Ravsten v. Department of Labor & Industries

865 P.2d 1, 72 Wash. App. 124, 1993 Wash. App. LEXIS 463
CourtCourt of Appeals of Washington
DecidedDecember 20, 1993
DocketNo. 31821-7-I
StatusPublished

This text of 865 P.2d 1 (Ravsten v. Department of Labor & Industries) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ravsten v. Department of Labor & Industries, 865 P.2d 1, 72 Wash. App. 124, 1993 Wash. App. LEXIS 463 (Wash. Ct. App. 1993).

Opinion

Baker, J.

The Department of Labor and Industries (Department) appeals a superior court ruling which reversed the Board of Industrial Insurance Appeals (Board). We reverse the Superior Court and reinstate the Board's order.

[126]*126Facts

Kevin Ravsten sustained an industrial injury in 1977. The Department began paying benefits and compensation. He was subsequently classified as totally disabled and placed on the pension rolls. Ravsten brought a third party action and entered into a structured settlement of $1,370,000 in 1981. His attorney wanted his fee paid up front, rather than over the course of the settlement. To accommodate this, the Department calculated its reimbursement share based upon the present cash value of the settlement ($1,100,113.05) and Ravsten's total entitlement to benefits paid or payable from the industrial insurance funds. The Department estimated Ravsten's total benefits as $298,904.11 and issued an order declaring that the funds owed 27.17 percent ($298,904.11 divided by $1,100,113.05) of the fees and costs. In estimating the total industrial insurance benefits to be paid, the Department did not include future benefits which would not have to be paid due to its ability to offset Federal Social Security disability benefits under RCW 51.32.220 or future benefits for attendant care. Based upon Ravsten's one-third contingent attorney fee agreement, the Department determined that the present value of the attorney fees and costs was $376,179.59.

Ravsten appealed and the Board held that the future Social Security offset and potential future attendant care benefits were properly excluded from the estimate of benefits payable. It confirmed that if Ravsten's attorney were to be paid immediately, the present cash value of the settlement would have to be used in calculating the attorney fees. However, it ordered the funds' proportionate share of fees and costs increased to 38.37 percent, which was the appropriate percentage when supplemental pension fund payments were included in the estimate of total benefits.

Ravsten again appealed and the Superior Court reversed, increasing the attorney fees and costs to $456,666 and the Department's proportionate share to 100 percent. The Department appealed. In Ravsten v. Department of Labor & Indus., [127]*127108 Wn.2d 143, 147, 736 P.2d 265 (1987), the Supreme Court confirmed that the guaranteed total recovery was $1,370,000 with a present value of $1,100,113.05. Benefits of $117,238.85 had been paid, and $9,475 in litigation costs had been incurred. Ravsten, 108 Wn.2d at 156. The parties disagreed on the amount of future benefits and whether the Department's proportionate share of attorney fees and costs was to be based on the total recovery or its present value.

The court held that

in order to determine the Department's proportionate share of attorney's fees and costs the computation of benefits payable must include the reduction of benefits payable by the social security benefits received and to be received by the claimant.

Ravsten, 108 Wn.2d at 159 (citing RCW 51.32.220). The court concluded that attendant care may be needed, and remanded to the Board for the taking of additional testimony from the attending doctor as to the need for attendant care. Ravsten, 108 Wn.2d at 160. The court also held that $366,704.35 was the proper amount of attorney fees to be used in determining the Department's proportionate share. Ravsten, 108 Wn.2d at 157-58.

On remand the Department calculated the benefits paid, and the probable costs of Ravsten's attendant care and pension benefits, and determined the present value of all benefits was $1,697,890.92. It concluded that the industrial insurance funds should pay 100 percent of the attorney fees and costs. The Department had paid Ravsten $348,902.20, which left a balance of $27,277.39. However, the Department was owed $117,238.85 in reimbursement for benefits already paid. Accordingly, the Department issued a new order on August 8, 1988, declaring that it had overpaid its proportionate share of the attorney fees and litigation costs by $89,961.46 ($117,238.85 less $27,277.39) and that this amount was to be reimbursed to the Department with interest.

Ravsten appealed this order to the Board. The Department moved in limine to exclude evidence other than that [128]*128concerned with attendant care entitlement. The industrial appeals judge granted the Department's motion, and the Board denied Ravsten's request for interlocutory review, rejecting Ravsten's request that the amount of the attorney fees be recalculated. The Board held that the cost of the attendant care benefits was now moot because the Department had determined the industrial insurance fund would pay 100 percent of the attorney fees and costs. A unanimous Board affirmed the August 8, 1988, order and remanded to the Department for a new order, identical to the old, but omitting the Department's claim for interest.

Ravsten appealed to the superior court. He argued that the amount of the attorney fees in the third party action was not in dispute, but what was in dispute was whether the Department could be required to pay more than 100 percent of that fee. Ravsten requested a remand to the Department for the taking of evidence regarding the amount of future attendant care benefits, or in the alternative, an order requiring the Department to pay 165 percent of the attorney fees incurred in the third party action. The Department unsuccessfully argued that it cannot be required to pay more than 100 percent of the fees and costs incurred by the worker in the third party action. The Superior Court remanded to the Board with instructions to set aside its order granting the Department's motion in limine so that Ravsten could make a full eviden-tiary record.

Hie Department claims that the Superior Court's order prevented entry of a final judgment, and is therefore reviewable as a matter of right. RAP 2.2(a)(3). Ravsten asserts that this case is not reviewable by direct appeal, but should be termed a petition for discretionary review, pursuant to RAP 2.1(a)(2). He argues that review should be denied because the Department does not allege any grounds entitling it to review under RAP 2.2 and denial preserves the Department's rights under RAP 2.3(c).

RAP 2.2(a)(3) provides that "[a]ny written decision affecting a substantial right in a civil case which in effect deter[129]*129mines the action and prevents final judgment or discontinues the action" is reviewable as a matter of right. The court's order did prevent entry of a final judgment; however, that does not necessarily make the decision appealable. The decision must also affect a substantial right and in effect determine the action.

Here, the court's decision did not affect a substantial right or determine the action because it did not decide the issue; rather the case was remanded to allow a decision after Ravsten was allowed to make a full evidentiary record.

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Related

State v. Dunivin
828 P.2d 1150 (Court of Appeals of Washington, 1992)
Ravsten v. Department of Labor & Industries
736 P.2d 265 (Washington Supreme Court, 1987)

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Bluebook (online)
865 P.2d 1, 72 Wash. App. 124, 1993 Wash. App. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ravsten-v-department-of-labor-industries-washctapp-1993.