Ajax Construction Company, Inc. v. Liberty Mutual Insurance Company

Citations

• 154 A.3d 913
• 2017 WL 774385
• 2017 R.I. LEXIS 25

Syllabus

Ajax Construction Company and Beacon Mutual Insurance Company came before the Supreme Court on writs of certiorari following a decree by the Appellate Division of the Workers' Compensation Court in favor of Liberty Mutual Insurance Company. Ajax originally petitioned the Rhode Island Workers' Compensation Court to determine which insurer was required to pay benefits to an injured Ajax employee. On appeal, the Appellate Division found Beacon solely responsible to pay the benefits. The court determined that Liberty was not liable because the Ajax employee, who worked primarily in Massachusetts, did not qualify as a \Massachusetts employee\ under the Liberty policy. The Appellate Division further interpreted the phrase \entire liability of the employer\ in G.L. 1956 § 28-36-5 to require Beacon to pay the entire amount of the benefits. The Supreme Court quashed the Appellate Division's decree. First, the Court determined that the Appellate Division erred in interpreting the term \Massachusetts employee\ and in relying on extrinsic evidence to define the term. The Supreme Court deemed the term clear and unambiguous, and it held that the Ajax employee qualified as a \Massachusetts employee\ under the term's plain meaning. The Supreme Court further found the Appellate Division's interpretation of § 28-36-5 erroneous and held that the phrase \entire liability of the employer\ was ambiguous. The Court concluded that the statute's legislative intent and purpose was to ensure that an employer provided coverage for all employees, but not that it had to do so with one insurer and one policy. Thus, the Supreme Court concluded that Beacon was not liable under § 28-36-5 to pay the benefits. The Court held that Liberty was wholly responsible for the payment of benefits and ordered it to reimburse Beacon for any payments that Beacon had made.