Peterkin v. Industrial Commission

698 P.2d 1353
CourtColorado Court of Appeals
DecidedApril 22, 1985
Docket83CA1295
StatusPublished
Cited by9 cases

This text of 698 P.2d 1353 (Peterkin v. Industrial Commission) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peterkin v. Industrial Commission, 698 P.2d 1353 (Colo. Ct. App. 1985).

Opinions

KELLY, Judge.

In this workmen’s compensation case, the claimant, Gloria Peterkin, seeks review of final orders of the Industrial Commission suspending the payment of benefits to her and her minor child, Brian Peterkin, as the surviving dependents of Fred Peterkin, deceased. Claimant also seeks review of the order denying her motion to require the decedent’s employer, Curtis, Inc., and its compensation insurance carrier, Great West Casualty Company, to pay reasonable attorneys’ fees on all amounts which they recovered or were relieved of paying in the future as a result of a settlement obtained by claimant in a wrongful death action against third parties. We affirm.

On December 5,1980, while acting within the course and scope of his employment for Curtis, Inc., Fred Peterkin was fatally injured in a truck accident in Junction City, Kansas. On February 23, 1981, claimant, decedent’s widow, filed a claim on behalf of herself and her child, Brian, for workmen’s compensation death benefits. By order dated December 8, 1981, claimant and her child were awarded death benefits of $244.65 per week, payable up to the maximum amount of $100,000.

Claimant also commenced a wrongful death action in the United States District Court for the District of Kansas against third-party tortfeasors involved in the accident resulting in Fred Peterkin’s death. The wrongful death action was ultimately settled for $100,000. In a journal entry dated July 2, 1982, the court in Kansas determined that:

“[T]he employer or its insurance carrier will have a lien for amounts it has paid or will pay in the future as and for workers’ compensation benefits arising out of the wrongful death of Fred Peter-kin, deceased. The Court further finds that plaintiffs’ attorneys are entitled to a reasonable fee for any amounts reim[1355]*1355bursed to the employer or its insurance carrier....”

On August 3, 1982, the court ordered that the settlement funds be distributed as follows: $33,361.18 to the claimant individually; $22,240.78 to the claimant as the conservator of the estate of Brian Peterkin; $27,800 to claimant’s attorneys for legal fees; $3,730 to claimant’s attorneys for reimbursement of expenses; $12,768.04 to Great West and claimant’s attorneys in satisfaction of the insurance carrier’s lien for benefits previously paid; and $100 to an attorney who acted as guardian ad litem for Brian Peterkin.

By a subsequent clarifying order dated February 18, 1983, the court ruled that:

“Great West Casualty Company is ordered to pay one-third of the amount of $12,768.04 to plaintiff’s counsel as a reasonable attorney’s fee in this case.”

Great West appealed the order of February 18, 1983, but the appeal was dismissed because Great West was not a party to the action.

Meanwhile, on November 22, 1982, Great West and the employer filed a motion in the Colorado workmen’s compensation proceeding to suspend the payment of benefits to claimant and Brian Peterkin. In response, claimant filed a motion requesting an award of attorneys’ fees on all amounts that Great West would recover or be relieved of paying as a result of the $100,000 settlement of the wrongful death action.

The hearing officer concluded that Great West was entitled to be reimbursed for all benefits previously paid and to be relieved of paying benefits in the future until the gross settlement amount of $100,000 was recovered. The hearing officer further concluded that there was no statutory authority which would permit claimant to recover attorneys’ fees from the employer or its insurance carrier. The Commission adopted and affirmed the order of the hearing officer.

I. Attorneys’ Fees

Claimant contends here that the director of the Division of Labor and Employment and the Commission were bound by the United States District Court orders entered in the wrongful death action. We disagree.

The powers and authority of the Commission are derived solely from statute and its powers and any limitation thereon cannot be waived, enlarged, diminished, or destroyed by consent, and cannot be estopped. See Industrial Commission v. Plains Utility Co., 127 Colo. 506, 259 P.2d 282 (1953). Contrary to claimant’s assertion, the denial of her motion for attorneys’ fees did not constitute a “collateral attack” on the United States District Court orders. The Commission made no determination as to the validity or effect of such orders, but concluded only that it lacked the authority or power to award attorneys’ fees to claimant or to enforce the court orders. There is no statutory authority which would permit either the director or the Commission to require an employer or its insurance carrier to pay a claimant’s attorneys’ fees on amounts recovered by them as a result of a third-party settlement.

We also reject claimant’s contention that the court orders were binding on the employer or Great West under the doctrine of res judicata or the doctrine of collateral estoppel. Although the doctrines of res judicata and collateral estoppel are applicable in certain circumstances to administrative proceedings, see Umberfield v. School District No. 11, 185 Colo. 165, 522 P.2d 730 (1974); Jefferson County School District No. R-l v. Industrial Commission, 698 P.2d 1350 (Colo.App.1984), these doctrines can have no applicability to an administrative proceeding in which the agency lacks jurisdiction to grant the requested relief. Obviously, the United States District Court orders here could not confer upon the director or the Commission an authority or power beyond that given by statute.

II. Suspension of Benefits

Under § 8-52-108, C.R.S., Great West was entitled to recover out of the settlement proceeds of the wrongful death action the amount of benefits previously [1356]*1356paid. See Kirkham v. Hickerson Bros. Truck Co., 29 Colo.App. 303, 485 P.2d 513 (1971). Great West was also entitled to an order suspending the payment of compensation in the future. See Berry Construction, Inc. v. Industrial Commission, 39 Colo.App. 251, 567 P.2d 806 (1977).

The claimant finally asserts that there must be a deduction for the attorneys’ fees and expenses incurred by claimant in obtaining the settlement before Great West offsets the payment of future benefits against the gross amount of the settlement. We disagree.

Section 8-52-108, C.R.S., requires that the state compensation fund or the private insurance carrier be subrogated to the full amount of their workmen’s compensation liability in the event an injured employee obtains a recovery of damages from a third party. Continental Casualty Co. v. Gate City Steel, 650 P.2d 1336 (Colo. App.1982). Section 8-52-108(1), C.R.S., expressly provides that the election by an injured employee to take compensation under the Act shall operate as an assignment to the compensation carrier of any cause of action against third parties.

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Peterkin v. Industrial Commission
698 P.2d 1353 (Colorado Court of Appeals, 1985)

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