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Recent Developments in the Law
Vol. No.XII April 9, 1997
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Workers' Compensation Law: The Maryland Court of Appeals, in
Montgomery County, Maryland v. Pamela J. Wade, held that an off-duty
policy officer who sustained injuries in a collision while driving her police car
on a personal errand, is entitled to workers' compensation. The highest Maryland
court ruled that because Montgomery County encouraged off-duty officers to use
their patrol vehicles to create a more visible presence, the officer's injuries
still arose from the course of her employment even though she was transporting her
grandmother, a personal errand, at the time of the crash. Agreeing with the lower
courts that had decided in the officer's favor, the Court of Appeals noted that
there are strict restrictions on the use of the patrol vehicles. Officers using
the vehicles, even when off-duty, are required to monitor the police radio, carry
a handgun, handcuffs, credentials, and make certain traffic stops.
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Workers' Compensation Law: In Mary F. Hundt v. Mayor and
City Council of Baltimore, the Maryland Court of Appeals affirmed the
summary judgment of
the circuit court that a Baltimore City School volunteer aide who received no
salary was not entitled to weekly workers' compensation benefits. The aide, Mary
Hundt, sustained an injury to her left knee when she slipped on the cafeteria floor.
The Court reasoned that the aide was a covered employee under Maryland's Workers'
Compensation Law and was entitled to payment of medical expenses arising from the
injury. However, she was not entitled to weekly monetary benefits because, as a
volunteer, she had no average weekly wage.
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Workers' Compensation Law: In Doreen Kay Means v. Baltimore
County, Maryland, the Maryland Court of Appeals ruled that workers who
suffer from post-traumatic stress disorder (PTSD) unaccompanied by physical disease
may be eligible for workers' compensation benefits. Doreen Kay Means, a paramedic
for Baltimore County, took time off of work when she developed PTSD after responding
to several gruesome fatal motor vehicle accident scenes. The Court noted that so
long as the condition is contracted as a result of his or her employment and causes
the employee to become incapacitated, claimants can be compensated for the time
loss under the Maryland Workers' Compensation Act.
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Qualified Immunity: The Maryland Court of Special Appeals, in Jack
W. Lowery v. Patricia A. Lowery, determined that an award, to a divorcing
spouse, of a lump sum as a portion of her husband's workers' compensation
permanent-partial disability benefits, would have been proper had there been
sufficient evidence regarding the amount of workers' compensation award that qualified
as marital property. Jack W. Lowery, an employee of Kelly Springfield Tire Co. for
28 years, was injured in 1976 and received compensation awards from 1981 to 1987
for permanent-partial disability. Married in 1982, Mr. Lowery claimed that his workers
compensation was not marital property since it sprang from an injury predating
his marriage. The Court of Special Appeals, however, focused on the purpose of the
benefits which is to compensate for loss earning capacity during the marriage, and
therefore, constitutes marital property, even if related to an injury suffered prior
to marriage. Finding that the evidence presented was insufficient to allow the court
to determine the proper amount, the case was remanded for further proceedings.
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Insurance Law: The Maryland Court of Special Appeals, in Ronald
Wayne Hastings et us. v. William H. Knott et al., held that both statutory
employees and actual employees are treated as co-employees for the purpose of the
co-employee exception to the liability coverage in a contractor's general commercial
liability insurance policy. Ronald Wayne Hastings was employed by Glen Arm Masonry,
which was subcontracted to do work for Williams H. Knott, Inc. Knott, Inc. also
hired temporary workers. Hastings was injured when one of the temporary workers drove
a backhoe into a scaffold on which Hastings was standing. Knott had a general
commercial liability insurance policy with United States Fidelity and Guaranty that
covered its own employees, but had a provision that excluded coverage of negligent
acts committed by co-employees. In construing the policy exception, the Court of
Special Appeals ruled that a temporary worker is not an insured under the policy
and therefore, Hastings could not recover from the insurance company.
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Insurance Law: In Harford Mutual Insurance v. Woodfin Equities
Corp. et al., the Maryland Court of Appeals held that after a plaintiff
has obtained a judgment in a tort action, he or she may sue the liability insurer
that provides coverage for the defendant. The appellee, Harford Mutual Insurance
Company, argued that an injured party should not be able to bring a declaratory
judgment or other action against the insurer until a judgment has been obtained
and the judgment has been returned unsatisfied after execution. However, the Court
of Appeals found that this was not necessary.
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Insurance Law: In Aetna Insurance Co. v. Albert G.
Aaron, the Maryland Court of Special Appeals interpreted the terms of a
homeowner's insurance policy as requiring the insurer to defend the policyholder
in a suit against him for costs undertaken to prevent further damage to neighboring
property. A condominium association sued the owner of one of the building's
condominium units for the cost of repairs and preventive measures associated with
a water leak that emanated from his apartment. The owner submitted the claim to
his insurance company, Aetna Insurance, which denied coverage. Relying on the
language in the policy which allegedly provided protection for a suit for damages
instituted because of property damage, the Court of Special Appeals determined that
the policy extended to expenses incurred to remedy a hazardous condition on the
insured's property for the purpose of preventing imminent and further harm to
neighboring property. The Court further determined that an exclusion which limited
coverage to property owned by the insured, did not bar recovery in the case.
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Insurance Law: In Baltimore Gas and Electric v. Commercial
Union Insurance Company et al., the Maryland Court of Special Appeals held
that an insurer could not be compelled to defend based on covered claims, when the
plaintiffs' revised allegations meant that such claims would no longer be generated
at trial. In the suit which precipitated this case, the plaintiffs, Michael W. And
Kathleen Corradetti, filed a negligence lawsuit against BGE, Ferguson Trenching
Company, and others after their car fell into a utility splicing pit. After
completing some initial discovery, the plaintiffs learned that BGE was the only
negligent party and dismissed the other defendants. Based on the plaintiff's revised
allegations, Commercial, the insurance company retained by Ferguson Trenching Company,
refused to indemnify BGE for the judgment ultimately obtained by Corradetti. Ferguson
was a utility subcontractor hired by BGE. The contract entered into by the parties
required Ferguson to provide coverage for potential claims by third parties for
work done by Ferguson for BGE, but did not require Ferguson to provide BGE with
insurance coverage for claims brought against BGE for BGE's own negligence.
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Insurance Law: In Byron C. Bailer et al v. Erie Insurance
Exchange, the Maryland Court of Appeals found that when there is an ambiguity
in policy coverage, an insurance contract will be construed against the insurer.
The insureds, Byron and Victoria Bailer, called upon their insurance company, Erie
Insurance Exchange, to defend and indemnify them when they were sued for invasion
of privacy. Ordinarily torts such as malicious prosecution, slander, and invasion
of privacy are not covered under basic homeowner's policies because they generally
don't involve bodily injury or the damages were intended by the insured. However,
the catastrophe liability policy upon which the Bailers asserted coverage, enlarged
the coverage from bodily injury to personal injury, and defined the term as covering
such torts as invasion of privacy. The Maryland Court of Appeals determined that
there was an intention on the part of the insurer to provide some insurance liability
coverage for claims based on invasion of privacy, and therefore Erie was obligated
to defend and indemnify.
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Indemnity/Contribution: In Sheldon Lerman v. Kerry Heemann,
the Maryland Court of Special Appeals ruled that in a claim for contribution brought
by a defendant against a codefendant, the trial court may simply grant the judgment
against the codefendant in a post-trial motion, rather than require that a separate
cross-claim be filed. This ruling was decided in the context of a medical malpractice
case in which a doctor, Dr. Heeman, asked the court, in a post-trial motion, to order
contribution against his codefendant, Dr. Lerman. The court granted the order. Dr.
Lerman argued on appeal that the decision was improper because Dr. Heeman had failed
to file a cross-claim and also failed to file a contribution claim with the Health
Claims Arbitration Office. The Court of Appeals determined, however, that such
actions were unnecessary.
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Contract Law: In Noonan v. Williams, the District
of Columbia Court of Appeals held that a general release that stated it served to
release not only two other named tortfeasors, but "all other persons", discharged
only those joint tortfeasors that the parties intended to release. Construing the
release in accordance with established rules of contract interpretation, the Court
regarded the parties' intentions as paramount. If the terms of the release are not
clear on the face of the document itself, extrinsic evidence should be used to
determine the parties' intent. The Court found that the general release in this case,
when read in the context of the entire release, was ambiguous because it could be
read to release all possible tortfeasors involved in the accident, or as only to
release all other persons, firms, associations or partnerships connected to or
succeeding to the interests of the named releasees. Therefore, the trial court
should have considered extrinsic evidence to determine the parties' intent.
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Civil Procedure/Contribution: In District of Columbia v.
Washington Hospital Center, the District of Columbia sued Washington Hospital
Center in an attempt to collect a contributable portion of the settlement payment
made to Sheila Bringier for injuries she sustained when struck by a motor vehicle
during a high speed chase with a Metropolitan police officer. The Washington Hospital
Center was not a party to the original suit, and the District of Columbia Court of
Appeals found that the settlement of the tort action served to extinguish the
liability upon which any contribution action would be based. Consequently, the
settling tortfeasor, the District of Columbia, could not seek contribution even
though the District claimed that Washington Hospital Center caused part of the
damage.
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Tort Law: In Ronald Lee Broadwater Sr. et al v. Matilda
Woodward Dorsey et vir., the Maryland Court of Appeals found that parents,
Dr. and Mrs. Broadwater Sr., were not legally responsible for an automobile accident
caused by their adult son. The victims based their claim on the theory of negligent
entrustment and offered as support the fact that the Broadwaters gave their son a
Mazda RX-7, knowing he had a history of reckless driving. However, the Court held
"that the doctrine of negligent entrustment is generally limited to those situations
in which the chattel is under the control of the supplier at the time of the accident."
The Court concluded that the Broadwaters had no right to control the RX-7 because
their son was an adult, and they had relinquished title to the car.
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Civil Procedure/Claim Preclusion: In Molovinsky v. The
Monterey Cooperative, Inc., et al, the District of Columbia Court of
Appeals held that, based on the theory of res judicata, the settlement of a small
claims suit, barred the plaintiff from bringing a civil action based on the same
transaction. The appellant, Gale S. Molovinsky, argued that res judicata was
inapplicable because the District of Columbia's Small Claims Branch did not have
general jurisdiction over the subsequent claims. The Court reasoned that res judicata
is premised on granting the aggrieved party one opportunity to allege the wrong.
The plaintiff has the choice to bring the action in a court of limited jurisdiction
or more expansive jurisdiction. Consequently, any breach of contract action, arising
out of the original circumstances, was extinguished when Molovinsky settled the claim
with Monterey Cooperative Inc. and the suit was dismissed with prejudice.
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Evidence/Expert Testimony: In Robert Goren, et al. v. United
States Fire Insurance Co., et al., the Maryland Court of Special Appeals
held that a state trooper, who was not an expert in accident reconstruction, should
not have been questioned as a traffic expert. Barbara Goren was involved in a traffic
accident, and State Trooper Charles Robbins was the officer who investigated the
scene. After describing the condition of the cars involved and the tire marks left
on the road, the officer was asked on cross-examination to give his interpretation
of some aspects of the accident. The Court found that the officer, who was not
qualified as an expert in accident reconstruction, should not have been permitted
to answer those questions.
Evidence/Expert Testimony: In Raynor, et al. v. Merrell
Pharmaceuticals, Inc., the U.S. Court of Appeals for the D. C. Circuit,
found that a district court judge did not abuse his discretion when he deemed the
plaintiff's expert testimony on chemical in vitro and in vivo studies inadmissible.
The Court determined that the studies were not capable of proving, on their face,
that the defendant, Merrell Pharmaceuticals, Inc.'s, anti-nausea drug caused the
plaintiff's birth defects because there was overwhelming contradictory epidemiological
evidence. Relying on the factors announced by the Supreme Court in Daubert
v. Merrell Dow Pharmaceuticals, Inc., the Court found that the evidence
was inadmissible under Federal Rule of Evidence 702. Rule 702 states that an expert
may testify if the "scientific, technical, or other specialized knowledge will
assist the trier of fact to understand the evidence or to determine a fact in issue."
Under Daubert, when determining whether the expert's evidence is
"scientific knowledge", the following must be considered: (1) whether the theory
or technique can be (or has been) tested; (2) whether the theory or technique has
been subject to peer review and publication; (3) the known or potential rate of
error of the methodology; and (4) the general acceptance of the methodology. Finally,
the court must decide if the expert testimony will "assist the trier of fact to
understand or determine a fact in issue."
The Court found several problems with the plaintiff's proffered expert testimony,
including the fact that none of the plaintiffs' experts has published their
conclusions regarding the defendant's drug, the studies had not been subject to
peer review, and testing problems with the experts' methodology.
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Qualified Immunity: In Crawford-El v. Britton, et al.,
the U.S. Court of Appeals for the D.C. Circuit held that when a government official
is facing a damage action for allegedly committing a constitutional tort and where
the constitutionality of the official's acts turn on his motive, that official may
obtain a summary judgment resolution of a qualified immunity issue, before the
plaintiff engages in discovery on the issue. In addition, unless the plaintiff
offers clear and convincing evidence on the state of mind issue at summary judgment
and trial, judgment or directed verdict should be granted for the defendant.
The plaintiff in the case is a prisoner at the District of Columbia correctional
system. He alleged that the defendant, a correctional officer, and the District
of Columbia, violated his constitutional right of access to the courts when they
misdelivered several boxes containing his legal documents, clothes and other personal
items. The officer moved for dismissal and for summary judgment based on the defense
of qualified immunity, and the district court, under a heightened pleading review,
determined that the plaintiff's complaint was lacking. One of the several
constitutional attacks in the defendant's complaint was that the misdelivery was
in retaliation for his communications with the press and therefore violated his
First Amendment rights. The U.S. Court of Appeals for the D.C. Circuit decided that
this claim should be reviewed by the court en banc.
The Court noted that as stated in Harlow v. Fitzgerald, there is
a concern about exposing officials to debilitating discovery and therefore, prior
to discovery, the plaintiff is required to offer specific, non-conclusory assertions
of evidence, in affidavits or other materials, from which a fact finder could infer
the forbidden motive. In addition, there is a heightened standard of proof requirement.
The summary judgment or directed verdict should be granted unless the plaintiff
offers clear and convincing evidence on the state of mind issue.
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