Department of Labor & Industries v. Tacoma Yellow Cab Co.

639 P.2d 843, 31 Wash. App. 117, 1982 Wash. App. LEXIS 2441
CourtCourt of Appeals of Washington
DecidedJanuary 18, 1982
Docket4713-II
StatusPublished
Cited by14 cases

This text of 639 P.2d 843 (Department of Labor & Industries v. Tacoma Yellow Cab Co.) 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. Tacoma Yellow Cab Co., 639 P.2d 843, 31 Wash. App. 117, 1982 Wash. App. LEXIS 2441 (Wash. Ct. App. 1982).

Opinions

Petrie, J.

Two employers, Tacoma Yellow Cab Com-

pany and Oliver Taxi and Ambulance Service, appeal from a judgment reinstating an order of the Department of Labor and Industries which directed those employers to report the payroll and pay premiums on behalf of "lease drivers" to whom the employers leased their taxicabs. We affirm the judgment; but, first, we review a jurisdictional issue presented by the appeal.

On January 6, 1977, the department ordered the employers to pay industrial insurance premiums on behalf of persons who lease taxicabs from the employers on a "day-today" basis. The employers appealed that order to the Board of Industrial Insurance Appeals. Following hearings, a hearing examiner employed by the board prepared and executed a document dated April 6, 1978 entitled Proposed Decision and Order which bears on its face a board stamp indicating copies were mailed on April 10, 1978 to the two employers, their counsel, and the Office of Attorney General; but, contrary to provisions of RCW 51.52.104, there is no indication that a copy was mailed to the department. The examiner concluded that the relationship of the employers to their "lease drivers" was that of lessor and lessee and not within the mandate of RCW Title 51. [119]*119Accordingly, the document declared that the department's 1977 order was reversed.

A copy of the examiner's proposed order was received by the Office of Attorney General, counsel for the department, on April 11; and on April 26, the department, through its counsel, mailed a request for extension of time for filing a petition for review to the board. This request was evidently lost in the mail and was not received by the board. Subsequent events are summarized by the trial court's unchallenged finding as follows:

When the Board did not respond to plaintiff's [department's] request, plaintiff diligently pursued the matter and upon learning of the loss of the original application, filed on May 4, 1978, a second application with a copy of the original application and with uncontroverted proof of timely mailing of the original application and subsequently filed the Petition For Review, all with the permission of the Board of Industrial Insurance Appeals and all occurring prior to any action being taken by the full Board.

Before the board considered the department's petition, the employers challenged the jurisdiction of the board to review the cause on its merits. The employers' contention, as communicated to the board (and as argued in superior court and in this court) is that RCW 51.52.104 mandates, as a prerequisite to judicial review, a party's request for extension of time in which to file a petition for review of an examiner's order be filed with the board within 20 days "from the date of communication of the proposed decision and order to the parties or their attorneys of record".1 [120]*120Because the department's application for extension of time was not filed until May 4, and the examiner's proposed order was communicated to the Attorney General on April 11, the employers contend the application was filed 3 days later than the statute allows. Accordingly, the employers assert, the department's right to appeal is barred by statute.

Contrary to the employers' contention, the board declared in its order dated June 5, 1978:

[W]e have consistently taken the position that the event which completely terminates the Board's jurisdiction to consider a case, following entry of a hearing examiner's Proposed Decision and Order, is an affirmative action which we must take, namely, the entry of an official Board Order adopting the Proposed Decision and Order, thereby making it the Board's final order. Such affirmative Board action was not taken here, and therefore the Petition for Review can and should be considered on its merits.

Nevertheless, after considering the department's petition for review on the merits, the board denied the petition because it concluded the hearing examiner had "made the proper disposition on the merits." The board's order denying the petition bears the board's stamp indicating copies were mailed to the two employers, their attorney of record, the department, and its attorney of record, on June 9. On the department's appeal to superior court, the board's order was reversed; and the employers now appeal to this court.

Resolution of the jurisdictional issue requires that we first examine the nature and function of the Board of [121]*121Industrial Insurance Appeals. It is an independent appellate body—a quasi-judicial body—which hears and determines appeals from orders of the Department of Labor and Industries. Kaiser Aluminum & Chem. Corp. v. Department of Labor & Indus., 45 Wn.2d 745, 277 P.2d 742 (1954). Its decisions are based upon de novo hearings, conducted either before the members of the board or before an examiner appointed by and acting for the board. Kaiser. Though an examiner employee has authority to prepare a proposed decision and order, copies of which are subsequently distributed to the parties to the appeal and their counsel, "the board may not delegate to any other person its duties of interpreting the testimony and making the final decision and order on appeal cases." RCW 51.52.020.

Thus, in the case at bench, when the department's admittedly statutorily late petition to review the examiner's order came before the board, the board had two alternative courses of action: (1) it could have resolved the matter by asserting (as provided by RCW 51.52.104) that "no petition for review is filed as provided herein by any party" and thereupon have adopted the examiner's proposed order as the board's order; or (2) it could have determined, as it apparently did, that, notwithstanding the technically late petition, the substance of the appeal warranted board review. Had the board chosen the first alternative, then the department's right of appeal would have been precluded by statute because "no appeal may be taken therefrom to the courts." RCW 51.52.104. Because the board chose the second alternative, the latter portion of RCW 51.52.104 does not apply.

In effect, the board necessarily concluded: (1) all matters pending before the board, from the moment an aggrieved party files an appeal of a departmental order until a final board order is promulgated, properly lie within the bosom of the board for appropriate action; (2) hearing examiners are subordinate employees who have no jurisdictional authority independent of the board's authority; (3) the board cannot delegate to others its duty to make a final [122]*122decision and issue an order based thereon; and (4) accordingly, we (the board) choose to review the merits of this appeal.

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Department of Labor & Industries v. Tacoma Yellow Cab Co.
639 P.2d 843 (Court of Appeals of Washington, 1982)

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Bluebook (online)
639 P.2d 843, 31 Wash. App. 117, 1982 Wash. App. LEXIS 2441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-labor-industries-v-tacoma-yellow-cab-co-washctapp-1982.