Transportation APRIL 2003 The Supreme Court Holds Workers Exposed to Asbestos by Railroad and Other Employers May Recover Full Damages Award for Fear of Developing Cancer From Railroad Employer Under FELA On March 10, 2003, the Supreme Court issued its ruling in Norfolk & Western Railway Co. v. Ayers, 538 U.S. ___ (2003) (Ayers). The Courts decision addressed claims brought by six former Norfolk & Western Railway Company (N&W) employees under the Federal Employers Liability Act (FELA) to recover damages for asbestosis, a non-cancerous scarring of the lungs caused by inhalation of asbestos fibers. The Court held 5-4 that the claimants could recover damages under FELA for the fear of developing cancer in the future. In addition, the Court held unanimously that the claimants could recover wholly from N&W, despite the existence of non-railroad prior employers that also contributed to the claimants injuries. N&Ws only recourse under FELA for such liability would be a subsequent action against the non-railroad prior employers for indemnification or contribution. Under FELA, 45 U.S.C. §§ 51-60, common carrier railroads are liable in damages to any person suffering injury while employed by [the] carrier in [interstate] commerce if the injury or death result[ed] in whole or in part from the [carriers] negligence. 45 U.S.C. § 51. Enacted by Congress in 1908 with the humanitarian intent of shift[ing] part of the human overhead of doing business from employees to their employers, FELA and its amendments abolished a number of common law tort defenses, including the fellow servant rule and the assumption of risk defense, and rejected the doctrine of contributory negligence in favor of comparative negligence. See Consolidated Rail Corporation v. Gottshall, 512 U.S. 532 (1994). The six claimants in Ayers were all between 60 and 77 years old, and all but one had a long history of tobacco use. Three had smoked for more than 50 years. All suffered from shortness of breath, but only one testified that it affected his daily activities. Two of the claimants also had significant exposure to asbestos while working for other employers: one was exposed to asbestos at N&W for three months, but previously worked with asbestos as a pipefitter for 33 years, while the other was exposed to asbestos for years while working in an auto-body shop prior to joining N&W. The trial court instructed the jury that asbestosis claimants could, upon demonstrating a reasonable fear of cancer stemming from their present condition, recover for fear as part of asbestosis-related pain and suffering damages, and denied N&Ws request to instruct the jury to apportion damages between N&W and the other employers that contributed to the claimants disease. The jury returned total damage awards ranging from $770,000 to $1.2 million for each claimant, three of which were reduced for claimants comparative negligence for smoking and for settlements with nonFELA entities. The final judgments amounted to approximately $4.9 million, although the jury did not indicate what portion of the jurys damage determinations addressed the fear-of-cancer damages. The Court in Gottshall restricted recovery under FELA for stand-alone emotional claims to plaintiffs who sustained a physical impact as the result of a defendants negligent conduct or were placed in immediate risk of physical harm by that conduct (in Kirkpatrick & Lockhart LLP other words those within the zone of danger of physical impact). Id. at 547-548. More recently, in Metro-North Commuter R. Co. v. Buckley, 521 U.S. 424 (1997), the Court applied the zone of danger test to a FELA claim for exposure to asbestos and a consequent fear of developing cancer, and rejected the claim on the grounds that exposure alone was insufficient to show the physical impact necessary in the zone of danger test. Metro-North, 521 U.S. at 430. In Ayers, the Court followed Gottshall and Metro-North by holding that a plaintiff that claims emotional pain and suffering stemming from a cognizable injury or disease may recover under FELA, while the recovery of a plaintiff suffering emotional pain and suffering absent injury is sharply circumscribed by the zone-of-danger test. Ayers, 538 U.S. ___, at *9. Although the claimants did not seek, nor did the trial court allow, discrete damages for their increased risk of future cancer, and although asbestosis itself does not cause cancer, the Court agreed that the claimants asbestosis was an injury and they could recover for their fear of future cancer so long as the claimants demonstrated their fear is genuine and serious. Id. at *19. The Court also addressed N&Ws assertion that damages should be apportioned between N&W and the other employers that had contributed to the claimants conditions. N&W argued that the statutory language of FELA makes clear that railroads are not liable for employee injuries that result from outside causes. The Court disagreed, reading the language that a railroad is liable in damages so long as the injury was caused in whole or in part by its negligence to deny N&Ws desired apportionment and require that N&W bear the subsequent burden of seeking contribution or indemnification by liable third parties. Id. at *28 (emphasis added). As the Court stated, [u]nder FELA, an employee who suffers an injury caused in whole or in part by a railroads negligence may recover his or her full damages from the railroad, regardless of whether the injury was also caused in part by the actions of a third party. Id. (internal quotations omitted). The Court went so far as to make what amounted to a plea for Congressional intervention in the elephantine mass of asbestos cases lodged in state and federal courts that [defy] customary judicial administration and [call] for national legislation, but indicated that courts must resist pleas of the kind N&W has made, essentially to reconfigure established liability rules because they do not serve to abate todays asbestos litigation crisis. Id. at *29. The Ayers decision is important in two respects. First, it highlights the potentially expansive scope of damage recovery under FELA. The Ayers claimants were able to recover damages for, among other things, the fear of possibly developing cancer in the future due to non-cancerous scarring of their lungs from asbestos exposure. Second, the decision confirms that railroads may be subject to disproportionate liability under FELA. Several of the Ayers claimants were able to recover in whole from N&W despite significant exposure to asbestos under previous employers. Although N&W would be able to seek indemnification or contribution from those previous employers in a later suit, there is no guarantee that suit would succeed, or what amount would be recovered. EDWARD J. FISHMAN 202.778.9456 efishman@kl.com BRENDON P. FOWLER 202.778.9237 bfowler@kl.com FOR FURTHER INFORMATION, please consult one of the lawyers listed below: Boston Harrisburg Pittsburgh Jeffrey S. King Carleton O. Strouss Theodore A. McConnell Stephen M. Olson San Francisco Robert J. Sherry Washington Edward J. Fishman Kevin M. Sheys 617.261.3179 717.231.4503 412.355.6566 412.355.6496 415.249.1032 202.778.9456 202.778.9290 jking@kl.com cstrouss@kl.com tmcconnell@kl.com solson@kl.com rsherry@kl.com efishman@kl.com ksheys@kl.com ® Kirkpatrick & Lockhart LLP Challenge us. ® www.kl.com BOSTON n DALLAS n HARRISBURG n LOS ANGELES n MIAMI n NEWARK n NEW YORK n PITTSBURGH n SAN FRANCISCO n WASHINGTON ............................................................................................................................................................ This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. © 2003 KIRKPATRICK & LOCKHART LLP. ALL RIGHTS RESERVED.