Foster v. Xerox Corp

In Foster v. Xerox Corp. (1985) 40 Cal.3d 306, the California Supreme Court explained that "an employee who suffers an injury in the course of his employment may recover damages in an action at law only if he comes within certain exceptions to the workers' compensation law." ( Foster, supra, 40 Cal.3d at p. 308, citing 3600 & 3602.) The high court also explained that "one of these exceptions is embodied in section 3602(b)(2) . Section 3602(b)(2) provides in its entirety: "(b) An employee, or his or her dependents in the event of his or her death, may bring an action at law for damages against the employer, as if this division did not apply, in the following instances: . . . (2) Where the employee's injury is aggravated by the employer's fraudulent concealment of the existence of the injury and its connection with the employment, in which case the employer's liability shall be limited to those damages proximately caused by the aggravation. The burden of proof respecting apportionment of damages between the injury and any subsequent aggravation thereof is upon the employer." It provides that an action at law may be brought 'where the employee's injury is aggravated by the employer's fraudulent concealment of the existence of the injury and its connection with the employment, in which case the employer's liability shall be limited to those damages proximately caused by the aggravation.' " (Foster, supra, 40 Cal.3d at p. 308.) In Foster, the plaintiff filed an amended complaint against his former employer seeking to recover damages for the aggravation of his work-related injuries. ( Foster, supra, 40 Cal.3d at p. 309.) The high court summarized the Foster plaintiff's allegations: "Plaintiff was employed by defendant for 11 years as a service technician to maintain and repair equipment manufactured by defendant. This machinery incorporated a drum that was unsafe for its intended use because it contained a large amount of arsenic, a poisonous substance. Defendant did not warn plaintiff of the presence of the arsenic, nor did it safeguard him from its effects. As a result, he suffered symptoms of arsenic poisoning beginning several years after his employment. These symptoms were reported to his supervisor in 1978 and 1981. Although defendant knew that 'the reported symptoms of plaintiff to his supervisor were symptoms of arsenic poisoning,' and that plaintiff's physical problems were caused by the arsenic, it failed to warn him that the disease was aggravated with the passage of time, and it fraudulently concealed from him that his injuries were connected with his employment. in December 1982, plaintiff's symptoms became so severe that he was forced to terminate his employment, and it was at this time that his doctor told him that he was suffering from arsenic poisoning caused by his work and aggravated by his continued exposure to the arsenic used in the drums." (Ibid.) The defendant employer demurred to the complaint on the ground the allegations were insufficient to state a cause of action for fraudulent concealment under section 3602(b)(2), and the action was barred by the exclusive remedy provisions set forth in section 3602. ( Foster, supra, 40 Cal.3d at p. 309.) The defendant maintained the plaintiff's allegations were insufficient because the term "fraudulent concealment" as used in section 3602(b)(2) applied only when an employer affirmatively misrepresented the employee was injury-free, and the plaintiff had failed to allege the defendant made misrepresentations designed to conceal from him the fact that he suffered from arsenic poisoning caused by his employment. ( Foster, supra, at p. 309.) The trial court agreed and sustained the demurrer without leave to amend, and the plaintiff appealed from the judgment of dismissal. (Ibid.)