Aragon v. Industrial Claim Appeals Office

Colorado Court of Appeals·Decided July 2, 2026·No. 25CA1303·Unpublished

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY

July 2, 2026

2026 COA 56

No. 25CA1303, Aragon v. Industrial Claim Appeals Office — Workers’ Compensation — Notices and Procedures — Petitions to Review — Failure to Enter Order Within Sixty Days

A division of the court of appeals addresses a novel issue concerning whether section 8-43-301(11), C.R.S. 2025, permits the Industrial Claim Appeals Office (the Panel) to extend the statute’s sixty-day deadline for considering a workers’ compensation appeal and concludes that it does not. Accordingly, when the Panel failed to act within sixty days in this case, the Director of the Division of Workers’ Compensation’s order closing the claim for failure to prosecute automatically became the Panel’s final order. The division further holds that the Director did not abuse his discretion by finding no “activity in furtherance of prosecution,” Div. of Workers’ Comp. Rule 7-1(C), 7 Code Colo. Regs. 1101-3, given the claimant’s failure to attend an Office of Administrative Courts hearing, obtain an extension of time, or advance his claim. In addition, the division rejects the claimant’s due process and other remaining arguments.

COLORADO COURT OF APPEALS 2026 COA 56

Court of Appeals No. 25CA1303 Industrial Claim Appeals Office of the State of Colorado WC No. 5-161-418

Philip Aragon, Petitioner, v.

Industrial Claim Appeals Office of the State of Colorado and Waste Management of Colorado,

Respondents, and Indemnity Insurance Company of North America, Insurer-Respondent.

ORDER AFFIRMED

Division V

Opinion by JUDGE LIPINSKY Yun and Schutz, JJ., concur

Announced July 2, 2026

Law Office of Richard K. Blundell, Richard K. Blundell, Greeley, Colorado, for Petitioner

No Appearance for Respondent Industrial Claim Appeals Office

Ruegsegger Simons & Stern, LLC, Amy L. Brewer, Michele Stark Carey, Denver, Colorado, for Respondent Waste Management of Colorado and Insurer- Respondent Indemnity Insurance Company of North America

¶1 This case presents a novel issue concerning the impact of section 8-43-301(11), C.R.S. 2025, of the Workers’ Compensation Act of Colorado. The statute provides that, if the Industrial Claim Appeals Office (the Panel) does not rule on an order of the Director of the Division of Workers’ Compensation or an administrative law judge (ALJ) within sixty days of receiving the certified record in a workers’ compensation benefits appeal, the order is deemed a Panel order. In this case, the Panel concluded that the statute does not allow extensions of the sixty-day period.

¶2 We agree with the Panel’s interpretation of section 8-43-301(11) and hold that, under the statute’s unambiguous language, once the Panel receives the certified record in a workers’ compensation benefits appeal, the Panel cannot extend the time for issuing its order. Thus, we affirm the Panel’s order.

I. Background

A. Alleged Injury

¶3 This case has a tortuous procedural history. The petitioner, Philip Aragon, operated a front-loader truck for Waste Management of Colorado (Employer). Aragon alleged that, in July 2020, he was injured while stepping down from his truck. He asserted that the

steps beneath the driver’s door broke, causing him to fall onto concrete and twist his left leg and elbow.

¶4 Although Aragon’s leg hurt and his elbow was bruised, he told Employer that he did not believe he was seriously injured. He declined medical treatment and signed a medical treatment refusal form. Later that day, Employer reported Aragon’s injury to its insurer, Indemnity Insurance Company of North America. (We refer to Employer and its insurer jointly as “Respondents.”)

¶5 Aragon alleged a compensable injury on September 7, 2020. Respondents denied liability and filed a notice of contest on January 27, 2021. (The record shows two different filing dates for the notice of contest — January 27 and 29, 2021. We use the former date, which appears in the Director’s supplemental order discussed below.)

¶6 Aragon kept working for six months after the accident. During that time, he complained to his doctor that he had “worsening numbness, tingling, and leg pain with weakness.” In January 2021, Aragon informed Employer that he was unable to climb into the truck due to “bilateral leg pain and weakness and left hip and back pain.” Employer directed him to seek treatment at Rocky

Mountain Medical Group, where a physician completed a first report of injury form.

B. Motion to Close

¶7 On August 2, 2021, Respondents moved to close Aragon’s claim for lack of prosecution under Rule 7-1(C) of the Workers’ Compensation Rules of Procedure, which authorizes the Director to close a claim “[w]hen no activity in furtherance of prosecution has occurred in a claim for a period of at least 6 months.” Div. of Workers’ Comp. Rule 7-1(C), 7 Code Colo. Regs. 1101-3 (WCRP 7- 1(C)).

¶8 Three days later, Aragon filed an application for hearing, identifying the issues for the hearing as temporary total disability, temporary partial disability, and penalties. Aragon did not include compensability as an issue, nor did he set the matter for hearing. (Hearings on compensability are held before an ALJ in the Office of Administrative Courts (OAC), while hearings on other issues, such as temporary benefits and penalties, are held before a prehearing administrative law judge (PALJ) in the Division of Workers’ Compensation. See Indus. Claim Appeals Off. v. Orth, 965 P.2d

1246, 1250 (Colo. 1998) (discussing PALJs’ authority under section 8-43-207.5, C.R.S. 1997).)

¶9 On August 20, 2021, the Director issued a show cause order requiring Aragon to “set and attend a hearing” before the OAC within 120 days, obtain an order extending such deadline, or “otherwise resolv[e] this order.”

¶ 10 In his show cause order, the Director said,

If this matter is scheduled for hearing but the parties are unable to obtain a hearing date from OAC within the time mandated by this order, or if for any reason the hearing does not take place as scheduled, this claim may be closed unless, prior to the expiration of the one hundred and twenty (120) days, [Aragon] files a written motion for an additional extension of time with the Division which . . . [e]xplains the circumstances under which the time requirements of this Order were not complied with, and . . . [s]ets forth good cause for the failure to comply with this Order’s time requirements.

The Director later extended the 120-day deadline to August 30, 2022.

¶ 11 An OAC hearing on several issues, including compensability, was originally scheduled for December 17, 2021, but it was

continued to February 11, 2022, at Aragon’s request. The hearing was then continued to July 15, 2022, at Respondents’ request.

C. Motion to Dismiss

¶ 12 On June 15, 2022, Respondents filed a motion to vacate the July 15 hearing, strike Aragon’s hearing application, and dismiss Aragon’s claim with prejudice (the motion to dismiss). Respondents noted that Aragon had failed to attend scheduled independent medical examinations (IMEs) despite multiple PALJ orders compelling him to do so. Respondents asserted that “the most appropriate remedy . . . is dismissal of the claim with prejudice under W.C.R.P. 9-1(G).” That rule, now numbered as 9-1(F), provides that, “[o]nce an order to compel has been issued and properly served upon the parties, failure to comply with the order to compel shall be presumed willful.” WCRP 9-1(F), 7 Code Colo. Regs. 1101-3 (rule renumbered effective Jan. 1, 2024).

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