Ex parte Ultratec Special Effects, Inc.

Supreme Court of Alabama

Madison County | 296 So. 3d 801 | Nov. 8, 2019


Interpretation of "Employer" under the Workers' Compensation Act Challenges Defendant's Claim to Immunity

In 1988, Adrian Segeren founded 793862 Ontario, Inc. in Canada, leading to a series of corporate expansions and evolutions, culminating in the creation of Ultratec, a Canadian company specializing in special effects equipment. In 2015, a catastrophic explosion occurred at its subsidiary, Ultratec HSV, resulting in the deaths of Aimee Cothran and Virginia Sanderson. Ultratec was subsequently sued for alleged negligence. In defense, the company invoked the exclusivity provisions of a particular Workers' Compensation Act.

The central legal contention surrounds the definition of "employer" under the Act. Ultratec claims it, along with its subsidiary, operates as a single employer group, thereby seeking immunity from the lawsuit. However, the Estates argue otherwise, suggesting the phrase "group thereof" pertains only to specific service companies.

Drawing on precedents, the court concluded that Ultratec did not assist in administering Ultratec HSV's workers' compensation plan and could not be considered an "employer" as defined by the Act. Further, the court found differences in corporate structure between Ultratec and Ultratec HSV, negating Ultratec's immunity claim based on past cases. This decision underscores the intricate nature of defining employer boundaries concerning workers' compensation in complex corporate frameworks.

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