Dee Enterprises v. Industrial Claim Appeals Office

89 P.3d 430, 2003 Colo. App. LEXIS 1221, 2003 WL 21756075
CourtColorado Court of Appeals
DecidedJuly 31, 2003
Docket02CA2040
StatusPublished
Cited by18 cases

This text of 89 P.3d 430 (Dee Enterprises v. Industrial Claim Appeals Office) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dee Enterprises v. Industrial Claim Appeals Office, 89 P.3d 430, 2003 Colo. App. LEXIS 1221, 2003 WL 21756075 (Colo. Ct. App. 2003).

Opinion

Opinion by

Chief Judge DAVIDSON.

In this workers’ compensation proceeding, Dee Enterprises and its insurer, Mid-Century Insurance Company (collectively employer), seek review of the final order issued by the Industrial Claim Appeals Office (Panel) upholding the order of the administrative law judge (ALJ) finding that Ronald Nations (claimant) had suffered a compensable injury and awarding him benefits. We affirm.

I. Constitutionality

On appeal, employer’s primary contention is that §§ 8-43-201 and 8-43-301, C.R.S. 2002, of the Workers’ Compensation Act (Act), are unconstitutional. Specifically, employer argues that these statutes violate both the doctrine of separation of powers, under article III of the Colorado Constitution, and the requirement that district courts have original jurisdiction in civil cases, as mandated in article VI, § 9(1). We conclude that employer has failed to establish beyond a reasonable doubt that the Act violates these provisions of the Colorado Constitution.

Preliminarily, we agree with employer that this court has original jurisdiction to address challenges to the constitutionality of the Act. The standard of review is de novo, and because statutes are presumed to be constitutional, the challenging party bears the burden of proving them unconstitutional beyond a reasonable doubt. Thus, as relevant here, when the General Assembly creates an administrative agency and provides it specific powers pursuant to the state’s police power, the agency’s exercise of those powers within the scope of its authority is presumed to be valid and constitutional. MGM Supply Co. v. Indus. Claim Appeals Office, 62 P.3d 1001 (Colo.App.2002).

A. Police Power

The General Assembly created the Act as a substantive right pursuant to its police power. See Sch. Dist. No. 1 v. Indus. Comm’n, 66 Colo. 580, 185 P. 348 (1919). The Act is a mutual renunciation of common law tort claims and defenses in favor of a no-fault system with reduced but guaranteed benefits. Whiteside v. Smith, 67 P.3d 1240 (Colo.2003). The Act is the exclusive remedy for workers injured within the scope and course of their employment and precludes employees from bringing tort actions against their employers. Section 8-41-102, C.R.S. 2002; Kandt v. Evans, 645 P.2d 1300 (Colo.1982).

The constitutionality of all types of workers’ compensation acts generally has been firmly established. 1 Arthur Larson & Lex *433 K. Larson, Larson’s Workers’ Compensation Law § 2.07, at 2-14 (2002). Indeed, the legislature has broad discretion to enact measures for the protection of the public health, safety, and welfare, so long as the remedy adopted is rationally related to a legitimate governmental purpose. See Young v. Indus. Claim Appeals Office, 969 P.2d 735 (Colo.App.1998). It is well established that the employer-employee relationship involves a vital public interest and that there is a need for its regulation. See Corcoran v. P.G. Corcoran Co., 245 Minn. 258, 71 N.W.2d 787 (1955).

B. Separation of Powers

Section 8-43-201 of the Act confers jurisdiction on ALJs to hear and determine workers’ compensation matters, and § 8-43-301 provides the Panel with jurisdiction to review the ALJs’ orders. Employer contends that these provisions violate the constitutional separation of powers doctrine by conferring judicial authority on an administrative agency that is part of the executive branch. We disagree.

Article III of the Colorado Constitution prohibits one branch of government from exercising powers that the constitution vests in another branch. People v. Barth, 981 P.2d 1102 (Colo.App.1999). The separation of powers doctrine does not require a complete division of authority among the three branches, however, and the powers exercised by different branches of government necessarily overlap. People in Interest of R.W.V., 942 P.2d 1317, 1320 (Colo.App.1997)(“absolute separation of government functions ' among the co-equal branches is neither required nor desirable to achieve the constitution’s ultimate goal of effective and efficient government”); Nev. Indus. Comm’n v. Reese, 93 Nev. 115, 560 P.2d 1352 (1977)(because an administrative agency exercises executive, judicial, and legislative power, a strict application of the separation of powers doctrine would make the mere existence of an agency unconstitutional); McKay v. N.H. Comp. Appeals Bd., 143 N.H. 722, 732 A.2d 1025 (1999)(separation of powers doctrine requires some overlapping and duality as a matter of practical and essential expediency). Indeed, the fundamental purpose of the doctrine is not to create three mutually exclusive departments of government, but to prevent one department from exercising power that is essential to another department’s exercise of its constitutionally defined functions. Colo. Gen. Assembly v. Lamm, 700 P.2d 508 (Colo.1985).

Employer maintains, however, that pursuant to §§ 8^43-201 and 8-43-301, ALJs and the Panel have the power to enforce workers’ compensation orders. According to employer, these orders involve private rights stemming from common law, and their rulings are binding without the parties’ consent. Consequently, employer argues, ALJs and the Panel exercise functions essential to the judicial branch, in violation of article III. We disagree.

1. Judicial Power

Traditionally, judicial power has been defined as consisting of three elements: (1) examination of the “truth of the fact,” (2) determination of the “law arising upon that fact,” and (3) ascertainment and application of the remedy. See, e.g., Union Colony v. Elliott, 5 Colo. 371 (1880)(eiting Justice Blackstone). Not every exercise of duties judicial in nature, however, is necessarily an exercise of “judicial power.” Indeed, many administrative officials are required to make determinations of fact and apply the law thereto. It is generally agreed that the essence of judicial power is the ability to carry a judgment into effect. See Firelock Inc. v. Dist. Court, 776 P.2d 1090, 1094 (Colo.1989); Cedar Rapids Human Rights Comm’n v. Cedar Rapids Cmty. Sch. Dist., 222 N.W.2d 391 (Iowa 1974).

a. Quasi-Judicial Power

We agree with employer that an administrative agency cannot validly exercise a purely judicial function. See City & County of Denver v. Lynch, 92 Colo. 102, 106, 18 P.2d 907, 909 (1932) (“It is universally held that the legislative department is powerless to confer judicial duties upon the officials of other departments.”). However, the agency may nevertheless possess quasi-judicial powers that blend legislative and judicial charac

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Bluebook (online)
89 P.3d 430, 2003 Colo. App. LEXIS 1221, 2003 WL 21756075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dee-enterprises-v-industrial-claim-appeals-office-coloctapp-2003.