Grinnell v. Industrial Commission

677 P.2d 287, 138 Ariz. 124, 1983 Ariz. App. LEXIS 654
CourtCourt of Appeals of Arizona
DecidedNovember 1, 1983
DocketNo. 1 CA-IC 2751
StatusPublished
Cited by2 cases

This text of 677 P.2d 287 (Grinnell 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
Grinnell v. Industrial Commission, 677 P.2d 287, 138 Ariz. 124, 1983 Ariz. App. LEXIS 654 (Ark. Ct. App. 1983).

Opinion

OPINION

FROEB, Judge.

This is a review of a denial of a petition to reopen based on new, additional or previously undiscovered disability or condition. We find that the petitioner is precluded from reopening her claim for failing to comply with A.R.S. § 23-1023(C) and affirm the award of the Industrial Commission.

On March 24, 1976, petitioner Mary Ann Grinnell sustained injuries in a car accident in the course of and arising out of her employment with respondent employer, Ken Sewell, Inc. This accident gave rise to a claim against a third party. Petitioner filed both a claim for workers’ compensa[126]*126tion benefits and a tort action in negligence against the third party.

Petitioner received temporary benefits under the workers’ compensation statute, which were terminated September 3, 1976, with a finding of no permanent medical impairment or disability. Petitioner was subsequently granted reopening of her claim and she received additional temporary benefits until a Notice of Claim Status issued on August 30, 1978, again terminating temporary benefits and active medical care, finding no permanent disability.

On January 31, 1980, petitioner’s third party claim was settled, without notification of or approval by the carrier, for $36,-000.00.

A second petition to reopen filed January 23, 1980, was denied and became final. A third petition to reopen, filed March 27, 1981, was also denied. Following a hearing, the administrative law judge issued his Decision Upon Hearing and Findings and Award dismissing the petition to reopen for lack of jurisdiction. This petition for special action — Industrial Commission followed.

We are presented with two issues: 1) Is petitioner precluded from reopening her workers’ compensation claim because she settled the third party claim without approval of the carrier, in violation of A.R.S. § 23-1023(C)? See Hornback v. Industrial Commission, 106 Ariz. 216, 474 P.2d 807 (1970); 2) Is Hornback still applicable in light of statutory changes in A.R.S. § 23-1023(C)?

Resolution of the first issue requires an examination of Hornback v. Industrial Commission which sets forth the judicial interpretation of A.R.S. § 23-1023. In that case, the Arizona Supreme Court ruled that when a compensation claimant is injured by a third party and settles the claim against the third party without first obtaining approval of the insurance carrier, the employee is not entitled to reopen his workers’ compensation claim to seek a deficiency. Approval of the settlement is required by A.R.S. § 23-1023(C), ruled the court, which at the time pertinent to that case, provided as follows:

C. If the election is to proceed against such other person, the compensation fund or person shall contribute only the deficiency between the amount actually collected and the compensation provided or estimated by the provisions of this chapter for such case. Compromise of any claim by the employee or his dependents at an amount less than the compensation provided for shall be made only with written approval of the commission, or of the person liable to pay the claim.1

In response to the employee’s argument that the court’s ruling would prevent employees from seeking additional compensation for injuries which may reveal themselves years after the accident, the court stated:

We recognize that there may be significant differences between this situation and one in which an employee seeks to reopen a claim for a disability which did not become apparent until long after the settlement of the third party suit.

106 Ariz. at 221, 474 P.2d at 812.

Petitioner argues that after the settlement with the third party had been effectu[127]*127ated, her back condition deteriorated requiring another surgery including a spinal fusion. Furthermore, she developed a severe psychiatric dysfunction, diagnosed by her psychiatrist as dysthymic disorder (depressive neurosis). Both of these problems occurred in 1981, long after the third party claim was settled and, therefore, petitioner argues, her situation falls outside the rule espoused in Hornback, and within the exception recognized in that case, that allows for reopening of a claim for a disability that did not become apparent until after the third party settlement.

Respondents employer and carrier argue that there is no evidence in the instant record to distinguish this case from Horn-back and, thus, the administrative law judge correctly dismissed the third petition to reopen. Respondents argue that the exceptional situation envisioned by the court in Hornback which would not preclude reopening is one in which a condition arguably related to an industrial injury does not manifest itself until long after the approved settlement has been effected.

We agree with respondents that the facts in this case do not fall within the exception contemplated by the court in Hornback. As noted by the administrative law judge in his Decision and Findings and Award, with respect to the back condition, this petition to reopen is essentially the same as the second petition filed on January 23,1980, which preceded the settlement entered into on January 31,1980, and, thus, represents a condition envisioned at the time of the third party settlement.

A jurisdictional hearing was held before the Industrial Commission on October 6, 1981, during which petitioner and Dr. Martin, a neurosurgeon who treated petitioner and performed her second surgery, testified. Examining the testimony of these two witnesses, it is clear that petitioner’s additional back problems following the third party settlement, although perhaps constituting a worsening of her condition, do not constitute a disability “which did not become apparent until long after the settlement of the third party suit.” Hornback v. Industrial Commission, 106 Ariz. at 221, 474 P.2d at 812. Petitioner testified that her low back and upper back injuries have continued all along since 1978 up until the time of the hearing, in varying degrees of intensity. Dr. Martin testified that he performed the second surgery on petitioner in which he removed the disc at L4-5 and did a fusion. The original surgery, conducted by Dr. Frankel in 1979, consisted of a discectomy and laminectomy of the same disc. Dr. Martin explained that because the removal of the disc and fusion is a bigger operation than a laminectomy, many surgeons will not do a fusion during the first surgery. Dr. Martin further testified that it was impossible to know just when the additional disc pathology occurred, but that it could have occurred as early as the day following the first surgery in 1979.

Regarding petitioner’s psychological problems, she had been under psychiatric care for two years prior to psychiatrist Dr.

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Cite This Page — Counsel Stack

Bluebook (online)
677 P.2d 287, 138 Ariz. 124, 1983 Ariz. App. LEXIS 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grinnell-v-industrial-commission-arizctapp-1983.