holding that “an employer seeking reimbursement for compensation payments bears the burden of establishing that a defendant’s negligence is the proximate cause of an employee’s injuries and the amount of tort damages reasonably resulting therefrom,” and stating that “[n]o valid public policy would be served” by “a guarantee of reimbursement”
How later courts described this case
- holding that “an employer seeking reimbursement for compensation payments bears the burden of establishing that a defendant’s negligence is the proximate cause of an employee’s injuries and the amount of tort damages reasonably resulting therefrom,” and stating that “[n]o valid public policy would be served” by “a guarantee of reimbursement”
- stating that, insofar as the law permits a carrier to seek reimbursement from a third-party tortfeasor, California law “does not enlarge the tort remedy of a compensation carrier beyond that of the injured employee”
- noting that the insurer in the case had given “no explanation” for the disparity between the employee’s estimated medical damages and the greater amount paid by the insurer, and observing that “a guarantee of reimbursement ... would, in our view, inevitably tend to lessen the incentive [of the insurer] to dispute questionable claims”
Written by the judges who cited it.
The opinion
RICHARDSON, J., Concurring and Dissenting.
I concur in the result. I further concur in the reasoning of the court, except as it mandates that “If the trier finds that defendant’s tort liability equals or exceeds the amount of the settlement, then the carrier is entitled to full reimbursement. Where the defendant’s tort liability is less than the settle *932 ment amount, however, the carrier is entitled to reimbursement only up to the amount of defendant’s tort liability.” (Ante, p. 926, see also pp. 928, 929.) I respectfully dissent both from the express language and the implications thereof, believing that the majority errs in so concluding.
If a workers’ compensation carrier has paid compensation benefits to an employee who subsequently establishes his right to recover by judgment or settlement against a third party tortfeasor, the court gives the carrier the right of full reimbursement. In doing so the court ignores the possibility that there may be other claimants against the tort judgment. By way of example, the employee may for valuable consideration have assigned all or a part of his interest in the judgment to other parties. Also, there may be other claims against the judgment some of which may be in lien form and some of which may be for necessaries of life furnished the employee. Similarly, an employee’s spouse in a dissolution or other proceeding may assert an interest against the judgment based upon community property law. There may be other interests asserted. By mandating that the workers’ compensation carrier receive “full reimbursement” from the employee’s settlement or judgment, the majority judicially selects the carrier as a preferred creditor vis-a-vis other claimants. In a particular case, this may prove to be manifestly unfair. The priorities should be determined by the trial court in accordance with law, if necessary by requiring the interpleading of the competing claimants.
Pronouncement of a rule of full reimbursement is not necessary to the resolution of the issue before us and for the foregoing reasons I do not favor the rule.
Mosk, J., and Newman, J., concurred.