Michael Conklin, V. Boeing Co.

Court of Appeals of Washington·Decided October 9, 2023·No. 84488-1·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON MICHAEL CONKLIN, No. 84488-1-I

Appellant, DIVISION ONE v.

THE BOEING COMPANY, and UNPUBLISHED OPINION WASHINGTON STATE DEPARTMENT OF LABOR & INDUSTRIES,

Respondents.

SMITH, C.J. — Michael Conklin filed a workers’ compensation claim with the Department of Labor and Industries in 2011 following an onset of sudden pain while working as a plane mechanic at Boeing. After years of contentious litigation, the Department found that Conklin had misrepresented the severity of his condition and ordered him to pay back the improperly obtained benefits. A few months later, the Department directed Boeing to continue paying Conklin time loss benefits, to accept responsibility for one of Conklin’s conditions, and to authorize and pay for a rehabilitative surgery. Both parties appealed to the Board of Industrial Insurance Appeals. The Board affirmed the order directing Boeing to accept responsibility for Conklin’s condition but reversed the orders authorizing surgery and directing payment. Conklin appealed to the superior court, which affirmed the Board’s decision and closed Conklin’s claim.

On appeal, Conklin makes various challenges to determinations made by the Board and superior court, arguing that the latter exceeded its scope of review by reaching issues not properly before the Board. Because all the issues Conklin

raises were before the Board, and therefore, the superior court, we affirm.

FACTS

2015 Proceedings

Michael Conklin began working for Boeing as a structure mechanic in January 2011. In April 2011, Conklin was cleaning the inside of an airplane fuselage when he suddenly experienced an onset of full-body pain. Conklin filed a claim with the Department of Labor and Industries (the Department) shortly thereafter. In the meantime, Conklin continued to work light duty jobs with Boeing. About a year after Conklin filed his claim, in May 2012, the Department issued an order closing the claim. Conklin appealed the claim closure.

In 2015, following a jury trial in Snohomish County Superior Court, the court entered a judgment and order concluding that Conklin’s lumbar spondylolisthesis, lumbar spondylolysis, and degenerative cervical spine conditions were proximately caused or aggravated by his occupational disease.1

1 “Occupational disease” is defined clinically and legally. A condition must satisfy three criteria to qualify as an occupational disease: (1) a physician must present an opinion that on a more probable than not basis, work conditions are a cause of the disease or have aggravated a preexisting condition; (2) objective medical findings support the diagnosis; and (3) the disease must arise “naturally and proximately” out of employment. W ASH. DEP’T OF LAB. & INDUS., OCCUPATIONAL DISEASE CLAIMS IN W ORKER’S COMPENSATION 2 (Feb. 2018), https:// www.lni.wa.gov/forms-publications/F252-117-000.pdf [https://perma.cc/Z58W- GM9S]; RCW 51.08.140.

After the judgment and order, Conklin’s claim remained open and he continued to seek treatment and benefits for his conditions through 2017.

Present Appeal

Three Department orders form the basis of the present appeal. First, on July 20, 2018, the Department determined that Conklin willfully misrepresented his conditions to obtain $95,236.76 in time loss compensation, ordered Conklin to repay that amount, assessed a 50 percent penalty for willful misrepresentation, and reversed its prior decision to close the claim. The Department came to this conclusion after viewing evidence collected by Boeing’s private investigators indicating that Conklin’s conditions were not as dire as he had previously represented. Second, on August 15, 2018, the Department ordered Boeing to pay time loss compensation to Conklin from June 9, 2017 through August 31, 2017. The Department did not explain its reasoning for this conclusion. Third, on August 17, 2018, the Department ordered Boeing to authorize and pay for a C5-6 and C6-7 cervical discectomy and fusion. The Department also did not explain why it issued this order. However, this treatment could have addressed problems caused by Conklin’s cervical myelopathy, a condition he claimed was related to or exacerbated by his occupational disease. Conklin appealed the July 20 order finding he willfully misrepresented his conditions. Boeing appealed all three orders, seeking claim closure.

The appeals were initially reviewed by an industrial appeals judge, who concluded, in a proposed decision and order, that although Conklin misrepresented his physical limitations, Boeing failed to establish that Conklin

actually received the benefits alleged. The judge reversed the Department’s finding of willful misrepresentation, but determined that Conklin was not entitled to time loss compensation between June 1, 2015 and June 8, 2017. The judge also denied the cervical discectomy and fusion procedures, but kept the claim open for a lumbar injection to further treat Conklin’s lumbar spondylolisthesis and spondylosis. Both parties petitioned the Board of Industrial Insurance Appeals (Board) for review by a three judge panel.2 The Board held that Conklin misrepresented his physical limitations, but that Boeing and the Department failed to prove that Conklin received $95,236.76 in time loss benefits during the period at issue. The Board reversed the Department’s finding of willful misrepresentation and clarified that Conklin did not owe an overpayment for June 1, 2015 through June 8, 2017. The Board also concluded that Conklin’s preexisting cervical spine conditions and lumbar spondylolisthesis and spondylosis were, at most, only temporarily aggravated by the conditions of his employment. The Board concluded that those conditions returned to pre-injury status “long before July 20, 2018.” It held that the Department should not have authorized the C5-6 and C6-7 cervical discectomy and fusion, that Conklin’s claim-related conditions were fixed and stable, and that the claim must be closed.

Conklin appealed the Board’s decision and order to Snohomish County Superior Court. The superior court affirmed the Board’s decision and order. Conklin appeals.

2 The three judge panel is referred to by the parties as the “Board.”

ANALYSIS

Scope of Review

The Industrial Insurance Act (Act), chapter 51 RCW, confers a “purely appellate function” on the Board and the superior court. Kingery v. Dep’t of Lab. & Indus., 132 Wn.2d 162, 171, 937 P.2d 565 (1997); RCW 51.52.060; RCW 51.52.115. The Board hears appeals de novo, and its authority is “strictly limited to reviewing the specific Department action” from which the parties appealed. Kingery, 132 Wn.2d at 171. The Board may only consider and decide questions included in the appealed order or raised by the notice of appeal. Cowlitz Stud Co. v. Clevenger, 157 Wn.2d 569, 573, 141 P.3d 1 (2006); Hanquet v. Dep’t of Lab. & Indus., 75 Wn. App. 657, 661, 879 P.2d 326 (1994).

On appeal to the superior court, the Board’s decision and order is presumed correct and the party challenging that decision bears the burden of proof. Gorre v. City of Tacoma, 184 Wn.2d 30, 36, 357 P.3d 625 (2015); RCW 51.52.115. The superior court’s review is also de novo, but it relies exclusively on the Board’s record and can decide only matters previously determined by the Board or the Department. RCW 51.52.115; Malang v. Dep’t of Lab. & Indus., 139 Wn. App. 677, 683, 162 P.3d 450 (2007). The court’s review is further confined to issues of law or fact properly included in the notice of appeal to the Board, or in the record of proceedings before the Board. RCW 51.52.115. “Thus, a superior court’s authority to determine an issue in a workers’ compensation case ‘depends upon whether or not the Board properly addressed that issue.’ ” Matthews v. Dep’t of Lab. & Indus., 171 Wn. App. 477, 491, 288

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