Flowline of Alaska v. Brennan

129 P.3d 881, 2006 WL 361816
CourtAlaska Supreme Court
DecidedFebruary 17, 2006
DocketNo. S-11900
StatusPublished

This text of 129 P.3d 881 (Flowline of Alaska v. Brennan) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flowline of Alaska v. Brennan, 129 P.3d 881, 2006 WL 361816 (Ala. 2006).

Opinion

OPINION

FABE, Justice.

In this case, Flowline Alaska, Inc. contests the Alaska Workers’ Compensation Board’s classification of Flowline’s former employee, Vincent Brennan, as an hourly worker under AS 23.30.220. The Board found that Brennan’s work did not fit “neatly or precisely” into the classifications provided in AS 23.30.220 and concluded that his work most closely fit that of an “ongoing, hourly” worker under AS 23.30.220(a)(4). The superior court, acting as an intermediate appellate court, affirmed. After careful review of the parties’ briefs and arguments, we agree with Superior Court Judge Sen K. Tan’s conclusions and adopt the superior court’s decision.1

Flowline raises three main arguments in this appeal. The first is that Brennan is an “exclusively temporary” employee for the purposes of AS 23.30.220(a)(6).2 But the [882]*882Board’s finding that Brennan was not an “exclusively temporary” employee is supported by substantial evidence, including the number of hours Brennan had worked, his continuing relationship with the union, and his work history with Flowline. The Board’s interpretation of the statutory language is also consistent with the legislative intent regarding the category of “exclusively temporary” workers. This category is intended to apply to those persons who take on the occasional job but who otherwise do not participate significantly in the workforce in light of the fact that “many workers in the state choose a subsistence lifestyle and are only occasionally, sporadically, or on a part-time basis members of the workforce.” 3

Flowline’s second argument concerns the Board’s finding that AS 23.30.220(a)(4)(A), rather than subsection (a)(4)(B), was applicable to Brennan’s compensation calculation.4 But the Board’s application of subsection (a)(4)(A) to Brennan’s situation is supported by substantial evidence given that he had been employed by Flowline for more than thirteen calendar weeks, with stoppages only for interruptions consistent with the nature of the work he performed.

[2] Finally, Flowline complains about the Board’s use of the “fairness” language of Gilmore5 in its decision of February 24, 2003 and argues that the Board used an improper test to decide Brennan’s case. But it is clear from the Board’s decision that it was well aware that the Gilmore test and related tests may not be applied to the posH995 version of the statute after our decision in Dougan v. Aurora Electric, Inc.6 The Board properly discussed which provision of the new statute applies to Brennan’s case. And although the Board’s use of language from decisions which no longer apply to the amended statute may seem confusing, it is clear from the context of the Board’s language that the Board used it as a shorthand method to indicate its interpretation of the statute’s legislative purpose. That purpose itself retains the fairness language, as it is the legislature’s intent that the statute be used to “fix a fair approximation of an employee’s probable future earning capacity during a period of temporary partial or temporary total disability.”7 As we pointed [883]*883out in Gilmore, a fair approximation of a claimant’s future earning capacity lost due to the injury is the “essential component of the basic compromise underlying the Workers’ Compensation Act — the worker’s sacrifice of common law claims against the employer in return for adequate compensation without the delay and expenses inherent in civil litigation.”8 Despite subsequent amendments to the statute aimed at increasing the efficiency and predictability of the compensation process, this compromise, and the fairness requirements it engenders, provide the context for interpreting the Workers’ Compensation Act.

For these reasons and those discussed in Judge Tan’s attached decision, we AFFIRM the application of AS 23.30.220(a)(4)(A) to the calculation of Brennan’s compensation rate.

APPENDIX A

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA

THIRD JUDICIAL DISTRICT AT ANCHORAGE

FLOWLINE OF ALASKA and ALASKA NATIONAL INSURANCE COMPANY, Appellants, v. VINCENT BRENNAN and ALASKA WORKERS’ COMPENSATION BOARD, Appellees.

VINCENT BRENNAN, Cross-Appellant, v. FLOWLINE OF ALASKA and ALASKA NATIONAL INSURANCE COMPANY, Cross-Appellees.

Case No. 3AN-03-5882 Cl

DECISION ON APPEAL

INTRODUCTION

This matter is before the court after remand to the Alaska Workers’ Compensation Board (Board) for consideration of the Alaska Supreme Court decision in Dougan v. Aurora Electric Inc.1 In 2002, this court remanded the case after the Dougan decision, to allow the Board to review a new authority on point.

Appellants Flowline of Alaska and Alaska National Insurance Company (Flowline) appeal from the Decisions and Orders of the Board entered March 18, 2003 and March 28, 2003 modifying its decision entered February 24, 2003. Flowline is appealing the Board’s determination that, in accordance with Doug-an, Vincent Brennan (Brennan) was an hourly worker under AS 23.30.220(a)(4)(A) rather than an exclusively temporary worker under AS 23.30.220(a)(6).

Flowline contends that the Board erred as a matter of law and that the Board’s decision is not supported by substantial evidence. Because the findings are supported by substantial evidence and there was no error in the Board’s decision, the Board’s decision is AFFIRMED.

STANDARD OF REVIEW

The Supreme Court of Alaska has recognized at least four principal standards of review of administrative decisions. Those standards were discussed in the court’s 2002 decision and will not be discussed here. For the purposes of this appeal, two standards are relevant.

With regard to issues of law, such as statutory interpretation, this court must apply the substitution of judgment standard when the question of law on appeal does not involve administrative agency expertise or where the agency’s expertise is not particularly probative. Under the substitution of judgment standard, this court may substitute its own judgment for that of the Board even if the Board’s decision had a reasonable basis in law.2

[884]*884Next, regarding issues of fact, this court must affirm an agency fact determination if the decision is supported by substantial evidence. Substantial evidence is “such relevant evidence as a reasonable person might accept as adequate to support a conclusion.”3

FACTS

On March 5, 1999, while working as a laborer for Flowline, Brennan suffered a back injury and was entitled to time loss benefits.4 Flowline initially paid Brennan’s weekly compensation rate at the statutory minimum, based on a determination that Brennan was a seasonal, temporary worker.

Brennan had worked for Flowline off and on since November of 1998 until his injury in March 1999. Brennan testified that it was his understanding that he would work with Flowline full time with intermittent interruptions due to weather conditions, equipment breakdowns, and other factors.

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Related

Handley v. State, Department of Revenue
838 P.2d 1231 (Alaska Supreme Court, 1992)
Thompson v. United Parcel Service
975 P.2d 684 (Alaska Supreme Court, 1999)
Gilmore v. Alaska Workers' Compensation Board
882 P.2d 922 (Alaska Supreme Court, 1994)
Hammer v. City of Fairbanks
953 P.2d 500 (Alaska Supreme Court, 1998)
Dougan v. Aurora Electric Inc.
50 P.3d 789 (Alaska Supreme Court, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
129 P.3d 881, 2006 WL 361816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flowline-of-alaska-v-brennan-alaska-2006.