Baldwin v. Labor & Industry Review Commission

599 N.W.2d 8, 228 Wis. 2d 601, 1999 Wisc. App. LEXIS 589
CourtCourt of Appeals of Wisconsin
DecidedJune 2, 1999
Docket98-3090, 98-3124, 98-3125, 98-3126
StatusPublished
Cited by4 cases

This text of 599 N.W.2d 8 (Baldwin v. Labor & Industry Review Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baldwin v. Labor & Industry Review Commission, 599 N.W.2d 8, 228 Wis. 2d 601, 1999 Wisc. App. LEXIS 589 (Wis. Ct. App. 1999).

Opinion

CANE, C. J.

David Baldwin, Richard Toland, Mildred Black, and Deborah Burke 1 appeal circuit court judgments affirming the Labor and Industry Review Commission's (LIRC's) decisions that dismissed with prejudice their applications for worker's compensation hearings with the Department of Workforce Development (the department). Based on their assertion that they could withdraw their applications as a matter of right, the appellants sought withdrawal due to the alleged bias of administrative law judge (ALJ) Ronald Ryan. After chief ALJ James O'Malley denied their requests, the appellants failed to appear at their respective hearings or present any evidence on the merits, and as a result, Ryan and LIRC found them in default and dismissed their applications with prejudice.

We are presented with three issues on appeal. First, we must decide whether the Worker's Compensation Act, 2 ch. 102, Stats., allows the department the discretion to deny an applicant's motion to withdraw *606 an application, and if so, whether the department flagrantly misused its discretion by denying the appellants' motions to withdraw. The second issue is whether the department flagrantly misused its discretion by dismissing their applications with prejudice under § 102.18(1)(a), Stats., because of default. Finally, we must determine whether the appellants' due process rights to a fair and impartial deci-sionmaker were violated due to Ryan's alleged bias.

The appellants maintain that, as applicants for worker's compensation hearings, they may withdraw their applications without prejudice at any time under ch. 102, STATS., because: (1) neither ch. 102 nor the case law interpreting it specifically preclude an applicant from withdrawing an application; (2) § 102.18(1)(a), Stats., which LIRC cited as controlling, does not allow withdrawn claims to be dismissed with prejudice; (3) "the custom" or common practice is to dismiss without prejudice, particularly when a reasonable basis exists for withdrawal; and (4) ch. 102 provides no alternative or "safety valve" other than application withdrawal when the ALJ is biased. The appellants also contend that because Ryan was biased, dismissal with prejudice violated their due process rights under Guthrie v. WERC, 111 Wis. 2d 447, 331 N.W.2d 331 (1983). 3

We first conclude that the department's power to deny a motion to withdraw is necessarily implied from the authority the legislature has specifically conferred on the agency to manage its own calendar and control its own internal affairs. See § 102.17(1)(a), Stats. (department's discretion to adjourn hearings). We also *607 hold that the. department properly exercised its discretion both when it denied the motion to withdraw and dismissed the application with prejudice because of default. Finally, we conclude that the appellants' due process rights were not violated because substantial and credible evidence supports LIRC's factual findings that Ryan was not biased. Accordingly, we affirm the judgments upholding LIRC's decisions.

I. Procedural Background

1. Toland, Black, and Burke 4

Toland, an employee of Link Brothers, Inc.; Black, an employee of Aqvila, Inc.; and Burke, an employee of Clothes Basket Dry Cleaners, all filed applications for hearing with the Department of Workforce Development. Their applications indicated that they would be ready for hearing within days of, or even before, the date on which they filed their applications. By a June 26, 1996, notice of hearing, the department notified Toland, Black, and Burke that their hearings were scheduled for the week of September 9 in Superior before ALJ Ronald Ryan. The "Hearing Information" on the reverse side of the notices states that "failure to appear as scheduled may result in a decision by default under Wisconsin Statutes, § 102.18(1)(a)."

On July 31, Toland, Black, and Burke's counsel requested "substitutions" against Ryan under § 227.46(6), Stats., 5 alleging that Ryan had "expressed *608 bias against our office and the clients that we represent." Attached to the letter were affidavits from seven attorneys reflecting their opinions that Ryan is biased against applicants. On August 15, Chief ALJ O'Malley denied the substitution requests, stating that § 227.46(6) does not apply to ch. 102, Stats., and that neither ch. 102 nor Wis. Adm. Code § DWD 80, allow for substitution of ALJs. Additionally, the denial letter pointed out that the remedy for an alleged incorrect result after hearing before an ALJ is a timely appeal to LIRC. Finally, the letter indicates that the "parties should make the necessary arrangements to present their respective cases at the upcoming hearings." 6

A few days before their respective hearings, Toland, Black, and Burke notified the department in writing that they were withdrawing their applications for hearing based on the same grounds as the earlier *609 substitution requests. The letters indicate that because the statute of limitation for filing a worker's compensation claim had not yet expired, they reserved the right to refile applications for hearing in the future. Neither Toland, Black, nor Burke appeared at their respective hearings during the week of September 9; although their counsel appeared at the hearings, no evidence was presented on their behalf.

In ordering that Toland, Black, and Burke's applications be dismissed with prejudice, Ryan stated that their remedy for any alleged bias or prejudice is a petition for review to LIRC under § 102.18(3), Stats., that neither he nor O'Malley flagrantly misused their discretion, and that substitution on demand is not available to ch. 102, Stats., litigants.

In a memorandum decision, LIRC affirmed Ryan's decision and adopted Ryan's findings and conclusions as its own. LIRC gave the following reasons for its decision. First, it concluded that under §§ 102.18 and 102.17, Stats., the statutory limits on an applicant's ability to withdraw a claim is discretionary and will be allowed only under extraordinary circumstances. Based on what LIRC characterized as Toland, Black, and Burke's deliberate defiance of the statutory procedure for adjudication, and based on O'Malley's warning regarding dismissal with prejudice, it concluded that their applications were properly dismissed. Second, LIRC rejected their argument that "the custom" is to dismiss applications without prejudice.

Third, LIRC rejected their contention that they had "no alternative" other than withdrawal due to Ryan's alleged bias. Rather, it emphasized that had the appellants presented the merits of their cases to Ryan, LIRC would have reviewed their cases and acted as the original and ultimate fact finder under § 102.18(3), *610 Stats.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Weston v. WIS. DEPT. OF WORKFORCE DEV.
2007 WI App 167 (Court of Appeals of Wisconsin, 2007)
Weston v. Wisconsin Department of Workforce Development
2007 WI App 167 (Court of Appeals of Wisconsin, 2007)
State Ex Rel. Treat v. Puckett
2002 WI App 58 (Court of Appeals of Wisconsin, 2002)
Flood v. Lomira Board of Review
440 N.W.2d 575 (Court of Appeals of Wisconsin, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
599 N.W.2d 8, 228 Wis. 2d 601, 1999 Wisc. App. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baldwin-v-labor-industry-review-commission-wisctapp-1999.