Peckham v. Producer's Lumber Co.

778 P.2d 797, 116 Idaho 675, 1989 Ida. LEXIS 132
Idaho Supreme Court·Decided August 11, 1989·No. Nos. 17173-17176·Published·Cited by 1 cases

Opinion

HUNTLEY, Justice.*

This interlocutory appeal raises an issue of first impression as to whether the last injurious exposure rule is mandated by I.C. § 72-437 and § 72-439 for the purpose of determining which of an employer’s successive insurance carriers should be held liable for a worker’s compensation claim, and in the alternative, if the last injurious exposure rule is not statutorily mandated, whether it should be judicially adopted in such cases.

We hold that neither the last injurious exposure rule nor its alternative, the apportionment rule, are explicitly or implicitly mandated by Idaho statute and that there are compelling reasons for judicially adopting the last injurious exposure rule.

THE FACTS

The Industrial Commission has not made any findings of fact in this case. For the purposes of both this appeal and adjudication of the motions to dismiss before the Commission, all parties have treated as undisputed the facts established by the pleadings, the claimant’s deposition, the Commission’s records regarding the periods of coverage, and pertinent medical records which were made part of the Clerk’s Records.

[676] Glen Peckham worked for Producer’s Lumber Company from July 10, 1954 until April 7, 1986. Between 1954 and September 1970, Peckham worked on the planing crew, pulled on the “green chain,” hauled wood chips in a dump truck, drove a flatbed truck to deliver building products to customers, and drove truckloads of lumber to the site of a plant being constructed by Producer’s to house its operations after it closed its retail yard in Boise. Between September 1970 and his last day of work on April 7, 1986, Peckham operated a log loader. He testified that his working environment during the years he worked as a log loader was “dusty.”

The first time Peckham recalled having any problems with his lungs, aside from chest colds, was in 1982. He then consulted a Dr. Kendall after developing a feeling of soreness in his lungs when he breathed. As a result of this visit, Peckham received respiratory therapy and medication during May and June of 1982. Dr. Kendall did not disclose the cause of his symptoms; nor did he advise Peckham to avoid any activities.

Peckham continued to have lung problems from 1982 through 1986. His sporadic lung problems became more persistent sometime around 1983. He started getting tired more easily and his voice became hoarse. In the fall of 1985 his symptoms took a particular turn for the worse. He was constantly tired. He finally decided to see Dr. Quickstad, his family physician, in February 1986 because of his constant fatigue and because he was also experiencing soreness in his lungs on a daily basis. Dr. Quickstad referred Peckham to Dr. Torrington, a pulmonary specialist. After examining Peckham on a few different occasions, Dr. Torrington arranged for him to be admitted to St. Luke’s Regional Medical Center on April 8, 1986, for a lung biopsy.

On that date, the day after Mr. Peck-ham’s last day of employment with Producer’s, Dr. Orme conducted an open lung biopsy which revealed severe interstitial fibrosis and marked emphysema of the lung.

Peckham testified that prior to going to St. Luke’s for the lung biopsy, he had not missed any work because of his lung problems. He stated that Dr. Torrington was the first doctor to ever discuss the nature and cause of his pulmonary problems. Dr. Torrington told him that his problems were caused from breathing wood dust, that he should avoid exposure to wood dust, and that continuing his employment with Producer’s would pose further risk to his health.

After reviewing the biopsy results, Dr. Torrington diagnosed Peckham as having pulmonary fibrosis. He met with Peckham on April 16, 1986, to discuss the biopsy results and Peckham’s prognosis. He told Peckham that “there is a significant likelihood that the present scarring is job related.” In his notes for April 16, 1986, Dr. Torrington wrote that Peckham “must find other work.”

The following carriers provided Producer’s Lumber Company with worker’s compensation coverage from 1975 to the present:

Argonaut Northwest Insurance Company

April 1, 1975 to April 1, 1976;
Alaska Pacific Assurance Company
October 1, 1976 to December 18, 1977;
Argonaut Northwest Insurance Company
October 1, 1977 to October 1, 1978;
Alaska Pacific Assurance Company
October 1, 1978 to October 1, 1981;
Mission Insurance Company
October 1, 1981 to October 1, 1982;
Argonaut Northwest Insurance Company
October 1, 1982 to October 1, 1984;
Lumbermen’s Underwriting Alliance
October 1, 1984 to October 1, 1985;
State Insurance Fund (S.I.F.)
October 1, 1985 to present.

Mr. Peckham applied for a hearing before the Idaho Industrial Commission on or about August 1, 1986. He claimed he became disabled from a pulmonary disease allegedly contracted and incurred from work related exposure to wood dust. He named Producer’s Lumber Company as the employer/defendant and S.I.F. as the worker’s compensation surety/defendant. S.I.F. moved to have the other four insurance carriers joined as defendants, which motion was granted.

[677] On April 6,1987, the Commission entered an order denying Argonaut’s, Mission’s and Alaska Pacific’s motion to dismiss them as defendants on the grounds that I.C. § 72-439, which the movants had cited in support of their motion, does not apply to the question of which of the multiple sureties should ultimately be liable to pay the benefits.

On April 27, 1987, Argonaut, Alaska Pacific and Mission joined in a motion for reconsideration in which they argued that I.C. § 72-439 represents a codification of the so-called “last injurious exposure rule.” Lumbermen’s moved to dismiss arguing that while I.C. § 72-439 is not a codification of the last injurious exposure rule, it should be judicially adopted. In response to the motion brought by Argonaut, Alaska Pacific and Mission, S.I.F. argued that the Commission had correctly ruled the first time. On May 21, 1987, Alaska Pacific filed an amendment to its motion to dismiss and a brief in response to Lumbermen’s motion in which Alaska Pacific adopted Lumbermen’s position as an alternative ground to its motion for dismissal. On June 2, 1987, the Commission denied the motion brought by Alaska Pacific, Argonaut and Mission and the motion brought by Lumbermen’s.

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Peckham v. Producer's Lumber Co., 778 P.2d 797, 116 Idaho 675, 1989 Ida. LEXIS 132 (Idaho 1989).

778 P.2d 797 (Peckham v. Producer's Lumber Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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