Murer v. State Compensation Mutual Insurance Fund

942 P.2d 69, 283 Mont. 210, 54 State Rptr. 566, 1997 Mont. LEXIS 130
CourtMontana Supreme Court
DecidedJune 23, 1997
Docket95-542
StatusPublished
Cited by18 cases

This text of 942 P.2d 69 (Murer v. State Compensation Mutual Insurance Fund) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murer v. State Compensation Mutual Insurance Fund, 942 P.2d 69, 283 Mont. 210, 54 State Rptr. 566, 1997 Mont. LEXIS 130 (Mo. 1997).

Opinions

JUSTICE TRIEWEILER

delivered the Opinion of the Court.

The claimants, Jack Murer, Jay Harbrige, Keith Mordja, Susan Vernon, Bruce Nelson, Steve Prickett, and James Brown, filed a petition for benefits in the Workers’ Compensation Court for the State [214]*214of Montana. On November 20, 1995, the Workers’ Compensation Court entered its final judgment granting in part and denying in part the benefits and fees which were sought. Claimants appeal and the respondent, State Compensation Mutual Insurance Fund, cross-appeals. We affirm in part and reverse in part the judgment of the Workers’ Compensation Court, and remand to that court for further proceedings consistent with this opinion.

On appeal, claimants raise the following issues:

1. Did the Workers’ Compensation Court err when it concluded that the temporary cap on maximum benefits enacted in 1987 did not expire until June 30, 1991?

2. Did the Workers’ Compensation Court err when it concluded that the settlement agreements entered into between claimants and the State Fund foreclose claimants’ rights to further benefits?

3. Did the Workers’ Compensation Court err when it denied claimants’ motion for attorney fees pursuant to the common fund doctrine?

On cross-appeal, the State Fund raises the following issues:

1. Did the Workers’ Compensation Court err when it concluded that an impairment award, paid in the form of a lump sum before June 30,1991, at the request of claimant Keith Mordja, must be increased pursuant to Murer II ?

2. Did the Workers’ Compensation Court err when it determined that the State Fund’s failure to increase Mordja’s impairment award was unreasonable and, on that basis, assessed a penalty pursuant to § 39-71-2907, MCA?

FACTUAL BACKGROUND

In 1987, the Montana Legislature enacted the following cap on temporary total disability benefits for injured workers:

[B]eginning July 1, 1987, through June 30, 1989, weekly compensation benefits for temporary total disability may not exceed the state’s average weekly wage of $299 established July 1, 1986.

Section 39-71-701(5), MCA (1987). See also § 39-71-702(6), MCA (1987) (permanent total disability), and § 39-71-703(3), MCA (1987) (permanent partial disability). The 1989 Legislature enacted similar caps for injuries which occurred between July 17,1989, and June 30, 1991. Those caps extended “through June 30, 1991.” See §§ 39-71-701(5), -702(6), and -703(3), MCA (1989). The State Fund deemed the caps ($299 per week for total benefits; $149.50 per week for partial benefits) to be permanent and, on that basis, continued to apply them after June 30, 1991.

[215]*215Claimants are seven workers who were injured between July 1, 1987, and June 30, 1991, and who are entitled to disability benefits at the maximum statutory rate. They filed a petition in the Workers’ Compensation Court in which they contended that the 1987 and 1989 legislative caps were temporary and, therefore, cannot be applied after 1991. Furthermore, they asserted that: (1) the temporary cap enacted in 1987 expired June 30, 1989, and did not apply thereafter to workers injured before that date; and (2) the temporary cap enacted in 1989 can only be applied to injuries which occurred between July 17, 1989, and June 30, 1991.

Claimants initiated this litigation as representatives of a class of injured claimants similarly situated. However, the Workers’ Compensation Court concluded that

a final judgment will have the same effect as a class action without the unnecessary complications. The Court is convinced that the regulatory agency (D.O.L.I.) and the supervision of the courts sufficiently protects all claimants ....

On that basis, the Workers’ Compensation Court denied class certification and, on appeal, we affirmed. Murer v. State Fund (1993), 257 Mont. 434, 849 P.2d 1036 (Murer I).

On remand, the Workers’ Compensation Court concluded that the 1987 and 1989 caps were permanent and that, therefore, the State Fund could continue to apply the caps after June 30,1991. On appeal from that decision, we reversed the Workers’ Compensation Court, held that the caps on disability benefits were only temporary, and remanded the case to the lower court for further proceedings. Murer v. State Fund (1994), 267 Mont. 516, 885 P.2d 428 (Murer II).

Pursuant to Murer II, the State Fund was obligated to increase benefit payments to a substantial number of claimants who were neither parties to, nor directly involved in the Murer litigation. For that reason, claimants again moved for class certification. The State Fund, however, agreed to contact and pay all absent claimants, without requiring further action on their behalf.

Under supervision of the Workers’ Compensation Court, the State Fund identified and notified absent claimants, and disbursed to them the required increase in benefits. Claimants and their attorneys asserted a lien for fees against those increased payments. In recognition of that lien, the State Fund withheld 20 percent from the amounts paid to absent claimants. Claimants also moved the Workers’ Compensation Court to award them attorney fees pursuant to the common fund doctrine.

[216]*216On February 16, 1995, thirteen absent claimants, Beverly Hardy, et.al., filed a motion to intervene, which the Workers’ Compensation Court granted. On August 7,1995, the court denied claimants’motion and refused to award them attorney fees pursuant to the common fund doctrine.

Claimants continued to assert that workers’ compensation claimants injured between 1987 and 1989 should be subject only to the 1987 cap, and that the 1989 cap applies only to claimants injured between 1989 and 1991. The Workers’ Compensation Court, however, refused to differentiate between the two classes of injured workers and concluded that both the 1987 and the 1989 temporary caps expired June 30, 1991.

During the pendency of this litigation, four of the Claimants — Jay Harbrige, Susan Vernon, Steve Prickett, and James Brown — made settlement agreements with the State Fund. Each of the settlement agreements was executed on Form LF820, a standardized form which is published by the Department of Labor and Industry for purposes of lump sum conversions pursuant to § 39-71-741(2), MCA. Form LF820 contains the following caption:

PETITION FOR COMPROMISE AND RELEASE SETTLEMENT

(Permanent Partial Wage Supplement and/or Rehabilitation Benefits).

Notwithstanding the parenthetical language to the caption, the operative provisions of each agreement contain the following language:

The parties to this matter have agreed to fully and finally conclude all compensation and/or rehabilitation payments due the claimant under the Workers’ Compensation Act....
The claimant hereby petitions the Division of Workers’ Compensation ... for approval of this petition and that the claim be fully and finally closed on the basis set forth above.

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Murer v. State Compensation Mutual Insurance Fund
942 P.2d 69 (Montana Supreme Court, 1997)

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Bluebook (online)
942 P.2d 69, 283 Mont. 210, 54 State Rptr. 566, 1997 Mont. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murer-v-state-compensation-mutual-insurance-fund-mont-1997.