Angela Santos v. Franciscan Health

• Court: Indiana Court of Appeals
• Decided: July 24, 2023
• Docket: 22A-EX-02611
• Status: Published

Opinion

FILED Jul 24 2023, 9:19 am

CLERK Indiana Supreme Court Court of Appeals and Tax Court

ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEE Daniel A. Korban Jenny R. Buchheit George C. Patrick Ann H. Stewart George C. Patrick & Associates, P.C. Ice Miller LLP Crown Point, Indiana Indianapolis, Indiana

IN THE COURT OF APPEALS OF INDIANA

Angela Santos, July 24, 2023 Appellant-Plaintiff, Court of Appeals Case No. 22A-EX-2611 v. Appeal from the Worker’s Compensation Board of Franciscan Health, Indiana

Appellee-Defendant. The Honorable Linda P. Hamilton, Chair Application No. C-254788

Opinion by Judge Foley Judges Vaidik and Tavitas concur.

Foley, Judge.

[1] Angela Santos (“Santos”) appeals from the dismissal of her Application for

Adjustment of Claim (“Application”) by the Full Board of the Worker’s

Compensation Board of Indiana (“the Board”), which affirmed the

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 1 of 12 determination of the Single Hearing Member that concluded that her

Application was untimely filed. Santos asserts that her Application was timely

filed because, although Indiana Code section 22-3-3-3 is a non-claim statute,

Indiana Trial Rules 5 and 6 apply to allow an application to be timely filed

when the two-year time period after a work injury falls on a Sunday, and the

applicant mails the application on the next business day via certified mail.

Finding that the Board erred when it dismissed Santos’s claim, we reverse and

remand for further proceedings.

Facts and Procedural History [2] On December 5, 2019, Santos suffered an injury to her lower back during the

course of and arising out of her employment with Franciscan Health. Santos’s

injury was accepted as compensable by Franciscan Health, and she was

provided worker’s compensation benefits pursuant to Title 22, Article 3 of the

Indiana Code.

[3] Santos sought an adjustment of her claim. The deadline for Santos to file her

Application was December 5, 2021, which fell on a Sunday. On Monday,

December 6, 2021, Santos filed her Application with the Board via certified

mail with return receipt requested. The Board received her Application on

December 10, 2021. On April 6, 2022, Franciscan Health filed its motion to

dismiss Santos’s Application, arguing that it was not timely filed, and the Board

therefore lacked jurisdiction to adjudicate the claim. The Board, by its Single

Hearing Member, granted the motion without a hearing, finding that Indiana

Code section 22-3-3-3 is a “non-claim statute with requirements that cannot be Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 2 of 12 set aside or excused” and that, under the statute, a claim is “extinguished if not

exercised within the proscribed time limit.” Appellant’s App. Vol. 2 pp. 29–30.

Because Santos’s Application was not filed on or prior to December 5, 2021, it

was found to be untimely, and her claim was dismissed. On June 2, 2022,

Santos appealed the Single Hearing Member’s Order to the Full Board, by filing

her Application for Review by Full Board. Both parties filed briefs, and the Full

Board held a hearing. On October 3, 2022, the Full Board issued an order

affirming the Single Hearing Member’s order. Santos now appeals.

Discussion and Decision [4] Santos argues that the Board erred in granting Franciscan Health’s motion to

dismiss her Application on the ground that it was not timely filed. “In

reviewing a worker’s compensation decision, an appellate court is bound by the

factual determinations of the Board and may not disturb them unless the

evidence is undisputed and leads inescapably to a contrary conclusion.”

Christopher R. Brown, D.D.S., Inc. v. Decatur Cnty. Mem'l Hosp., 892 N.E.2d 642,

646 (Ind. 2008). We examine the record only to determine whether there is

substantial evidence and reasonable inferences that can be drawn therefrom to

support the Board’s findings and conclusion. Id. “‘As to the Board’s

interpretation of the law, we employ a deferential standard of review of the

interpretation of a statute by an administrative agency charged with its

enforcement in light of its expertise in the given area.’” Gilley’s Antique Mall v.

Sarver, 157 N.E.3d 549, 552 (Ind. Ct. App. 2020) (quoting Brown, 892 N.E.2d at

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 3 of 12 646), trans. denied. The Board will only be reversed if it incorrectly interpreted

the Worker’s Compensation Act. Id.

[5] Indiana Code section 22-3-3-3 provides that a worker’s compensation claim

must be filed within two years of an accident:

The right to compensation under IC 22-3-2 through IC 22-3-6 shall be forever barred unless within two (2) years after the occurrence of the accident, or if death results therefrom, within two (2) years after such death, a claim for compensation thereunder shall be filed with the worker’s compensation board.

Ind. Code § 22-3-3-3(a). Section 22-3-3-3 is a non-claim statute that “creates a

right of action and has inherent in it the denial of a right of action.” Gilley’s

Antique Mall, 157 N.E.3d at 553 (citations omitted). A non-claim statute should

not be seen “merely as a statute of limitations.” Ind. State Police v. Wiessing, 836

N.E.2d 1038, 1048 (Ind. Ct. App. 2005) (citing Ry. Exp. Agency v. Harrington, 88

N.E.2d 175, 176 (Ind. Ct. App. 1949)), trans. denied. While statutes of

limitation create defenses that must be pled and waived, a non-claim statute

creates an enforceable right of action unknown under the common law.

Blackford v. Welborn Clinic, 172 N.E.3d 1219, 1225 (Ind. 2021). It creates “a

condition attached to the right to recover” or “a condition precedent to the right

to maintain the action.” Wiessing, 836 N.E.2d at 1048. A non-claim statute is

self-executing–unlike the general statute of limitations—and unless a party files

a claim within the prescribed time, no enforceable right of action is created.

Blackford, 172 N.E.3d at 1225. “Non-claim statutes generally are not subject to

equitable exceptions.” Id. (internal quotation marks omitted). Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 4 of 12 [6] Here, the Board found that Santos’s Application was not timely filed because

the time period under Indiana Code section 22-3-3-3 expired on December 5,

2021, and the Application was not filed until December 6, 2021. The Board

further found that the statute is a non-claim statute with “requirements that

cannot be set aside or excused,” there is no ambiguity in the statute, and “the

claim is extinguished if not exercised within the proscribed time limit.”

Appellant’s App. Vol. 2 pp. 29–30. This determination by the Single Hearing

Member was affirmed by the Full Worker’s Compensation Board. There is no

dispute that December 5, 2021, was the two-year anniversary of the occurrence

of Santos’s injury. The evidence showed that Santos mailed her Application via

certified mail on December 6, 2021, and the Application was received by the

Board on December 10, 2021; both of these dates are beyond the two-year

deadline for filing the Application under the Worker’s Compensation Act.

[7] Santos argues that because the Worker’s Compensation Act (“the Act”) is silent

as to the manner in which an application must be filed, Trial Rules 5(F) and

6(A) apply to the two-year filing deadline under Indiana Code section 22-3-3-3,

and as a result, her Application was filed timely. According to Santos, because

the last day of the two-year period falls on a weekend or a holiday, the last day

of her two-year period should be extended to the next business day after the

weekend, which was December 6, 2021. Because she filed her Application by

certified mail, return receipt requested, the Application is deemed filed as of the

date of the mailing, which was December 6, 2021.

[8] Trial Rule 5 provides, in pertinent part:

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 5 of 12 The filing of pleadings, motions, and other papers with the court as required by these rules shall be made by one of the following methods:

....

(3) Mailing to the clerk by registered, certified or express mail return receipt requested;

Filing by registered or certified mail and by third-party commercial carrier shall be complete upon mailing or deposit.

Ind. Trial Rule 5(F). Trial Rule 6 states in pertinent part:

In computing any period of time prescribed or allowed by these rules, by order of the court, or by any applicable statute, the day of the act, event, or default from which the designated period of time begins to run shall not be included. The last day of the period so computed is to be included unless it is:

(1) a Saturday,

(2) a Sunday,

(3) a legal holiday as defined by state statute, or

(4) a day the office in which the act is to be done is closed during regular business hours.

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 6 of 12 In any event, the period runs until the end of the next day that is not a Saturday, a Sunday, a legal holiday, or a day on which the office is closed.

T.R. 6(A).

[9] It is generally true that the Indiana Trial Rules do not govern or bind the Board.

LaGarda Sec. v. Lawalin, 812 N.E.2d 830, 834 n.2 (Ind. Ct. App. 2004); Josam

Mfg. Co. v. Ross, 428 N.E.2d 74, 75 (Ind. Ct. App. 1981); Davis v. Webster, 198

N.E.2d 883, 885 (Ind. Ct. App. 1964). “Each of the several administrative

agencies is a creature of the Legislature,” and “[t]he procedures to be followed

in presenting matters to these agencies and in appeals therefrom are specifically

set out in the statutes pertaining to each.” Clary v. Nat’l Friction Prods., Inc., 290

N.E.2d 53, 55 (Ind. 1972). The Trial Rules, which, as stated in Trial Rule 1,

govern the procedure and practice in all courts of the state of Indiana are

presumptively not applicable to proceedings before the administrative agencies

nor to the proceedings requisite to invoking the jurisdiction of reviewing judicial

authority. Id.

[10] The Act itself, however, provides that the Board “may adopt rules . . . to carry

into effect the worker’s compensation law.” I.C. § 22-3-1-3. As set forth in

Title 631 of the Indiana Administrative Code, the Board affirmed that “[e]xcept

as provided,” it “will not be bound by any technical rules of practice in

conducting hearings . . . .” 631 Ind. Admin. Code 1-1-3 (emphasis added). This

language shows an intent by the Board to not be bound by Trial Rules in its

procedure of conducting hearings but not in the filing procedure or the

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 7 of 12 computation of time for filing. Later in the same section, the Board expressly

adopted certain Trial Rules, when it stated, “the board incorporates by

reference the provisions of Trial Rules 26 through 37, 1 as amended, of the

Indiana Rules of Trial Procedure, into this rule.” Id. Under section 5 of the

same rule, the Board specifically incorporated Trial Rule 5 as follows, “The

board incorporates the provisions of Trial Rule 5, as amended, Indiana Rules of

Trial Procedure, by reference into this rule for the purposes of the calculation of

time limitations with regard to service and filing of documents with the board.”

631 I.A.C. 1-1-5.

[11] Franciscan Health argues that the Board only adopted Trial Rule 5 for filings

made after the original application. We disagree. First, a plain reading of the

rule provides no such limitation or distinction between an original application

and subsequent filings, both of which constitute documents. Next, the Board’s

actions in the present case belie Franciscan Health’s argument. Santos’s

Application was mailed via certified mail on December 6, 2021, and received

by the Board on December 10, 2021. However, the Board marked the

Application as filed on December 6, and the Single Hearing Member found the

same in her order. Appellant’s App. Vol. 2 p. 29. Therefore, the Board used

Trial Rule 5 to find that the Application was filed on December 6, 2021.

1 Trial Rules 26 through 37 involve discovery procedures, the taking of depositions, and sanctions for discovery violations.

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 8 of 12 [12] Santos relies on several cases for her assertion that both Trial Rules 5(F) and

6(A) should be applied to the filing of her Application under Indiana Code

section 22-3-3-3(a). In Ball Stores, Inc. v. State Board of Tax Commissioners, 316

N.E.2d 674 (Ind. 1974), our Supreme Court held that, where the applicable

statute was silent as to how to compute time when the last day of a limitations

period falls on a Saturday, Sunday, or holiday, Trial Rule 6(A) can be applied

to extend the filing period to the next day the office is open for business. Id. at

678. In State Board of Tax Commissioners v. LeSea Broadcasting Corp., 511 N.E.2d

1009 (Ind. 1987), our Supreme Court further held that, where the applicable

statute was silent as to the method of filing and the definition of filing, Trial

Rule 5 applied to allow the statutorily-required notice to be timely filed when it

is deposited into the United States Mail, addressed to the State Board of Tax

Commissioners with postage prepaid, within the time specified under statute.

Id. at 1013. Our Supreme Court extended the holdings from Ball Stores and

LeSea to all administrative agencies in State ex rel. Goodman v. Review Board of

Indiana Department of Employment Training Services, et al., 536 N.E.2d 1023 (Ind.

1989), where it held that, if the applicable statutes are silent as to how a filing is

to be accomplished or how the time for filing is to be computed, the Trial Rules

should be utilized. See id. at 1025. In doing so, the Supreme Court stated,

“[t]he fairness in applying the rules of trial procedure where there is silence and,

thus, no conflict in the statutory procedure, is in keeping with the holding of

Ball Stores . . . and subsequent cases.” Id.

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 9 of 12 [13] Further, in Inland Steel Co. v. Brown, 496 N.E.2d 1332 (Ind. Ct. App. 1986) and

Wilks v. First National Bank of Mishawaka, 326 N.E.2d 827 (Ind. Ct. App. 1975),

two cases involving the Board, this court relied on Ball Stores, and held that

where a statute is silent as to the computation of time, Trial Rule 6(A) can be

applied to extend the time period for filing when the last day of the time period

is a Saturday, Sunday, or holiday. Brown, 496 N.E.2d at 1334; Wilks, 326

N.E.2d at 830.

[14] In looking at all of these cases together, it is clear that the holdings lead us to

the conclusion that, where the applicable statute is silent as to the methods of

filing and the computation of time, both Trial Rule 5 and Trial Rule 6(A) apply.

Here, the Act is silent as to how filing is to be accomplished and as to how the

time for filing is to be computed. Therefore, Trial Rules 5 and 6(A) should be

applied to Santos’s Application. Because the last day of the two-year time

period was on a Sunday, December 5, 2021, it was required to be filed on

December 6, 2021, which Santos did by depositing the Application in the mail

via certified mail on December 6, 2021.

[15] The Act is intended to be broadly construed for the benefit of the injured

worker:

We note that the Act is a humane enactment designed and intended for the protection of workmen who come within its provisions, which are and ought to be liberally construed and applied, so as to extend that protection to the ultimate good of the greatest possible number of workers; but the extent and limitation of its applicability also are fixed by those provisions

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 10 of 12 and we cannot, by judicial pronouncement, enlarge these beyond the obvious intent of the Legislature.

Gilley’s Antique Mall, 157 N.E.3d at 554 (citing Brown, 892 N.E.2d at 649).

Additionally, “doubts in the application of terms are to be resolved in favor of

the employee, for the passage of the Act was designed to shift the economic

burden of a work-related injury from the injured employee to the industry and,

ultimately to the consuming public.” Talas v. Correct Piping Co., 435 N.E.2d 22,

28 (Ind. 1982). Application of Trial Rules 5 and 6(A) to the filing of an

application before the Board is consistent with the stated intent to broadly

construe the Act for the benefit and protection of employees.

[16] We do not find our conclusion to be in conflict with the Act’s status as a non-

claim statute. Although non-claim statues cannot be extended beyond their

statutory deadlines, the application of Trial Rules 5 and 6(A) does not extend

the two-year statutory deadline. Such application of the trial rules is merely a

method to compute the time when the two-year anniversary of the employee’s

injury falls on a weekend, holiday, or other day the Board’s offices are not

open. Likewise, the application of Trial Rules 5 and 6(A) is not an equitable

exception to the time period in the statute. Indiana Code section 22-3-3-3(a)’s

status as a non-claim statute does not preclude the application of Trial Rules 5

and 6(A) to allow an application to be deemed filed when it is mailed via

certified mail on the next business day after the offices have been closed.

[17] Additionally, we acknowledge cases holding that, with the exception of the

rules incorporated by the Board, the Indiana Trial Rules do not apply to the Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 11 of 12 Board. See Gilley’s Antique Mall, 157 N.E.2d at 553 n.6. Although this general

proposition exists, Ball Stores, LeSea, and their progeny address a specific issue

of what to do when a statute is silent as to how to define filing and how to

compute time limitations as to the filing of documents filed with an

administrative agency or board. We do not view these cases to be in conflict

with the general proposition that the trial rules do not apply to the Board.

[18] Where a statute prescribes special rules of procedure for administrative

proceedings or appeals therefrom, the statutory procedure will prevail when it

conflicts with the Trial Rules. LeSea, 511 N.E.2d at 1013. However, where the

statute does not conflict with the Trial Rules, but is merely silent as to a

particular procedure, the Trial Rules can supply the missing procedure. See id.

Here, the Act is silent as to how filing is to be defined and as to how the time

for filing is to be computed, and we therefore conclude that under Ball Stores,

LeSea, and their progeny, Trial Rules 5 and 6(A) apply. When we utilize the

rules in the present case, Santos’s Application, which was filed on December 6,

2021, was timely filed, and the Board erred in dismissing her Application as

untimely. We reverse the order of the Board dismissing her Application and

[19] Reversed and remanded.

Vaidik, J., and Tavitas, J., concur.

Court of Appeals of Indiana | Opinion 22A-EX-2611 | July 24, 2023 Page 12 of 12