1. Workers' Compensation--exclusive jurisdiction--bad faith--unfair and deceptive
trade practices--civil conspiracy
The trial court did not err by granting judgment on the pleadings as to plaintiff's claims for
bad faith, unfair and deceptive trade practices, and civil conspiracy arising out of a refusal to pay a
claim which arose from a workers' compensation claim involving an allegedly inaccurate
videotape, because all of plaintiff's claims were within the exclusive jurisdiction of the Industrial
Commission.
2. Workers' Compensation--no exclusive jurisdiction--intentional infliction of
emotional distress
The trial court erred by granting judgment on the pleadings as to plaintiff's claim for
intentional infliction of emotional distress arising out of a refusal to pay a claim which arose from
a workers' compensation claim involving an allegedly inaccurate videotape, because: (1) an
intentional infliction of emotional distress claim lies outside the exclusivity provisions of the
Workers' Compensation Act; and (2) plaintiff has pled the elements of the tort.
Judge McGEE concurring in part and dissenting in part.
Donaldson & Black, P.A., by Jay A. Gervasi, Jr., and Rachel
Scott Decker, for plaintiff-appellant.
Womble, Carlyle, Sandridge & Rice, PLLC, by Richard T. Rice
and Garth A. Gersten, for defendant-appellees.
EDMUNDS, Judge.
Plaintiff George E. Groves appeals the trial court's order
granting judgment on the pleadings in favor of defendants. We
affirm in part and reverse in part.
In 1994, plaintiff was employed as the production manager by
defendant Porcelanite, Inc. (Porcelanite). During plaintiff'semployment, defendant The Travelers Insurance Company (Travelers)
provided workers' compensation insurance to Porcelanite.
On 12 August 1994, plaintiff became disabled as the result of
a shoulder injury. He alleged that the injury was compensable
because it resulted from repetitive motion required by his job.
Plaintiff sought treatment from Dr. Robert V. Sypher, Jr., who
diagnosed plaintiff as suffering from impingement and a probable
rotator cuff tear. Based on plaintiff's description of his job
duties, Dr. Sypher was of the opinion that the injury likely was
related to plaintiff's employment. Accordingly, plaintiff
submitted a workers' compensation claim to Travelers, which,
through its agent defendant Christine De Simone, denied liability.
Sometime prior to 28 March 1995, defendants prepared a video
tape purporting to demonstrate the functions of plaintiff's job.
The video failed to show all aspects of plaintiff's job and
allegedly omitted some of the job functions plaintiff contended
were the cause of his injury. Defendants forwarded the video to
Dr. Sypher, who reviewed the tape and changed his opinion that
plaintiff's condition was job-related. Dr. Sypher then wrote a
letter to defendants informing them that it was his opinion that
plaintiff's condition was a result of age-related degeneration. After a hearing on plaintiff's workers' compensation
claim,
plaintiff, Porcelanite, and Travelers entered into an Agreement of
Final Settlement and Release (Agreement). Pursuant to the
Agreement, plaintiff agreed to dismiss his workers' compensation
claim against Porcelanite and Travelers in return for a lump-sum
payment of $13,000 plus payment of medical bills related to his
injury. Thereafter, on 30 March 1998, plaintiff brought suit against
Travelers, De Simone, and Porcelanite alleging (1) intentional
infliction of emotional distress, (2) bad faith, (3) unfair or
deceptive trade practices, and (4) civil conspiracy. Defendants
answered on 10 June 1998 and asserted as affirmative defenses the
Agreement and the statute of limitations. Defendants filed a
Motion for Judgment on the Pleadings on 2 July 1998. This motion
was denied, but on 15 March 1999, defendants filed a Motion for
Reconsideration of Judgment on the Pleadings, citing Johnson v.
First Union Corp., 131 N.C. App. 142, 504 S.E.2d 808 (1998), disc.
review allowed, 349 N.C. 529, 526 S.E.2d 175, review dismissed as
improvidently granted, 351 N.C. 339, 525 S.E.2d 171 (2000). On 28
April 1999, the trial court granted defendants' motion and entered
judgment in favor of defendants. Plaintiff appeals.
[1]Plaintiff contends that his claims were outside of the
exclusivity provision of the North Carolina Workers' Compensation
Act and that the trial court accordingly erred in granting
defendants' motion. Section 97-10.1 of the Act states:
If the employee and the employer are
subject to and have complied with the
provisions of this Article, then the rights
and remedies herein granted to the employee,
his dependents, next of kin, or personal
representative shall exclude all other rights
and remedies of the employee, his dependents,
next of kin, or representative as against the
employer at common law or otherwise on account
of such injury or death.
N.C. Gen. Stat. § 97-10.1 (1999). Plaintiff contends that [i]n
the case currently before this Court, the actions of the defendants
as alleged do not fall within the exclusive jurisdiction of theIndustrial Commission because the acts did not occur within the
course and scope of employment. We disagree. All of plaintiff's
claims except for his claim for intentional infliction of emotional
distress are precluded by our holding in Johnson.
In Johnson, where the facts were virtually identical to those
at bar, the plaintiffs allegedly suffered on-the-job injuries and
filed claims with the Industrial Commission seeking workers'
compensation benefits. Both plaintiffs initially were diagnosed as
suffering from job-related repetitive motion disorders. Defendants
then prepared a videotape portraying the physical requirements of
the plaintiffs' jobs. After viewing the tape, the physician
withdrew diagnoses that the plaintiffs' injuries were job-related.
When the plaintiffs' claims were rejected by the Industrial
Commission, they filed suit alleging fraud, bad faith, unfair and
deceptive trade practices, intentional infliction of emotional
distress, and civil conspiracy, contending that the videotape was
inaccurate and made with the intent of deceiving plaintiff's
physician. The trial court dismissed the complaint for failure to
state a claim for which relief could be granted. The plaintiffs
appealed, and the defendants cross-appealed, arguing that while the
trial court was correct in dismissing the suit, the dismissal
should have been based upon lack of subject matter jurisdiction.
We agreed with the defendants that all of the plaintiffs' claims
were within the exclusive jurisdiction of the Industrial Commission
and affirmed the trial court's dismissal. See Johnson, 131 N.C.
App. at 145, 504 S.E.2d at 810. [2]Plaintiff in the case at bar also alleged intentional
infliction of emotional distress. This Court has long held that
such a claim lies outside the exclusivity provision of the Workers'
Compensation Act. See Hogan v. Forsyth Country Club Co., 79 N.C.
App. 483, 340 S.E.2d 116 (1986) (allowing plaintiff's claim for
intentional infliction of emotional distress). The issue was one
of first impression before the Hogan Court, which addressed the
question directly and discussed at length the policy considerations
behind its holding. Hogan has since been followed by this Court.
See Brown v. Burlington Industries, Inc., 93 N.C. App. 431, 378
S.E.2d 232 (1989). Accordingly, despite the suggestion in Johnson
that such a claim is precluded, we address plaintiff's claim as to
this issue.
To establish such a claim, plaintiff must have shown that
defendants engaged in extreme and outrageous conduct that was
intended to cause severe emotional distress, or were recklessly
indifferent to the likelihood that such distress would result, and
that severe distress did result from defendants' conduct. See
Dickens v. Puryear, 302 N.C. 437, 452, 276 S.E.2d 325, 335 (1981).
In his complaint, plaintiff alleged:
29. The defendants created the videotape
and sent it to Dr. Sypher intentionally, which
conduct was extreme and outrageous, with the
intent to cause emotional distress to Groves,
and said actions did, in fact, cause emotional
distress to Groves.
30. As a result of said conduct, Groves
suffered frustration and severe emotional
distress, for which he is entitled to
compensatory and punitive damages, in an
amount to be determined at trial.Although the level of proof required for such a claim is high, see
Waddle v. Sparks, 331 N.C. 73, 84, 414 S.E.2d 22, 27-28 (1992),
plaintiff has pled the elements of the tort. Under principles of
notice pleading, a complaint is adequate if it gives a defendant
sufficient notice of the nature and basis of the plaintiff's claim
and allows the defendant to answer and prepare for trial. See
Gilchrist, District Attorney v. Hurley, 48 N.C. App. 433, 269
S.E.2d 646 (1980). Therefore, the trial court erred in granting
judgment on the pleadings as to plaintiff's claim for intentional
infliction of emotional distress. The case is remanded to the
trial court for further proceedings in accordance with this
opinion.
Affirmed in part, reversed in part.
Judge GREENE concurs.
Judge MCGEE concurs in part and dissents in part.
McGEE, Judge, concurring in part and dissenting in part.
I agree with the majority that plaintiff's claims for bad
faith, unfair or deceptive trade practices, and civil conspiracy
fall within the exclusive jurisdiction of the Industrial
Commission. I respectfully disagree that the trial court erred in
granting judgment on the pleadings as to plaintiff's claim for
intentional infliction of emotional distress under the facts
alleged by plaintiff.
To properly state a claim for intentional infliction of
emotional distress, a plaintiff must allege that (1) the defendant
engaged in extreme and outrageous conduct and (2) such conduct was
intended to cause, and in fact did cause, severe emotional
distress. See Dickens v. Puryear, 302 N.C. 437, 447, 276 S.E.2d
325, 332 (1981). Plaintiff has alleged a claim of intentional
infliction of emotional distress specifically asserting that
defendants "created the videotape and sent it to Dr. Sypher
intentionally, which conduct was extreme and outrageous, with the
intent to cause emotional distress to [plaintiff]."
"The determination of whether the conduct alleged" is
sufficiently "extreme and outrageous enough to support such an
action is a question of law for the trial judge." Lenins v. K-Mart
Corp., 98 N.C. App. 590, 599, 391 S.E.2d 843, 848 (1990) (citation
omitted). Conduct is extreme and outrageous when it is "'so
outrageous in character, and so extreme in degree, as to go beyond
all possible bounds of decency, and to be regarded as atrocious,
and utterly intolerable in a civilized community.'" Briggs v.Rosenthal, 73 N.C. App. 672, 677, 327 S.E.2d 308, 311 (1985)
(quoting Restatement (Second) of Torts, § 46 cmt. d (1965)).
In this case, plaintiff essentially alleges that defendants
prepared a videotape purporting to demonstrate the functions of
plaintiff's job which failed to show all aspects of his job and
allegedly omitted some of the job functions plaintiff contended
were the cause of his injury. Defendants sent the videotape to
plaintiff's physician, who reviewed the tape and changed his
opinion that plaintiff's condition was job-related. While such
alleged conduct might well be most objectionable, defendants'
actions "may not be reasonably regarded as exceeding all bounds
usually tolerated by a decent society so as to satisfy the first
element of the tort, requiring a showing of extreme and outrageous
conduct." Shreve v. Duke Power Co., 85 N.C. App. 253, 257, 354
S.E.2d 357, 360 (1987) (citing Hogan v. Forsyth Country Club Co.,
79 N.C. 483, 340 S.E.2d 116 (1986)).
Plaintiff's claim for intentional infliction of emotional
distress should be dismissed because the conduct alleged under this
cause of action, even if true, does not rise to the level of
behavior our courts previously have required. Assuming the
allegations in plaintiff's claim to be true, these actions do not
exceed all bounds usually tolerated by decent society. Our courts
have appropriately held that allegations of actions by a defendant
that rose to the level of "extreme and outrageous" conduct are
actionable. See, e.g., Hogan, 79 N.C. App. at 494, 340 S.E.2d at
123 (sexual advances and harassment and threats of bodily injurysufficient to maintain claim for intentional infliction of
emotional distress). However, in other employment actions, our
courts have been reluctant to find intentional infliction of
emotional distress claims actionable. See, e.g., Haburjak v.
Prudential Bache Securities, Inc., 759 F. Supp. 293 (W.D.N.C.
1991); Mullis v. The Pantry, Inc., 93 N.C. App. 591, 378 S.E.2d 578
(1989); McKnight v. Simpson's Beauty Supply, Inc., 86 N.C. App.
451, 358 S.E.2d 107 (1987). But see Brown v. Burlington
Industries, Inc., 93 N.C. App. 431, 378 S.E.2d 232 (1989). The
tort of intentional infliction of emotional distress is reserved
for conduct that is "'utterly intolerable in a civilized
community.'" Hogan, 79 N.C. App. at 493-94, 340 S.E.2d at 123
(citation omitted). Our Court in Hogan dismissed one plaintiff's
claim for intentional infliction of emotional distress despite the
fact that she alleged her manager refused her request for pregnancy
leave, directed her to carry heavy objects weighing more than ten
pounds, cursed at her, and refused her request to leave work to
visit a hospital. See id. at 494, 340 S.E.2d at 123
(characterizing such alleged conduct as "unjustified under the
circumstances" but not "'extreme and outrageous' as to give rise to
a claim for intentional infliction of emotional distress").
Like other cases in which our courts have found the alleged
conduct fell short of establishing the tort, defendants' alleged
actions do not rise to the level of conduct required to establish
a claim of intentional infliction of emotional distress and as a
matter of law, are insufficient to state such a cause of action. See, e.g., Buser v. Southern Food Service, Inc., 73 F
. Supp. 2d 556
(M.D.N.C. 1999) (termination of employee who refused to return to
work from leave under Family and Medical Leave Act not "extreme and
outrageous" conduct); Pardasani v. Rack Room Shoes Inc., 912 F.
Supp. 187 (M.D.N.C. 1996) (conduct not "extreme and outrageous"
when the plaintiff alleged that he was given poor performance
evaluations, denied promotions available to others, excluded from
training, and finally terminated from his employment); Dickens, 302
N.C. 437, 276 S.E.2d 325 (physical abuse not sufficient); Lorbacher
v. Housing Authority of the City of Raleigh, 127 N.C. App. 663, 493
S.E.2d 74 (1997) (alleged discharge for the purposes of deflecting
responsibility for certain deaths and for retaliation of First
Amendment rights not "extreme and outrageous" conduct); Poston v.
Poston, 112 N.C. App. 849, 436 S.E.2d 854 (1993) (adultery not
extreme and outrageous conduct); Wilson v. Bellamy, 105 N.C. App.
446, 414 S.E.2d 347 (1992) (some evidence of sexual battery,
standing alone, not "atrocious"). The totality of defendants'
actions simply is not comparable to cases in which our courts have
imposed liability for intentional infliction of emotional distress.
For example, defendants' actions did not involve physical abuse as
in Dickens, sexual harassment as in Hogan and Brown, or threats,
obscene gestures, and cursing as in Wilson. The conduct that
sustained claims in those cases far exceeds in outrageousness the
conduct experienced by plaintiff in this case. Accordingly, to the
extent that plaintiff's complaint does not identify conduct that
can be considered extreme and outrageous, he has not alleged aclaim for intentional infliction of emotional distress; therefore,
the trial court did not err in entering judgment in favor of
defendants.
I respectfully disagree and dissent in part.
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