Deanda v. AIU Insurance

98 P.3d 1080 (2004) · Supreme Court of Oklahoma · July 20, 2004 · No. No. 98,986

Summary

The Oklahoma Supreme Court answered a certified question from the United States District Court for the Northern District of Oklahoma, holding that Oklahoma does not recognize a bad-faith tort against a workers' compensation insurance carrier for post-award conduct. The court held that the Oklahoma Workers' Compensation Act provides the exclusive remedies for an insurer's failure to pay or delays in paying an award, including enforcement and interest under 85 O.S. 2001, § 42. The opinion extended the court's reasoning concerning self-insured employers to workers' compensation insurance carriers.

Holdings

  1. Oklahoma does not recognize a tort of bad faith against a workers' compensation insurance carrier for post-award conduct.
  2. Title 85 O.S. 2001, § 42 provides the exclusive remedy for an insurance carrier's post-award failure to pay workers' compensation benefits.
  3. The alleged intentional nature of the insurer's conduct does not, by itself, place a post-award bad-faith claim outside the Workers' Compensation Act.

Questions Presented

  1. Whether Oklahoma recognizes a tort of bad faith against a workers' compensation insurance carrier for conduct occurring after the Workers' Compensation Court has entered an award.
  2. Whether the Workers' Compensation Act provides the exclusive remedies for an insurer's post-award failure or delay in paying workers' compensation benefits.
  3. Whether the alleged intentional nature of bad-faith conduct places the claim outside the exclusive jurisdiction and remedies of the Workers' Compensation Act.

Disposition

other

Cases Cited (14)

  • Kuykendall v. Gulfstream Aerospace Technologies, 2002 OK 96, 66 P.3d 374(followed and extended)
  • May v. Covington, 1939 OK 429, 95 P.2d 233(followed)
  • United States Fidelity and Guaranty Co. v. Theus, 1972 OK 9, 493 P.2d 433(followed)
  • Fehring v. State Insurance Fund, 2001 OK 11, 19 P.3d 276(relied upon)
  • Whitson v. Oklahoma Farmers Union Mutual Insurance Co., 1995 OK 4, 889 P.2d 285(followed)
  • Anderson v. United States Fidelity and Guaranty Co., 1997 OK 124, 948 P.2d 1216(followed)
  • Lee Way Motor Freight, Inc. v. Welch, 1988 OK 121, 764 P.2d 191(followed)
  • Bishop v. Wilson Quality Homes, 1999 OK 60, 986 P.2d 512(followed)
  • Goodwin v. Old Republic Insurance Co., 1992 OK 34, 828 P.2d 431(limited)
  • Harter Concrete Products v. Harris, 1979 OK 38, 592 P.2d 526(relied upon)

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