Bowen v. Workers' Compensation Appeals Board
Bowen v. Workers' Compensation Appeals Board
Opinion of the Court
Opinion
Petitioner and applicant Mitchel Bowen, a California resident, suffered an injury in Florida while playing professional baseball for a minor league team owned by the Florida Marlins. He applied for benefits under the California Workers’ Compensation Act. The workers’ compensation judge found that the Workers’ Compensation Appeals Board (WCAB) had jurisdiction over the injury because Bowen’s contract of hire was made in California. Upon reconsideration, the WCAB,.in a two-to-one decision, ruled that it was without jurisdiction to proceed with Bowen’s claim because the contract of hire was not made in California. We conclude that the WCAB erred in deciding that it did not have jurisdiction over Bowen’s injury.
The Facts
The facts are not in dispute and are as follows. Bowen, bom and raised in the Los Angeles area, played baseball at St. Francis High School in La Canada, California, and at College of the Canyons in Valencia, California. While playing at the college, he came to the attention of Grady Mack, a Marlins’ scout who also resided in California. In 1992, the Marlins drafted
Contracts were executed in a similar fashion for the 1994, 1995 and 1996 seasons. They were sent to Bowen by mail at his residence in California, where he signed and returned them to the Marlins in Florida. The contracts were subsequently approved by the Commissioner.
In the 1996 season, Bowen played for a farm club of the Marlins, the Brevard County Manatees, an A Advanced league, earning a salary of $1,275 per month. In April 1996 he injured his right elbow while pitching in a game in Clearwater, Florida. He was given a medical evaluation and placed on the disabled list for approximately 42 days. Thereafter, Bowen pitched for the remainder of the season with pain, discomfort, weakness and popping in his pitching arm. He was released by the Marlins in October 1996.
Issue
We have before us an employee
Discussion
We conclude that the WCAB erred in determining that it lacked jurisdiction in this case. In reaching its decision, the WCAB failed to follow its own previous decisions and appellate workers’ compensation law cases. It relied, instead, on common law
California workers’ compensation law affords compensation to employees hired in California and injured out of state. Section 3600.5, subdivision (a) provides that “if an employee who has been hired or is regularly employed in the state receives personal injury by accident arising out of and in the course of such employment outside of this state, he, or his dependents, in the case of his death,- shall be entitled to compensation according to the law of this state.” Section 5305 provides that “The Division of Workers’ Compensation, including the administrative director and the appeals board has jurisdiction over all controversies arising out of injuries suffered outside the territorial limits of this state in those cases where the injured employee is a
In its opinion, the WCAB states that “California courts have held that when the terms of the contract, or other evidence, show that the signature of a third party, in addition to that of the offeree, is required to complete an agreement, the agreement is not binding on those who have signed until all have signed.” Three cases are cited in support of this proposition: Anthony Macaroni Co. v. Nunziato (1935) 5 Cal.App.2d 588 [43 P.2d 315] (lessee not liable on a lease executed by only one of the two named lessors), Helperin v. Guzzardi (1951) 108 Cal.App.2d 125 [238 P.2d 141] (no contract formed where husband signed contract of sale of apartment house and handed it to a broker to be retained until wife, a cotenant, consented to sale and signed contract, and wife declined) and Nakatsukasa v. Wade (1954) 128 Cal.App.2d 86 [274 P.2d 918] (under terms of real estate agent’s deposit receipt, both joint owners of real property had to sign documents for the deposit receipt to be binding). The WCAB then states: “In other words, in determining the place of contract formation, we look to where the last act is done which is necessary to give the contact binding effect.” The WCAB concludes that based on the contract language that the contract would not be “valid, recognized or enforced” unless filed with and approved by the Commissioner, the contract was not formed in California when it was signed by the Commissioner in New York.
It is noteworthy that neither the WCAB nor the Marlins contend that since the Marlins had not yet signed the contract there was no contract formed in California when Bowen signed it. Thus, both the WCAB and the Marlins appear to concede that Bowen’s signature would be sufficient to form a contract, but for the requirement of the Commissioner’s approval. This departure from the basic common law of contracts that an offer and its acceptance creates a contract is explained by the difference between workers’ compensation law and the common law of contracts, as epitomized by the case of GATX-Fuller, Ltd. v. Worker’s Comp. Appeals Bd. (1979) 44 Cal.Comp.Cases 199 (writ den.) (GATX-Fuller).
With respect to the situation we have here, namely, a contract of hire containing subsequent conditions to be satisfied, a highly regarded authority on California workers’ compensation law has stated: “. . . [T]he fact that there are formalities which must be subsequently attended to with respect to such extraterritorial employment does not abrogate the contract of hire or California jurisdiction. Such things as filling out formal papers regarding the specific terms of the employment or obtaining a security clearance from the federal government are deemed ‘conditions subsequent’ to the contract, not preventing it from initially coming into existence. [Citations.]” (St. Clair, Cal. Workers’ Compensation Law & Practice (5th ed. 1996) § 2.10, pp. 111-112, italics added.)
Reynolds Elec. etc. Co. v. Workmen’s Comp. App. Bd. (1966) 65 Cal.2d 429 [55 Cal.Rptr. 248, 421 P.2d 96] (Reynolds), a case dealing with post-formation contract requirements, is most instructive. In Reynolds, a California resident, Egan, was injured in an accident in Nevada while working for Reynolds. He had been dispatched from a California hiring hall of his union which had a contract with Reynolds to provide iron workers to a Nevada job-site. Upon arriving at the jobsite, Egan filled out several forms, one of which
Similarly, in Thompson v. Golden Eagle Ins. Co. (1990) 87 RDG 32124, 18 Cal. Workers’ Comp. Rptr. 43,
In Ledbetter Erection Corp. v. Workers’ Comp. Appeals Bd. (1984) 156 Cal.App.3d 1097 [203 Cal.Rptr. 396], an employee, Salvaggio, a resident of Nevada, accepted an employment offer in Nevada, in a telephone call originating from a union hall in California, to work in Nevada. The court upheld the WCAB’s determination that the contract of employment was made in Nevada, even though the employee had obtained his job by
Travelers Ins. Co. v. Workmen’s Comp. App. Bd. (1967) 68 Cal.2d 7 [64 Cal.Rptr. 440, 434 P.2d 992] (Travelers), disapproved on another point in LeVesque v. Workmen’s Comp. App. Bd. (1970) 1 Cal.3d 627, 637 [83 Cal.Rptr. 208, 463 P.2d 432], is also demonstrative of California’s interests in protecting its workers injured out of state. In Travelers, Coakley, a California resident, was hired by telephone in California to work in Utah, where he was injured. Although the oral contract of hire included the terms of the parties, time and place of employment, salary, and the general category of employment (geologist), Coakley’s specific duties were not designated until he arrived at the jobsite. In upholding the WCAB’s finding that the contract had been formed in California under sections 3600.5 and 5305, the court stated: “That particular terms remain undesignated does not render the original contract invalid for uncertainty.” (68 Cal.2d at p. 17.) Similarly, in Janzen v. Workers’ Comp. Appeals Bd., supra, 61 Cal.App.4th 109, a California resident, Janzen, by telephone, contacted Curtis in Wyoming concerning a crop dusting job. They agreed that Curtis would employ Janzen if he performed satisfactorily on a test run. Janzen went to Wyoming and completed a test run and was hired. He died in a crash during a spraying run on his third or fourth day on the job. In holding that the WCAB had jurisdiction to award death benefits to Janzen’s daughter, the court rejected the workers’ compensation judge’s determination that the evidence did not establish who was the offeror and who was the offeree in the telephone conversation. The court stated: “In the absence of contrary evidence, proof that an employment contract arose raises an inference it was the employer, the party with the superior bargaining power and the party who normally dictates the terms of the employment, who was the offeror. [Citation.] This is consistent with the statutory mandate that state workers’ compensation laws are to be ‘liberally construed by the courts with the purpose of
The views of our Supreme Court regarding the mandate that the courts construe the Workers’ Compensation Act liberally have not changed since the time of Reynolds. In Arriaga v. County of Alameda (1995) 9 Cal.4th 1055, 1065 [40 Cal.Rptr.2d 116, 892 P.2d 150], the Supreme Court stated that its conclusion in the case “. . . comports with the Legislature’s command in section 3202 that the Act ‘be liberally construed by the courts with the purpose of extending [its] benefits for the protection of persons injured in the course of their employment.’ [Fn. omitted.] This command governs all aspects of workers’ compensation; it applies to factual as well as statutory construction. [Citations.] Thus, ‘[i]f a provision in [the Act] may be reasonably construed to provide coverage or payments, that construction should usually be adopted even if another reasonable construct is possible.’ ”
Our departure from the technical common law of contracts in favor of extending workers’ compensation benefits is nothing novel. In Laeng v. Workmen’s Comp. Appeals Bd. (1972) 6 Cal.3d 771 [100 Cal.Rptr. 377, 494 P.2d 1], our Supreme Court, in a case of first impression, addressed the question of whether an injury sustained during a “tryout” for an employment position is compensable under workers’ compensation law. In determining that the injured person, Laeng, was an “employee” and entitled to compensation, the court stated: “Although we recognize that at the time of his injury the claimant was not yet ‘employed’ by the city in any contractual sense, we are not confined, in determining whether Laeng may be considered an ‘employee’ for purposes of workers’] compensation law, to finding whether or not the city and Laeng had entered into a traditional contract of hire. . . . [IQ Given [the] broad statutory contours [of the definition of ‘employee’
Based on the foregoing authorities, we conclude that a contract was formed in California under sections 3600.5 and 5305 when Bowen signed it, accepting the Marlins’ offer, and that the approval of the Commissioner was a condition subsequent to employment. Even if, for the sake of discussion, Bowen’s acceptance of the Marlins’ offer did not form a contract under common law in California by reason of the contract clause requiring the Commissioner’s approval, we would still conclude that Bowen is entitled to benefits under California workers’ compensation law. Section 5000 provides that “No contract . . . shall exempt the employer from liability for the compensation fixed by this division . ...” In a landmark case applying section 27(a) of the Workmen’s Compensation, Insurance and Safety Act of 1917 (section 27(a); Stats. 1917, ch. 586, § 27(a), p. 855), the predecessor statute of section 5000 containing similar language,
In keeping with the spirit of the Workers’ Compensation Act, as reflected in the authorities cited, including those of the WCAB, we conclude that under sections 3600.5 and 5305 an employee who is a professional athlete residing in California, such as Bowen, who signs a player’s contract in California furnished to the athlete here by an out-of-state team, is entitled to benefits under the act for injuries received while playing out of state under the contract. This is so even though the team has not yet signed the contract, and, as a condition of the contract, a third party such as the commissioner of the sport must approve the contract.
Disposition
The decision of the Workers’ Compensation Appeals Board is annulled. The matter is remanded for further proceedings consistent with this opinion.
Nott, Acting P. J., concurred.
Judge of the Los Angeles Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
The record does not reflect whether Bowen availed himself of the college scholarship plan.
It is not clear where the contracts were approved by the Commissioner. Daniel C. Lunetta, director of minor league administration for the Marlins, testified that he was responsible for players’ contracts. With respect to at least one of Bowen’s contracts, Lunetta testified that he sent it to the appropriate league official for approval, namely, the National Association of Professional Baseball Leagues in St. Petersburg, Florida. Lunetta testified that Bowen’s contract for the 1993 season bore the signature of Mike Moore, “who signed for the [C]ommissioner of [B]aseball.” The contracts themselves do not reveal where they were signed by the Commissioner or his designee. The opinion of the WCAB states, without any support in the record, that the Commissioner signed Bowen’s contract for the 1996 season in New York.
In his professional baseball career, Bowen had his “cup of coffee” in the major leagues for one day during spring training.
Under Labor Code section 3351, “ *[e]mployee’ means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, . . .” while Labor Code section 3357 provides that “Any person rendering service for another, other than as an independent contractor, or unless expressly excluded herein, is presumed to be an employee.”
All further statutory references are to the Labor Code unless otherwise indicated.
In referring to “common law” contract cases, we adopt the parlance of workers’ compensation law to distinguish between contract cases that are not in a workers’ compensation law setting and those that are.
Although it has no bearing on this case, we note that the requirement that the employee must be a resident of California has been declared unconstitutional. (Benguet Con. M. Co. v. Indus. A. Com. (1939) 36 Cal.App.2d 158, 163-164 [97 P.2d 267].)
See footnote 2, ante.
Cannon is a decision of a trial court and, as such, is not precedent under the doctrine of stare decisis. (See Auto Equity Sales, Inc. v. Superior Court (1962) 57 Cal.2d 450, 455 [20 Cal.Rptr. 321, 369 P.2d 937].)
The court determined that Billy Cannon, a star football player at Louisiana State University and the Los Angeles Rams’ number one draft selection, was signed by the Rams to professional contracts and given two checks, one for $10,000 and another for $500, on November 30, 1959, thirty-two days before Cannon played in the Sugar Bowl game on January 1, 1960, ostensibly as an amateur.
Califomia Compensation Cases reported as “denials of writs of review” such as GATXFuller have no stare decisis effect on an appellate court. However, they are citable authority as to the holding of the WCAB. (Ralphs Grocery Co. v. Workers’ Comp. Appeals Bd. (1995) 38 Cal.App.4th 820, 827, fn. 7 [45 Cal.Rptr.2d 197].)
That the Marlins was the party of superior bargaining power and the party which would have dictated the terms of the employment further supports our conclusion here. (See Janzen v. Workers’ Comp. Appeals Bd. (1997) 61 Cal.App.4th 109, 114 [71 Cal.Rptr.2d 260] and Bundsen v. Workers’ Comp. Appeals Bd. (1983) 147 Cal.App.3d 106, 111 [195 Cal.Rptr. 10].)
“[A Workers’ Compensation Appeals] Board panel decision reported in the California Workers’ Compensation Reporter [such as Thompson] is a properly citable authority, especially as an indication of contemporaneous interpretation and application of workers’ compensation laws.” (Griffith v. Workers’ Comp. Appeals Bd. (1989) 209 Cal.App.3d 1260, 1264, fn. 2 [257 Cal.Rptr. 813].)
See footnote 4, ante.
“Section 27(a). ‘No contract ... shall exempt the employer from liability for the compensation fixed by this act. . . .’ ” (Alaska Packers Assn. v. Indus. Acc. Com. (1934) 1 Cal.2d 250, 254 [34 P.2d 716].)
Concurring Opinion
I concur in the majority opinion, which masterfully and comprehensively reviews the authorities bearing on this important issue. I concur separately simply to note that the course of case law development in this area has unnecessarily complicated the law, and that the detailed contractual analyses presented in the briefs, to which the majority opinion properly responds, should not be necessary in every future case.
Labor Code section 3600.5 appears in chapter 3 of part 1 (“Conditions of Compensation Liability”). It provides that an employee injured out of state during the course of his employment is entitled to compensation under California’s workers’ compensation laws if he “has been hired ... in the state.” (Italics added.) Labor Code section 5305, by contrast, is contained in chapter 1 (“Jurisdiction”) of part 4 (“Compensation Proceedings”). This chapter begins by defining the “exclusive jurisdiction” of the Workers’ Compensation Appeals Board (WCAB). (Lab. Code, § 5300.) Section 5305 complements other sections (see, e.g., Lab. Code, § 3602) to confirm that the exclusive subject matter jurisdiction of the WCAJ3 extends to out-of-state employee injuries “where ... the contract of hire was made in this state.” (Italics added.)
The effect of placing exclusive subject matter jurisdiction in the WCAB is to displace the subject matter jurisdiction of the California superior court.
One might expect, in the typical case, that an employer such as the Marlins would argue in favor of workers’ compensation exclusivity in order to avoid the need to defend such lawsuits. Instead, taking what appears to be a narrow view of this case alone, perhaps because the statute of limitations may have run in this particular instance, the Marlins argue that petitioner’s claim does not fall within workers’ compensation jurisdiction. This is quite contrary to the widespread contemporary preference of employers for the workers’ compensation forum rather than the judicial forum, and not likely what the Marlins would be arguing had petitioner returned to California and sued. Were we to accept the Marlins’ view, and establish it as controlling precedent, the likely result would be that in future cases the Marlins (as well as other professional sports teams) would have to defend themselves against tort-claims in superior court instead of against workers’ compensation claims before workers’ compensation judges. (Cf. Wattenbarger v. Cincinnati Reds, Inc., supra, 28 Cal.App.4th 746.) Some of such cases might have merit and many might not, but in any event the courts and not the WCAB would provide the forum.
This result does not follow, however, because the statutes cannot be construed to leave cases such as this one within the jurisdiction of the superior court, although some of the case law is misleading. For example, the Court of Appeal decision in Ledbetter Erection Corp. v. Workers’ Comp. Appeals Bd. (1984) 156 Cal.App.3d 1097 [203 Cal. Rptr. 396], was decided
Whether petitioner’s “contract of hire” was “made in this state” within the meaning and intent of Labor Code section 5305 determines which forum has subject matter jurisdiction. If the workers’ compensation system (rather than the court system) has subject matter jurisdiction, then whether petitioner was “hired” in California within the meaning and intent of Labor Code section 3600.5 determines his entitlement to benefits. Although these two questions
Reference
- Full Case Name
- MITCHEL BOWEN, Petitioner, v. WORKERS’ COMPENSATION APPEALS BOARD and FLORIDA MARLINS, Respondents
- Cited By
- 21 cases
- Status
- Published