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Struhs v. Protection Technolohies12/20/1999
In accord with the purposes behind the subrogation statute and our prior decisions, we hold that an employer may exercise its right of subrogation under I.C. § 72-223(3) when it has voluntarily paid worker's compensation benefits.
B. The Army Was Not Immune from Third-Party Liability for Struhs' Worker's Compensation Benefits.
Struhs contends that, as his "statutory employer," the United States government had already paid his worker's compensation benefits and was not obligated for them again in a damage award. Thus, he argues, Wausau as employer's surety had no right to a subrogation interest in the proceeds of the settlement.
The Federal Tort Claims Act (FTCA) permits tort actions against the United States for "personal injury or death caused by the negligent or wrongful act or omission of any employee of the Government while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred." 28 U.S.C. § 1346(b). The United States is liable "in the same manner and to the same extent as a private individual under like circumstances." 28 U.S.C. § 2674. If the Army did not pay Struhs' worker's compensation benefits as his "statutory employer," it would be fully liable for all of Struhs' damages.
Under the worker's compensation law in effect in September 1988, "Employer" means any person who has expressly or impliedly hired or contracted the services of another. It includes contractors and subcontractors. It includes the owner or lessee of premises, or other person who . . . is not the direct employer of the workmen there employed. If the employer is secured, it means his surety so far as applicable.
I.C. § 72-102(10) (1988). An employee may have more than one employer, including the direct employer and the indirect employer. Runcorn, 107 Idaho at 393, 690 P.2d at 328. "Statutory employer" refers to an indirect employer under the definition of I.C. § 72-102(10). Id. at 392-93, 690 P.2d at 327-28. A statutory employer is liable to pay worker's compensation benefits, but only if the direct employer does not pay those benefits. I.C. § 72-216(1), (2).
"Where . . . the United States claims statutory employer status, the proper focus is on the agency or department of the United States which contracted for the work." Izard v. United States, 946 F.2d 1492, 1495 (10th Cir. 1991). Accord Rivera v. U.S. Army Corps of Eng rs, 891 F.2d 567, 568 (5th Cir. 1990); Pendley v. United States, 856 F.2d 699, 702 (4th Cir. 1988). See also 28 U.S.C. § 2675(a) (requiring tort claimant to give notice "to the appropriate Federal agency"). The DOE, which indirectly employed Struhs through its contracts with EG&G;and the subcontract with APS, was Struhs' statutory employer. On the other hand, the Army, which had no contractual or employment relationship with Struhs, was not Struhs' statutory employer. As with any third-party tortfeasor where the employer is not concurrently negligent, the Army was fully liable for any damages suffered by Struhs, including those damages compensated by his employer through worker s compensation benefits. I.C. § 72-223(1)-(3). See also, e.g., Sherrard v. City of Rexburg, 113 Idaho 815, 816-17, 748 P.2d 399, 400-01 (1988); Walker v. Hensley Trucking, 107 Idaho 572, 573, 691 P.2d 1187, 1188 (1984); Schneider v. Farmers Merchant, Inc., 106 Idaho 241, 243, 678 P.2d 33, 35 (1983).
Struhs asserts that, even if state law allows the Army to reimburse Struhs and Wausau for worker's compensation benefits, federal law (pursuant to 32 C.F.R. Part 536) bars payme
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