Runft v. Saif Corp.

739 P.2d 12, 303 Or. 493, 1987 Ore. LEXIS 1462
CourtOregon Supreme Court
DecidedJune 23, 1987
DocketWCB 83-03962; CA A34302; SC S32994
StatusPublished
Cited by41 cases

This text of 739 P.2d 12 (Runft v. Saif Corp.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Runft v. Saif Corp., 739 P.2d 12, 303 Or. 493, 1987 Ore. LEXIS 1462 (Or. 1987).

Opinion

*495 LENT, J.

The issue is whether an employer whose working conditions were the major contributing cause of a claimant’s asbestosis may avoid responsibility for payment of compensation by showing that working conditions at the claimant’s later employment contributed to the claimant’s disability, where the claimant has made no claim against the later employer, and the first employer has not sought to join the later employer in the administrative proceeding. We hold that the first employer may not avoid responsibility in those circumstances.

Because there is evidence to support them, we take the facts as found by the Court of Appeals. Sahnow v. Fireman’s Fund Ins. Co., 260 Or 564, 568, 491 P2d 997 (1971). In Runft v. SAIF, 78 Or App 356, 717 P2d 248 (1986), the court found that claimant worked from 1959 to 1966 for Specialized Service (SS), which was insured by SAIF, during which he was exposed to great clouds of asbestos dust in a small room without ventilation or respiratory protection. Later he worked for four years at International Harvester (IH), where he was occasionally exposed to asbestos. Subsequent thereto he had other employment, in which there was no exposure to asbestos. There is no finding of fact as to the dates of the employments following that at SS.

In January 1983 claimant filed a claim with SAIF contending that he had “asbestos poisoning” resulting from his work at SS. On the claim form under date February 3, 1983, SAIF’s employee noted that acceptance or denial of the claim was deferred and that it was to be treated as a nondis-abling occupational disease claim. By letter to claimant dated March 21, 1983, SAIF denied the claim.

“You have filed a claim for asbestosis, which you allege to be an occupational disease as the result of exposure to asbestos while in the employ of Specialized Service, Inc. Insufficient evidence exists to substantiate that you were, in fact, exposed to asbestos while in their employ, nor is there sufficient medical evidence to substantiate that you do, in fact, have any condition as the result of your alleged exposure while in the employ of Special Services, Inc. Additionally, information in file discloses that you have a long history of heavy cigarette smoking, which appears to be the major contributing factor to your current lung complaints. Therefore, we are unable to *496 accept responsibility for your condition, and without waiving other questions of compensability, this formal denial is made.” 1

Claimant timely requested a hearing. At the outset of the hearing on October 4, 1983, the referee inquired of claimant’s counsel what issues were involved. Counsel answered that the primary issue was compensability and the secondary issue was a claim for attorney fees and penalties for unreasonable denial of the claim. Claimant’s counsel drew to the attention of the referee that

“SAIF has made no effort consistent with the Luhrs case [SAIF v. Luhrs, 63 Or App 78, 663 P2d 418 (1983)] and other cases that they rely on repeatedly to bring in any other employers in this case. * * * So I’m not quite sure what the defense is, if any.”

The referee then asked SAIF’s counsel whether there were any cross issues, and he stated that there were none.

In his opening statement to the referee, however, SAIF’s counsel said:

“Well, the basis for the denial, as stated on the denial, is that we question the amount and degree of exposure at this employer. We have here to testify a man-who was there at the beginning of Mr. Runft’s employment, who did the same type of work and who will controvert much of what the claimant will have to say and has said about the amount of exposure, the description of the shop, and the ventilation, and those sort of things. I think there’s a good deal of disparity in what claimant has told many people and what, indeed, is true.
*497 “Also, the Referee will note, in the history, that the claimant was exposed subsequent to this employment, too. I believe Dr. Lawyer will indicate that that exposure may well have been detrimental.
* * * *
“Dr. Lawyer will probably indicate that exposure subsequent to our employer may well have been the material contributing factor to the development of whatever condition the claimant has now.
“Those are the two bases for our denial. I think we have adequate and proper grounds for the denial, penalties should not attach, and the denial should be affirmed.”

We construe SAIF’s original denial of this claim to have been related to compensability only. In that original denial, SAIF relied on two factual assertions: (1) that claimant was not exposed to asbestos at SS and (2) that he did not have any condition resulting from alleged exposure while employed at SS. SAIF’s counsel’s opening statement raised for the first time a defense of want of responsibility, as distinguished from compensability.

The referee found that claimant’s exposure to asbestos while employed at IH contributed significantly to his disease. The referee concluded:

“Procedurally, claimant argues that SAIF cannot rely upon the last injurious exposure rule defense because no other employers were joined as a party to this proceeding. In reviewing the situations in Luhrs [SAIF v. Luhrs, 63 Or App 78, 663 P2d 418 (1983)], Gupton [SAIF v. Gupton, 63 Or App 270, 663 P2d 1300 (1983)] and Graham [Wesley E. Graham, 35 Van Natta 1303 (1983)], neither of the parties joined or attempted to join subsequent employers. I find the defendant can rely on the evidence and need not join subsequent employers as a condition precedent to raising the last injurious exposure rule.” (Emphasis added.)

Claimant requested Board review. The Board affirmed the referee’s holding that SAIF could avoid responsibility by resort to the last injurious exposure rule without joining IH.

“With regard to claimant’s arguments concerning joinder, although the court in Bracke noted that procedures exist pursuant to OAR 436-54-332 where one employer could join another employer, Bracke v. Baza’r, supra, 293 Or at 250 n. 5, *498 we believe there are certain unresolved jurisdictional problems lurking in a procedure which allows one employer to join another employer in the absence of a claim having been filed against that employer. E.g. Syphers v. K-W Logging Co., 51 Or App 769 (1981). Certainly, for whatever it is worth, it has been the longstanding policy of this agency that motions by one employer to join another employer in a pending hearing proceeding are consistently denied if the claimant has never made a claim against the employer sought to be joined.” (Emphasis in original.)

On request for judicial review j the Court of Appeals affirmed.

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Bluebook (online)
739 P.2d 12, 303 Or. 493, 1987 Ore. LEXIS 1462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/runft-v-saif-corp-or-1987.