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Bad Faith - Uninsured Employer

Bremer vs. Jerry Wallace and Iowa Great Lake Lifts, 728 N. W.2d 803 (Iowa 2007)

Bremer sustained a work related injury while working for Jerry Wallace, d/b/a Iowa Great Lake Lifts. Wallace did not carry workers’ compensation insurance, had not met the statutory requirements for self-insured status (Iowa Code §87.4) and had not complied with the procedures to be relieved of the obligation to carry workers’ compensation insurance (Iowa Code §87.11). Because Wallace was uninsured Bremer had the option of suing Wallace in an action at law for damages or collecting workers’ compensation benefits. Bremer chose to pursue a claim under the workers’ compensation statute.

Bremer obtained an award of healing period and permanent partial disability benefits but Wallace did not pay any benefits. Bremer brought this suit for damages based on the employer’s failure to pay benefits as ordered by the workers’ compensation commissioner. Bremer also sought punitive damages base on Wallace’s reckless disregard in unreasonably refusing to pay benefits awarded. The district court entered judgment against Walllace and Iowa Great Lakes Lifts for compensatory and punitive damages.

The Supreme Court reversed the lower court and held that Iowa does not recognize a common-law claim for bad-faith refusal to pay workers’ compensation benefit by an uninsured employer. Case dismissed

Posted by Richard G. Book on March 19, 2007 1:34 PM  |  Permalink

 

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