Blanas v. Brower Co.

938 P.2d 1056, 1997 Alas. LEXIS 84, 1997 WL 314440
CourtAlaska Supreme Court
DecidedJune 13, 1997
DocketS-7352
StatusPublished
Cited by15 cases

This text of 938 P.2d 1056 (Blanas v. Brower Co.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blanas v. Brower Co., 938 P.2d 1056, 1997 Alas. LEXIS 84, 1997 WL 314440 (Ala. 1997).

Opinion

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Hany Blanas entered into a compromise and release (C & R) with his employer and its insurer to resolve his workers’ compensation claim. Sixteen months later he asked the Alaska Workers’ Compensation Board to reopen his claim and modify the C & R, in part because he claimed representatives of the employer’s insurer had fraudulently induced him to settle and sign the C&R. The Board denied his request, and the superior court affirmed. Blanas now appeals to this court. We reverse.

II. FACTS AND PROCEEDINGS

While employed by the Brower Company in 1990, Blanas fell from a ladder and was injured. After the initial examinations and treatment, Blanas was referred to Dr. Michael Newman and continued under his care until April 1991. In March 1991 Dr. Newman declared Blanas medically stable and opined that Blanas did not have a permanent partial impairment. 1 Dr. Newman stated that he doubted that Blanas would be able to return to his previous occupation, “put him on a restriction with maximum lifting of 50 pounds and no repetitive lifting over 25 pounds,” and noted that he “may require continued physical therapy and other treatments for symptom management.”

As part of his workers’ compensation claim, Blanas requested an evaluation of his eligibility for reemployment benefits. The reemployment benefits administrator assigned a rehabilitation specialist to perform an evaluation. 2 Based on the specialist’s recommendation, the administrator found Bla-nas eligible.

The rehabilitation specialist developed several rehabilitation plans for Blanas. Blanas initially expressed interest in pursuing training and employment in drafting or hazardous material handling, the latter specifically in tank tightness testing. In mid-January 1992 *1058 the rehabilitation specialist learned that the physical requirements of tank tightness testing were beyond Blanas’s post-injury capacities. Soon thereafter, the rehabilitation specialist noted that Blanas expressed interest in the occupation of construction estimator; the rehabilitation specialist explored this rehabilitation goal. In February and March 1992 the rehabilitation specialist worked on a new reemployment plan for Blanas in the estimator field. Before the estimator plan was completed, however, Blanas and Brower signed the C & R. Blanas contends that before he signed the C & R he had no knowledge of this new reemployment plan or the inappropriateness of tank tightness testing as a rehabilitation goal for him. The C & R specified that $2,500 would be paid to Blanas to defray the expenses of attending a one-week stateside course in tank tightness testing. Other provisions in the C & R implied that Blanas was free to choose an occupation for retraining, and mentioned several occupations the specialist had explored with Blanas, including hazardous material handling.

The parties signed the C & R on February 13, but the Board initially rejected it for reasons not relevant here. 3 On March 11 the parties signed an addendum containing changes that satisfied the Board. The addendum required that $2,500 be paid for expenses on a cost incurred basis for Bla-nas’s “rehabilitation program as outlined.” The Board approved the C & R and addendum on March 12. The agreement resolved all disputes between the parties and released Brower and its insurer from all claims for further benefits in exchange for $32,500. 4

Blanas asserts that after he entered into the C & R he learned that the physical demands on a tank tightness tester exceeded his post-injury physical capacity. Blanas contends that he then unsuccessfully searched for employment for over a year. He enrolled in a real estate class, prepaid the fees, notified the insurer of his change in rehabilitation plans, and requested that his expenses be covered out of the settlement rehabilitation fund. The insurer then proposed a second addendum to the C & R; this proposal stated that Blanas “has determined, after the [C & R] was approved, that lifting restriction has prevented him from performing” hazardous material handling (tank tightness testing). It also stated that hazardous material handling was the goal of Blanas’s rehabilitation program when the Board approved the C & R. It also stated that real estate was a different vocational goal than the one identified in the release or explored with the rehabilitation specialist. It stated that a maximum of $2,500 would be paid for rehabilitation training, and that the C & R was not otherwise altered. Blanas withdrew from the real estate class when computer examinations were added to the curriculum. Blanas refused to sign the second addendum.

In July and August 1993 Blanas petitioned the Board to reopen his claim and to modify the March 12, 1992, C & R, alleging misrepresentation, deceit, and fraud by the representatives of Brower’s insurer. 5 In an affida *1059 vit filed with the Board in October 1993, he affied that he entered into the C & R on the representations of the insurer’s representatives for “the specific purpose” of receiving rehabilitation training in the field of tank tightness tester, to be eligible for “available employment as represented.” He affied that at the time he signed the C & R, he had “no knowledge that the plan to retrain me as a tank tightness tester had been abandoned as non-viable reemployment by the rehabilitation experts.” He also affied that the nonvia-bility of that field had been communicated to the insurer’s representatives. He further asserted that he understood, when he signed the C & R, that there was “genuine reemployment” available in that field. Blanas sought, inter alia, payment for loss of reasonable earnings from the date of the release forward, damages for the loss of a reasonable rehabilitation program, and emotional and punitive damages. Blanas also argued, in objecting to the Board chair’s assessment of the issues, that his affidavit established that the insurer’s representatives knew the rehabilitation field specified in the C & R offered Blanas no reemployability, but that they elected not to disclose that fact to Blanas.

The Board denied Blanas’s petition in mid-March 1994. It held that it lacked jurisdiction to set aside the C & R due to unilateral or mutual mistake of fact, citing Olsen Logging Co. v. Lawson, 856 P.2d 1155, 1159 (Alaska 1993). It also held that, while it had the authority to permit an independent action to set aside the C & R, Blanas’s fraud allegations were “probably unfounded” and that even if they were not, they did not rise “to the level of fraud required for an independent action” as defined by Alaska case law.

Blanas asked the Board to reconsider.

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938 P.2d 1056, 1997 Alas. LEXIS 84, 1997 WL 314440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blanas-v-brower-co-alaska-1997.