Gibbons v. Industrial Commission

3 P.3d 1028, 197 Ariz. 108, 309 Ariz. Adv. Rep. 34, 1999 Ariz. App. LEXIS 200
CourtCourt of Appeals of Arizona
DecidedNovember 26, 1999
DocketNo. 1 CA-IC 99-0076
StatusPublished
Cited by14 cases

This text of 3 P.3d 1028 (Gibbons v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gibbons v. Industrial Commission, 3 P.3d 1028, 197 Ariz. 108, 309 Ariz. Adv. Rep. 34, 1999 Ariz. App. LEXIS 200 (Ark. Ct. App. 1999).

Opinion

OPINION

GERBER, Judge.

¶ 1 This matter is a statutory special action review of an Arizona Industrial Commission (“ICA”) award and decision upon review denying relief requested under Arizona Revised Statutes Annotated (“A.R.S.”) sections 23-1061(J) (1995) and 23-1068(B) against a disability insurer (“Standard”) that paid petitioner Dorothy Gibbons (“Gibbons”) short-term disability benefits while her workers’ compensation claim was denied. The administrative law judge (“ALJ”) found in part that the ICA could never assert jurisdiction over a disability insurer. Without deciding that the ICA can never assert jurisdiction, we conclude more narrowly that jurisdiction requires a disability insurer to have claimed a direct payment from or a direct credit against a claimant’s workers’ compensation benefits. Because Standard never claimed such a direct payment or credit, the ICA could not assert jurisdiction over it. We explain the following reasons for affirming the award.

¶2 The essential facts are undisputed. Gibbons was a State of Arizona (“State”) employee. The State held group short-term disability insurance for its employees with Standard, under whose policy short-term dis[110]*110ability benefits and workers’ compensation benefits were mutually exclusive.

¶ 3 Gibbons filed a workers’ compensation claim which was initially denied and later accepted. The State then paid her retroactive workers’ compensation temporary disability benefits of $15,481.55. While the workers’ compensation claim was denied, she applied to Standard for short-term disability benefits. After notifying her that short-term disability benefits and workers’ compensation benefits were mutually exclusive and having her sign an agreement to repay all short-term disability benefits if her workers’ compensation claim were accepted, Standard paid Gibbons monthly benefits totaling $7,765.68. When the workers’ compensation claim subsequently was accepted, Standard relied on the mutually exclusive terms of the disability policy and the repayment agreement to demand that Gibbons repay all her short-term disability benefits. She refused and Standard threatened legal action. Standard never claimed a direct payment from or a direct credit against her workers’ compensation benefits.

¶ 4 Gibbons then requested an ICA investigation under A.R.S. section 23-1061(J) and section 23-1068(B). Relying on “common principles of equity, quantum meruit, unjust enrichment, and common fund principles,” she asserted that the amount she must repay Standard should be reduced by “at least an amount proportionate to the legal costs and attorneys [sic] fees the applicant is obligated to pay for pursuing this matter.” The ICA Claims Division declined to investigate, stating that it could not assert jurisdiction over Standard. Gibbons timely requested a hearing and moved to join Standard, who declined to appear. The ALJ refused to join Standard. Gibbons and the State then agreed to waive a hearing and the ALJ requested memoranda. The State notified the ALJ that it had no interest to defend, and Gibbons alone submitted a memorandum.

¶ 5 The ALJ then issued an award denying relief against Standard. The ALJ found in part that the ICA could never assert jurisdiction over a disability insurer such as Standard:

6. The Commission’s jurisdiction to adjudicate claims for compensation, as provided by A.R.S. § 23-921(A) confers upon the Commission exclusive jurisdiction to determine all issues of law and fact relating to a workers’ compensation claimant’s entitlement to compensation benefits. Rios v. Industrial Commission, 120 Ariz. 374, 586 P.2d 219 (App.1978). However, it has been recognized that the Commission does not have jurisdiction over parties other than the injured worker and the employer thereof and its workers’ compensation carrier: “[T]he Industrial Commission is not a court of general jurisdiction and there are no provisions in our statutes giving it jurisdiction over parties other than the employer, carrier and injured workman....” Arrowhead Press, Inc. v. Industrial Commission, 134 Ariz. 21, 24, 653 P.2d 371, 374 (App.1982).
7. Applicant’s post-hearing memorandum argues that A.R.S. § 23-1068(B) not only gives the Commission subject matter jurisdiction over the dispute regarding the amount of applicant’s liability to Standard for repayment of STD benefits but also personal jurisdiction over Standard. Applicant further submits that Moreno v. Industrial Commission, 164 Ariz. 374, 793 P.2d 131 (App.1990), supports her position that the Commission not only has subject matter jurisdiction of the dispute but has personal jurisdiction over Standard, too. I disagree.
8. Moreno’s facts are critically distinguishable from those here. In Moreno the Commission had personal jurisdiction over the self-insured employer, “an interested party” pursuant to A.R.S. § 23-901(9). The self-insured employer was the party in Moreno that was ordered to pay to an [sic] STD carrier amounts that the STD carrier had paid to the injured worker under the STD benefits policy. Although A.R.S. § 23 — 1068(B) provides that “any dispute as to the amount of the ... credit against the ... compensation benefits payable shall be resolved pursuant to the provisions of § 23-1061(J),” tacit in such statutory language is the requirement that the Commission may acquire personal jurisdiction over the parties. The Commission’s authority [111]*111to resolve A.R.S. § 23-1068(B) disputes extends only to “interested parties” as defined by A.R.S. § 23-901(9).

The ALJ summarily affirmed this award on administrative review.

¶ 6 Gibbons then timely filed this statutory special action. This court has jurisdiction under A.R.S. sections 12-120.21(A)(2) (1992),and 23-951(A), and Arizona Rules of Procedure for Special Actions 10 (1998). Although the State ’notified the ICA that it would not submit an answering brief, the ICA also did not file an answering brief. Consequently the matter has been submitted on Gibbons’ opening brief.

¶ 7 On review, we first address whether to treat the ICA’s failure to file an answering brief as a confession of error. Although the ICA generally may not appear as an advocate, it has discretion to appear when it has a “legitimate interest in appearing as an advocate ... to assist the Court in reaching a correct result where matters involving the general interest of the Commission in carrying out its statutory authority or policies are concerned.” Evertsen v. Industrial Comm’n, 117 Ariz. 378, 382-83,

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Bluebook (online)
3 P.3d 1028, 197 Ariz. 108, 309 Ariz. Adv. Rep. 34, 1999 Ariz. App. LEXIS 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibbons-v-industrial-commission-arizctapp-1999.