Aetna Casualty & Surety Co. v. Industrial Commission

495 P.2d 1344, 17 Ariz. App. 137, 1972 Ariz. App. LEXIS 639
CourtCourt of Appeals of Arizona
DecidedApril 18, 1972
Docket1 CA-IC 589
StatusPublished
Cited by4 cases

This text of 495 P.2d 1344 (Aetna Casualty & Surety Co. v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aetna Casualty & Surety Co. v. Industrial Commission, 495 P.2d 1344, 17 Ariz. App. 137, 1972 Ariz. App. LEXIS 639 (Ark. Ct. App. 1972).

Opinion

JACOBSON, Judge.

The primary question raised by this appeal by writ of certiorari deals with the sufficiency of the evidence to sustain the Industrial Commission’s award.

On January 9, 1968 the claimant, Salo-mon Madril sustained a back injury while lifting a pipe during the course of his employment with Fisher Enterprises, Inc. who was insured for workmen’s compensation by the State Compensation Fund (Fund). On' May IS, 1969 the Industrial Commission in awarding Madril temporary disability found that he had no physical or mental disability resulting from the industrial accident. - ■ Thereafter Madril timely protested the award and requested a.hearing.

Approximately twenty months following his first injury, on September 2, 1969, and prior to the hearing on his first injury, Madril suffered another báck injury 'in an attempt to dislodge'a jackhammer which had become wedged in'asphalt. The injury occurred while Madril was employed by Peter Kiewit Sons’ (petitioner) who was insured for workmen’s compensation by Aetna Casualty & Surety Co. (Aetna). Initially, Aetna denied Madril’s claim on the grounds that the second injury was a continuing one, not a new one, and the entire disability should be charged to the Fund, the insurer of Madril’s employer at the time of the first injury. Later, Aetna paid Madril benefits after it and the Fund entered into an indemnity agreement whereby the Fund agreed to indemnify Aetna if it were subsequently determined that the Fund was legally responsible for the second injury.

A hearing was held on February 24, 1970 on Madril’s protest of the Fund award of May, 1969. The only notice of the hearing received by Aetna’s counsel was a telephone call shortly before it commenced. At the beginning of the hearing this counsel moved for a continuance in order to- allow him time to prepare properly but the referee denied the request. At the close of the hearing the referee granted Aetna’s request for a continuance to permit a physician to testify. The second hearing occurred on June 24, 1970.

The referee who had conducted both the February 24 and the June 24 hearings rendered his findings on August 21, 1970 which affirmed the Fund award. Though both claims (the January, 1968 and September, 1969 injuries) were never formally consolidated, they were nevertheless treated as consolidated for hearing purposes but the findings of August 21, 1970 made no mention of the second injury. The same referee, acting in the capacity of a hearing-officer, on August 27, 1970 rendered an award on the September 2, 1969 injury, hereafter referred to as the Aetna award. This injury was held compensable and a permanent disability was found' to have resulted therefrom. In the August 27, 1970 award, no reference was made to the earlier Fund award.

The Commission on September 17, 1970 affirmed the Fund . award. From this award no protest, petition for rehearing, or writ of certiorari were filed. On October 7, 1970, the Commission affirmed the Aet-na award which only named Kiewit and Aetna as defendants. From this award petitioners filed a petition for writ of .certio-rari, naming the respondent employer Fisher and the Fund and joining both claims.

The Court is initially confronted with a jurisdictional issue raised by the respondent Fund, the essence of which is as follows: The Commission’s award of September 17, 1970 (the Fund award) did not name petitioners as parties thereto; the award was not protested and no one filed a petition for writ of certiorari; since the two claims were never consolidated, the Fund award became final and the doctrine *139 of res judicata prevents the Court from reviewing that award; as to the Aetna award, the respondents were not parties to that action, and therefore the respondents arc not proper parties to the appeal of that award.

Though respondents’ proposition raises some interesting questions, we need not consider them for there are other issues which are dispositive of this appeal. By this writ of certiorari, we are asked to review the lawfulness of the Commission’s award dealing with the Aetna claim on the basis of the sufficiency of the evidence to sustain that award and whether the referee abused his discretion by denying Aetna a continuance. The petition for writ of certiorari was timely filed in accordance with A.R.S. § 23-951, subsec. A and the petitioners who were affected by the award are necessary and proper parties to this appeal as is the respondent Industrial Commission. We therefore must consider this appeal even if the Fund is not a proper party before us.

Petitioner initially contends that-the -referee’s denial of its request for a continuance was an abuse of discretion and thus prejudicial because counsel did not have adequate time to prepare for the hearing due to lack of timely notice.

The February 24, 1970 hearing was Conducted under the pre-1970 Rules of Procedure before the Industrial Commission. Former Rule 31 required the Commission to notify all interested parties in writing of the time for any hearing. Former Rule 41(c) provided “that all interested parties shall be given at least ten days’ notice in advance of the time and place set for the hearing.” Since Aetna’s notice prior to the commencement of the hearing amounted to just minutes, these rules were therefore not complied with and we hold this to be error. See, Mueller v. Industrial Commission, 9 Ariz.App. 147, 450 P.2d 113 (1969). But we fail to see how Aetna was prejudiced by this error because the referee granted a continued hearing in this matter. If petitioner felt that it did not adequately cross-examine the witnesses at the first hearing for- lack of proper preparation due to lack- of -timely notice, then counsel could have requested at the close of the hearing that the witnesses reappear at the subsequent hearing. This petitioners failed to do. We therefore hold that the error committed by the referee in failing to postpone the hearing was harmless error. Young v. Hodgman & Mac Vicar, 42 Ariz. 370, 26 P.2d 355 (1933).

As to the merits of the case, Aetna contends that Madril had the burden of proving by a preponderance of the -evidence that his present injury was a result of the second accident and the evidence was insufficient to support the Commission’s finding that Madril had sustained a .new injury as a result .of the September, 1969 episode. Petitioner’s argument continues by stating that the medical evidence showed that the injury was a continuation of the earlier one for which the Fund is legally responsible'.because .the .Fund.was the insurer of'-Madril’s' employer (Fisher) at the time of the first injury.. - ..

The law is well settled in. Arizor na that a claimant has the burden. to affirmatively show that he is entitled to disability compensation. Russell v. Industrial Commission, 104 Ariz. 548, 456 P.2d 918 (1969). Equally well established -is --the rule that the standard of proof before'the Industrial Commission is a preponderance of the evidence. Fish v. Industrial Commission, 12 Ariz.App. 486, 472 P.2d 97 (1970).

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Bluebook (online)
495 P.2d 1344, 17 Ariz. App. 137, 1972 Ariz. App. LEXIS 639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aetna-casualty-surety-co-v-industrial-commission-arizctapp-1972.