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GUNDERSON v. MAY DEPT. STORES CO.3/19/1998
Appellant Josie Ann Gunderson appeals the trial court's summary judgment dismissing her bad faith and negligent infliction of emotional distress claims against her former employer May Department Stores Company. We affirm.
FACTS
This dispute arises out of an injury suffered by Gunderson while employed by Payless Shoe Source, a wholly owned subsidiary of May Department Stores. Payless is a self-insured employer under the Utah Workers' Compensation Statute, Utah Code Ann. ยงยง 35-1-1 to -1-109 (1995). Workers' compensation claims for Payless, as well as other May subsidiaries, are administered by May Department Stores' Western Regional Claims Office.
On January 20, 1991, Gunderson was assaulted and severely injured during a robbery of the Payless store where she worked. As a result of the assault, Gunderson ended her employment at Payless and filed a workers' compensation claim against May Department Stores. Between 1991 and 1993, Gunderson incurred substantial medical bills for reconstructive surgery, psychiatric counseling, and treatment of post-traumatic stress syndrome. May Department Stores did not pay these bills, and Gunderson therefore requested a hearing before the Utah Labor Commission.
On January 13, 1994, the Labor Commission issued a formal order requiring May Department Stores to pay: (1) temporary total disability benefits of $9,064.29 with accrued interest; (2) permanent partial disability benefits of $2,808.00, and; (3) all reasonable and necessary medical expenses and specified future psychological and dental claims. May Department Stores did not contest this order. Nonetheless, May Department Stores did not pay Gunderson's medical claims until after Gunderson filed this case in the district court.
Gunderson alleges that she suffered severe emotional distress as a result of May Department Stores' failure to pay her medical
claims. She ascribes this distress to knowing that there were unpaid bills outstanding, being "hounded" by creditors, and having to call the credit bureau to correct an impaired credit rating. However, Gunderson concedes that May Department Stores did not commit any additional act beyond delay of payment.
On March 30, 1994, Gunderson brought an action for contractual breach of the covenant of good faith and fair dealing and negligent infliction of emotional distress against May Department Stores. The trial court granted summary judgment in favor of May Department Stores. Gunderson now appeals the trial court's grant of summary judgment.
ANALYSIS
This case raises three issues. First, does the Utah Workers' Compensation Act provide the exclusive remedy for a covered employee whose former employer has failed to timely pay workers' compensation benefits awarded by the Utah Labor Commission? Second, can a covered employee maintain a contractual claim for bad faith against a company that is self-insured under the Utah Workers' Compensation Act? Third, can a covered employee maintain a claim for negligent infliction of emotional distress arising out of failure to timely pay workers' compensation claims? Because we conclude that the Utah Workers' Compensation Act provides the exclusive remedy for both Gunderson's causes of action, we do not reach issues two and three.
Gunderson argues that her claims for delayed payment of compensation benefits are not barred by the exclusive remedy provision of the Workers' Compensation Act. This is an issue of first impression in Utah.
The Utah Workers' Compensation Act provides the exclusive remedy for injuries occurring in the course of or arising out of a covered worker's employment. This rule is s
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