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SJC Rules General Contractors Can Be Held Liable

In the case of Wentworth v. C. Becker Custom Building, the Supreme Judicial Court of Massachusetts ruled that a general contractor that pays workers’ compensation benefits to an employee of an uninsured subcontractor is not immune from liability for common-law claims the injured employee may have against the general contractor. Employers are typically exempt from common-law liability under G.L.c. 152, § 23 of the Massachusetts Workers’ Compensation Statute. The general contractor in this case argued that since it was required to cover an injured employee of a subcontractor who failed to maintain workers’ compensation coverage that it should not be exposed to a direct lawsuit by the employee on the employee’s common-law claims (which are typically referred to as third party claims). The SJC concluded that § 23 only applies to employers and employees, and did not apply to a general contractor who may be obligated to provide workers compensation benefits to employees of an uninsured subcontractor pursuant to § 18 of the Statute.

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