Duskin v. Carlson

965 P.2d 611
Washington Supreme Court·Decided October 1, 1998·No. 65998-2·Published·Cited by 12 cases

Opinion

965 P.2d 611 (1998)
136 Wash.2d 550

Gordon Gary DUSKIN and L. Marie Duskin, Respondents,
v.
Kenneth CARLSON and Jane Doe Carlson, and their marital community; and the Department of Labor and Industries of the State of Washington, Petitioners.

No. 65998-2.

Supreme Court of Washington, En Banc.

Argued June 23, 1998.
Decided October 1, 1998.

*612 McLean & Trichak, Kent T. Van Den Berg, Christine Gregoire, Attorney General, Diane Cornell, Assistant Attorney General, Seattle, for Petitioners.

Bailey, Duskin & Jarvill, David E. Duskin, Arlington, for Respondents.

DOLLIVER, Justice.

The Washington State Department of Labor and Industries (the Department) and the Defendant, Kenneth Carlson (Carlson), seek review of a Court of Appeals' decision reversing the trial court's grant of summary judgment in their favor. Duskin v. Carlson, 83 Wash.App. 694, 922 P.2d 1373 (1996). This case addresses the adequacy of the form letters and brochures the Department sends to injured workers who have potential third party claims. The Court of Appeals held the correspondence too vague to constitute a demand that the worker elect whether to pursue a claim or assign it to the Department.

In September 1993, Plaintiff Gordon Duskin (Duskin) was injured in a work-related, two-car accident. Carlson was driving the other car. The Department allowed Mr. Duskin's claim for industrial insurance benefits.

Chris White, a Department representative, wrote to Duskin on November 15, 1993, and informed him he might have a third party claim. The letter stated:

If your injury or occupational disease was caused by a third party, you have two alternatives: (A) You may seek recovery yourself; or (B) you may ask Labor and Industries to consider seeking recovery for you.
Please complete the form in the back of the brochure and return it to me no later than 30 days after you receive this letter. If the form is not returned within that time, we will consider seeking recovery.

....

Your rights and responsibilities on third-party actions are explained in the enclosed brochure.

Clerk's Papers at 106. Duskin received this letter, but "there was no form included," and he so noted on the letter. Clerk's Papers at 128. Duskin did not call the Department to ask for the form, nor did he take any other action in response to the November letter.

On February 25, 1994, this time by certified mail, the Department sent a third party action letter, with referenced enclosures, to Duskin. The enclosures were a brochure and an election form. The brochure explained Mr. Duskin's rights and responsibilities under chapter 51.24 RCW. Again, the letter informed Mr. Duskin he had "two alternatives" regarding a possible cause of action against Mr. Carlson—to seek recovery himself or ask the Department to consider seeking recovery for him. Clerk's Papers at 108. The letter indicated it was from Kim Malcom of the "Third Party Section" and included an address and telephone number where Mr. Malcom could be reached. Id. The letter also referred Mr. Duskin to an election form accompanying the letter and directed him to "complete the form ... and return it ... no later than 60 days after [receipt of the Department] letter." Id. The letter also reiterated: "Your rights and responsibilities on third-party actions are explained in the enclosed brochure." Id.

The enclosed brochure contained a detachable "THIRD PARTY ELECTION FORM" on which Mr. Duskin was asked to elect between Option A ("MY ATTORNEY OR I WILL PURSUE THIRD PARTY ACTION") and Option B ("I ASSIGN THE ACTION TO THE DEPARTMENT"). Clerk's Papers at 30. The brochure contained a series of questions and answers regarding third party actions, including the following:

Q. Do I have to pursue a third party action?

*613 A. No. However, the law does require you to make a choice. You must either pursue the action yourself, with or without an attorney (Option A), or assign the action to the Department of Labor and Industries. (Option B).

Q. What if I do nothing?

A. You are required to complete this form. If you do not complete this form and return it to the department within 60 days, the third party action is automatically assigned to the department. Any further action is at the discretion of the department.

Id.

By the time the Department sent the letter and brochure, both Duskin and his wife were undergoing chemotherapy for recently diagnosed cancers. Duskin's wife signed for the certified February 25, 1994, letter. However, she did not open the letter or give it to her husband; instead, she bundled it with the couple's mail and "stuck it away in a cupboard." Clerk's Papers at 129.

In March 1994, Kim Malcom (who had sent the Department's letter to Duskin) wrote to State Farm, Carlson's insurance carrier, and informed State Farm of Duskin's worker compensation claim. The Department noted it was awaiting a response from Duskin regarding whether he planned to pursue an action against Carlson or assign it to the Department. A copy of this letter was sent to Duskin.

On April 21, 1994, Duskin received a letter from State Farm offering him $10,000 to settle his claim. In response, Duskin called Wayne Kittredge, the State Farm adjuster, and informed him he was not ready to settle. The Department was unaware of this exchange and, indeed, believed Duskin had never responded to the State Farm offer.

On April 26, 1994, Kim Malcom wrote Duskin again, stating the Department had not heard from him and would therefore evaluate the third party claim and might "attempt to recover damages in the same amount that you could have sought." Clerk's Papers at 110.

In June 1994, State Farm sent to the Department the offer it had previously made to Duskin. In July 1994, the Department wrote to both Duskin and State Farm, indicating the Department had "sole responsibility to act for Mr. Duskin," agreeing to settle the claim for $13,969.80, and explaining Duskin would receive $10,000 while the Department would receive $3,969.80 to reimburse it for the benefits it had already paid. Clerk's Papers at 112. Duskin did not object to the settlement. Upon receipt of the payment from State Farm, the Department released Carlson from further liability. Duskin cashed the $10,000 check on September 15, 1994.

On September 20, 1994, Duskin protested the Department's actions, which the Department then affirmed. Duskin appealed to the Board of Industrial Insurance Appeals. In October 1994, however, Duskin sued Carlson in Snohomish County Superior Court. The Department intervened in the Superior Court action, and the parties agreed to stay the administrative appeal until the courts had decided the validity of the settlement.

Both parties moved for summary judgment. The trial court ruled in favor of Carlson and the Department. The Court of Appeals reversed, holding the Department's February 25, 1994, correspondence was not a demand under RCW 51.24.070(1). Duskin v. Carlson, 83 Wash.App. 694, 922 P.2d 1373 (1996). We granted review and now reverse the Court of Appeals.

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