Lively v. MBPXL Corp.

638 P.2d 999, 7 Kan. App. 2d 204, 1982 Kan. App. LEXIS 140
CourtCourt of Appeals of Kansas
DecidedJanuary 14, 1982
DocketNo. 53,159
StatusPublished
Cited by4 cases

This text of 638 P.2d 999 (Lively v. MBPXL Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lively v. MBPXL Corp., 638 P.2d 999, 7 Kan. App. 2d 204, 1982 Kan. App. LEXIS 140 (kanctapp 1982).

Opinion

Abbott, J.:

This is an appeal in a workers’ compensation case. At issue is the validity of a temporary order, entered after a preliminary hearing held in accordance with K.S.A. 1980 Supp. 44-534a, requiring the Kansas Workmen’s Compensation Fund to pay temporary total disability benefits and medical expenses to the claimant. The dispute is between the employer, MBPXL Corporation (MBPXL), and the Kansas Workmen’s Compensation Fund (Fund). The injured worker is not a party.

Procedurally, the case arose in the following manner: The claimant requested a preliminary hearing pursuant to K.S.A. 1980 Supp. 44-534a. The administrative law judge ordered MBPXL to pay temporary total disability benefits and medical expenses. The subsequent deposition of Dr. Thomas W. Kneidel led MBPXL to believe it had no obligation to the claimant under the Workmen’s Compensation Act, and that either the claimant was entitled to receive compensation from the Fund or he was not entitled to receive compensation from anyone. MBPXL thereupon filed a motion requesting that benefits to the claimant be terminated. That motion was denied by the administrative law judge, but responsibility for the payments was transferred to the Fund.

The Fund requested a director’s review; the Workers’ Compensation Director reversed the administrative law judge and ordered MBPXL to pay the benefits. The director reasoned:

“Although Director’s Rule 51-15-2 provides that a preliminary award may be entered against the Workmen’s Compensation Fund, that rule does not appear to [205]*205contemplate the type of case presently before the Director. The rule apparently contemplates cases in which there is no employer that can be found and brought before the Administrative Law Judge or an employer who does not have the present ability to pay compensation. It could possibly apply to a case in which it appears without doubt that the disability is clearly attributable to a pre-existing condition. This would be an exceptional case. The respondent may be entitled to some relief from the Workmen’s Compensation Fund, however, in order to arrive at that conclusion, it is generally necessary to present extensive evidence on medical issues in the case. Preliminary awards do not contemplate a complete trial of an issue such as the liability of the Workmen’s Compensation Fund. The statute providing for preliminary awards (K.S.A. 44-534a) provides that the only two issues to be heard on the preliminary hearing are whether the claimant is entitled to temporary total disability and whether he is entitled to be provided medical treatment at the employer’s expense. The law does not specifically state that the Workmen’s Compensation Fund liability is an issue for trial at a preliminary hearing. The Director’s Rule allowing an award against the Workmen’s Compensation Fund following a preliminary hearing should generally come into play when it is necessary because of no solvent employer or in some unusual instance if it is obvious that the Fund is responsible.

“The Director feels that it is questionable to say that the award against the Fund would exceed the authority of the Administrative Law Judge, however, the Director feels that it is better practice not to order payment by the Fund except as set out above.”

MBPXL appealed to the Sedgwick County District Court from the director’s award. The trial judge reversed the director and reinstated the award of the administrative law judge. He held that preliminary orders are not appealable or reviewable by the Workers’ Compensation Director or a district court except in instances where the administrative law judge did not have jurisdiction to enter the preliminary order. This appeal by the Fund followed.

Our Supreme Court has stated that “[t]he Workmen’s Compensation Act is complete and exclusive within itself in establishing procedures covering every phase of the right to compensation and of the procedure for obtaining and enforcing it, including procedures which pertain to appeals . . . .” Kissick v. Salina Manufacturing Co., Inc., 204 Kan. 849, Syl. ¶ 3, 466 P.2d 344 (1970). At issue in this case is K.S.A. 1980 Supp. 44-534a. Thus, we must look to the act itself for guidance.

K.S.A. 1980 Supp. 44-534a provides in pertinent part that:

“(a) .... Upon a preliminary finding that the injury to the employee is compensable and in accordance with the facts presented at such preliminary hearing, the director or administrative law judge may make a preliminary award of medical and temporary total disability compensation to be in effect pending the [206]*206conclusion of a full hearing on the claim. . . . No such preliminary findings or preliminary awards shall be appealable by any party to the proceedings, and the same shall not be binding in a full hearing on the claim, but shall be subject to a full presentation of the facts.” (Emphasis supplied.)

The director, citing as authority the above statute and his authority to adopt and promulgate such rules and regulations as he shall deem necessary for the purposes of administering and enforcing the provisions of the Workmen’s Compensation Act (K.S.A. 1980 Supp. 44-573), adopted two regulations. The Fund argues that those regulations, K.A.R. 51-15-2 and 1980 Supp. 51-3-5a, go beyond the director’s rule-making authority, that they are contrary to statutory law and are in conflict with other rules made by the director. The pertinent parts of the challenged rules are: “The examiner may award compensation against the workmen’s compensation fund following a preliminary hearing if the fund was properly impleaded and given the statutory notice of the hearing.” K.A.R. 51-15-2. “Where an examiner has entered a preliminary award, no director’s review pursuant to K.S.A. 44-551, shall be entertained except where it is believed the examiner did not have jurisdiction to enter the award.” K.A.R. 1980 Supp. 51-3-5a.

The Fund argues that K.A.R. 1980 Supp. 51-3-5a is in direct conflict with K.S.A. 1980 Supp. 44-551 and its counterpart K.A.R. 51-18-2. That statute and the director’s rule provide that all acts, findings, awards, decisions, rulings or modifications of findings or awards made by an administrative law judge are subject to the director’s review and approval upon written request of any interested party. The Fund contends that if the legislature had intended for a preliminary hearing to be nonreviewable by the director, the legislature would have amended K.S.A. 1980 Supp. 44-551. The Fund also contends the prohibition against appeals of a preliminary award in K.S.A.

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Bluebook (online)
638 P.2d 999, 7 Kan. App. 2d 204, 1982 Kan. App. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lively-v-mbpxl-corp-kanctapp-1982.