## Facts

- Bozeman Motors, Inc., doing business as Bozeman Ford, opened a recreational-vehicle lot near Four Corners, Montana, and used a small prefabricated log building (about 12’ x 24’) as its office.
- Bozeman installed a propane gas stove in the office as the heat source.
- Burt Ostermiller began working for Bozeman in late summer 2003 and worked in that office.
- Ostermiller alleged the stove leaked propane and caused carbon monoxide to accumulate, making him dizzy and ill; he complained to Bozeman but claimed no effective corrective action was taken.
- In November 2003, Ostermiller lost consciousness in the office and did not return to work.
- Michael Alexander began working for Bozeman in November 2003 and was assigned to work in the same office after Ostermiller’s incident and complaints.
- Alexander experienced similar symptoms (including becoming sick at work) and complained to management; he alleged Bozeman did not correct the condition or remove him from exposure.
- Alexander arranged for an inspection by Greg Brainerd, who advised Bozeman that the stove was leaking and the office conditions were unsafe.
- In February 2006, Ostermiller and Alexander sued Bozeman Motors, Inc., and individual managers/employees (including David A. Wallin, Bob Snedeker, and Roger Beverage), asserting negligence and intentional-tort theories (including battery and emotional-distress claims) based on the alleged exposure.
- Later in February 2006, Alexander died; Nicole Alexander (as personal representative of his estate) and Helen Alexander (his mother) joined or continued the action on his behalf.
- Defendants moved for summary judgment, arguing the Montana Workers’ Compensation Act (WCA) provided the exclusive remedy and that plaintiffs could not satisfy the WCA’s deliberate-intent exception in Mont. Code Ann. § 39-71-413.
- The district court granted summary judgment to defendants and rejected the plaintiffs’ constitutional challenge to § 39-71-413; plaintiffs appealed.

## Issues

1. Whether the WCA’s exclusivity provision barred the plaintiffs’ tort claims because the record failed, as a matter of law, to satisfy the deliberate-intent exception in Mont. Code Ann. § 39-71-413.
2. Whether the district court correctly entered summary judgment against Ostermiller’s claims under § 39-71-413.
3. Whether the district court correctly entered summary judgment against Alexander’s (and his estate’s) claims under § 39-71-413.
4. Whether § 39-71-413 is unconstitutional under Montana constitutional guarantees, including equal protection and substantive due process.

## Decision

- The Montana Supreme Court upheld the constitutionality of Mont. Code Ann. § 39-71-413 against the plaintiffs’ constitutional challenges.
- The Court affirmed summary judgment for defendants on Ostermiller’s claims, concluding the record did not raise a genuine dispute that Bozeman had the statutorily required deliberate intention to injure him.
- The Court reversed summary judgment for defendants on Alexander’s claims, holding the evidence, viewed in the light most favorable to Alexander’s estate, could allow a factfinder to infer the “deliberate intention” required by § 39-71-413.
- The case was remanded for further proceedings on Alexander’s claims.

## Legal Principles

- Under Montana’s Workers’ Compensation Act, workers’ compensation benefits are generally the exclusive remedy for employee injuries arising out of and in the course of employment, barring most tort claims against the employer.
- Mont. Code Ann. § 39-71-413 provides a narrow exception allowing a tort action when an employer acts with a statutorily defined deliberate intention to cause injury; the showing required is greater than negligence or gross negligence.
- Proof of deliberate intent may be circumstantial, but it must support a finding that the employer had actual knowledge that injury was certain to occur (or otherwise met the statute’s deliberate-intent definition) and nonetheless engaged in the conduct.
- A showing that an employer failed to investigate, failed to repair, or exposed an employee to a risk generally supports negligence, not deliberate intent, unless the evidence supports the statute’s higher certainty-and-knowledge requirement.
- Summary judgment is proper when the nonmoving party cannot produce evidence creating a genuine dispute of material fact; however, where reasonable inferences about an employer’s state of mind and knowledge differ between employees based on what the employer knew at the time, summary judgment may be improper for one claim and proper for another.

## Conclusion

The Montana Supreme Court held that § 39-71-413’s strict deliberate-intent requirement is constitutional and, on the summary-judgment record, barred Ostermiller’s tort claims because the evidence showed at most a failure to investigate or correct a hazard, not actual knowledge that his injury was certain to occur; but the Court allowed Alexander’s claims to proceed because the employer’s alleged knowledge after Ostermiller’s incident and continued assignment of Alexander to the same office could permit a jury to find deliberate intent within the meaning of § 39-71-413.


Alexander v. Bozeman Motors, Inc., 234 P.3d 880, 356 Mont. 439 (2010)