Justia Oklahoma Supreme Court Opinion Summaries

Articles Posted in Labor & Employment Law
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Joseph Parker was allegedly injured on the job. It was undisputed that Global Health Initiative (GHI), which at one time employed Parker, did not have workers' compensation insurance. Parker filed a workers' compensation claim in the Workers' Compensation Court. That court awarded Parker, by default judgment against GHI, $17,595.60 plus interest. Parker filed the judgment in the district court of Tulsa County in an attempt to collect the money awarded by the Workers' Compensation Court. After futile efforts to garnish the GHI bank accounts, Parker filed a motion to pierce the corporate veil and to proceed against individual GHI shareholders in an attempt to collect his compensation awards. The trial judge denied Parker's request due to lack of evidence. Thereafter, GHI filed notice of bankruptcy. By August of 2004, Parker had filed an appeal in which the Court of Civil Appeals reversed the trial court's determination that stockholders could not be held liable for the workers' compensation award and remanded the case to the trial court. GHI did not defend or participate in the case on appeal. Parker did not pursue collection against individual shareholders but, instead, returned to the Workers' Compensation Court seeking permanent partial and permanent total awards and an increase in his original award. GHI was not served notice of this proceeding and the cause was consequently undefended. The Workers' Compensation Court entered another award in favor of Parker and against GHI totaling $236,476.20. In June of 2009, Parker, through his counsel, sent letters to some of the GHI shareholders, seeking collection of the shareholders' pro rata share for payment of workers' compensation awards. However, for unexplained reasons, not all shareholders were asked to pay "their portion" of the judgment. The plaintiffs-appellants, doctors Thomas Kenkel and Robert Gold were two of the doctor stockholders, and they appealed seeking a declaration that: (1) Parker had no valid judgment against them; (2) Parker was not entitled to proceed against them for the injuries he sustained; (3) Parker was not entitled to collect the workers' compensation judgment; (4) they had the right to defend against any of Parker's claims ab initio; (5) they were not shareholders of GHI at all but if they were, they were merely minority shareholders; and (6) they were not liable for the debts Parker is attempting to collect. The trial court agreed and sustained the doctors' motion for summary judgment. Parker appealed and the Court of Civil Appeals reversed the trial court and remanded with directions for the trial court to enter judgment in the appellant's favor. The Oklahoma Supreme Court granted certiorari to address the issue of whether a business' failure to secure workers' compensation insurance rendered its shareholders personally liable for a workers' compensation award to an employee. The Court held that it did not. View "Kenkel v. Parker" on Justia Law

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Claimant Viola Sugg sought permanent total disability benefits from the Multiple Injury Trust Fund. The Workers' Compensation Court held that claimant's combined injures did not constitute permanent total disability and denied benefits against the Fund. Claimant appealed, and a three-judge panel reversed, finding that Claimant was a physically impaired person at the time of her last injury by reason of her 1989 adjudicated work-related injury and was entitled to permanent total disability benefits from the Fund. The Fund appealed, and the Court of Civil Appeals affirmed the decision of the three-judge panel. Upon review, the Oklahoma Supreme Court agreed that claimant was permanently and totally disabled and was entitled to benefits from the Fund. View "Multiple Injury Trust Fund v. Sugg" on Justia Law

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Plaintiff-appellees filed wage claim actions before the Oklahoma Department of Labor (ODOL), alleging their employer had refused to pay their wages for a substantial period of time. The Department of Labor ruled in favor of claimants and ordered employer to pay the wages owed. After an appeal to the district court which affirmed the order of the Department of Labor, the Employers-appellants appealed. The two issues raised on appeal were: (1) whether ODOL erred when it allowed Appellee-wage claimant Christopher Holland's joinder of multiple employers in a single wage claim; and (2) whether the ODOL court erred in prohibiting Appellants/Employers from presenting evidence at the Administrative Hearing. The Supreme Court answered both questions in the negative and affirmed the district court. View "Agrawal v. Ok. Dept. of Labor" on Justia Law

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Petitioner-claimant Jeanette Ball sought permanent total disability benefits from the Multiple Injury Trust Fund. The Workers' Compensation Court held that a "Crumby" finding of preexisting disability made simultaneously with the adjudication of an on-the-job injury could be combined with the adjudicated injury to render the Claimant a physically impaired person under 85 O.S. Supp. 2005 sec. 171 and awarded Petitioner permanent total disability benefits. The Fund appealed, and a three-judge panel reversed. Claimant then appealed, and the Court of Civil Appeals reversed the panel. After its review, the Supreme Court held that an employee must be a physically impaired person as defined by the applicable statute before he or she can seek benefits from the Fund. A "Crumby" finding of preexisting disability made simultaneously with an adjudication of an on-the-job injury could not be combined with such adjudicated injury to render the Claimant a physically impaired person under 85 O.S. Supp 2005 sec. 171. The Court of Appeals' decision was vacated and the case remanded for further proceedings. View "Ball v. Multiple Injury Trust Fund" on Justia Law

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The Grand River Dam Authority (GRDA) terminated the employment of petitioner Chester Rouse after several years of evaluations of inefficiency, incompetence, and misconduct, and after three significant events which occurred at its coal fired plant. Rouse appealed the termination to the Oklahoma Merit Protection Commission (OMPC) and then to the district court. The administrative appeal and the district court appeal each resulted in the affirmation of the termination. Rouse appealed to the Supreme Court, raising 16 issues of alleged error, some of which were found by the Court to be redundant, repetitive, related, or were not briefed on appeal. The Court consolidated the issues into four broader issues: (1) the trial court erred in its statutory interpretation of 74 O.S. 2011 section 840-6.5; (2) the trial court erred in determining that the reasons for termination were not pretextual or post hoc rationalizations; (3) the trial court erred in determining that plaintiff was estopped from challenging the level of discipline imposed (termination); and (4) its review of OMPC's ruling and the admission of certain evidence. After consideration of these issues, the Supreme Court found no reversible error, and affirmed the trial court. View "Rouse v. Oklahoma Merit Protection Comm'n" on Justia Law

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Claimant Andres Carbajal alleged he was injured when scaffolding he was on was blown over and he fell while working on a construction project in Okmulgee. He filed a claim in the Workers' Compensation Court and alleged that he was an employee of Precision Builders, Inc., and/or Mark Dickerson (Precision) when he fell. The tribunal denied the claim upon determining that claimant was an independent contractor and not an employee. The three-judge panel affirmed the trial tribunal and the panel's order was affirmed by the Court of Civil Appeals. The issue this case presented to the Oklahoma Supreme Court on certiorari was whether petitioner was an employee or independent contractor. "Considering each of the factors on which the evidence was presented leads us to the conclusion that claimant met his burden to show that he was an employee of Precision." The Court of Appeals' decision was vacated and the case remanded for further proceedings. View "Carbajal v. Precision Builders, Inc." on Justia Law

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The issue this case presented to the Oklahoma Supreme Court centered on the Oklahoma Court of Civil Appeals' decision to reverse the trial court's order granting a temporary injunction against the Defendant-Appellant, the Oklahoma Military Department ("Department"), and the trial court's order overruling the Department's motion for new trial and to vacate the temporary injunction. The trial court temporarily restrained and enjoined the Department from making pay increases conditioned upon leaving the classified service. In 2011, 44 O.S. 2011, section 21.1 was amended to require personnel appointed as state employees in the Department to be in the unclassified service and to provide additional leave flexibility. To coincide with this amendment, the Department issued new policies on hiring, promotions and salary administration. The new policy references 74 O.S. 2011, section 840-4.2 (C), which provides existing classified employees may remain in the classified service when a classified position has been placed in the unclassified service. Section 7 of the new policy indicates this choice is only applicable to permanent classified employees. It also provided that permanent classified employees may choose to move to the unclassified service after submitting a written resignation from their classified position. Any future vacancies will be filled exclusively in the unclassified service. In late August 2012 a series of e-mails by the Department were sent detailing which classified employees would be eligible for a raise. The e-mails indicate a performance-based adjustment would be granted to those permanent classified employees who had received "exceeds standards" on their annual personal progress report. However, an additional condition excluded from the raise all permanent classified employees who did not elect to resign from the classified service and enter the unclassified service. These classified employees were required to submit their resignation letters by August 30, 2012, in order to accept the offer. Plaintiff-Appellee, the Oklahoma Public Employees Association ("OPEA"), on behalf of some of the Department's affected permanent and probationary classified employees, filed a petition for declaratory judgment and injunctive relief. The Supreme Court held the trial court did not abuse its discretion in restraining and enjoining the Department from conditioning pay increases on declassification of permanent classified employees. The Court did, however, reverse the trial court's order as far as this provision of the order was applicable to probationary classified employees. The Court held that there was not the same protection to probationary classified employees as there was for permanent classified employees and the Department's actions concerning the probationary classified employee. The second provision of the trial court order enjoined the Department from: "[making] (2) an employee's raise or pay increase based solely upon such employee's status as a classified or unclassified employee." The meaning of this part of the order, the Supreme Court found, was unclear. The Supreme Court reversed this part of the trial court's order insofar as this provision could be interpreted to restrain and enjoin the Department from granting pay increases authorized by law. Furthermore, the Court held the trial court did not abuse its discretion by denying the Department's motion for new trial and to vacate the temporary order. View "Oklahoma Public Employees Assoc. v. Oklahoma Military Dept." on Justia Law

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The United States District Court for the Eastern District of Oklahoma certified three questions of Oklahoma law to the state Supreme Court. Plaintiff, a probationary police trainee, filed suit in the federal court pertaining his status as a probationary trainee under the terms of the municipality's collective bargaining agreement (CBA). The Supreme Court reformulated the first question, and answered questions one and two in the negative. Question three was not answered because it was dependent on an affirmative answer to question two. The questions certified to the Court were: (1) whether a probationary police officer in a municipality that has entered into a Collective Bargaining Agreement ("CBA") with a recognized bargaining agent under the Fire and Police Arbitration Act,who is excluded by the terms of the CBA from having access to the grievance/arbitration process contained in the CBA in connection with the termination of his/her employment due to his/her probationary status, but who was also a member of the Police Pension and Retirement Systems, at the time of the termination of his employment, has a right to be terminated only for cause by OKLA. STAT. tit. 11, sec. 50-123(B) and, thus, was entitled to due process in connection with the termination of his/her employment; (2) whether the probationary police officer under that scenario had a statutory right to a hearing before a Police Pension Review Board as provided for by statute; and (3) if a probationary police officer had a statutory right to a hearing before a Police Pension Board of Review, must the officer request a hearing and when must the officer request a hearing, or must the municipality offer a hearing and when must the municipality offer a hearing? View "Brewer v. City of Seminole" on Justia Law

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Employee Chester Rouse filed a wrongful termination suit against the Grand River Dam Authority (GRDA) and Daniel S. Sullivan. The petition alleged GRDA and Mr. Sullivan terminated him in retaliation for filing an overtime complaint under the Fair Labor Standards Act (FLSA). Rouse also alleged the termination of his employment for filing this complaint violated Oklahoma public policy protecting whistleblowers who make external reports of unlawful activity by their employers. The trial court dismissed the suit for failure to state a claim upon which relief could be granted, ruling: (1) sovereign immunity barred Rouse's claim based on the federal Fair Labor Standards Act; and (2) the Oklahoma Whistleblower Act provided employee's remedy for the alleged wrongful termination, not state tort law. Rouse appealed. Finding no reversible error, the Supreme Court held that the trial court correctly ruled that Rouse failed to state a claim upon which relief could be granted and properly dismissed this suit. View "Rouse v. Grand River Dam Authority" on Justia Law

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Respondent-claimant, Ben Snell was employed by petitioner-employer Kentucky Fried Chicken of McAlester. He alleged that while at work he slipped and fell while carrying a tray of chicken weighing approximately 40 to 50 pounds. The trial court awarded claimant temporary total disability (TTD) and reasonable and necessary medical treatment for injuries to his neck, the second finger of his right hand, and aggravation of pre-existing conditions to his left knee and low back. All other issues were reserved. On appeal, the Court of Civil Appeals (COCA) sustained the award. In its opinion, COCA ruled the standard of review in this case was the "any competent evidence" standard because of a holding in a previous opinion by the same division, "Westoak Industries, Inc. v. DeLeon," which held 85 O.S. 2011 sec. 340(D)(4), setting out "against the clear weight of the evidence" as the appellate standard of review in workers' compensation cases, constituted a violation of the separation of powers provision of the Oklahoma Constitution. Westoak was completely at odds with another COCA opinion, "Harvey v. Auto Plus of Woodward." "Harvey" held section 340(D)(4) was not unconstitutional as a separation of powers violation. The Supreme Court granted certiorari to consider the issue as one of first impression since certiorari was not sought in either of the previous cases. The Court concluded that there was no constitutional separation of powers prohibition in in the Okla.Const., art IV, section 1 against the Legislature's adoption of the "against the clear weight of the evidence" standard of review in 85 O.S. 2011 sec. 340(D)(4). COCA's opinion was therefore vacated. Because "Westoak" and "Harvey" were totally inconsistent with the views expressed in this opinion, they were both specifically overruled. View "Kentucky Fried Chicken of McAlester v. Snell" on Justia Law