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

Supreme Court of Minnesota·Decided August 6, 2025·No. A250225·Published

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

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

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.

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.

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. A person desiring to intervene in a workers’

compensation case as a party, including but not limited to a health care provider who has rendered services to an employee or an insurer who has paid benefits under section 176.191, shall submit a timely written motion to intervene to the commissioner, the office, or to the court of appeals, whichever is applicable.

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