March 18, 2019

The Court of Appeals of Arkansas determined that a company that did not respond to its employees' negligence suit did not waive its right to the exclusive remedy provision of workers' compensation. The case is Stan v. Vences, 2019 Ark. App. 56 (Ct. App.).

The employee, Jose Juan Vences filed a complaint with the circuit court alleging that in November 2013 he suffered an injury while working for his employer, Renaissance Plaster and Design, and that Renaissances' negligence proximately caused the injury. Vences also claimed that Renaissance did not provide workers compensation benefits for their employees and in doing so, waived its right to the exclusive remedy of workers compensation. Vences asked for remedies including past and future medical bills, past and future lost wages, conscious pain and suffering, and compensation for the permanence of his injury. Renaissance failed to respond and the circuit court entered an order of default. Soon after, the court held that an employment relationship existed between Renaissance and Vences, that the employee suffered the injury during the course and scope of his employment, and that the injury was proximately caused by the negligence of his employer. Next, the court found that the Renaissance failed to provide workers compensation benefits, and in doing so waived its exclusive remedy immunity. The court awarded the employee more than $202,000 plus a $25,000 penalty. The circuit court found that Renaissance was ineligible for and waived the immunity provided by the Workers Compensation Act.