Myers v. Yamato Kogyo Co. (Majority, with Dissenting)Annotate this Case
The Supreme Court affirmed the order of the Arkansas Workers' Compensation Commission concluding that parent companies of a direct employer are immune from tort liability under the exclusive remedy statute, Ark. Code Ann. 11-9-105(a), holding that the Commission's decision was supported by substantial evidence.
Plaintiff filed a wrongful death suit against the parent companies of her deceased husband's employer. The Commission concluded that the parent companies were statutory employers as principals and stockholders of the direct employer under section 11-9-105(a). The Commissioner further held that the parent companies' statutory entitlement to immunity was consistent with Ark. Const. art. V, 32. On appeal, Plaintiff argued that article 5, section 32 permits workers' compensation laws to extend only to "actual" employers. The Supreme Court affirmed, holding (1) the Commission's finding that the parent companies were immune under the exclusive remedy provision was supported by substantial evidence in the record; and (2) section 11-9-105(a) is constitutional because the parent companies had an employment relationship with Plaintiff's deceased husband.