Liberty Mut. Ins. Co. v. Shoemake
| Docket Number: | 2011-CT-00179-SCT Linked Case(s): 2011-CA-00179-COA ; 2011-CA-00179-COA ; 2011-CT-00179-SCT |
|
| Supreme Court: | Opinion Link Opinion Date: 05-02-2013 Opinion Author: Chandler, J. Holding: Court of Appeals Reversed; Circuit Court Reinstated and Affirmed |
|
| Court of Appeals: |
Opinion Link Opinion Date: 05-29-2012 Opinion Author: Griffis, P.J. Holding: Reversed and Remanded |
|
| Additional Case Information: |
Topic: Workers' compensation - Reimbursement without intervention - Section 71-3-71 - Third party action - Forum - Jurisdiction - Subrogation claim Judge(s) Concurring: Waller, C.J., Randolph, P.J., Kitchens, Pierce, King and Coleman, JJ. Non Participating Judge(s): Dickinson, P.J. Concur in Part, Concur in Result 1: Lamar, J., Concurs in Part and in Result Without Separate Written Opinion Procedural History: Summary Judgment Nature of the Case: CIVIL - WORKERS' COMPENSATION Writ of Certiorari: yes Appealed from Court of Appeals |
|
| Trial Court: |
Date of Trial Judgment: 12-28-2010 Appealed from: Newton County Circuit Court Judge: Marcus Gordon Disposition: APPELLANT’S MOTION FOR SUMMARY JUDGMENT DENIED AND APPELLEE’S MOTION FOR SUMMARY JUDGMENT GRANTED Case Number: 09-CV-101-NWG |
|
| Note: | The Supreme Court found that MCA Section 71-3-71 requires a workers’ compensation insurer to join or intervene in a third-party action to become entitled to reimbursement, we reverse the judgment of the Court of Appeals and affirm the judgment of the circuit court. The original Court of Appeals opinion can be found at http://courts.ms.gov/Images/Opinions/CO77996.pdf | |
| Party Name: | Attorney Name: | Brief(s) Available: | ||
| Appellant: | Liberty Mutual Insurance Company |
TARA STRICKLAND CLIFFORD |
||
| Appellee: | Richard Shoemake | DAVID C. DUNBAR |
|
|
Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
|
| Topic: | Workers' compensation - Reimbursement without intervention - Section 71-3-71 - Third party action - Forum - Jurisdiction - Subrogation claim |
| Summary of the Facts: | Richard Shoemake was injured in Alabama but received workers’ compensation benefits from Liberty Mutual Insurance Company under Mississippi law. He brought and settled a third-party action in Alabama state court and reimbursed Liberty Mutual only the amount it was entitled to under Alabama law. Liberty Mutual, which knew of but did not join or intervene in the Alabama lawsuit, then sued Shoemake in Newton County, seeking full reimbursement as allowed under section 71-3-71. The circuit court granted summary judgment to Shoemake. The Court of Appeals reversed. The Supreme Court granted certiorari. |
| Summary of Opinion Analysis: | Issue 1: Intervention The right to reimbursement exists by virtue of statute and must rise or fall strictly as a matter of statutory interpretation. Thus, the Court must first look to the plain language of section 71-3-71 to determine whether Liberty Mutual is entitled to reimbursement without intervention. The language of section 71-3-71 clearly conditions the employer or insurer’s right to reimbursement upon the employer or insurer’s joinder or intervention in the third-party action. In addition to the plain language of section 71-3-71, the overwhelming weight of our caselaw supports the conclusion that Liberty Mutual was required to join or intervene in Shoemake’s Alabama action to enforce its statutory subrogation claim. Issue 2: Forum The present Mississippi state-court action is contrary to the intent of section 71-3-71 and should have been dismissed for lack of jurisdiction even if Liberty Mutual had intervened in the Alabama action. Section 71-3-71 effectively funnels all claims of the employer, insurer, or employee against a third party into one action, thereby preventing the need for multiple lawsuits, as have taken place in this case. The goal of the statutory scheme is for all parties who are entitled to recovery in the third-party action and who have been given notice to have their claims settled in one action, whether the employee, the employer, or the insurer brings the suit. Procedurally, Liberty Mutual should have intervened in the Alabama action and then tried to persuade the Alabama court to apply Mississippi law to its subrogation claim. But Liberty Mutual waived its right seek to have Mississippi law applied to its claim by choosing not to join or intervene in the Alabama action. It cannot now, having failed to follow the procedure set out in section 71-3-71, enforce in a second lawsuit a subrogation claim which arose only under that section. |
Home | Terms of Use | About the JDP | Feedback | Using JDP | MC Law Library | Mississippi Supreme Court
