Ammons v. Wisconsin Central, Ltd.
Ammons v. Wisconsin Central, Ltd.
Opinion
*233 ¶ 1 If there is a train crash and the railway employee involved files a personal injury claim against his employer for negligence, can the railway-employer file a counterclaim for negligence for the property damage caused in the crash? That is the question posed by this appeal.
¶ 2 The trial court held that, no, the employer could not pursue such a counterclaim. The trial court dismissed the counterclaims filed by the railway, finding that they are barred. A finding was entered under Illinois Supreme Court Rule 304(a)
*234 *3 (eff. Mar. 8, 2016) that made the order appealable. We agree that the answer to the question posed above is no, and we affirm.
¶ 3 I. BACKGROUND
¶ 4 Plaintiffs, Melvin Ammons and Darrin Riley, filed these lawsuits against defendant, Wisconsin Central, Ltd. (Wisconsin Central), for injuries they sustained during the course of their employment. Riley was the locomotive engineer and Ammons was the conductor when the train they were operating struck another train that was stopped ahead on the same track. Both Ammons and Riley filed lawsuits alleging that the railway-defendant was negligent and violated several rules and regulations that led to their injuries. The lawsuits were consolidated below and, for purposes of this appeal, the issues are the same as to both plaintiffs.
¶ 5 Defendant Wisconsin Central responded to the lawsuit by denying liability and also by filing counterclaims against both employees. The counterclaims are for money damages to redress property damage caused by the accident and for contribution in tort from the plaintiffs for one another's injuries. In its counterclaims, Wisconsin Central alleges that plaintiffs were negligent; that they violated rules and operating practices and that their failure to follow mandated speed limits or apply the emergency brakes before the collision caused significant damage to its property. Both trains involved in the collision were damaged as was the railroad track, and environmental clean-up and remediation was required.
¶ 6 Plaintiffs filed a motion to dismiss the counterclaims arguing that such claims are prohibited under sections 55 and 60 of the Federal Employers Liability Act (FELA) (
¶ 7 Plaintiffs argued in their motion to dismiss that the counterclaims asserted by defendant were a "device" that defendant was using to exempt itself from liability for their on-the-job injuries and that the counterclaims were being used coercively-to dissuade injured workers from asserting their FELA claims and providing information about the accident. The trial court dismissed the counterclaims. Defendant appeals pursuant to the trial court's ruling under Illinois Supreme Court Rule 304(a) (eff. Mar. 8, 2016) that there was no just reason for delaying appeal of its order.
¶ 8 II. ANALYSIS
¶ 9 This appeal presents a pure question of law. Can a railroad counterclaim for property damage in an employee's personal injury suit where both parties' alleged harm arises out of the same occurrence and both parties are alleged to have been negligent? The trial court answered in the negative and dismissed the counterclaims.
¶ 10 Plaintiffs' motion to dismiss the counterclaims was presented as a motion under section 2-615 of the Code of Civil Procedure ( 735 ILCS 5/2-615 (West 2016) ). Defendant argues that it is really a section 2-619 motion to dismiss because the FELA sections on which plaintiffs rely raise "an affirmative matter that seeks to avoid the legal effect of or defeat the claims" (citing
¶ 11 The case is governed by FELA (
¶ 12 Both parties have pointed us to compelling case law that supports their respective positions on appeal. Both parties likewise admit, at least tacitly, that there is decisional law from other jurisdictions that supports the opposing outcome. See Russell J. Davis, Employers' Liability Acts: Counterclaims , 11 Fed. Proc., L.Ed. § 30:48 (Nov. 2018 Update). The issue has apparently never been decided by an Illinois court-at least no such decisions have been reported.
¶ 13 Sections 55 and 60 of the FELA both serve to void certain contracts, rules, regulations, or devices that might be used defensively by a railway in FELA litigation. See
¶ 14 One of the first cases to address the issue and shape the discourse on section 55 is
Cavanaugh v. Western Maryland Ry. Co.
,
¶ 15 In addressing section 55 of the FELA (referred to therein as "Section 5"), the court stated that
"[n]either by its express language nor by its legislative history does Section 5 suggest in any way that the 'device' at which the proscription of the Section was directed was intended to include a counterclaim to recover for the railroad's own losses incurred in connection with the accident out of which the injured *5 *236 employee's claim arose."Id. at 292 .
The court further stated that a counterclaim by a railway to recoup money for its own property damages is "plainly not an 'exempt[ion] ... from any liability' and thus is not a 'device' within the contemplation of Congress."
¶ 16 After the decision in
Cavanaugh
, the United States Courts of Appeals for the First Circuit, Eighth Circuit, and Fifth Circuit followed suit. See
Sprague v. Boston & Maine Corp.
,
¶ 17 However, the reasoning and holdings espoused in those cases do not represent a clear consensus. The dissenting judge in
Cavanaugh
made the compelling argument that "the language of the FELA supports the conclusion that Congress intended to prohibit counterclaims, such as the one filed by the railroad here, because the filing of such counterclaims will unfairly coerce or intimidate the injured employee from filing and pursuing his FELA action."
Cavanaugh
,
¶ 18 Other courts confronted with the question have found that the result advocated for by the dissenting judges in
Cavanaugh
and
Nordgren
represents the correct and more pragmatic approach to interpreting the FELA. Just a year after
Cavanaugh
was decided, the United States Court for the District of Colorado broke from the interpretation employed in
Cavanaugh
. The district court held that "where an injured railroad worker *** asserts personal injury or wrongful death claims under the FELA, a railroad defendant
*6
*237
may not counterclaim for damages to its property caused in the occurrence which gave rise to the employee's injuries or death."
Yoch v. Burlington Northern R.R. Co.
,
¶ 19 The basic analytical underpinning of the cases that take exception to allowing counterclaims by a railway for property damage in personal injury cases is that the counterclaims are retaliatory devices calculated to intimidate and exert economic pressure on injured employees, curtail their rights when asserting injury claims and supplying information, and ultimately, exempt the railways from liability under the FELA. See
Blanchard
,
¶ 20 Defendant argues that we are obligated to follow
Cavanaugh
and the other circuits' decisions on the issue because they are federal interpretations of federal law that are "controlling," citing
Wilson v. Norfolk & Western Ry. Co.
,
¶ 21 In our judgment, prohibiting railways from interposing counterclaims for property damage in response to an employee's personal injury suit is the correct interpretation of sections 55 and 60 of the FELA and is the interpretation most consistent with the FELA's overarching goal of providing a remedy to employees injured while participating in this dangerous occupation. Allowing counterclaims for property damage suffered by the railway as a response to a personal injury action defeats the remedial purpose of the FELA. The property damage counterclaims are, in practice, liability-limiting or liability-exempting devices inconsistent *238 *7 with the FELA. We find the logic and analysis of the dissents in Cavanaugh and Nordgren and the Deering court's discussion of the issue to be most persuasive.
¶ 22 The FELA is meant to impose liability upon railroads for injuries to their employees resulting from the railroads' negligence because of the special needs of railroad workers who are daily exposed to the risks inherent in railroad work and are helpless to provide adequately for their own safety.
Cavanaugh
,
¶ 23 It is clear that if defendant was trying to accomplish the same ends as desired here, but by contract, its action would be prohibited. Defendant makes no persuasive case as to why it should be able to do so with a counterclaim in tort instead. If the railway required employees to sign a contract saying that any personal injury award would be cancelled or set off by the costs incurred by the railway in the occurrence leading to the injury, it would be void. Congress meant to prohibit the conduct of railways exempting themselves from liability for personal injuries. Allowing railways to do by tort what Congress expressly forbids them from doing by contract or other means is an illogical interpretation and result.
¶ 24 The statute casts a broad net for the type of instruments it prohibits-"any contract, rule, regulation, or device whatsoever." See
Stack
,
¶ 25 The parties argue about what level of influence the Court of Appeals for the Seventh Circuit's decision in
Deering
should have on this case. In
Deering
, the court specifically stated that the issue presented in this case was not before it and that the court would "leave for a future day" whether property damage claims by an employer should be permitted in an employee's personal injury FELA case.
Deering
,
¶ 26 While the courts following
Cavanaugh
have expressed apprehension that a decision barring counterclaims would immunize employees from their own negligence, the result that those decisions support can effectively immunize railways from
their negligence
towards their own employees. The railways are in a far better position to bear the collective burden of loss from their employees' negligence than the employees are to bear the personal burden of loss from the railway's negligence. The employee already can recover only those damages attributable to the railway's negligence, and comparative negligence is available to the railway as a defense in mitigation. See
Wilson
,
¶ 27 Section 55 voids any device that "enable[s]" a railway to exempt itself from FELA liability.
¶ 28 Injured railway workers cannot pursue any right of redress in a workers' compensation action or in a common law negligence action-the FELA is all they have.
Sutherland v. Norfolk Southern Ry. Co.
,
¶ 29 We also find persuasive to our holding the fact that a railway-employer's interposition of counterclaims in a personal injury action has the effect of preventing and discouraging employees from cooperating in injury and death investigations.
*240 *9 Section 60 of the FELA prohibits the use of legal devices for just that purpose. As the dissent in Cavanaugh noted,
"As long as a railroad is permitted to hold the threat of a counterclaim for property damage over the heads of those employees who have the misfortune to be involved in a railroad accident, those witnesses, whether injured or not, may well be reluctant to participate during the initial investigation by the railroad, at hearings held by the National Transportation Safety Board, or at the trial of an FELA action maintained by a fellow employee." Cavanaugh ,729 F.2d at 296 (Hall, J., dissenting).
See also
In re National Maintenance & Repair, Inc.
,
¶ 30 The allowance of counterclaims for property damage not only intimidates potential plaintiffs from filing personal injury claims but also serves as a warning to other employees that might not have been injured, but that might be accused of being negligent, not to participate. The threat of retaliatory suits and potential silencing of employees is what sections 55 and 60 of FELA were enacted to protect against.
Stack
,
¶ 31 III. CONCLUSION
¶ 32 Accordingly, we affirm.
¶ 33 Affirmed.
Presiding Justice Mikva concurred in the judgment and opinion.
Justice Pierce dissented, with opinion.
¶ 34 JUSTICE PIERCE, dissenting:
¶ 35 As the majority notes, this case presents an issue of first impression in this state: whether under the FELA a railroad may counterclaim for property damage in a railroad employee's personal injury suit where both parties' claims sound in negligence. The reasoning in Cavanaugh , which was adopted in Sprague , Nordgren , and again in Withhart , is sound. In my view, those are the better-reasoned decisions, and I would follow those cases in holding that a railroad's counterclaim for property damages is not a "device" used to "exempt" a railroad from "liability" under the FELA. To conclude otherwise ignores that defendant's counterclaim does not seek to exempt defendant from liability for plaintiffs' alleged injuries. "Exempt" means "[f]ree or released from a duty or liability to which others are held." Black's Law Dictionary 593 (7th ed. 1999). Defendant's counterclaim for property damages does not seek to free or release defendant from any duty or liability to plaintiffs for their personal injuries. I respectfully dissent.
¶ 36 The majority concludes that there is no "clear consensus" on this issue among the courts that have addressed it and elects to follow an interpretation of the FELA that has not been adopted by any federal circuit court of appeals. The four federal circuit courts that have addressed this issue have spoken with a single voice: a railroad's counterclaim for property damages in an employee's negligence suit for personal injury is not a "device" within the meaning of sections 5 and 10 of the FELA. The majority here adopts an expansive view of the term "device" that is not well-grounded in the text of the FELA or a public policy that favors an injured *241 *10 party's right to seek damages for another's negligence.
¶ 37 In
Cavanaugh
, the Fifth Circuit Court of Appeals scoffed at the notion that the FELA should be read to effectively immunize a negligent employee from liability for the employee's negligent conduct that injures their employer.
Cavanaugh
,
"Neither by its express language nor by its legislative history does Section 5 suggest in any way that the 'device' at which the proscription of the Section was directed was intended to include a counterclaim to recover for the railroad's own losses incurred in connection with the accident out of which the injured employee's claim arose." Cavanaugh ,729 F.2d at 292 .
Cavanaugh
went on to state that the term "device" found within section 5 is a "contract, rule, regulation, or device whatsoever,
the purpose or intent of which shall be to enable any common carrier to exempt itself from any liability created by this chapter
." (Emphasis in original.) (Internal quotation marks omitted.)
¶ 38 Likewise, in
Nordgren
, the Eighth Circuit Court of Appeals observed that "the phrase 'any device whatsoever' is informed by the terms preceding it-'contract,' 'rule,' and 'regulation.' All of these terms refer to the legal instruments railroads used prior to the enactment of FELA to exempt themselves from liability."
Nordgren
,
¶ 39 Here, the majority reaches the opposite result relying on cases that adopt a "more pragmatic approach to interpreting the FELA." Supra ¶ 18. But the majority's concerns that a railroad will use property damage counterclaims as "retaliatory devices calculated to intimidate and exert economic pressure on injured employees, curtail their rights when asserting injury claims and supplying information, and ultimately, exempt the railways from liability under the FELA" ( supra ¶ 19), is speculative, since there is no evidence that railroads possess such an animus and is premised on a misunderstanding of how defendant's counterclaim affects its potential liability for plaintiffs' injuries, which is zero. Furthermore, we should not assume that Congress implicitly intended to limit the railroads' right to seek property damages where railroads had a right to do so before the FELA and the plain language of the FELA only addresses the imposition of unilateral exemptions of liability.
*242 *11 ¶ 40 The majority opinion firmly closes the door on the ability of defendant or any other employer governed by the FELA to recover damages against an employee for the employee's negligent conduct. It would produce the absurd result that an uninjured employee that negligently causes property damage would be liable for damages but an injured employee that negligently causes damages would be immune from a property damage claim. Because I do not believe that to be a proper interpretation of the FELA, I would follow the decisions from the First, Fourth, Fifth, and Eighth Circuits, the only federal circuits to consider the issue, as controlling law on this issue. Cavanaugh and Nordgren are controlling decisions within Fourth and Eighth Circuits notwithstanding the dissent filed in each of those cases, and the divergent federal district court decisions are not controlling law within those circuits. I would reverse the judgment of the circuit court and permit defendant to pursue its counterclaims for property damages.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.