Municipality of Anchorage v. Adamson

301 P.3d 569, 2013 WL 1849742
CourtAlaska Supreme Court
DecidedMay 3, 2013
Docket6780 S-14621/S-14622
StatusPublished
Cited by11 cases

This text of 301 P.3d 569 (Municipality of Anchorage v. Adamson) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Municipality of Anchorage v. Adamson, 301 P.3d 569, 2013 WL 1849742 (Ala. 2013).

Opinion

OPINION

CARPENETI, Justice.

I. INTRODUCTION

What standard should apply to stays on appeal of future medical benefits when the Alaska Workers' Compensation Board has ordered an employer to pay for medical treatment or benefits? In these two cases the Alaska Workers' Compensation Appeals Commission applied different standards to evaluate motions to stay future medical benefits, and the losing party in each case petitioned for review of the Commission's stay decision. We granted review to decide what standard applies to stays of future medical benefits. We hold that to stay future medical benefits, the employer must show the existence of the probability that the appeal will be decided adversely to the compensation recipient.

II FACTS AND PROCEEDINGS

A. Municipality of Anchorage v. Adamson

John Adamson worked as a firefighter for the Municipality of Anchorage for more than 20 years, retiring in 2011. He was diagnosed with prostate cancer on August 7, 2008, and applied for workers' compensation benefits for the cancer. Adamson's application was based on AS 23.30.121, which establishes a special presumption analysis in workers compensation cases for firefighters who develop certain cancers; the statute became effective on August 19, 2008. The Municipality raised a number of procedural defenses to Adamson's claim as well as a constitutional challenge to the firefighter presumption statute.

After a hearing the Alaska Workers' Compensation Board decided that Adamson's cancer was compensable and ordered the Municipality to pay past and future medical benefits, some past temporary total disability (TTD) benefits, and costs and attorney's fees. The Board did not consider whether Adam-son was eligible for permanent partial impairment (PPI) at that time because Adam-son had neither been evaluated nor included a claim for it. 1 One Board member dissented and would have found the claim not com-pensable.

The Municipality appealed the decision to the Alaska Workers' Compensation Appeals Commission and asked for a stay of the Board's decision. The Municipality explained that "future periodic medical expenses [might] be incurred" while the appeal was pending, and argued that these benefits *572 should be stayed under the probability of success on the merits standard. Adamson agreed to stay past benefits, but he did not want to stay future medical benefits, including a biannual examination. He argued that he, not the Municipality, would likely prevail on the merits.

The Commission refused to stay future benefits. It found that the Municipality would suffer "irreparable harm" because it would have no way to recoup benefits paid if it prevailed on appeal. And the Commission further decided that the Municipality had raised serious and substantial questions going to the merits of the case. But the Commission refused to stay future benefits because the Municipality had not shown that "it [was] more likely than not that the [Municipality would] prevail on the merits." The Commission cited AS 23.30.125(c) as the source of law for the stay standard. The Municipality petitioned for review of the denial of the stay.

B. Olsen v. City & Borough of Juneau

Calli Olsen worked as a wastewater utility operator for the City and Borough of Juneau (CBJ). According to the Board's decision in her case, she filed reports of injury for two different injuries, one to her right knee in May 2009 and one to her lower back and right leg in September 2009. After a hearing the Board found that her knee injury, but not her back and leg injury, was compensa-ble, and it ordered CBJ to pay for completion of a specific medical treatment (autologous chondrocyte implantation) as well as past medical care related to the right knee. 2 The Board denied other claims she made and deferred ruling on PPI because she was not yet medically stable.

CBJ appealed to the Commission and asked for a stay of future medical benefits. CBJ's motion for stay argued that it was probable that the merits of the appeal would be decided adversely to Olsen. CBJ contended that because Olsen's claim was an aggravation claim and because the statutory standard had changed from "a substantial factor" to "the substantial cause," the Board had evaluated the claim using the incorrect standard. Olsen countered that the Board had properly evaluated the claim. In an affidavit filed with her opposition, Olsen stated that she had undergone the first part of the implantation procedure in June 2010 and had no funds to pay for the second surgery; she further stated that she was "not able to find suitable work in [her] field due to [her] injury." 3

At the hearing on the stay, the Commission directed the parties to address which regulatory standard for a stay applied. At the time of the hearing, the Commission's regulation about stays on appeal contained two standards depending on the type of benefit at issue. To stay "continuing future periodic compensation payments" the appellant was required to demonstrate irreparable damage and "the existence of the probability that the merits of the appeal [would] be decided adversely to the compensation recipient"; for "Tump-sum payments" the appellant had to show irreparable damage and "the existence of serious and substantial questions going to the merits of the case." 4

CBJ said it would suffer irreparable damage without the stay because it would have no way to recoup the payments if it were to win on appeal. CBJ argued that the benefits at issue were not continuing future periodic compensation payments, so the serious and *573 substantial question standard should apply. Olsen argued that CBJ was required to show a probability of success on the merits; she told the Commission that no case had expressly decided whether future medical benefits were "continuing future periodic compensation payments."

The Commission granted the stay, using the serious and substantial question test to evaluate the request. The Commission found that CBJ had no way of recovering payment for the medical treatment if CBJ won the appeal, and it decided that CBJ had raised a serious and substantial question, specifically how "the statutory standard for compensability ... requiring that employment be the substantial cause of the need for medical treatment ... appl[ied] in the context of [Olsen's] case." The Commission did not consider whether CBJ had shown the existence of the probability the merits of the appeal would be decided adversely to Olsen.

Olsen then moved for reconsideration, arguing that the probability of success on the merits was the appropriate standard. She further contended that medical benefits could not be stayed at all if the Commission interpreted "compensation" as excluding medical benefits. The Commission responded to O-sen's motion by explaining that it interpreted AS 28.80.125(c) as "restating the criterion in Olsen [Logging Co. v. Lawson 5

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Bluebook (online)
301 P.3d 569, 2013 WL 1849742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/municipality-of-anchorage-v-adamson-alaska-2013.