Davis v. STATE DEPT. OF LABOR & INDUSTRIES

245 P.3d 253
CourtCourt of Appeals of Washington
DecidedJanuary 19, 2011
Docket38527-9-II
StatusPublished
Cited by2 cases

This text of 245 P.3d 253 (Davis v. STATE DEPT. OF LABOR & INDUSTRIES) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. STATE DEPT. OF LABOR & INDUSTRIES, 245 P.3d 253 (Wash. Ct. App. 2011).

Opinion

245 P.3d 253 (2011)

Sharon DAVIS and Batyah Chliek, individually and on behalf of all others similarly situated, Respondents,
James Booth, Plaintiff,
v.
WASHINGTON STATE DEPARTMENT OF LABOR & INDUSTRIES, an agency of the State of Washington; and Judy Schurke, in her capacity as the Director of the Washington State Department of Labor & Industries, Appellants.

No. 38527-9-II.

Court of Appeals of Washington, Division 2.

January 19, 2011.

*254 Dustin John Dailey, Attorney at Law, Olympia, WA, Petitioners.

Michael David Myers, Ryan Christopher Nute, Myers & Company PLLC, Seattle, WA, for Respondents.

ARMSTRONG, J.

¶ 1 Sharon Davis, Batyah Chliek, and James Booth filed a class action lawsuit in Thurston County Superior Court, alleging that the Department of Labor and Industries impermissibly allocated portions of their third party settlements to reimburse the workers' compensation fund. On summary judgment, the superior court declined to address whether it had subject matter jurisdiction over the claims and whether the named plaintiffs had exhausted their administrative remedies. The Department appeals, arguing that the superior court lacks original jurisdiction to hear industrial insurance claims and that the named plaintiffs' failure to exhaust their administrative remedies precludes relief. Because the superior court lacks subject matter jurisdiction over this action, we reverse and remand for dismissal.

FACTS

¶ 2 Sharon Davis, Batyah Chliek, and James Booth were all injured in work-related accidents caused by third parties. All three obtained lump sum settlements from the third parties. The Department allocated portions of their settlements to reimburse the workers' compensation fund under RCW 51.24.060(1).[1]

¶ 3 In July 2008, Davis, Chliek, and Booth filed this class action in superior court, asserting that the Department improperly included pain and suffering portions of the settlements in calculating the reimbursement amount. Relying on Tobin v. Department of Labor & Industries, 145 Wash.App. 607, 187 P.3d 780 (2008), they allege that the distribution orders constitute an unconstitutional taking under the Washington State Constitution, resulting in the Department's unjust enrichment. They seek relief individually and on behalf of all workers whose third party settlements had been subject to the Department's lien without excluding pain and suffering damages from the reimbursement calculation. In addition, on August 1, 2008, Davis and Chliek appealed their respective distribution orders to the Board of Industrial Appeals.[2]

*255 ¶ 4 The Department moved for summary judgment in superior court, arguing, inter alia, that the trial court lacked subject matter jurisdiction and that the plaintiffs had not exhausted their administrative remedies. Although the trial court granted the motion in part and dismissed several of the plaintiffs' claims, it declined to rule on whether it had subject matter jurisdiction over the industrial insurance issues raised in the lawsuit.

¶ 5 The Department sought discretionary review, which we granted to determine if the superior court has subject matter jurisdiction. See Spindle, Ruling Grating Review (January 9, 2009). We stayed the matter pending the outcome of Tobin v. Department of Labor & Industries, 169 Wash.2d 396, 239 P.3d 544 (2010). We lifted the stay on September 22, 2010. The dispositive issue before us is whether the superior court has jurisdiction to hear this matter. We hold that it does not.

ANALYSIS

A. Overview of Industrial Insurance Act

¶ 6 The Industrial Insurance Act abolishes workplace injury torts and establishes a workers' compensation fund. Title 51 RCW; Tobin, 169 Wash.2d at 400, 239 P.3d 544. Generally, workers cannot sue in tort but are instead limited to recovering workers' compensation benefits from the Department. RCW 51.04.010. A narrow exception to this rule permits injured workers to pursue tort actions against third parties responsible for the injury. RCW 51.24.030(1). Any recovery from a third party must be applied to reimburse the workers' compensation fund for benefits paid out on that worker's claim. RCW 51.24.060.

¶ 7 The Act provides a formula to calculate the reimbursement amount. RCW 51.24.060. Loss of consortium is explicitly excluded from the type of damages that the Department is entitled to reclaim. RCW 51.24.030(5). The Tobin court held that although not explicit, the Act also precludes the Department from subjecting pain and suffering damages to its reimbursement calculation. Tobin, 169 Wash.2d at 402, 239 P.3d 544.

B. Superior Court Jurisdiction

¶ 8 The Department asserts that the superior court's jurisdiction over industrial insurance claims is limited to appeals of final Board decisions. Without original subject matter jurisdiction, the Department argues, the superior court must dismiss the lawsuit. Whether a trial court has subject matter jurisdiction is a question of law that we review de novo. Young v. Clark, 149 Wash.2d 130, 132, 65 P.3d 1192 (2003).

¶ 9 The Act provides an exclusive remedy for injured workers. Fay v. Nw. Airlines, Inc., 115 Wash.2d 194, 197, 796 P.2d 412 (1990). Except as provided in RCW 51.52.110, the Act abolishes the state courts' original jurisdiction over industrial insurance claims. RCW 51.04.010; Dougherty v. Dep't of Labor & Indus., 150 Wash.2d 310, 314, 76 P.3d 1183 (2003). The exception establishes a superior court's appellate jurisdiction over Board decisions. RCW 51.52.110. Acting in its appellate capacity, the superior court has limited jurisdiction and, to successfully invoke the court's jurisdiction, a party must comply with all the statutory procedural requirements. Fay, 115 Wash.2d at 197, 796 P.2d 412.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
245 P.3d 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-state-dept-of-labor-industries-washctapp-2011.