Michigan Injured Workers v. Blanchard

647 F. Supp. 571, 1986 U.S. Dist. LEXIS 19471
CourtDistrict Court, W.D. Michigan
DecidedOctober 3, 1986
DocketCiv. A. No. G86-706 CA5
StatusPublished

This text of 647 F. Supp. 571 (Michigan Injured Workers v. Blanchard) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Injured Workers v. Blanchard, 647 F. Supp. 571, 1986 U.S. Dist. LEXIS 19471 (W.D. Mich. 1986).

Opinion

[573]*573OPINION

HILLMAN, Chief Judge.

This matter is before this court on plaintiffs’ Motion for a Preliminary Injunction and Defendants’ Motion to Dismiss. In the underlying case plaintiffs have challenged the constitutionality of the Michigan Workers’ Disability Compensation Act of 1969, as amended (hereinafter, the Act), M.C.L.A. § 418.101, et seq.; M.S.A. § 17.237(101) et seq., as applied to them. In particular they claim that recent amendments to the Act (1985 P.A. 103) have worked to deny them access to any judicial or quasijudicial forum to determine their entitlement to remedies or benefits for work related injuries. Plaintiffs seek to strike down the provision which makes the remedies provided in the Act the employee’s exclusive remedy against the employer. In the alternative, plaintiffs seek to have two provisions of the 1985 amendments to the Act, M.C.L.A. §§ 418.206 and 418.213, struck down.

Defendants have moved for the dismissal of the complaint pursuant to both Fed.R. Civ.P. 12(b)(1), for lack of jurisdiction, and Fed.R.Civ.P. 12(b)(6), for failure to state a claim upon which relief can be granted. In support of their motion defendants have put forth arguments based on abstention, sovereign immunity, this court’s lack of jurisdiction over certain state law claims, and the adequacy of certain state law remedies.

The court has permitted amicus briefs, supporting plaintiffs’ claims, to be filed by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW, the Workers’ Compensation Bureau Administrative Law Judges and the Workers’ Compensation Section of the Michigan Bar.

FACTS

Plaintiffs, Michigan Injured Workers, and nine individuals have moved this court for a preliminary injunction pursuant to Rule 65(a) Fed.R.Civ.P. Specifically plaintiffs request that defendants be enjoined from the enforcement of Sections 206 and 213 of 1985 P.A. 103 (M.C.L.A. §§ 418.206 and 418.213) during the pendency of this litigation. Section 206(1) eliminates the position of Hearing Referee as of March 31, 1987. Section 206(2) proscribes the hearing of contested cases by anyone other than magistrates if such cases are filed after March 31, 1986. Section 213 creates the power for assigning and hearing contested cases in an independent Board of Magistrates.

Plaintiffs represent a group of individuals who have filed Petitions for Hearing with the Bureau of Workers’ Compensation on or after April 1, 1986. Additionally, plaintiffs Carter, Cassell, Johnson, Olsen and Taylor represent individuals who are entitled to expedited hearings because their benefits were terminated by their employers. Plaintiffs have, in addition, sought to have the case certified as a class action. The court has not ruled on that motion.

Due primarily to the inordinate delay in the appeal process the workers’ compensation law in Michigan was drastically revised in 1985. Among other major changes, the new law abolished the Civil Service position of Hearing Referee as of March 31, 1987; removed the power of the Director of the Bureau of Workers’ Disability Compensation to assign cases; created a politically appointed Board of Magistrates vested with the power to assign and hear contested cases (M.C.L.A. § 418.213); and for cases filed after March 31, 1986 directed that they could be heard only by newly appointed magistrates (M.C.L.A. § 418.-206).

The Civil Service Commission and the Administrative Law Judges (Hearing Referees) filed suit in state court challenging the constitutionality of Section 213. On December 1, 1985 the Ingham County Circuit Court ruled that the Section was unconstitutional and enjoined its enforcement. Subsequently, the Michigan Supreme Court overruled the Circuit Court and the injunction was dissolved.

Since April 1, 1986 cases filed with the Bureau have not been assigned for hearing. Although the Act required that mag[574]*574istrates be appointed by March 31, 1986, no funds were appropriated for that purpose until June 30, 1986. No eases filed since March 31, 1986 have been assigned for hearing. Currently no one is making case assignments for hearing. No magistrates have been appointed. Defendants do not anticipate having magistrates until 1987 at the earliest.

Since April 1,1986, over 7,000 cases have been filed which have not been assigned, not processed and for all practical purposes are at a complete standstill in Lansing. It is anticipated by the end of the 1986 there may be as many as 16,000 — 17,000 new cases filed. Cases continue to be filed at the rate of 1,500 per month. Each case represents an individual who claims to have been injured while at work. At the present those individuals have been denied by Michigan law all access to any judicial or quasi-judicial body to hear their claims. The potential financial loss and suffering by the families involved is incalculable.

This chaotic situation could well last for many months. It has already been at a dead halt for cases filed since April 1,1986. When and if magistrates are appointed, they will need training before assuming that responsibility. When they do assume their responsibilities, whenever that may be, they will be confronted with a backlog of perhaps as many as 20,000 cases. For injured workers the resulting quagmire could result in delays of several years before receiving the “expedited” remedies promised by the Act.

For political, legislative and administrative reasons plus state court legal challenges not the responsibility of any of the parties to this suit, plaintiffs will unquestionably be denied the opportunity for any resolution of their claims for workers’ compensation, whether by Compromise, Redemption, Liability, Voluntary Payment or Decision for many more months and possibly years to come. Faced with this bureaucratic standstill and intolerable situation, plaintiffs seek relief in this court.

JURISDICTION OF THE COURT

Plaintiffs have invoked the jurisdiction of this court pursuant to 42 U.S.C. § 1983, by way of 28 U.S.C. §§ 1331 and 1343(a)(3).

ABSTENTION

Defendants first argue that principles of abstention require that this action be dismissed. Relying on the court’s decision in Burford v. Sun Oil Co., 319 U.S. 315, 63 S.Ct. 1098, 87 L.Ed. 1424 (1942), they urge that the existence in Michigan of a complex mechanism for deciding worker’s compensation claims, including a specialized forum for deciding these claims, militates against this court’s intervention. In Burford the Court listed two factors which justified abstention: 1) the presence of a complex state regulatory system, governing a subject matter in which the state had a great interest, which would be disrupted by federal court review; and 2) the existence of a state created forum with specialized competence in the area being litigated. Id., 319 U.S. at 327, 332-33, 63 S.Ct. at 1104, 1106-07.

Burford

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Bluebook (online)
647 F. Supp. 571, 1986 U.S. Dist. LEXIS 19471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-injured-workers-v-blanchard-miwd-1986.