MARIA BUTTERWORTH WEST, APPELLANT,
v.
SIDNEY H. JESSOP AND INSURANCE COMPANY OF NORTH AMERICA, A CORPORATION, APPELLEES

Fla. 2d DCA | 1976-12-01
No. 76-426
McNULTY, C. J., and BOARDMAN, J., concur.
339 So. 2d 1136 Florida District Court of Appeal, Second District (1976) Negative Treatment
Cited by 29 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

An employee injured by her corporate employer's president seeks to sue the president individually despite workers' compensation coverage. The Florida appellate court held that a corporate officer can be liable as a co-employee for affirmative negligent acts that go beyond the employer's nondelegable duty to provide a safe workplace, even when the officer owns all corporate stock.


Holding

A corporate officer is liable as a co-employee for negligent acts only when those acts constitute affirmative negligence going beyond the employer's nondelegable duty to provide a safe workplace. The officer cannot claim immunity under the workers' compensation statute for such affirmative acts of negligence, even if the officer owns all corporate stock. Jessop's act of wrenching West's neck was clearly affirmative action placing him in the category of co-employee and thus not entitled to statutory immunity.


Headnotes

[1] A corporate officer may be subject to a third-party negligence action by an employee for affirmative acts of negligence committed during working hours, even if the employ…

[2] A corporate officer's liability in a third-party action is predicated on acts performed in the capacity of a co-employee, not in their capacity as a corporate officer.

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Key Quotes

“the liability of a corporate officer in a third party action must derive from acts done by him in the capacity of a co-employee and may not be predicated upon acts done by him in his capacity as a corporate officer”

Establishes the key principle that corporate officer liability depends on whether the negligent act was done as a co-employee rather than in official capacity

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Facts & Procedural History

Maria Butterworth West was employed by Sun State Properties, Inc. d/b/a United States Medical Training Academy, where Sidney Jessop served as presiden…

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Opinion of the Court
GRIMES, Judge.

GRIMES, Judge.

The question posed in this case is whether an employee of a corporation, who suffers an injury as a result of the negligence of that corporation’s president during working hours, can maintain an action against the president even though she is covered by the workmen’s compensation law.

Maria Butterworth West was employed by Sun State Properties, Inc. d/b/a United States Medical Training Academy. Sidney Jessop was the president and owner of all outstanding stock of the corporation.

On December 4, 1973, while at work Ms. West complained of a headache. In an attempt to relieve her pain, Jessop wrenched her heck causing permanent injury. She recovered workmen’s compensation insurance benefits for the injury.

Subsequently, she filed this negligence action against Jessop alleging that he was a co-employee, and thereby subject to a third party action for damages. The court granted Jessop a summary judgment holding that he was immune from suit as West’s employer under Section 440.11, Florida Statutes (1973). There is no doubt that the statute would preclude a suit against the corporate employer. On the other hand, co-employees are subject to third party actions for negligent acts done during the course of employment. Frantz v. McBee Company, 77 So. 2d 796 (Fla.1955). Where does Mr. Jessop stand when he is both a co-employee and, in effect, the employer by reason of his office and his ownership of all the corporate stock?

While this is an issue of first impression in Florida, it has been considered in other jurisdictions. A careful analysis of the problem is found in Kruse v. Schieve, 61 Wis.2d 421, 213 N.W. 2d 64 (1973), in which the court held that the liability of a corporate officer in a third party action must derive from acts done by him in the capacity of a co-employee and may not be predicated upon acts done by him in his capacity as a corporate officer. The court reasoned that a corporate officer becomes amenable to suit as a co-employee when he has committed an affirmative act of negligence which goes beyond the scope of the nondele-gable duty of the employer to provide his employees with a safe place to work.

This principle makes sense. To blindly hold that a corporate officer always occupies the position of a co-employee because he is a separate “entity” from the corporate employer would jeopardize the concept of workmen’s compensation which is designed to impose a certain but exclusive obligation upon employers whenever their employees suffer on-the-job injuries. A corporate employer must necessarily conduct its business through its corporate officers, and to permit in every case a third party action against these officers, particularly when they also own the corporate stock, would often reduce the protection of “exclusiveness” to only a theoretical refuge. The decision of a businessman to operate through a corporate entity should not deprive him of the reasonable protection against suits by his employees which is afforded to his competitor who is operating as a proprietorship, or even a partnership. Cf. Sonberg v. Bergere, 220 Cal.App.2d 681, 34 Cal.Rptr. 59 (1963).

On the other hand, there is no reason why a stockholding corporate officer should come under the umbrella of exclusive .protection when he negligently injures another employee through an affirmative act. In these circumstances, he should be held personally responsible for his actions in the same manner as any other employee.

2A A. Larson, Workmen’s Compensation Law, § 72.10 (1976), suggests that the majority rule holds the corporate officer to be responsible as a co-employee under all circumstances. However, an analysis of the facts of the cases cited by Larson reflects that most, if not all, of these decisions are consistent with the reasoning we have adopted.

Applying these principles to the instant case, we find that the act of negligence charged against Jessop was clearly one of affirmative action upon his part. The facts alleged in the complaint unquestionably place him in the category of a co-employee. Therefore, he would not be entitled to the cloak of immunity provided by the statute.

REVERSED.

McNULTY, C. J., and BOARDMAN, J., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (15 total)

  • Streeter v. Sullivan, 509 So. 2d 268 (Fla. 1987)
    …llow employee, a corporate officer must have committed some affirmative act going beyond the scope of the employer’s nondel-egable duty to provide a safe workplace. Kaplan v. Tenth Judicial Circuit, 495 So. 2d 231 (Fla. 2d DCA 1986), West v. Jessop, 339 So. 2d 1136 (Fla. 2d DCA 1976). Defendants argue that if any affirmative acts were committed in either of these cases they did not go beyond the employer’s nondelegable duty to provide a safe place to work. On this basis, the defendants contend that for purpose…
    1 / 2
  • Chorak v. Naughton, 409 So. 2d 35 (Fla. 2d DCA 1981)
    …d that a corporate officer becomes amenable to suit as a co-employee when he has committed an affirmative act of negligence beyond the scope of the nondelegable duty of the employer to provide his employees with a safe place to work. West v. Jessop, 339 So. 2d 1136 (Fla. 2d DCA 1976). In West a corporate president wrenched an employee’s neck causing permanent injury while attempting to relieve her headache, and we held the president amenable to suit because he negligently injured her through an affirmative act…
  • Sullivan v. Streeter, 485 So. 2d 893 (Fla. 4th DCA 1986)
    …corporation, are equally immune. However, where the supervisor committed some affirmative act going beyond mere execution of the employer’s nondelegable duty to provide a safe place to work, then a cause of action was permitted. See West v. Jessup, 339 So. 2d 1136 (Fla.2d DCA 1982) As stated in Dessert v. Electric Mutual Liability Insurance Company, 392 So. 2d 340, 342 (Fla. 5th DCA 1981), which was quoting with approval from Lupovici v. Hunzinger Const. Co., 79 Wis.2d 491, 255 N.W. 2d 590 (1977): If the of…

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