The National Industrial Court has held that the Employee Compensation Act 2010 does not preclude workers from seeking compensation through common law negligence claims for workplace injuries.
The court awarded N30 million in damages to an injured worker whose employer had argued the compensation act was the sole remedy.
The ruling was issued on Wednesday in a suit filed by Anthony Utibe against his former employer, Jiuxng Intergrity Industries Ltd, over a permanent disability he suffered to his right hand in a workplace accident.
Utibe had sued the construction company for negligence after it refused to pay him compensation beyond covering his medical costs.
The Court ruled that in addition to statutory remedies under the Employee Compensation Act, victims of workplace injuries can pursue negligence claims and general damages under common law principles. The court stated that the act does not oust this right of action.
Background
An industrial accident occurred at a construction site operated by Jiuxng Intergrity Industries Ltd, where Anthony Utibe was employed as a mason.
During the course of his work duties, Utibe sustained a serious injury. Despite undergoing medical treatment and surgery, the final medical report confirmed that he had suffered permanent disability to his right hand as a result of the workplace incident.
Following the accident and confirmation of his disability, Jiuxng Intergrity Industries Ltd decided to lay off Utibe from employment. However, the construction company refused to provide any compensation to Utibe beyond covering the costs associated with his medical treatment and procedures.
Dissatisfied with the company’s stance and seeking further recompense for the permanent impairment he had suffered, Utibe proceeded to take legal action.
Rather than pursuing a statutory remedy under the Employee Compensation Act 2010, the legislation specifically dealing with work-related injury claims, Utibe opted to file a suit against his former employer invoking the common law principle of negligence.
The crux of Utibe’s case was that Jiuxng Intergrity Industries Ltd had been negligent and breached its duty of care owed to him as an employee, resulting in the industrial accident that caused his permanent disability.
By refusing to provide any compensation beyond medical costs, despite the lasting impact on his livelihood and future prospects, Utibe alleged the company’s actions were unlawful.
Court’s Decision
Justice Nelson Ogbuanya of the National Industrial Court, Owerri Division affirmed the decision that upheld the rights of employees to seek compensation through common law negligence claims, in addition to statutory remedies available under the Employee Compensation Act 2010.
The court ruled that the Employee Compensation Act does not exclude or oust the right of action founded on common law principles of negligence for claims arising from workplace injuries.
Justice Ogbuanya articulated that the legal regime presents two distinct but mutually exclusive routes for receiving compensation for injuries sustained in the course of employment, the statutory path via the Employee Compensation Act or through common law negligence claims.
The court expounded on the principle of election enshrined in the Employee Compensation Act, which requires an injured employee to choose one specific route for seeking redress, with the consequence that once a particular path is elected, there can be no reversal or switching between the two remedies.
The court found Jiuxng Intergrity Industries Ltd liable for negligence and breach of its duty of care owed to Anthony Utibe as an employee.
The judgment highlighted the company’s failure to provide evidence demonstrating adherence to proper health, safety, and environment protocols at the construction site where the accident occurred.
Justice Ogbuanya emphasized that while employers may bear the costs of medical treatment for workplace injuries, this obligation alone does not absolve them from further liability to compensate the injured employee, especially in cases involving lasting incapacitation that impacts the individual’s livelihood and future endeavors.
The court awarded Anthony Utibe the sum of N30 million as general damages against Jiuxng Intergrity Industries Ltd for its negligence. An additional N1 million was granted as costs of the legal action.
