Thursday, March 25, 2010

Ohio Supreme Court Upholds Ohio's Employer Intentional Tort Statute

*By George S. Crisci

For almost three decades, the Ohio General Assembly has attempted to limit an employee’s ability to sue an employer on grounds that the employer’s intentional actions caused a workplace injury or occupational disease. The Ohio Supreme Court has struck down no fewer than three such pieces of legislation as unconstitutional since 1982. In the absence of a limiting statute, Ohio common law has allowed such “employer intentional tort” suits to proceed outside the workers’ compensation system. As a result, juries have often found employers subject to increased liability for workplace injuries based, for all practical purposes, on little more than negligence.

The General Assembly’s string of failed attempts was broken when the Ohio Supreme Court issued two companion decisions on March 23, 2010, ruling that Ohio Revised Code Section 2754.01, which limits an employee’s ability to sue an employer for an intentional tort, did not violate the Ohio Constitution.

The statute, passed in 2005, provides that an employer is immune from liability when sued by employees or their dependent survivors for an intentional injury unless the plaintiff proves that the employer acted with the “intent to injure the employee” or “with the belief that the injury was substantially certain to occur.” The statute defines the phrase “substantially certain” as meaning that “an employer acts with deliberate intent to cause an employee to suffer an injury, a disease, a condition, or death.” The statute further provides that an employer’s deliberate removal of equipment safety guards or deliberate misrepresentation of a toxic or hazardous substance creates a rebuttable presumption that these actions were committed with the intent to injure another.

In Kaminski v. Metal & Wire Products Company, 2010-Ohio-1027, the Ohio Supreme Court found that R.C. §2745.01 did not violate Sections 34 (authorizing employment workplace laws) and 35 (authorizing workers’ compensation laws) of Article II of the Ohio Constitution. Specifically, the Court held that those provisions granted the General Assembly broad authority to enact legislation and did not prohibit limitations on employer intentional torts. The Court further explained that because R.C. §2745.01 merely limits, but does not eliminate, an employee’s ability to sue an employer for intentional tort, it is constitutional.

In Stetter v. R.J. Corman Derailment Services, LLC, 2010-Ohio-1029, the Ohio Supreme Court further established the constitutional validity of R.C. §2745.01. Responding to issues referred to it by a federal court, the Ohio Supreme Court ruled that the statute does not on its face violate a number of the Ohio Constitution’s provisions including those concerning access to the courts, the right to a jury trial, and equal protection under the law. Notably, the Ohio Supreme Court explained that while R.C. §2745.01 does not eliminate the common-law cause of action for an employer intentional tort, it does significantly limit an employee’s ability to bring such an action.

Thus, for the first time in almost 30 years, the Ohio Supreme Court has denied a challenge to limits on the employer intentional tort. As a result, employers face reduced risk that an employee can successfully seek to recover for workplace injuries and/or occupational diseases outside the limits of the workers’ compensation system. Most importantly, it is now easier for employers to defend against meritless intentional tort lawsuits and the sizeable damage awards or settlements that flow from them.

If you have any questions how the unemployment benefits extension may affect your business, please contact George S. Crisci at 216.696.4441 or gsc@zrlaw.com.

*George S. Crisci is an OSBA Certified Specialist in Labor and Employment Law and has extensive experience in all aspects of workplace law. For more information about defending allegations of public policy discrimination, please contact George at 216.696.4441 or gsc@zrlaw.com.