Worker’s Compensation Claim

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WI Court of Appeals – District III

Case Name: Francis G. Graef v. Continental Indemnity Company, et al.

Case No.: 2018AP1782

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Worker’s Compensation Claim

Continental Indemnity Company appeals an order denying its motion for summary judgment that sought to dismiss Francis Graef’s personal injury lawsuit. The issue before us is whether an employee who has undisputedly sustained an injury compensable under the Worker’s Compensation Act (“the Act”), WIS. STAT. ch. 102 (2017-18), may bring a tort action against a worker’s compensation insurance carrier when that action is based upon the carrier’s allegedly negligent denial of benefits due under the Act.

We conclude that the exclusive remedy provision of the Act, WIS. STAT. § 102.03(2), bars such actions. Our conclusion rests on the fact that to successfully prosecute his or her claim, a plaintiff would necessarily have to show that he or she was denied benefits to which he or she was entitled under the Act. The Act, however, already provides a remedy for the wrongful denial of benefits. Thus, the plaintiff’s right to recovery exists under the Act, and the Act’s exclusive remedy provision applies. We therefore reverse the circuit court’s decision and remand with directions to dismiss the complaint against Continental.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.