Department of Labor & Industries v. Janssen

125 Wash. App. 461
CourtCourt of Appeals of Washington
DecidedJanuary 25, 2005
DocketNo. 30750-2-II
StatusPublished

This text of 125 Wash. App. 461 (Department of Labor & Industries v. Janssen) 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
Department of Labor & Industries v. Janssen, 125 Wash. App. 461 (Wash. Ct. App. 2005).

Opinion

¶1 — The Department of Labor and Industries (Department) appeals a Board of Industrial Insurance Appeals decision (affirmed by the superior court) that it improperly deducted interest it paid on permanent partial disability payments to workers when it later converted the workers’ claims to permanent total disability pensions. The workers cross appeal, arguing that the Department miscalculated cost-of-living adjustments; Janssen contends that the Department wrongly deducted the erroneously paid portion of his permanent partial disability award from his pension reserve.1 We affirm.

Armstrong, J.

FACTS

¶2 Each of the 14 workers in this appeal received benefits under Washington’s Industrial Insurance Act, Title 51 RCW. All were first paid at least one partial permanent disability (PPD) award and later awarded pension benefits. [464]*464Because of the size of each of the original PPD awards, the Department paid the PPD in monthly installments as RCW 51.32.080(4) required. The Department paid statutory interest at a rate of eight percent on the balance of these awards. After the Department determined that each worker was permanently and totally disabled, it deducted the previously paid PPD principal and interest from the worker’s pension reserves.

¶3 Thirteen of the 14 workers’ appeals were tried on stipulated facts, including the amount of PPD principal and interest deducted from the claimants’ pension reserves. In the lead case, John Janssen v. Department of Labor & Industries, No. 99-2-10452-3 (Pierce County Superior Court July 18, 2003), the Department closed Janssen’s claim and awarded him a PPD. Janssen’s award should have been $31,500, but as he admits, the Department mistakenly awarded him $63,000. Janssen received $66,875.46 in total, of which $3,875.86 was statutory interest. The Department later determined that Janssen was permanently and totally disabled, placed him on a pension, and deducted his PPD, including interest, from his pension reserve. The Department never attempted to recoup the erroneous portion of the PPD.

¶4 The workers appealed to the Board of Industrial Insurance Appeals (Board), challenging the Department’s authority to deduct PPD interest from their pension reserves and the Department’s method of calculating cost-of-living adjustments (COLAs). Janssen also challenged the Department’s reduction of his pension reserve by the full amount of his PPD and interest, including the erroneously paid portion.

|5 The Board ruled that the Department correctly deducted the previously paid PPD principal from the workers’ pension reserves, that it wrongly deducted the interest on this principal, and that it correctly calculated the COLAs.2 The Board also ruled that in Janssen’s case, the entire $63,000 should be considered in reducing his pension re[465]*465serve. After consolidating the cases, the Pierce County Superior Court affirmed the Board’s rulings.

ANALYSIS

Deduction of Statutory Interest

16 The Department argues that it properly deducted the interest on the workers’ PPD awards from their pension reserves because the interest is paid as part of the award.

¶7 PPDs and permanent total disability (PTD) awards are governed by statute. If a statute is unambiguous, we look only at the statutory words and apply it as written. Cobra Roofing Serv., Inc. v. Dep’t of Labor & Indus., 122 Wn. App. 402, 417, 97 P.3d 17, 23 (2004); Taylor v. Nalley’s Fine Foods, 119 Wn. App. 919, 923, 83 P.3d 1018 (2004). But if a statute can be interpreted in two or more reasonable ways, we must construe the statute to achieve the legislature’s intent. Dep’t of Labor & Indus. v. Kantor, 94 Wn. App. 764, 775, 973 P.2d 30 (1999).

¶8 When the PPD compensation provided for in subsections (1) through (3) of RCW 51.32.080 exceeds three times the state’s average monthly wage, the Department makes monthly payments instead of awarding a lump sum. RCW 51.32.080(6). The Department’s first payment is equal to three times the average monthly wage. RCW 51.32.080(6). Beginning with the second monthly payment, the Department pays eight percent interest on the unpaid balance of the PPD award. RCW 51.32.080(6).

19 When the Department determines that a worker is permanently and totally disabled, it must establish a pension reserve for the worker. RCW 51.44.070(1). If a worker received PPD before receiving PTD compensation,

[a]ny portion of the [PPD] compensation which exceeds the amount that would have been paid the injured worker if [PTD] compensation had been paid in the first instance, shall be deducted from the pension reserve of such injured worker and [466]*466his or her monthly compensation payments shall be reduced accordingly.

RCW 51.32.080(4).

¶10 The PPD deduction ensures that the worker does not receive a double recovery. Messer v. Dep’t of Labor & Indus., 118 Wn. App. 635, 640, 77 P.3d 1184 (2003), review denied, 151 Wn.2d 1021 (2004). Recovery of PPD awards is required to ensure that injured workers who first receive these awards and later receive total disability pensions “do not receive greater benefits than workers who endure permanent total disabilities in the first instance.” Stuckey v. Dep’t of Labor & Indus., 129 Wn.2d 289, 296, 916 P.2d 399 (1996).

¶11 In In re Rodriguez, No. 91 5594, Bd. of Indus. Ins. Appeals (Sept. 16, 1993), the Board held that interest should not be included in the PPD amount deducted from the worker’s pension reserve. The Board stated: “We do not believe that [former] RCW 51.32.080(2) [1993][3] contemplates the inclusion of interest paid on permanent partial disability awards. We hold that [former] RCW 51.32.080(2) (which specifically refers only to permanent partial disability compensation) does not include interest paid on the permanent partial disability award.” Rodriguez, No. 91 5594.

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Related

Stuckey v. Dept. of Labor & Indus.
916 P.2d 399 (Washington Supreme Court, 1996)
Department of Labor & Industries v. Kantor
973 P.2d 30 (Court of Appeals of Washington, 1999)
Weyerhaeuser Company v. Tri
814 P.2d 629 (Washington Supreme Court, 1991)
COBRA ROOFING SERVICE, INC. v. Department of Labor & Industries
97 P.3d 17 (Court of Appeals of Washington, 2004)
Stuckey v. Department of Labor & Industries
129 Wash. 2d 289 (Washington Supreme Court, 1996)
Messer v. Department of Labor & Industries
77 P.3d 1184 (Court of Appeals of Washington, 2003)
Taylor v. Nalley's Fine Foods
83 P.3d 1018 (Court of Appeals of Washington, 2004)
Cobra Roofing Service, Inc. v. Department of Labor & Industries
122 Wash. App. 402 (Court of Appeals of Washington, 2004)

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Bluebook (online)
125 Wash. App. 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-labor-industries-v-janssen-washctapp-2005.