Paula Kay Brunner, Respondent, vs. Post Consumer Brands and Gallagher Bassett Services, Inc., Relators

CourtSupreme Court of Minnesota
DecidedAugust 6, 2025
DocketA250225
StatusPublished

This text of Paula Kay Brunner, Respondent, vs. Post Consumer Brands and Gallagher Bassett Services, Inc., Relators (Paula Kay Brunner, Respondent, vs. Post Consumer Brands and Gallagher Bassett Services, Inc., Relators) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paula Kay Brunner, Respondent, vs. Post Consumer Brands and Gallagher Bassett Services, Inc., Relators, (Mich. 2025).

Opinion

STATE OF MINNESOTA

IN SUPREME COURT

A25-0225

Workers’ Compensation Court of Appeals Thissen, J.

Paula Kay Brunner,

Respondent,

vs. Filed: August 6, 2025 Office of Appellate Courts Post Consumer Brands and Gallagher Bassett Services, Inc.

Relators.

________________________

David C. Wulff, Law Office of David C. Wulff, New Brighton, Minnesota, for respondent.

Christine L. Tuft, Erica A. Weber, Arthur, Chapman, Kettering, Smetak & Pikala, P.A., Minneapolis, Minnesota, for relators.

Joshua W. Laabs, Schmidt & Salita Law Team, Minnetonka, Minnesota, for amicus curiae Minnesota Association for Justice.

Timothy P. Jung, Lind Jensen Sullivan & Peterson, Minneapolis, Minnesota; and

Matthew L. Bonniwell, Erstad & Riemer, P.A., Minneapolis, Minnesota, for amicus curiae Minnesota Defense Lawyers Association.

SYLLABUS

1. An employee may bring a direct claim under the Workers’ Compensation

Act, Minn. Stat. ch. 176 (2024), for medical expenses related to a compensable work injury

1 that the employee’s health insurer covered before a determination was made that the injury

is compensable.

2. The Workers’ Compensation Court of Appeals erred by reversing the

compensation judge’s order under Minn. Stat. § 176.361 (2024), extinguishing the health

insurer’s potential intervenor interest after it failed to timely intervene.

Affirmed in part; reversed in part.

OPINION

THISSEN, Justice.

We must decide whether an employee may raise a direct claim for medical expenses

related to a compensable injury under the Workers’ Compensation Act (the Act), Minn.

Stat. ch. 176 (2024), that the employee’s health insurer paid while her workers’

compensation claim was pending. This case presents an issue that is very similar to the

question we resolved in our recent decision in Johnson v. Concrete Treatments, Inc.,

7 N.W.3d 119 (Minn. 2024). Consistent with our holding in Johnson, 7 N.W.3d at 130,

we hold that an injured employee may bring a direct claim for medical expenses under the

Act related to a compensable work injury that their insurer paid before the injury was found

compensable. We must also determine whether the Workers’ Compensation Court of

Appeals (WCCA) erred by reversing a compensation judge’s order extinguishing a health

insurer’s intervenor interest in workers’ compensation proceedings. We hold that the

2 WCCA erred in this respect because, in this case, the insurer did not timely intervene in

the proceedings as required by Minn. Stat. § 176.361, subd. 2.

FACTS

Paula Brunner began working for relator Post Consumer Brands in April 2003.

During her employment, she worked as a packaging operator on the assembly line. In

January 2022, Brunner began complaining to the company nurse about pain in her left

shoulder and a limited range of motion. She requested that Post Consumer Brands cover

her medical expenses because the shoulder injury was work related. Brunner saw

orthopedist Dr. Hans Bengtson for her shoulder condition and eventually had shoulder

surgery in February 2023. Following the surgery, Brunner was placed on leave and

received disability benefits until she returned to work in her pre-injury capacity in

November 2023.

Post Consumer Brands and its workers’ compensation insurer, relator Gallagher

Bassett Services, 1 initially admitted that Brunner’s shoulder condition was work related.

Post Consumer Brands subsequently engaged Dr. Michael D’Amato to perform an

independent medical exam on Brunner’s left shoulder. Dr. D’Amato concluded that there

was no reasonable basis to support a claim of work-related injury as a contributing factor

to Brunner’s shoulder condition. After receiving Dr. D’Amato’s report, Post Consumer

Brands denied Brunner’s claim, asserting that her shoulder condition was not work related.

Following that determination, and in conformance with the directive in Minnesota Statutes

1 We will refer to Post Consumer Brands and Gallagher Basset Services collectively as Post Consumer Brands unless we are referring solely to Gallagher Bassett Services.

3 section 176.191, subdivision 3, Brunner’s health insurer, Healthy Alliance Life Insurance

Company d/b/a Anthem Blue Cross Blue Shield (Anthem), reimbursed Brunner’s medical

providers for treating and performing surgery on Brunner’s shoulder. See Minn. Stat.

§ 176.191, subd. 3 (“If a dispute exists as to whether an employee’s injury is

compensable . . . and the employee is otherwise covered by an insurer or entity . . . that

insurer or entity shall pay any medical costs incurred by the employee for the injury up to

the limits of the applicable coverage . . . .”).

In response to Post Consumer Brands’ decision to deny her claim as not work

related, Brunner filed a workers’ compensation claim petition seeking, among other things,

a determination that her shoulder injury was work related and compensable under the Act.

Brunner notified Anthem of its right to intervene in the workers’ compensation

proceedings. Despite receiving timely notice, Anthem did not file a timely motion to

intervene in the proceedings. Anthem did, however, respond to Brunner’s notice of its

right to intervention, stating that it would “expect reimbursement of [Anthem’s] interest in

the event of either a favorable decision at hearing or if settlement is reached through a

compromise agreement.”

Brunner submitted a report prepared by Dr. Bengtson challenging Dr. D’Amato’s

report to the compensation judge. Dr. Bengston concluded that Brunner’s work activities

caused her shoulder condition. After a hearing, the compensation judge issued an order

finding that Dr. Bengtson’s opinions were more credible than Dr. D’Amato’s and that the

medical expenses Brunner incurred as a result of her shoulder injury were compensable

under the Act.

4 Despite finding that Brunner’s injury resulted from work activities, the

compensation judge determined that Brunner could not bring a direct claim for medical

bills Anthem paid. The compensation judge reasoned that “[a]ll case authority for the

employee having a direct claim for medical expenses is derivative of Minn. Stat.

[§] 176.135 (2022) and refers to medical ‘providers.’ A health insurer is not a medical

provider.” 2 The compensation judge construed Brunner’s claim for medical bills as a claim

on behalf of Anthem seeking reimbursement for paying Brunner’s medical bills under the

health insurance policy between Brunner and Anthem. For this reason, the compensation

judge determined that, under Minnesota Statutes section 176.361—which provides for

extinguishment of the intervenor interests of a potential intervenor who fails to timely

intervene 3—Anthem’s failure to intervene in the workers’ compensation proceeding

2 Section 176.135 requires an employer to “furnish any medical . . . treatment . . . as may reasonably be required at the time of the [employee’s] injury and any time thereafter to cure and relieve from the effects of the injury.” Minn. Stat. § 176.135, subd. 1. This is the substantive provision of the Act that allows employees to obtain medical benefits for workplace injuries. See Leuthard v. Indep. Sch. Dist. 912, 958 N.W.2d 640 (Minn. 2021) (referring to section 176.135 as the “medical benefits statute”). 3 Section 176.361, subdivision 2, provides in relevant part:

Subd. 2. Written motion.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Paula Kay Brunner, Respondent, vs. Post Consumer Brands and Gallagher Bassett Services, Inc., Relators, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paula-kay-brunner-respondent-vs-post-consumer-brands-and-gallagher-minn-2025.