Employers' Reinsurance Fund v. Labor Commission

2012 UT 76, 289 P.3d 572, 721 Utah Adv. Rep. 11, 2012 Utah LEXIS 154, 2012 WL 5395166
CourtUtah Supreme Court
DecidedNovember 6, 2012
DocketNos. 20110033, 20110055
StatusPublished
Cited by11 cases

This text of 2012 UT 76 (Employers' Reinsurance Fund v. Labor Commission) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employers' Reinsurance Fund v. Labor Commission, 2012 UT 76, 289 P.3d 572, 721 Utah Adv. Rep. 11, 2012 Utah LEXIS 154, 2012 WL 5395166 (Utah 2012).

Opinion

Justice DURHAM,

opinion of the Court:

INTRODUCTION

T1 Sunnyside Coal Company, the Workers' Compensation Fund, and the Employers' Reinsurance Fund (collectively, Petitioners) challenge the Labor Commission's award of [575]*575permanent total disability benefits to claimant Cecil Henningson. Petitioners argue that the award is barred under the relevant statute of limitation, which prevents the Labor Commission from acquiring jurisdiction and making the award. We conclude that the Commission correctly determined that it had original jurisdiction over the claim and also correctly exercised its continuing jurisdiction in awarding compensation. Because of the long delay in bringing the claim, however, we hold that Mr. Henningson's recovery is equitably limited. The Employers' Reinsurance Fund (ERF) is obliged to pay only prospective benefits from the date of filing, and Sunnyside Coal Company (Sunny-side) and the Workers' Compensation Fund (WCF) are not liable for any permanent total disability benefits. We therefore affirm the Commission's award of permanent total disability benefits but remand for a determination of the correct amount of compensation.

BACKGROUND

T2 On October 18, 1998, Mr. Henningson injured his back in the course of his employment with Sunnyside Coal Company. Consistent with Utah administrative law, he timely reported the injury to his employer, who filed all required reports with the Labor Commission. WCF paid Mr. Henningson temporary total and permanent partial disability benefits from October 14, 1993 through June 8, 1995.

T3 In January 1994, Mr. Henningson underwent back surgery. Mr. Henningson had undergone two previous back surgeries because of earlier work-related injuries, and after recovering from each surgery, Mr. Henningson had returned to work. In December 1994, Mr. Henningson's physician declared him medically stable and placed him in the "light work" category.

T4 In May 1994, Mr. Henningson filed for social security disability benefits. In April 1995, the Social Security Administration determined Mr. Henningson was disabled and unable to work, and awarded full disability compensation backdated to the day after the injury.

15 In February 1997, Mr. Henningson's physician altered his evaluation and declared him "totally and permanently disabled" in a report to WCF, stating that he had been unable to work since 1998. After the date of the accident, Mr. Henningson never returned to work or looked for other employment. But Mr. Henningson's physician found him to be compliant with treatment efforts and wanting to return to work throughout the recovery process.

16 Ten years later, in March 2007, Mr. Henningson filed an "Application for Hearing-Form 001" with the Commission requesting permanent total disability benefits. At the hearing, the administrative law judge exercised the Commission's continuing jurisdiction and granted Mr. Henningson's claim, making a tentative finding of permanent total disability beginning December 16, 1994. On review, the Commission affirmed the administrative law judge's order, basing its authority to exercise its continuing jurisdiction on the inadequacy of Mr. Henningson's previous award. The Commission modified the administrative law judge's order to correct several errors in calculating the allocation of liability between WCF and ERF, backdating the permanent total disability payments to December 16, 1994, and crediting WCF for its payments for permanent partial disability, but not for temporary total disability.

T7 Petitioners appealed the award of permanent total disability benefits to the Utah Court of Appeals, which heard oral argument and then certified the case to us. We have jurisdiction pursuant to Utah Code section 78A-3-102(8)(b).

STANDARD OF REVIEW

18 Under the Utah Administrative Procedures Act, an appellate court has authority to grant relief if "a person seeking judicial review has been substantially prejudiced ... [because] the ageney has erroneously interpreted or applied the law." Urax CopE § 68G-4-408(d)(d). "A person is 'substantially prejudiced when the ageney's erroneous interpretation or application is not harmless. We review that agency's interpretation or application of the law for correctness." Nat'l Parks Conservation Ass'n v. [576]*576Bd. of Trs. of Sch. & Inst'l Trust Lands Admin., 2010 UT 13, 115, 231 P.3d 1193 (footnote omitted).

ANALYSIS

T9 Petitioners raise three arguments on appeal. First, they contend that the Commission cannot modify Mr. Henningson's award because it did not establish original jurisdiction over the claim within the six-year statute of limitation. Alternatively, they argue that even if the Commission acquired original jurisdiction, it cannot exercise its continuing jurisdiction because there was no change of condition or inadequacy in the previous award as required by our case law. Finally, ERF argues that even if Mr. Hen-ningson is entitled to permanent total disability benefits, it would be unfair to backdate his award to the date of the accident when he waited almost fourteen years to file his claim. We hold that the Commission acquired original jurisdiction and appropriately exercised its continuing jurisdiction in Mr. Henning son's case, but that Mr. Henningson is equitably barred from receiving permanent total disability 'benefits prior to 2007, when he filed his claim for such benefits.

I. ORIGINAL JURISDICTION

{110 Petitioners argue the Commission lacks original jurisdiction over Mr. Hen-ningson's claim for permanent total disability benefits because Mr. Henningson failed to file documents within the six-year statute of limitations sufficient to invoke jurisdiction. See Utan Cope § 385-1-98(2) (1998).1 Mr. Henningson counters that under Vigos v. Mountainland Builders, Inc., 2000 UT 2, 993 P.2d 207, his claim is not barred for lack of Jurisdiction, because although he did not file a formal application for hearing, he filed other documents sufficient to establish original jurisdiction. We agree with Mr. Hen-ningson that the Commission has original jurisdiction over his claim.

111 The Commission acquires original jurisdiction over a claim when the appropriate documentation is filed, giving notice to the interested parties. Section 35-1-98(2) provides that "[a] claim for compensation for temporary total disability benefits, temporary partial disability benefits, permanent partial disability benefits, or permanent total disability benefits is barred, unless an application for hearing is filed with the commission within six years after the date of the accident." Thus, a claim must be filed within the six-year limitation period.

112 Vigos clarified the requirements for invoking the Commission's jurisdiction under section 35-1-98(2). Under the plurality opinion in Vigos, the statutory term "application for hearing" does not create a formal requirement to file a specific document, but rather requires a filing sufficient to provide notice to all interested parties See 2000 UT 2, ¶ 17, 993 P.2d 207 (plurality opinion). Vigos explains that "a claim for compensation need not bear any particular formality." Id. (quoting Utah State Ins. Fund v. Dutson, 646 P.2d 707, 709 (Utah 1982)). In Dutson, "all interested parties ... were on notice of Dutson's claim and were duly apprised of the material, jurisdictional facts upon which the claim was based." 646 P.2d at 709.

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2012 UT 76, 289 P.3d 572, 721 Utah Adv. Rep. 11, 2012 Utah LEXIS 154, 2012 WL 5395166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employers-reinsurance-fund-v-labor-commission-utah-2012.