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Statutory damage cap in comp law doesn’t apply to independent contractor

In a case of first impression, the Colorado Court of Appeals on Friday ruled an independent contractor injured on the job by the negligence of another independent contractor may recover damages over the state law’s limit because they are third parties to each other, not co-employees.

James Curry and Charles Brewer worked for Ideal Transport LLC as independent contractors hired by Home Depot to deliver goods to a store in Aurora, Colorado. In December 2018, Mr. Curry was unloading a refrigerator onto the loading dock as Mr. Brewer began to drive the truck away, injuring Mr. Curry, according to Curry, J. v. Brewer, C.

Mr. Curry, whose workers compensation claim was denied, filed a civil suit against Ideal, Home Depot and Brewer in Colorado. All defendants and claims, except the negligence claim against Mr. Brewer, were dismissed.

Before trial, Mr. Brewer’s counsel filed a motion to limit Mr. Curry’s damages to $15,000 under law that says any individual who is excluded from the definition of “employee” under the workers comp law is limited to a recovery of $15,000 in any cause of action resulting from a work-related injury that would have otherwise been compensable, “except in any cause of action brought against another not in the same employ.”

Mr. Brewer’s attorney argued that since Mr. Curry’s injuries were work-related, the statutory cap should apply. The trial judge determined that his injuries were not “otherwise compensable” because he was an independent contractor not entitled to workers comp benefits. The judge also ruled the pair were not employed by the same company.

A jury found Mr. Brewer liable for Mr. Curry’s injuries and awarded noneconomic damages of $219,000 and physical impairment and disfigurement damages of $734,152.50.

The Colorado Court of Appeals affirmed on similar grounds.

WorkCompCentral is a sister publication of Business Insurance. More stories here.