The opinion of the court was delivered by
KOBLITZ, J.A.D.
This appeal raises a novel question of law in New Jersey: whether a provision in an employment contract limiting a worker's right to sue a third party for negligence is enforceable. Plaintiff Philip Vitale was employed as a security guard by Allied Barton Security Services, LLC (Allied Barton), which contracted with defendant Schering-Plough Corporation to provide security services at defendant's facilities. At the commencement of his employment with Allied Barton, plaintiff signed a disclaimer waiving his right to sue any of Allied Barton's customers "to which [he] may be assigned, arising from or related to injuries which are covered under the Workers' Compensation statutes." In August 2009, plaintiff was injured while working for Allied Barton at one of defendant's work sites. Thereafter, he received workers' compensation benefits from Allied Barton and also filed this personal injury suit against defendant.
A jury subsequently found defendant's negligence caused plaintiff's injuries and awarded plaintiff $900,000 in damages, with additional amounts awarded by the
Plaintiff began working as a security guard with Allied Barton in September 2005. Although he was assigned to many of defendant's work sites, he was never directly employed by defendant, which had its own in-house security employees. In 2008, plaintiff was promoted to the position of field manager, supervising Allied Barton security guards who worked at defendant's sites. One of his duties as field manager was to ensure that the guards had proper uniforms, and for that purpose he stored extra uniforms in the basement of the guardhouse at defendant's Kenilworth facility.
Allied Barton did not have exclusive use of the guardhouse basement. Defendant's security managers had keys to the basement door, and the basement was used for storage by defendant's maintenance and information technology employees. The basement also contained equipment belonging to another of defendant's contractors.
Defendant was responsible for the maintenance of both the guardhouse and the stairwell to the basement, which one entered from outside of the guardhouse. Defendant employed its own security manager, who managed the guardhouse and was responsible for inspecting the property and identifying any safety hazards. Defendant also employed maintenance staff, who were responsible for cleaning and repairing the guardhouse. The maintenance staff were required to return items to their original location after using them for the purpose of preventing safety hazards.
Plaintiff visited the guardhouse basement approximately once per month. The stairwell had a light fixture, and without that light, it was pitch black. The light switch was located at the top of the stairwell, to the left as one opened the door. Plaintiff's regular practice was to unlock the basement door, turn on the stairwell light, and proceed down the stairs. At the time of his accident, the stairwell's heavy, metal door had a handle on the left, and opened outward to the right, blocking the security camera.
In the early morning of August 31, 2009, plaintiff took the basement keys from the guardhouse, told his coworker he had to go downstairs for something, and subsequently fell down the basement stairs. Plaintiff had no recollection of the accident, or of the moments immediately before and after his fall. Plaintiff's coworker, Alec Schaffer, went looking for plaintiff approximately twenty minutes after plaintiff left with the basement keys. When Schaffer opened the basement door he noticed the light was off. After he turned on the light, he saw plaintiff at the bottom of the stairs, having landed on a brown paper "cement type" bag. At the top of the stairs, near the door, Schaffer saw a ladder, crates, an industrial-type extension cord, and a fifty-pound bag of ice melt that had been knocked
According to Schaffer, plaintiff "was in a daze" and was "out of it." The front of plaintiff's head was red, and his glasses were off and on the stairs. Plaintiff said, "he fell or tripped or something."
When emergency services arrived, plaintiff was conscious and sitting in a chair. He complained of pain in his right ankle and left leg, and did not recall losing consciousness. Plaintiff testified that since the accident he has suffered from severe headaches and pain in his neck, shoulder, and lower back, which radiates down his leg. Notwithstanding his participation in physical therapy, he continues to have limited mobility and strength in his shoulder and arm. Plaintiff had eye surgery in 2012 that largely alleviated the headaches, but he continues to suffer cognitive difficulties, which limit his social and professional life. Plaintiff's experts opined plaintiff's symptoms were the result of permanent injuries he suffered in the fall. Defense experts opined plaintiff likely suffered only minor, non-permanent injuries from the fall, and his symptoms were consistent with his age and pre-existing medical conditions.
Defendant moved for summary judgment based upon the waiver of liability plaintiff signed on September 27, 2005, when he began his employment at Allied Barton. The waiver stated:
Plaintiff, who has a high school education, had no recollection of reading or signing the disclaimer, nor did he "recall ever receiving any explanation or information indicating that [he] would waive [his] rights to file a lawsuit against anyone who caused [him] injury in exchange for employment with Allied-Barton."
Defendant and amicus Allied Barton argue the trial court erred in denying summary judgment, asserting the disclaimer plaintiff signed with Allied Barton was valid and enforceable. They cite out-of-state cases in which the same or similar disclaimers have been upheld and argue the disclaimer is consistent with New Jersey law on exculpatory clauses because it does not preclude plaintiff from any remedy for a workplace injury, but simply limits plaintiff's remedy to workers' compensation benefits.
Plaintiff responds that the disclaimer violates public policy because it violates the letter and the spirit of the WCA. We
We review the grant of summary judgment de novo, applying the same legal standard as the trial court. State v. Perini Corp., 221 N.J. 412, 425, 113 A.3d 1199 (2015). Summary judgment must be granted "if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact challenged and that the moving party is entitled to a judgment or order as a matter of law." R. 4:46-2(c). "To the extent that the grant or denial of summary judgment is based on an issue of law, we owe no deference to an interpretation of law that flows from established facts." Perini Corp., supra, 221 N.J. at 425, 113 A.3d 1199.
Not all employment contracts that limit the rights of employees are contracts of adhesion.
Although a court may enforce a contract of adhesion, such contracts are unenforceable if unconscionable.
Plaintiff does not allege any procedural unconscionability. He has no recollection of signing the disclaimer, and he has presented no evidence Allied Barton engaged in "fraud, deceit, or misrepresentation" in obtaining his signature on the form.
"As a general and long-standing matter, contracting parties are afforded the liberty to bind themselves as they see fit. Out of respect for that very basic freedom,
Nevertheless, exculpatory agreements are enforceable if they "clearly and unambiguously reflect the `unequivocal expression of the party giving up his or her legal rights that this decision was made voluntarily, intelligently and with the full knowledge of its legal consequences.'" Marcinczyk v. State Police Training Comm'n, 203 N.J. 586, 593, 5 A.3d 785 (2010) (quoting Gershon v. Regency Diving Ctr., Inc., 368 N.J.Super. 237, 247, 845 A.2d 720 (App.Div.2004)). "Even if unambiguous, it is well-established that exculpatory contracts will not be enforced where they are contrary to public policy." Id. at 594, 5 A.3d 785. "[S]ources of public policy include legislation; administrative rules, regulations or decisions; and judicial decisions." Hitesman v. Bridgeway Inc., 430 N.J.Super. 198, 218, 63 A.3d 230 (App.Div. 2013) (alteration in original) (quoting Pierce v. Ortho Pharm. Corp., 84 N.J. 58, 72, 417 A.2d 505 (1980)),
For example, one may not contract away the statute of limitations in a case alleging a violation of the New Jersey Law Against Discrimination (LAD), N.J.S.A. 10:5-1 to -49. Rodriguez, supra, 225 N.J. at 364-65, 138 A.3d 528. Nor may one diminish by contract "a statutorily imposed duty," nor execute "a pre-injury release from liability for intentional or reckless conduct." Stelluti, supra, 203 N.J.
Plaintiff raises public policy concerns in the areas of premises liability and the WCA. "[P]ublic policy does not demand a per se ban against enforcement of an exculpatory agreement based on the mere existence of a duty recognized in the common law in respect of premises liability." Stelluti, supra, 203 N.J. at 306, 1 A.3d 678. "To properly balance the public-policy interests implicated ... one must consider the nature of the activity and the inherent risks involved." Id. at 310.
In Stelluti, our Supreme Court concluded that exercising at a health club had inherent risks. Thus, the health club reasonably limited their liability with respect to negligence claims arising from exercise-related activities through an exculpatory agreement. Id. at 311-13. The health club, however, "could not exculpate itself from... reckless or gross negligence." Id. at 312. Moreover, the Court noted it was "not address[ing] the validity of the agreement's disclaimer of liability for injuries that occur on the club's sidewalks or parking lot that are common to any commercial enterprise that has business invitees." Id. at 313.
The present case does not involve inherently risky behavior. Plaintiff was injured while attempting to walk down a flight of stairs, in the normal course of his job duties, on the premises of his employer's commercial client. This case is thus distinguishable from Stelluti, and more akin to a
The applicable legal standard is:
Also, unlike Stelluti, this case does not involve an invitee waiving the right to sue for premises liability directly with the business owner. Rather, this case arises from an agreement between plaintiff and his employer, with plaintiff having waived potential negligence claims against unidentified third parties. As a customer of Allied Barton, defendant is clearly a third-party beneficiary of the agreement.
The disclaimer also creates a disincentive for defendant to maintain a safe workplace for contractors working on its premises. Defendant concedes the area in which plaintiff was injured was accessible by relatively few of its own employees. Where the company is otherwise insulated from liability through a disclaimer such as the one at issue, the company has a reduced incentive to maintain a safe workplace for its contractors.
To the extent plaintiff waived his right to recover for reckless or intentional conduct, the disclaimer is also invalid as against public policy. Stelluti, supra, 203 N.J. at 303, 1 A.3d 678. Defendant contends plaintiff did not waive such rights, because the disclaimer only addresses claims covered by the WCA, and claims of reckless and intentional misconduct are not covered by the WCA. We do not construe the WCA's "intentional wrong" exception as broadly as defendant suggests.
Under the "intentional wrong" exception, the remedy provided by the WCA is exclusive, with the exception of injuries resulting from an employer's "intentional wrong." N.J.S.A. 34:15-8. This exception "must be interpreted very narrowly" for the purpose of furthering the "underlying
Thus, conduct that would be considered reckless or intentional under general tort law may result in injuries covered by the WCA and thus unlawfully waived by the disclaimer.
The next question presented is whether plaintiff's waiver is congruent
"If the statutory language is clear and unambiguous, and reveals the Legislature's intent, we need look no further." Farmers Mut. Fire Ins. Co. of Salem v. N.J. Prop.-Liab. Ins. Guar. Ass'n, 215 N.J. 522, 536, 74 A.3d 860 (2013). "Only when faithful adherence to the words of the statute leads to more than one plausible interpretation or to an absurd result or to a result at odds with the objective of the overall legislative scheme do we look to extrinsic sources, such as legislative history." Y.N., supra, 220 N.J. at 178, 104 A.3d 244.
The WCA was enacted in 1911
The WCA is "social legislation designed to place the cost of work-connected injury on the employer who may
Our Supreme Court recently held a contract limiting the statute of limitations in a LAD case was contrary to the public policy of New Jersey, stating:
Similar to the WCA, "the LAD is remedial legislation" that should "be liberally construed `in order to advance its beneficial purposes.'" Smith v. Millville Rescue Squad, 225 N.J. 373, 390, 139 A.3d 1, 11 (2016) (quoting Nini v. Mercer Cty. Cmty. Coll., 202 N.J. 98, 115, 995 A.2d 1094 (2010)).
New Jersey workers' compensation law recognizes that an employee may have two employers, both of which may be liable for compensation. Hanisko v. Billy Casper Golf Mgmt., Inc., 437 N.J.Super. 349, 360, 98 A.3d 1192 (App.Div.2014);
"[I]f a finding of joint employment is made, one joint employer may sue a co-employer for contribution in the event it refused to pay its pro rata share." Conway v. Mister Softee, Inc., 51 N.J. 254, 259, 239 A.2d 241 (1968). The co-employers' contractual relationship, however, may affect any right of indemnification, Domanoski v. Borough of Fanwood, 237 N.J.Super. 452, 459, 568 A.2d 123 (App.Div.1989), or subrogation, New Amsterdam Cas. Co., supra, 18 N.J. at 228, 113 A.2d 666.
The Division of Workers' Compensation has "exclusive original jurisdiction of all claims for workers' compensation benefits." N.J.S.A. 34:15-49(a). Thus, our Supreme Court has recognized the forum best suited to decide the joint employment relationship is the workers' compensation court. Wunschel, supra, 96 N.J. at 664, 477 A.2d 329.
"New Jersey has developed its special-employee doctrine by adopting the three-prong test recommended by Professor Larson for establishing a special-employment relationship." Volb v. G.E. Capital Corp., 139 N.J. 110, 116, 651 A.2d 1002 (1995);
As to the first factor, "[a]n employee's consent is required because the employee loses certain rights along with those he gains when he enters a new employment relationship. Most important, the worker loses the right to sue the special employer at common law for negligence." Murin v. Frapaul Constr. Co., 240 N.J.Super. 600, 608, 573 A.2d 989 (App.Div.1990). Of these three factors, the most important is whether the special employer "had the right to control the special employee's work." Volb, supra, 139 N.J. at 116, 651 A.2d 1002. Two additional factors may also be considered: (1) whether the special employer pays the employee's wages; and (2) whether the special employer "has the power to hire, discharge or recall the employee." Hanisko, supra, 437 N.J.Super. at 361, 98 A.3d 1192 (quoting Blessing, supra, 94 N.J.Super. at 430, 228 A.2d 711).
Thus the type of relationship between plaintiff, defendant, and Allied Barton has been recognized and accommodated within the WCA for decades, perhaps as far back as 1937.
We are not persuaded by a decision of the Supreme Court of Pennsylvania, Bowman v. Sunoco, Inc. 620 Pa. 28, 65 A.3d 901, 910 (2013), or one from the District of Columbia Court of Appeals, Brown v. 1301 K St. Ltd. P'ship, 31 A.3d 902, 908 (D.C.
Defendant argues that, if the denial of summary judgment is not reversed, a new trial is nevertheless required because the court erred in not charging the jury on plaintiff's comparative negligence. We agree.
In its answer, defendant asserted a defense of comparative negligence, and it pursued that theory at trial. In his opening statement, defense counsel argued plaintiff may have fallen due to his own negligence in entering the stairwell without turning on the light. During the charge conference, however, the trial court granted plaintiff's motion for a directed verdict on that issue, finding no evidence to support a conclusion that plaintiff had been negligent. Thus, in his closing, defense counsel conceded plaintiff was not negligent, contrary to counsel's opening argument.
Thereafter, the trial court denied defendant's post-trial motion for a new trial, which was based in part upon the court's refusal to charge comparative negligence. The court stated:
Under Rule 4:40-1, a party may make a motion for a directed verdict "either at the close of all the evidence or at
"New Jersey law favors the apportionment of fault among responsible parties." Boryszewski v. Burke, 380 N.J.Super. 361, 374, 882 A.2d 410 (App. Div.2005),
"The guiding principle of our State's comparative fault system has been the distribution of loss `in proportion to the respective faults of the parties causing that loss.'" Brodsky v. Grinnell Haulers, Inc., 181 N.J. 102, 114, 853 A.2d 940 (2004) (quoting Blazovic v. Andrich, 124 N.J. 90, 107, 590 A.2d 222 (1991)).
To assert a defense of comparative negligence, "there must be evidence in the record from which a legitimate inference may be drawn that plaintiff's conduct was negligent and that his [or her] negligence was a proximate cause" of his injuries. La Morgese v. Kern-O-Mix, Inc., 82 N.J.Super. 581, 586, 198 A.2d 779 (App.Div.1964). Although a defendant must produce some evidence, "the quantum of evidence required to qualify for an apportionment charge is low." Boryszewski, supra, 380 N.J.Super. at 384, 882 A.2d 410.
Here, plaintiff had an obligation to exercise reasonable care by using his own faculties to observe and avoid dangerous conditions.
Significant countervailing evidence indicates plaintiff tripped over an object negligently stored at the top of the stairwell before he had the opportunity to turn on the light, and the object was no longer at the top of the stairwell when Schaffer entered. Further, plaintiff's failure to immediately turn on the light would have been contrary to his normal practice. As the trial court noted, an attempt to negotiate the basement steps in complete darkness would have been unreasonable. This factual dispute, however, should have been resolved by the jury rather than the court.
Based on the existing evidence of plaintiff's negligence, albeit slim, the trial court erred in granting plaintiff's motion for judgment on the issue of comparative negligence, and the court should have charged the jury on that defense.
We thus reverse the judgment and remand for a new trial on liability only, at which plaintiff's comparative negligence should be considered by the jury. The verdict on damages need not be retried.
Defendant argues a new trial is warranted based upon the trial court's admission of Schaffer's lay opinion testimony as to the cause of plaintiff's fall. We review evidentiary rulings for an abuse of discretion, and should not reverse unless "there has been a clear error of judgment." State v. Nantambu, 221 N.J. 390, 402, 113 A.3d 1186 (2015) (quoting State v. Harris, 209 N.J. 431, 439, 38 A.3d 559 (2012)). Here, Schaffer's testimony was merely a repetition of what was introduced into evidence, without objection, by way of Schaffer's investigative report.
At trial, over defense counsel's objection, Schaffer was permitted to testify as to his belief that plaintiff tripped over the clutter at the top of the stairs. On direct examination by plaintiff's counsel, Schaffer was questioned about the special incident report that he prepared after plaintiff's accident. In the course of that questioning, the following testimony was elicited:
Thereafter, defense counsel cross-examined Schaffer regarding his opinion, and the subject was covered again on re-direct and on re-cross, with Schaffer explaining that he believed plaintiff tripped over the bag of ice melt, because the bag had been knocked over, down a few stairs.
Post-trial, defendant moved for a new trial, in part based upon the court's alleged error in admitting Schaffer's lay opinion as to the cause of plaintiff's fall. The court denied the motion, finding Schaffer had testified only as to his observations and reasonable inferences from his observations.
Under N.J.R.E. 701, lay opinion is admissible if the testimony "(a) is rationally based on the perception of the witness and (b) will assist in understanding the witness' testimony or in determining a fact in issue." "Pivotal to the admissibility of N.J.R.E. 701 evidence is perception acquired through the senses." In re Trust Created by Agreement Dated Dec. 20, 1961, 194 N.J. 276, 283, 944 A.2d 588 (2008).
Schaffer's testimony that plaintiff had tripped and fallen over a bag of ice melt was rationally based on his perception of the scene. When Schaffer discovered plaintiff at the bottom of the stairwell, he saw a bag of ice melt knocked down a few steps and observed other items stored at the top of the stairwell. His testimony was not speculative nor did his testimony negate the possibility that plaintiff stumbled and fell for some other reason, as argued by defendant. Schaffer's impressions were significant because he was first on the scene and obligated to complete a report regarding the incident.
Affirmed in part, reversed in part and remanded for further proceedings. We do not retain jurisdiction.