Fairley v. Department of Labor & Industries

627 P.2d 961, 29 Wash. App. 477, 1981 Wash. App. LEXIS 2106
CourtCourt of Appeals of Washington
DecidedApril 9, 1981
Docket3771-1-III
StatusPublished
Cited by11 cases

This text of 627 P.2d 961 (Fairley v. Department of Labor & Industries) 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
Fairley v. Department of Labor & Industries, 627 P.2d 961, 29 Wash. App. 477, 1981 Wash. App. LEXIS 2106 (Wash. Ct. App. 1981).

Opinions

Green, J.

The Department of Labor and Industries (Department) appeals a summary judgment requiring a claim made by Carolyn Fairley for compensation under the crime victims compensation act, RCW 7.68 (Act) to be reevaluated. We affirm.

Three questions are presented: (1) Did the trial court have jurisdiction to determine the validity of Mrs. Fairley's claim when she failed to appeal the Department's decision within 60 days as required by RCW 51.52.060? (2) Does a Supreme Court decision, rendered after the Department determination but before appeal to the superior court, control? and (3) Does a subsequent legislative amendment, nullifying the Supreme Court decision, apply retroactively to require affirmance of the Department's determination?

The facts are not disputed. On August 4, 1973, James Fairley died as a result of a criminal assault. His widow filed a claim with the Department for death benefits. Her [479]*479claim was approved, but the Department stated no benefits would be payable at that time because she was receiving life insurance proceeds and social security benefits exceeding the amount payable under the Act. When she asked for the basis for this calculation, the Department recalculated her benefits and on September 25, 1975, issued an order reaffirming its decision. The Department reasoned that social security benefits constituted "public insurance" under RCW 7.68.1301 and were deductible from the benefits payable. The order stated, "The Department will recalculate benefits upon notice from Mrs. Fairley that circumstances have changed." Mrs. Fairley did not appeal this order.

On July 24, 1978, Mrs. Fairley requested the Department to reconsider its 1975 order. This was denied. She petitioned for review to the Board of Industrial Insurance Appeals. Review was denied because the 1975 departmental order had not been appealed within 60 days. Mrs. Fairley appealed the Board decision to superior court, contending the Department misinterpreted the term "public insurance." Subsequently, she moved for summary judgment on this issue. The court granted summary judgment, holding that social security benefits should not reduce the amount payable to Mrs. Fairley.

First, the Department contends Mrs. Fairley's failure to appeal to the Board within 60 days after its 1975 order deprived the Board, as well as the courts, of jurisdiction. We disagree.

This case is analogous to Booth v. Department of Labor & Indus., 189 Wash. 201, 64 P.2d 505 (1937). There, a miner's widow received monthly benefits under the workmen's compensation act after her husband's death. There[480]*480after, the Department agreed to a lump sum settlement of a dispute which had previously caused her benefits to be terminated. This sum was to compensate her for all past and future benefits. More than 1 year after she accepted the lump sum payment, the widow filed a petition for adjustment of compensation, claiming she was entitled to an additional amount under the statute. The Department denied her petition on the basis that the amount of the settlement was discretionary and her claim was barred by the statute of limitations. The Supreme Court voided the settlement on the ground the Department had incorrectly construed the statute. In holding the time limitation for appeal did not apply, the court reasoned, at page 210:

Being a void order, no appeal to the joint board therefrom was necessary, and hence the statute of limitations would not apply. Whatever amount the department failed to pay according to the mandate of the statute would still be owing to the beneficiary, and no appeal would be necessary until the department should refuse to pay, or to entertain a claim for, the balance of the amount legally owing. That was the procedure followed in this case.[2]

Here, prior to Mrs. Fairley's appeal to the superior court, Standing v. Department of Labor & Indus., 92 Wn.2d 463, 598 P.2d 725 (1979), was decided. In that case, the court held social security benefits are not "public insurance" and do not reduce the benefits payable under the Act. The court, at pages 473-74, reasoned:

To reduce benefits available to innocent victims of crime in this state by the amount of OASI payments would vir[481]*481tually destroy the compensatory foundation of the Act for a major segment of the population. Where doubt or uncertainty arise from words used by the legislature, the section under construction should be read in context with the entire act and a meaning ascribed to it that avoids strained or absurd consequences. . . . Applying this common sense rule of statutory construction, we are unwilling to construe RCW 7.68.130 in such a manner as to destroy its application to a major segment of the state's population.

In light of Standing, supra, the Department here misconstrued the term "public insurance" in calculating Mrs. Fairley's benefits. In our view, Booth applies. The court analyzed the facts in that case, stating at page 211:

[T]he result intended to be accomplished [was] due to a misconception of the proper construction of the statute. Later, after the lump sum payment had been made, respondent conceived that the statute was not capable of the construction which the parties had placed upon it. She then took the position that the agreement was void, and that, therefore, she was entitled to an additional fourteen hundred dollars. The appellant, on the contrary, insisted that the interpretation originally given to the statute by the parties was correct.

(Italics ours.) Here, as in Booth, the Department miscalculated Mrs. Fairley's benefits because of a misconstruction of the statute. Its award, being outside the statutory mandate, was therefore void. See footnote 2. Being a void order, no appeal from the initial decision was necessary. As in Booth, although Mrs. Fairley did not challenge the Department's initial decision, she timely appealed its refusal to reconsider because of changed circumstances and the Board's denial of her request for recalculation of benefits. Based on Booth, we find the court had jurisdiction of Mrs. Fairley's appeal.

Second, the Department argues Standing cannot be retroactively applied to its order. A similar issue was addressed in Johnson v. Morris, 87 Wn.2d 922, 557 P.2d 1299 (1976). In that case, after the defendant's conviction, the Supreme Court held that the age of majority for extending jurisdiction over a juvenile defendant was 18. In [482]*482re Carson, 84 Wn.2d 969, 530 P.2d 331 (1975).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Crystal Benson v. Providence Health & Services
Court of Appeals of Washington, 2024
Jose L. Birrueta v. Department of Labor and Industries
Court of Appeals of Washington, 2015
Birrueta v. Department of Labor & Industries
355 P.3d 320 (Court of Appeals of Washington, 2015)
Solven v. Department of Labor & Industries
2 P.3d 492 (Court of Appeals of Washington, 2000)
Sebastian v. Department of Labor & Industries
974 P.2d 374 (Court of Appeals of Washington, 1999)
Marley v. Department of Labor & Industries
886 P.2d 189 (Washington Supreme Court, 1994)
Marley v. Department of Labor & Industries
864 P.2d 960 (Court of Appeals of Washington, 1993)
Marine Power & Equipment Co. v. Human Rights Commission Hearing Tribunal
694 P.2d 697 (Court of Appeals of Washington, 1985)
Fairley v. Department of Labor & Industries
627 P.2d 961 (Court of Appeals of Washington, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
627 P.2d 961, 29 Wash. App. 477, 1981 Wash. App. LEXIS 2106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairley-v-department-of-labor-industries-washctapp-1981.