. 146

Summary

Holding. The court reversed the dismissal and remanded the case, holding that although the workers' compensation act provided the exclusive remedy when both employer and employee were covered by it, the trial court lacked authority to dismiss the action on jurisdictional grounds; instead, the court should have addressed the substantive question of available remedies on the merits.

Frank Shade sued his employer, Ash Grove Lime and Portland Cement Company, for personal injuries allegedly sustained due to negligence. The defendant moved to dismiss the action, arguing that Shade's exclusive remedy was under the workers' compensation act because both the employer and employee fell within the act's coverage at the time of injury. The trial court granted the dismissal based on lack of jurisdiction.

The appellate court reversed, holding that while the workers' compensation act did become the exclusive remedy when both parties were covered by it, this substantive limitation on available remedies did not strip the court of jurisdiction over the case. The court noted that the defendant only filed its election to opt out of the compensation act several days after the injury occurred, meaning both parties were technically within the act's provisions on the injury date. However, the proper response was not dismissal for lack of jurisdiction but rather a determination on the merits regarding what remedy Shade could pursue.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether workers' compensation act exclusivity deprives courts of jurisdiction
  • Effect of amended compensation statute making coverage automatic unless employer opts out
  • Timing of employer's election to opt out relative to injury date

Procedural posture

Plaintiff appealed from a trial court order dismissing his negligence action for lack of jurisdiction on the ground that workers' compensation provided the exclusive remedy.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

The opinion of the court was delivered by

BENSON, J.:

This is an appeal from an order dismissing an action to recover damages for personal injuries on the ground that the plaintiff’s right to recover was governed solely by the workmen’s compensation act. (Laws 1911, ch. 218, as amended by Laws 1918, ch. 216.)

The petition contained averments sufficient for a cause of action under the factory act (Gen. Stat. 1909, §§ 4676-4683) under which it was obviously drawn, but it also contained charges of negligence sufficient to state a cause of action independent of the act.

The motion to dismiss was urged on the ground that both the employer and the employee at the time of fhe injury were within the provisions of the workmen’s compensation act, because neither had filed a written declaration of an election not to come within its provisions or not to accept thereunder.

The original act of 1911 declared in section 1 that “save as herein provided, no such employer shall be liable for any injury for which compensation is recoverable under this act.” In section 2 it was provided that the employee might elect to rely upon a right of action for negligence or the right of compensation under the act. The provisions of section 1 of the first act are not changed, but.section 2 of that act is repealed by chapter 216 of the Laws of 1913.. This leaves no provision in the later statute to which the clause above quoted can apply, and when both parties are under the compensation act the remedy prescribed by it is exclusive.

The first act applied to employers in the industries, within its purview who elected to come under its provisions and to accept thereunder, but by the later stat ute, which took effect March 12,1913, it is declared that the employer shall be deemed entitled to come within its provisions unless he shall file with the secretary of state a notice of his election not to accept thereunder, and the employee is put in the same situation.

The plaintiff was injured March 13, 1913. The defendant filed a statement of its election not to come under the act on March 17. The plaintiff never filed a like declaration. It will therefore be seen that on March 13, the date of the injury, both parties were under the provisions of The act, neither having elected to the contrary, although the defendant did so a few days afterward. While it is true that such compensation acts do not exclude other remedies in the absence of provisions to that effect, yet. by the terms of the statute itself such remedies are excluded when both employer and employee are under its provisions. The option contained in the section repealed was taken away as to parties so situated when the amendatory statute took effect. It follows that the plaintiff could not recover otherwise than under the workmen’s compensation act, but it is not perceived how this deprived the court of jurisdiction of the person and subject matter or afforded grounds for a dismissal of the action. It is stated, however, in the plaintiff’s brief that he elected his remedy under the factory act. Such an election is not contained or referred to in the abstract, and we are inclined to construe the brief as relating to an insistence of a right to the benefit of the factory act, but not as a repudiation of any right to any other remedy. This conclusion is the more readily adopted because an interpretation of recent statutes never passed upon by this court was necessary, and because the district court in the entry based the dismissal upon want of jurisdiction and made no reference to an election of remedies.

The district court clearly had jurisdiction. The action should be reinstated for the pursuit of any ap propriate remedy that the present petition or any reasonable amendment may warrant.

The judgment is reversed and the cause remanded for further proceedings.