Chevron Chemical Co. v. Superior Court

641 P.2d 1275, 131 Ariz. 431, 1982 Ariz. LEXIS 168
CourtArizona Supreme Court
DecidedFebruary 4, 1982
Docket15617-SA, 15636-SA and 15642-SA
StatusPublished
Cited by136 cases

This text of 641 P.2d 1275 (Chevron Chemical Co. v. Superior Court) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chevron Chemical Co. v. Superior Court, 641 P.2d 1275, 131 Ariz. 431, 1982 Ariz. LEXIS 168 (Ark. 1982).

Opinion

CAMERON, Justice.

In July and September of 1981, the defendants, in three separate suits, were denied their motions for summary judgment by judges of the Superior Courts. Thereafter, all three defendants, Chevron Chemical Company, Dr. B. A. Dvorak, and Daniel Clement, petitioned this court by way of special action to review the trial courts’ decisions. Because there is no plain, speedy and adequate remedy by appeal and because there appear to be numerous other parties similarly situated, we granted the petitions for special action. Since the questions presented in all three petitions were identical, the cases were consolidated for disposition by this court. We also granted the petitions of the various amici curiae to file briefs. We have jurisdiction pursuant to Rule 8, Rules of Procedure for Special Actions, 17A A.R.S.

We must answer the following questions on review:

1. Is our decision in Ross v. Superior Court, 128 Ariz. 301, 625 P.2d 890 (1981), to be given retroactive application?
2. Is section 2 of H.B. 2176, which amends A.R.S. § 23-1023, unconstitutional in that it denies petitioners’ due process of law by reviving claims purportedly barred by our decision in Ross, supra?

The facts necessary for a determination of these questions are as follows. In Cause No. 15617-SA, Chevron Chemical Company v. Superior Court, Afton Hale was fatally injured in the course and scope of his employment on 20 March 1978. In May and June of 1978, the deceased’s wife was notified by the State Compensation Fund of her right to receive benefits and of her right to proceed against third parties not her husband’s employer. Four months after the accident, Suzanne Hale assigned her right to proceed against third parties to the State Compensation Fund. Eleven months after the accident, Suzanne Hale requested a reassignment of the right to sue third parties, and on 21 March 1979, one year and one day after the injury, the State Compensation Fund reassigned the claim to her. One month later, on 24 April 1979, Suzanne Hale filed suit against the defendants for the wrongful death of her husband.

In Cause No. 15636-SA, Dvorak v. Superior Court, Paul Balmers injured his back while in the course and scope of his employment in July of 1975. He was treated for his injury by defendant doctors in March of 1976. One year later, Balmers’ right to proceed against the defendants was assigned, by operation of law, A.R.S. § 23-1023(B), to the State Compensation Fund. More than one year after Balmers’ treatment by the defendant doctors, in August of 1977, Balmers allegedly received a reassignment of his right to proceed against the defendants from the State Compensation *434 Fund. A suit was filed against defendants seven months later, in March of 1978, two years after treatment by defendants.

In Cause No. 15642-SA, Clement v. Superior Court, Byron Coldiron was fatally injured while in the course and scope of his employment on 5 January 1978. Benefits were paid to the deceased’s wife, Rosa Col-diron, from the State Compensation Fund, and the right to proceed against third parties was automatically assigned to the State Compensation Fund by operation of law in January of 1979. A.R.S. § 23-1023(B), supra. One day less than two years after the injury, on 4 January 1980, Rosa Clement received a reassignment of the right to proceed against third parties from the State Compensation Fund and suit was filed against the defendants on the same day.

All three cases against the third party defendants were proceeding to trial when, on 24 February 1981, this court held, in Ross v. Superior Court, 128 Ariz. 301, 625 P.2d 890 (1981), that once the claim has been assigned to the employer or the employer’s insurance carrier, it could not be reassigned. This court stated that, as a matter of common law, a “claim assigned to the insurance carrier by operation of law is neither assignable to a third person or reas-signable to the insurance claimant.” Id. at 302, 625 P.2d at 891. Pursuant to our holding in Ross, supra, all three defendants filed motions for summary judgment claiming that because the purported reassignments were invalid, the suits were barred as a matter of law.

On 27 April 1981, in apparent response to our decision in Ross, supra, the Arizona legislature passed, and the Governor signed into law, an amendment to A.R.S. § 23-1023 known as H.B. 2176. The amendment provided that any assigned claim “may be reassigned in its entirety to the employee or his dependents” and that “[ajfter the reassignment, the employee entitled to compensation, or his dependents, shall have the same right to pursue the claim as if it had been filed within the first year.” H.B. 2176, § 1(B) amending A.R.S. § 23-1023. Moreover, in a section entitled “Existing claims; assignments,” the amendment provides:

“A. Any claim which was or may be commenced pursuant to assignment or reassignment under § 23-1023, Arizona Revised Statutes, as amended by Laws 1968, fourth special session, chapter 6, § 38, and further amended by Laws 1971, chapter 73, § 16, and Laws 1974, chapter 184, § 14, prior to expiration of the statute of limitations and which has not been finally adjudicated or which is currently being appealed or for which time for appeal has not expired shall be valid. After the reassignment, the employee entitled to compensation or his dependents shall have' the same rights to pursue the claim as if it had been filed within the first year.
“B. No cause of action shall be revived by this section if that cause of action is barred by a limitation of actions as provided in title 12, chapter 5, Arizona Revised Statutes. The provisions of § 12-505, subsection A, Arizona Revised Statutes, shall not apply to this section.” H.B. 2176, § 2(A) & (B), amending A.R.S. § 23-1023.

Having taken the defendants’ motion for summary judgment under advisement until this time, the Superior Court judges denied the motions. From a denial of their motions for summary judgment, the defendants in the three actions petitioned this court by way of special action. In accepting jurisdiction in these cases, we note that this court is extremely reluctant to grant a petition for special' action based upon a denial of a motion for summary judgment. It is only under the most extraordinary circumstances that we will do so.

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Bluebook (online)
641 P.2d 1275, 131 Ariz. 431, 1982 Ariz. LEXIS 168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chevron-chemical-co-v-superior-court-ariz-1982.