Lemos-Crawford: Recent Case Reaffirms WC Act as Sole Remedy

Friday, June 23, 2023 | 0

Recently, the 5th District Court of Appeals upheld the dismissal of a lawsuit for negligence brought by a temp worker against his special employer for a work injury for which he had already been provided benefits through the general employer’s workers’ compensation insurance coverage, based on exclusive remedy.

Cortney M. Lemos-Crawford

With a few exceptions, the California Workers’ Compensation Act provides that the exclusive remedy to an employee who sustains injury or death in the course and scope of employment is the right to recover workers’ compensation benefits.

Historically, the courts have upheld workers’ compensation as the exclusive remedy, even in potential negligence claims. In the Sutton v. Saputo Cheese case, the Court of Appeals ruled consistent with this precedent, which resulted in a victory for general employers.

The applicant sustained an injury in 2017 while employed with Select Staffing during an assignment to Saputo Cheese. Sutton filed a workers’ compensation claim against his general employer, Select Staffing, which was settled by compromise and release in October 2018. Thereafter, in May 2019, Sutton filed a lawsuit in Superior Court against the special employer, Saputo, for negligence and premises liability and claimed that Saputo did not have workers’ compensation coverage for temporary employees.

Saputo was granted summary judgment on the basis that Sutton’s injuries arose out of and in the course of his employment with Select Staffing and that they were covered under its workers’ compensation policy. Sutton appealed, and the Court of Appeals upheld the ruling for Saputo and found that the injured worker’s sole remedy was through the workers’ compensation coverage of the general employer.

This case is a victory for employers, as it secures the exclusive remedy status of the workers’ compensation system established by the California Workers’ Compensation Act. By maintaining the workers’ compensation system as an exclusive remedy to work injuries, the courts have, with only a few exceptions, eliminated civil litigation against employers that have acted in good faith to provide insurance coverage to their employees, thereby eliminating litigation costs and potential civil damages employers could face for work injuries if the employee were able to seek remedies in the civil realm.

Cortney M. Lemos-Crawford is managing partner with D’Andre Law's San Diego office.