Seal v. Welty d/b/a North Country ServicesAnnotate this Case
A worker died at a construction site when a retaining wall collapsed. Neither the putative employer, who claimed the worker was an independent contractor, nor the property owner, who hired the putative employer, had workers’ compensation coverage. The worker’s mother, who also was the personal representative of the worker’s estate, filed both a workers’ compensation claim against the Alaska Workers’ Compensation Benefits Guaranty Fund and a superior court wrongful death action against both the putative employer and the property owner. The Fund later caused the property owner, the putative employer, and the worker’s father to be joined as parties to the workers’ compensation claim before the Alaska Workers’ Compensation Board.All parties to the workers’ compensation proceeding, except the putative employer, entered into a settlement agreement; in the settlement the estate elected the wrongful death suit as its remedy, agreed to dismiss the workers’ compensation claim entirely to effectuate its remedy election, received a settlement payment from the property owner’s general liability insurer, and dismissed the wrongful death claim against the property owner. The agreement explicitly preserved the estate’s wrongful death claim against the putative employer. The Board approved the agreement, and the superior court dismissed the property owner from the wrongful death action based on a separate stipulation. The putative employer then sought dismissal of the wrongful death suit, contending that the Alaska Workers’ Compensation Act’s exclusive liability provision precluded the lawsuit because the settlement effectively paid workers’ compensation benefits to the estate. The superior court granted the putative employer summary judgment, relying on the Act to decide that the Board’s approval of the settlement transformed the settlement money into workers’ compensation benefits. Because the superior court misinterpreted the settlement agreement and the Act, the Alaska Supreme Court reversed the grant of summary judgment and remanded for further proceedings.