Liberty Northwest Insurance v. Gordineer

945 P.2d 107, 150 Or. App. 136, 1997 Ore. App. LEXIS 1178
CourtCourt of Appeals of Oregon
DecidedSeptember 17, 1997
Docket94-04853, 94-00533, 93-14467; CA A91688
StatusPublished
Cited by1 cases

This text of 945 P.2d 107 (Liberty Northwest Insurance v. Gordineer) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Northwest Insurance v. Gordineer, 945 P.2d 107, 150 Or. App. 136, 1997 Ore. App. LEXIS 1178 (Or. Ct. App. 1997).

Opinion

LANDAU, P. J.

Employer M.O. Nelson & Sons (Nelson) sought judicial review of an order of the Workers’ Compensation Board (Board) that set aside Nelson’s responsibility denial. We affirmed without opinion. Liberty Northwest Insurance Corp. v. Gordineer, 144 Or App 495, 928 P2d 364 (1996). Claimant now petitions for attorney fees on appeal. We allow the petition and award claimant $3,500 in attorney fees.

The facts relevant to our disposition of this petition are taken from the Board’s findings. In January 1979, claimant compensably injured his lower back while working for employer H & B Trucking (H & B). He became medically stationary in June 1980. The July 1980 determination order closing his claim awarded him 10 percent unscheduled permanent disability. The claim was later reopened, and claimant underwent further treatment. The claim was reclosed in November 1984, and claimant was awarded an additional 50 percent unscheduled permanent disability. In May 1986, claimant compensably injured bis left shoulder and back while working for employer Oceanway Transportation, Inc. (Oceanway). In August 1987, claimant’s Oceanway claim was closed, with claimant receiving temporary disability, but no permanent disability.

On September 28, 1993, while working as a truck driver for Nelson, claimant was loading his trailer when he was hit in the right eye by a tree limb. He recoiled, lost his balance, and fell onto his left side and back. Although he received intervening treatments for his eye injury, claimant did not mention that the incident had also caused additional back pain until a doctor’s appointment on October 5, 1993. On October 13,1993, claimant filed an injury claim alleging eye and back injuries. On December 8, 1993, Nelson denied responsibility for claimant’s back injury and asserted that Oceanway was responsible. On March 17,1994, H & B similarly denied responsibility for the back injury. On May 31, 1994, Oceanway advised claimant that “this is a denied claim and as a matter of law [claimant] has no aggravation rights in this claim.” Claimant filed separate requests for hearing on the denials of responsibility issued by H & B and Nelson. He also filed a hearing request against Oceanway on issues of [139]*139temporary disability, but not of responsibility. The Director declined to issue an ORS 656.307 order.

The Board found that the September 28, 1993, incident was the major contributing cause of claimant’s subsequent low back condition and resulting disability. Because claimant had sustained a new compensable injury, the Board concluded, responsibility had shifted from H & B to Nelson. See ORS 656.308(1). The Board set aside Nelson’s responsibility denial.

Claimant requested an award of $10,822.50 in attorney fees under ORS 656.386(1), which provides for an award of attorney fees when a claimant finally prevails against an employer’s refusal to pay compensation on the express ground that the condition or injury is not compensable. Claimant argued that, although neither H & B nor Nelson had denied compensability, the statute still applied, because the effect of their responsibility denials would have been to deny claimant any compensation, given that claimant had not filed a claim against Oceanway. The Board agreed and awarded claimant $8,000 in attorney fees.

Meanwhile, the 1995 legislature amended the workers’ compensation statutes by, among other things, enacting a new provision at what is now ORS 656.308(2)(d):

“Notwithstanding ORS 656.382(2), 656.386 and 656.388, a reasonable attorney fee shall be awarded to the injured worker for the appearance and active and meaningful participation by an attorney in finally prevailing against a responsibility denial. Such a fee shall not exceed $1,000 absent a showing of extraordinary circumstances.”

That amendment applies to pending cases. See generally Volk v. America West Airlines, 135 Or App 565, 572-73, 899 P2d 746 (1995), rev den 322 Or 645 (1996). Accordingly, on its own motion, the Board withdrew its order awarding attorney fees to consider the effect, if any, of ORS 656.308(2)(d). Claimant argued that the amendment did not apply, because the case represented effectively a denial of compensability, not merely a denial of responsibility. The Board concluded that it was not necessary to decide that question, because even if the case involved a responsibility denial, extraordinary circumstances justified the $8,000 fee.

[140]*140Nelson petitioned for judicial review, assigning error only to the portion of the Board’s order setting aside Nelson’s responsibility denial; Nelson did not assign error to the award of attorney fees. Following our affirmance, claimant now moves for an award of an additional $6,912.50 in attorney fees, once again under ORS 656.386(1) and also under ORS 656.382(2), which provides for an award of attorney fees to a claimant on an employer appeal, if the court concludes “that the compensation awarded to a claimant should not be disallowed or reduced.” Nelson opposes the award, citing ORS 656.308(2)(d), arguing that, under the new statute, claimant’s award must be limited to $1,000. Claimant replies that the new statute does not apply, because this effectively is a compensability case, and ORS 656.308(2)(d) applies only to responsibility denials. In fact, claimant argues that, because the Board agreed with him on that point, we are bound to follow it as a matter of “res judicata.”

We first address whether ORS 656.308(2)(d) applies to claimant’s petition. We conclude that it does. The statute applies to “responsibility denials,” and there is no debate that Nelson’s sole defense to the claim was its denial of responsibility.1 We find unpersuasive claimant’s arguments that, either because the Board said so or because the claim is, in its pragmatic essence, not really a responsibility denial, ORS 656.386(1) and ORS 656.382(2) govern this motion and that ORS 656.308(2)(d) is irrelevant. As for the Board’s prior decision, we understand claimant’s reliance on what he characterizes as “res judicata”

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Cite This Page — Counsel Stack

Bluebook (online)
945 P.2d 107, 150 Or. App. 136, 1997 Ore. App. LEXIS 1178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-northwest-insurance-v-gordineer-orctapp-1997.