Evangelical Lutheran Good Samaritan Society v. Bonham

32 P.3d 899, 176 Or. App. 490, 2001 Ore. App. LEXIS 1402
CourtCourt of Appeals of Oregon
DecidedSeptember 12, 2001
Docket97-10265; A108160
StatusPublished
Cited by11 cases

This text of 32 P.3d 899 (Evangelical Lutheran Good Samaritan Society v. Bonham) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evangelical Lutheran Good Samaritan Society v. Bonham, 32 P.3d 899, 176 Or. App. 490, 2001 Ore. App. LEXIS 1402 (Or. Ct. App. 2001).

Opinion

*492 WOLLHEIM, J.

Employer seeks judicial review of a Workers’ Compensation Board order that concluded that claimant had established the compensability of a herniated disc claim. Employer argues that claimant’s herniated disc claim was precluded by principles of issue and claim preclusion. We affirm.

Claimant suffered a compensable low-back strain in May 1993. A subsequent MRI contained indications of disc space narrowing, slight to moderately severe spinal stenosis, and a disc bulge. In June 1993, Dr. Perry diagnosed lumbar strain with associated mild to moderate L4-5 disc herniation. A determination order closed the claim with an award of temporary compensation in August 1993.

In September 1996, claimant had a medical evaluation for chronic low-back pain. An MRI taken in November 1996 showed that claimant had severe spinal stenosis and a central disc herniation. Claimant saw several physicians during the last months of 1996 and the first several months of 1997. Employer denied claimant’s aggravation claim in March 1997 and amended the denial in June 1997. The basis for employer’s amended denial was that it found that claimant’s “current condition (lumbar stenosis) and need for medical treatment” was unrelated to claimant’s May 1993 low-back strain. Claimant requested a hearing from both denials.

In June 1997, a hearing was held before Administrative Law Judge Hazelett. In October 1997, Hazelett issued an opinion and order that upheld both denial letters on the basis that claimant did not prove that her accepted strain injury was the cause of her current condition. Claimant did not appeal that order.

In November 1997, claimant began treatment with Dr. Misko. Misko reviewed claimant’s MRIs, had flexionextension “stress” films taken of claimant’s back, and diagnosed claimant with a herniated disc. 1 Misko then filed an *493 aggravation claim form. In December 1997, employer denied that claim on the basis that there was “no medical evidence that there ha[d] been a change in [claimant’s] medical condition due to the industrial injury” since the March 1997 and June 1997 denials were issued. Claimant requested a hearing on that denial. In January 1998, Misko performed surgery for a large disc herniation at L4-5. In July 1998, claimant requested that employer accept a new condition claim for a herniated disc that arose as a consequence of the May 1993 industrial injury. In September 1998, employer denied the L4-5 disc herniation claim on the basis that the medical evidence did not establish that the condition was caused by the industrial injury and that “it was previously determined that your ‘current condition’ was not caused by the industrial injury” of May 1993. Claimant again requested a hearing.

In January 1999, Administrative Law Judge Menashe issued an opinion and order that affirmed employer’s December 1997 and September 1998 denials. Menashe concluded that Hazelett “determined [that] the issue was compensability of the current condition and not just spinal stenosis.” Therefore, Menashe explained, because claimant’s then current condition included the L4-5 disc herniation, issues concerning the L4-5 disc herniation were or could have been litigated at the June 1997 hearing. Consequently, Menashe concluded that the compensability of claimant’s L4-5 herniated disc claim was precluded from further litigation. Claimant sought review of Menashe’s order.

In a divided opinion, the Board reversed Menashe’s order but adopted Menashe’s findings of fact. It agreed that Hazelett had decided the compensability of claimant’s entire current low-back condition and not just the spinal stenosis condition. However, the Board disagreed with Menashe over the application of preclusion principles to claimant’s case. After summarizing the general rules governing claim and issue preclusion, the Board construed the language of ORS 656.262(7)(a) and concluded that the legislature created an exception to claim preclusion when it enacted that statute. 2 Then, after explaining that the legislature did not create a statutory exception to issue preclusion in ORS 656.262(7)(a), *494 the Board concluded that issue preclusion did not apply to claimant’s current claims because the compensability of claimant’s L4-5 disc herniation had not been “actually litigated and determined” in the proceeding before Hazelett. The Board then turned to the merits of claimant’s herniated disc claim. It found Misko’s opinion persuasive and concluded that claimant had established the compensability of her L4-5 herniated disc and had also met her burden of proving a compensable aggravation claim.

Employer seeks judicial review. First, employer assigns as error the Board’s failure to rule that the doctrine of issue preclusion barred claimant from relitigating the compensability of her L4-5 herniated disc condition. Second, employer argues that the Board erred when it concluded that ORS 656.262(7) legislatively overruled the doctrine of claim preclusion as it applies to new medical condition claims. Claimant responds that the Board did not err in either instance and that we should affirm the Board’s decision.

As a preliminary matter, we note that both issue preclusion and claim preclusion generally apply to workers’ compensation proceedings. Drews v. EBI Companies, 310 Or 134, 142, 795 P2d 531 (1990). At issue here is how those doctrines apply to new medical condition claims and whether any of the exceptions to the rules of issue and claim preclusion are applicable in this instance. See id. at 149 (concluding existence of statutory exception to issue and claim preclusion for aggravation claims exists in specific instances).

We first address the issue of whether the Board erred in holding that ORS 656.262(7)(a) provides a statutory exception to the judicial doctrine of claim preclusion for new medical condition claims. In Rennie v. Freeway Transport, 294 Or 319, 323, 656 P2d 919 (1982), the Supreme Court described claim preclusion as follows:

“[A] plaintiff who has prosecuted one action against a defendant through to a final judgment * * * is barred * * * from prosecuting another action against the same defendant where the claim in the second action is one which is based on the same factual transaction that was at issue in the first, seeks a remedy additional or alternative to the one *495 sought earlier, and is of such a nature as could have been joined in the first action.”

Importantly, claim preclusion requires neither that an issue of law or fact be actually litigated nor that the determination of an issue be essential to the final or end result of the proceeding. Drews, 310 Or at 140.

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Bluebook (online)
32 P.3d 899, 176 Or. App. 490, 2001 Ore. App. LEXIS 1402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evangelical-lutheran-good-samaritan-society-v-bonham-orctapp-2001.