An Idaho Supreme Court ruling has clarified when employers and their insurers can face civil lawsuits - even with a workers’ compensation claim already in play.
The decision, handed down on September 4, 2025, centers on Cameron Demott Tyler, who lost his right index finger while working for Masterpiece Floors, Inc. Tyler claimed the injury happened because he was required to use a table saw without a safety guard – a practice he said was standard at the company.
After the accident, Tyler filed for workers’ compensation and received some benefits. But he also took his case to civil court, arguing that his employer’s actions were so egregious they fit a rare exception in Idaho law, allowing employees to sue for damages outside the usual workers’ comp system.
When Masterpiece Floors failed to respond to the lawsuit, Tyler secured a default judgment for more than $380,000. Months later, the company challenged the judgment, arguing that the district court didn’t have the authority to decide the case until Idaho’s Industrial Commission weighed in on whether the exception applied. The district court agreed, put the judgment on hold, and sent the question to the Commission, which ultimately sided with the employer.
Tyler appealed, and the state’s highest court reversed course. The justices ruled that the district court did, in fact, have the power to decide whether the exception to the exclusive remedy rule applied – even if the workers’ comp claim was still pending. The Supreme Court ordered the lower court to reinstate the original default judgment in Tyler’s favor.
The court didn’t delve into the details of any specific insurance policy language, but the outcome sends a clear message to insurers and employers: strong claims management and a proactive legal approach are essential. The case serves as a reminder that lapses in workplace safety, slow legal responses, or misunderstandings about exceptions to workers’ comp rules can lead to significant - and sometimes unexpected – liability.
This case is squarely about workplace insurance and employer risk, making it especially relevant for those managing or underwriting workers’ comp policies. With the Idaho Supreme Court’s decision now on the books, the boundaries between workers’ comp and civil liability in Idaho are a little clearer - at least until the next challenge comes along.
