Holder v. Industrial Commission of Arizona

609 P.2d 1066, 125 Ariz. 366, 1980 Ariz. App. LEXIS 425
CourtCourt of Appeals of Arizona
DecidedFebruary 19, 1980
Docket1 CA-IC 2228
StatusPublished
Cited by2 cases

This text of 609 P.2d 1066 (Holder v. Industrial Commission of Arizona) 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
Holder v. Industrial Commission of Arizona, 609 P.2d 1066, 125 Ariz. 366, 1980 Ariz. App. LEXIS 425 (Ark. Ct. App. 1980).

Opinion

OPINION

JACOBSON, Judge.

The issue presented in this review of an award of the Industrial Commission is whether a deceased workman’s natural children who were legally adopted by another prior to the workman’s industrial injury which resulted in death are entitled to death benefits under the Workmen’s Compensation Act.

The facts giving rise to this issue were stipulated and therefore not disputed. The decedent, John R. Holder, and Alice Pringle (now Cuddeby) were married on July 19, 1964. During the course of that marriage, two children were born: Robert David Holder and Kristy Ann Holder (the minor claimants here). This marriage ended in divorce and Alice married Gordon W. Cuddeby. On September 4, 1970, Gordon Cuddeby formally adopted Robert David and Kristy Ann and their names were changed to Robert David Cuddeby and Kristy Ann Cuddeby. At the time of John Holder’s death, these children were being supported by Gordon Cuddeby.

On October 5,1976, John Holder, while in the course and scope of his employment as a crop duster for Valley Sprayers and Dusters Service, Inc., was fatally injured m an airplane crash.

Alice Cuddeby, as guardian ad litem, claimed death benefits for the minor claimants as the result of the death of their natural father. This claim was denied by the carrier and upon these stipulated facts the hearing officer entered an award denying benefits on the basis that the adoption of the decedent’s children by another severed the rights of those children to a conclusive presumption of dependency under A.R.S. § 23-1064(A). After affirmance on administrative review, review of that award was sought in this court.

Arizona Revised Statutes § 23-1064 provides as follows:

“A. ■ The following persons are conclusively presumed to be totally dependent for support upon a deceased employee:
“1. A wife upon a husband whom she has not voluntarily abandoned at the time of the injury.
“2. A husband upon a wife whom he has not voluntarily abandoned at the time of the injury.
“3. A natural, posthumous or adopted child under the age of eighteen years, or over that age if physically or mentally incapacitated from wage earning, upon the injured parent. Stepparents may be regarded as parents, if dependent, and a stepchild as a natural child if dependent.
“B. Questions of dependency and the extent thereof shall be determined as of the date of the injury to the employee and the dependent’s right to any death benefit shall become fixed as of such time irrespective of any subsequent change in conditions, and the death benefits shall be directly recoverable by and payable to the dependent entitled thereto.”

It is basically claimants’ position that this statute is clear and unambiguous; that it provides a conclusive presumption that “natural” children are totally dependent; and that since the claimants are “natural” children of the deceased they are automatically entitled to benefits.

*368 On the other hand, the respondents argue that A.R.S. § 23-1064 must be read in conjunction with all the adoption statutes and specifically A.R.S. § 8-117, which provides:

“A. Upon entry of the decree of adoption, the relationship of parent and child and all the legal rights, privileges, duties, obligations and other legal consequences of the natural relationship of child and parent shall thereafter exist between the adopted person and the adoptive petitioner the same as though the child were born to the adoptive petitioner in lawful wedlock. The adopted child shall be entitled to inherit real and personal property from and through the adoptive petitioner and the adoptive petitioner shall be entitled to inherit real and personal property from and through the adopted child the same as though the child were born to the adoptive petitioner in lawful wedlock.
“B. Upon entry of the decree of adoption, the relationship of parent and child between the adopted person and the persons who were his parents just prior to the decree of adoption shall be completely severed and all the legal rights, privileges, duties, obligations and other legal consequences of the relationship shall cease to exist, including the right of inheritance, except that where the adoption is by the spouse of the child’s parent, the relationship of the child to such parent shall remain unchanged by the decree of adoption.”

We first note that A.R.S. § 23-1064 is not as free from ambiguity as the claimants would assume. While the statute provides, “the following persons are conclusively presumed to be totally dependent,” listed are stepparents 1 and stepchildren “if dependent.” (Emphasis added). Thus, listed in the statute itself are individuals who, in order to obtain benefits, must be factually dependent as compared to conclusively presumed dependent.

Also, to apply claimants’ definition of “natural” child, would serve to create a relationship which never changes, resulting in unequal treatment of other “conclusively presumed” dependents. Under claimants’ definition, a natural child, although adopted before the injury, would receive benefits, because the relationship of child to parent would never change. An equally conclusively presumed dependent is an adopted child. However that parent/child relationship is one which is legally created and its legal status is subject to change. Thus an adopted child who is readopted by another prior to injury and whose legal relationship to its former adoptive parents would terminate, would not, under A.R.S. § 23-1064(B), be entitled to benefits. Why the legislature would make such a distinction escapes us.

We point these matters out simply to emphasize that this statute of necessity requires interpretation and integration with both the general scheme of the Workmen’s Compensation Act and the rest of the general law dealing with legally recognized relationships.

The underlying thrust of Workmen’s Compensation law was to relieve the individual workman and his dependents from the loss sustained by industrial injuries and place the burden upon industry as a whole. Hannon v. Industrial Commission, 9 Ariz. App. 231, 451 P.2d 44 (1969). The theory is to compensate the workman for financial loss and loss of earning capacity. Maness v. Industrial Commission, 102 Ariz. 557, 434 P.2d 643 (1967); Inspiration Consolidated Copper Co. v. Smith, 78 Ariz. 355, 280 P.2d 273

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Cite This Page — Counsel Stack

Bluebook (online)
609 P.2d 1066, 125 Ariz. 366, 1980 Ariz. App. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holder-v-industrial-commission-of-arizona-arizctapp-1980.