Summary of a Recent
Judicial Development in
Labor Law

Plaintiff Fails to Prove Causation in Suit for
Workers' Compensation Benefits

Eric H. Foy
National AgLaw Center Research Associate

Summary of Decision

In Holloway v. Tyson Foods, Inc., 668 S.E.2d 72 (N.C. Ct. App. 2008), the North Carolina Court of Appeals affirmed the decision of the North Carolina Industrial Commission, which denied Plaintiff's claim for workers' compensation benefits. The court held that the spoliation of evidence had evidentiary consequences that, in the absence of other statutory or rule violations, could not be relied on as a basis for sanctions. Spoliation of evidence gives rise to a permissive adverse inference, but it does not give rise to a presumption. Plaintiff mistook the law governing spoliation and failed to demonstrate that the Commission's decision was unreasonable.

Background

Plaintiff was employed in the maintenance division of Defendant's packing department in North Wilkesboro, North Carolina. Id. at 73. Plaintiff's responsibilities included maintaining Defendant's printers which were used to print expiration dates on packages of chicken. Id. Prone to ink blockages, the printers needed to be cleaned routinely by running a "Clear Nozzle Sequence." Id. On September 16, 2002, an employee of Defendant's Labeling Department saw Plaintiff fall while he was clearing a nozzle to remove an ink blockage. Id. Employees contacted the plant nurse and placed a 911 call. Id. at 74. Emergency Medical Technicians arrived and transported Plaintiff to the hospital. Id. On October 16, 2002, Plaintiff was discharged from the hospital with diagnoses of sudden cardiac arrest, ventricular fibrillation, Brugada syndrome, anoxic brain injury, and seizures. Id. From December 2002 to February 2004, Plaintiff participated in speech and physical therapy. Id. A medical note from the hospital dated January 14, 2003, indicated that Plaintiff might have received an electrical shock while he was cleaning Defendant's printers, but the note did not provide any definitive evidence of causation. Id. On May 8, 2003, Plaintiff filed a Form 18 asserting that he was electrocuted while cleaning Defendant's printer resulting in brain damage. Id. On August 16, 2003, and January 12, 2004, Defendant twice denied Plaintiff's claim, and on June 14, 2005, the Deputy Commissioner denied Plaintiff's claim on the grounds that Plaintiff's injuries were caused by an idiopathic condition, and not by his employment. Id. Plaintiff then unsuccessfully appealed to the Full Commission, which affirmed the Deputy Commissioner's opinion. Id. In response, Plaintiff appealed to the instant court. Id. at 75.

Arguments

Plaintiff argued that the Commission erred by not imposing sanctions upon Defendant for failing to preserve the scene or the equipment involved in the accident. Id. As sanctions for spoliation of evidence, Plaintiff sought a presumption of compensability, the payment of costs incurred for the accident investigation, and attorneys' fees. Id.

Analysis and Holdings

Controlling North Carolina precedent held that the principle of spoliation of evidence dictated that when a party intentionally destroys evidence in its control before it is made available to the adverse party, an inference can be drawn that the evidence was unfavorable to the party's cause. Id. If the evidence was equally available to both parties or the non-producing party presents a satisfactory explanation, then the principle is inapplicable and no inference arises. Id. Even if a party presents enough evidence to give rise to an adverse inference, that inference is permissive not mandatory. Id.

In the instant case, the court held that Plaintiff's assertion that a presumption should arise was not in accord with North Carolina legal precedent. Id. The Commission had considered Plaintiff's contentions regarding spoliation, but chose not to draw an adverse inference. Id. at 76. The court held that, as the trier of fact, the Commission's findings were sufficient to address the issue of spoliation. Id.

The case was decided on November 4, 2008.