Opinion ID: 1999216
Heading Depth: 1
Heading Rank: 5

Heading: The Exclusivity Provision

Text: We begin by noting that chapter 33 of title 28, including § 28-33-25.1, the provision that provides for a compromise settlement of a disputed claim, falls squarely within the act's exclusivity provision. Section 28-29-20 provides in relevant part as follows: Rights in lieu of other rights and remedies.  The right to compensation for an injury under chapters 29-38 of this title, and the remedy for an injury granted by those chapters, shall be in lieu of all rights and remedies as to that injury now existing, either at common law or otherwise against an employer, or its directors, officers, agents, or employees;   . It is undisputed that Kulawas obtained a remedy in the WCC and that a decree in accordance with chapter 33 of title 28 was issued. However, plaintiff contends that it is the release language and not the exclusivity provision of the act that controls the result in this case. The plaintiff directs our attention to Aetna Casualty & Surety Co. v. Farr, 594 A.2d 379 (R.I.1991), a declaratory judgment action in which Shirley Farr was injured in an automobile collision with an uninsured motorist during the course of her employment. Id. at 379-80. Farr was driving a vehicle owned by her employer and insured by Aetna. Id. Aetna also was the employer's workers' compensation carrier under a separate insurance policy. Id. at 380. Farr's claim for workers' compensation benefits, defended by Aetna, was settled, and the parties executed a release that specifically referred to Farr's workers' compensation claim, but not her uninsured motorist claim. Id. at 380-81. Farr subsequently sought uninsured motorist benefits under the Aetna automobile policy, by filing a claim for arbitration. Id. at 380. Aetna filed a complaint for declaratory judgment, alleging that by executing a release in connection with her workers' compensation claim, Farr forfeited all causes of action resulting from the collision. [6] Id. This Court concluded that the release was ambiguous because it did not refer to the uninsured motorist claim. Id. at 381. The case before us does not approach the complexity of Farr ; in which this Court was faced with two separate policies of insurance. We concluded that the release was ambiguous, a claim that was raised below but not pressed on appeal. Id. at 382. Our holding in Farr has little relevance to § 28-29-20's exclusivity provision and has no bearing whatsoever on the preclusive effect of an employee's failure to preserve his or her common law rights. Furthermore, this term in Waterman, this Court had occasion to address the pension setoff consequences of a settlement entered in accordance with § 28-33-25.1. In Waterman, 983 A.2d at 843, the plaintiff's retirement benefits were offset against his workers' compensation settlement as required by G.L.1956 § 36-10-31. [7] The plaintiff argued that the setoff provision was misapplied to a settlement under § 28-33-25.1 and further that the state retirement system should be estopped from making the offset because of erroneous statements made by its-then assistant director. Waterman, 983 A.2d at 843-44. This Court rejected those arguments; we concluded that a settlement reached in accordance with the provisions of § 28-33-25.1, constitutes an `amount paid or payable under the provisions of any workers' compensation law' for purposes of the offset   . Waterman, 983 A.2d at 845 (quoting § 36-10-31). Further, we held that estoppel did not apply in Waterman, based on representations made by the retirement system that a settlement under § 28-33-25.1 did not constitute workers' compensation benefits or payments, such that the offset provision would be triggered. Waterman, 983 A.2d at 846. We concluded that because the fact that the statements were erroneous and ultra vires, estoppel was not available. Id. Additionally, we are of the opinion that our holding in Manzi v. State, 687 A.2d 461 (R.I.1997) (mem.), controls the result in this case. In Manzi, summary judgment was entered with respect to the plaintiff's tort claim against his employer, the State of Rhode Island, based on a workers' compensation settlement in accordance with § 28-33-25.1. Manzi, 687 A.2d at 462. The Superior Court hearing justice and this Court on appeal concluded that Manzi's tort claims were barred because of the release executed in the WCC and the exclusivity provision of the act. Id. Significantly, in Manzi, the plaintiff argued that because the settlement he reached with his employer was a compromise payment of a disputed claim and not payment of workers' compensation benefits, he could proceed with his civil action. Id. (emphasis added). This Court held that the clear and unambiguous language of § 28-33-25.1 specifies that the employer and insurer shall be entitled to a duly executed release which fully and finally absolves and discharges the employer and insurer from any and all liability arising out of the claimed injury, such that Manzi discharged defendants from any liability when he signed the release pursuant to § 28-33-25.1. Manzi, 687 A.2d at 462 (emphasis added). Moreover, in Manzi, 687 A.2d at 462, the employer argued that the plaintiff was barred from pursuing a tort claim based on § 28-29-20, the exclusivity provision. We declared in clear and unequivocal language: Moreover, the exclusivity clause of the Workers' Compensation Act bars plaintiffs from bringing this action. Section 28-29-20 provides that the right to compensation for an injury under title 28 chapters 29-38, and the remedy received pursuant to those chapters, `shall be in lieu of all rights and remedies as to that injury now existing, either at common law or otherwise against an employer.' Manzi, 687 A.2d at 462 (emphasis added). Kulawas argues that the case at bar is different from Manzi; the plaintiff in Manzi had released all claims against the state when he settled his workers' compensation case, and further, that this Court was not asked to examine the language of the release for ambiguity or specific exclusion. Our decision in Manzi did not rest on the breadth of the release or on its language. Indeed, Manzi submitted an affidavit from the state's lawyer, that the parties agreed that the settlement `in no way barred' plaintiff from filing a civil action against the state. Manzi, 687 A.2d at 462. Although we cannot envision a more explicit waiver of liability on the part of an employer, this evidence equally was unavailing. We held that the exclusivity provision of the act bars a plaintiff from filing a second cause of action on the basis of a different legal theory in circumstances in which a plaintiff seeks recovery for the same injuries on which his or her workers' compensation claim was based. Id. We are satisfied that our holding in Manzi determines the issues before us in this case. The plaintiff also points to the decree entered in the WCC specifying that the claimed injury did not occur in the course of her employment with respondent. The plaintiff argues that, when examined in light of the language in the release stating that it is specific to the claim that the injury is work-related and does not bar possible non work-related claims, it becomes apparent that the resolution of plaintiff's workers compensation claim expressly was based on preserving claims that were not work-related. Kulawas argues that, although she is precluded from seeking any additional sums in the WCC, she is free to seek payment for possible nonwork-related claims because these claims were preserved. We reject this contention and decline to engage in a syllogistic exercise. We are satisfied that if the Legislature intended to exclude a settlement based on a carefully worded release from the provisions of the exclusivity provision of the act, it would have done so in clear and definite language. The state's workers' compensation system was established to provide expeditious relief to injured workers under a no-fault system of benefits replacing a cumbersome and often lengthy tort system. Kaya v. Partington, 681 A.2d 256, 260 (R.I.1996) (citing Labbadia v. State, 513 A.2d 18, 21 (R.I.1986)). In creating this statutory compensation scheme, the Legislature clearly intended that this system of benefits serve as the exclusive remedy available to injured workers, completely replacing all other remedies then available. Id. Based on these venerable principles and because we fully are satisfied that the exclusivity provision of the act precludes a subsequent negligence suit against plaintiff's employer, we agree with the hearing justice that plaintiff's day in court has come and gone.