Graczyk v. Workers' Compensation Appeals Board

184 Cal. App. 3d 997, 229 Cal. Rptr. 494, 51 Cal. Comp. Cases 408, 58 A.L.R. 4th 1245, 1986 Cal. App. LEXIS 1956
CourtCalifornia Court of Appeal
DecidedAugust 8, 1986
DocketB015557
StatusPublished
Cited by42 cases

This text of 184 Cal. App. 3d 997 (Graczyk v. Workers' Compensation Appeals Board) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graczyk v. Workers' Compensation Appeals Board, 184 Cal. App. 3d 997, 229 Cal. Rptr. 494, 51 Cal. Comp. Cases 408, 58 A.L.R. 4th 1245, 1986 Cal. App. LEXIS 1956 (Cal. Ct. App. 1986).

Opinion

Opinion

LILLIE, P. J.

Petitioner Ricky D. Graczyk (applicant) seeks review of the decision of respondent Workers’ Compensation Appeals Board (Board) that he was not an employee of respondent California State University, Fullerton (CSUF) when injured in a football game while he was a student at CSUF. We conclude that the Board correctly determined applicant was not an employee of CSUF.

Applicant allegedly sustained injuries to his head, neck and spine while playing varsity college football for CSUF on September 9, 1978, as well as in the period from August 7, 1977, through November 27, 1978.

Trial of his application was bifurcated, and the matter was submitted on the issue whether he was an employee of CSUF within the meaning of the statutory definition of employee (Lab. Code, §§ 3351, 3352). 1

*1001 The evidence established that applicant enrolled as a student at CSUF in the fall of 1977, following completion of high school. Football scouts from CSUF and two other universities recruited him; however, he chose CSUF because it was “close to my mom and the rest of my family.” He commenced studies and playing football immediately upon enrollment.

Representatives of the CSUF football program encouraged applicant to apply for financial aid. During his first year as a student, he received financial aid, including a college opportunity grant of $1,100 a year from the state, a supplementary grant of approximately $800 from CSUF, and a student loan. Other than the student loan, the grants he received in the first year were based upon financial need and academic achievement, and were unrelated to athletic achievement.

In applicant’s second year at CSUF, he received an athletic scholarship in the amount of $1,600 a year, payable in monthly installments. The athletic coach determined recipients of athletic scholarships based on athletic progress and value to the football team; and the scholarship funds were raised by alumni and business groups. Applicant had intended to continue playing on the football team even had he not received the athletic scholarship. The scholarship was for a full year and could not be terminated unless the recipient quit the team, dropped out of school, or failed to maintain academic standards. The scholarship was intended to meet costs of room and board, but there was no control over the manner in which the recipient spent it. Applicant understood that it was to be used for student expenses, and he so used it.

The workers’ compensation judge found that applicant was an employee of CSUF, concluding in essence that he was an employee within the statutory definition of employee as interpreted in Van Horn v. Industrial Acc. Com. (1963) 219 Cal.App.2d 457 [33 Cal.Rptr. 169]; and that although section 3352, subdivision (k), excluding student athletes as employees, is constitutional, it was enacted in 1981 and could not properly be applied retroactively to deprive applicant of his vested right to employee status under the law existing at the time of his injury.

The Board granted reconsideration and found (in a two-to-one decision) that applicant was not an employee of CSUF. The Board’s determination was based on interpretation of the “relevant statutes defining ‘employee.’ ” Thus, the Board noted the general requirement (§ 3600) of the existence of “employment” as a prerequisite to workers’ compensation coverage, as well as the general statutory definition of “employee” (§ 3351) and the statutory definition of persons excluded from the general definition of employee (§ 3352). The Board concluded that the Legislature’s 1981 amendment of *1002 section 3352, adding subsection (k) thereto and expressly declaring the amendment retroactive, could properly be applied retroactively to exclude applicant from the statutory definition of an employee entitled to benefits under the workers’ compensation law.

The Board’s dissenting panel member stated that he “would find that Labor Code Section 3352(k) may not constitutionally be applied to deprive applicant of a vested right.”

In support of his contention that the Board erred in finding that he was not an employee of CSUF, applicant asserts he had a “vested right” in employee status under the law existing at the time of his injuries as established in Van Horn v. Industrial Acc. Com., supra, 219 Cal.App.2d 457, and hence he could not be deprived of it retroactively by the Legislature’s 1981 amendment to section 3352.

“ ‘The retroactive operation of a civil statute is by no means unusual, and no constitutional objection exists to such operation save where a vested right, or the obligation of a contract, is impaired.’” (Gordon H. Ball, Inc. v. State of California ex rel. Dept. Pub. Wks. (1972) 26 Cal.App.3d 162, 168 [102 Cal.Rptr. 637], quoting from McCann v. Jordan (1933) 218 Cal. 577, 579 [24 P.2d 457].) To determine whether applicant had a vested right of action, we must look to the unique nature of the workers’ compensation law in California.

California workers’ compensation law (§ 3200 et seq.) is a statutory system enacted pursuant to constitutional grant of plenary power to the Legislature to establish a complete and exclusive system of workers’ compensation. (Cal. Const., art. XIV, § 4; § 3201; 1 Herlick, Cal. Workers’ Compensation Law Handbook (2d ed. 1978) § 1.1, pp. 12-13; 1 St. Clair, Cal. Workers’ Compensation Law and Practice (3d ed. 1985) § 1.3, p. 2; 65 Cal.Jur.3d, Work Injury Compensation, §§ 1-2, pp. 20-23; Cal. Workers’ Compensation Practice (Cont.Ed.Bar 1985) § 1.3, p. 4; see Lowman v. Stafford (1964) 226 Cal.App.2d 31, 36 [37 Cal.Rptr. 681].) It is “an expression of the police power” (§ 3201) and has been upheld as a valid exercise of the police power. (Western Indemnity Co. v. Pillsbury (1915) 170 Cal. 686 [151 P. 398]; Pacific Employers Ins. Co. v. Industrial Acc. Com. (1963) 219 Cal.App.2d 634 [33 Cal.Rptr. 442]; see Alaska Packers Assn. v. Indus. Acc. Com. (1934) 1 Cal.2d 250 [34 P.2d 716]; 1 Herlick, Cal. Workers’ Compensation Law Handbook, supra, § 1.1, p. 13.)

The right to workers’ compensation benefits is “wholly statutory” (Johnson v. Workmen’s Comp. App. Bd. (1970) 2 Cal.3d 964, 972 [88 Cal.Rptr. 202, 471 P.2d 1002]; Ruiz v. Industrial Acc. Com. (1955) 45 *1003 Cal.2d 409, 414 [289 P.2d 229]), and is not derived from common law. (Carrigan v. California State Legislature (1959) 263 F.2d 560, 567; Coleman v. Silverberg Plumbing Co. (1968) 263 Cal.App.2d 74, 84-85 [69 Cal.Rptr. 158]; see

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184 Cal. App. 3d 997, 229 Cal. Rptr. 494, 51 Cal. Comp. Cases 408, 58 A.L.R. 4th 1245, 1986 Cal. App. LEXIS 1956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graczyk-v-workers-compensation-appeals-board-calctapp-1986.