Power Fabricating v. State Compensation Ins. Fund
State Compensation Insurance Fund (State Fund) obtained summary judgment in an action filed by plaintiff Power Fabricating, Inc., (Power), which sought declaratory relief and damages arising from State Funds failure to defend it in a separate action against Power brought by the widow of a worker who died in an industrial accident. Power contends it presented a triable issue of fact on whether the decedent was employed by Power, a related entity, or a joint venture between the two entities. Power asserts that if the trier of fact determines the decedent had been employed by either Power or the joint venturer, the widows claims could be covered under the employer liability insurance (ELI) provisions under State Funds policy, triggering a duty to defend. State Fund, contends, however, that the situation falls within the worker compensation provisions of the policy, not the ELI provisions, and that its full payment of death benefits to the widow discharged any responsibility to defend.
We agree with State Fund. ELI coverage can accrue only if (a) the worker was acting in the course and scope of employment of the insured; and (b) workers compensation law either does not apply to the situation or the employer may be sued in a capacity other than as an employer. Because Power failed to raise a triable issue of fact on any of the conditions required in (b), ELI coverage cannot be triggered. Court therefore conclude the trial court did not err in granting State Fund summary judgment.
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