Saenz v. STATE FUND WORKERS'S COMP. INS.

943 P.2d 831, 189 Ariz. 471
CourtCourt of Appeals of Arizona
DecidedMarch 27, 1997
Docket1 CA-CV 96-0202
StatusPublished

This text of 943 P.2d 831 (Saenz v. STATE FUND WORKERS'S COMP. INS.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saenz v. STATE FUND WORKERS'S COMP. INS., 943 P.2d 831, 189 Ariz. 471 (Ark. Ct. App. 1997).

Opinion

943 P.2d 831 (1997)
189 Ariz. 471

Joe SAENZ, Plaintiff-Appellant, Cross-Appellee,
v.
The STATE FUND WORKERS' COMPENSATION INSURANCE, a Political entity of the State of Arizona and subdivision or Department of the State of Arizona, Defendant-Appellee, Cross-Appellant.

No. 1 CA-CV 96-0202.

Court of Appeals of Arizona, Division 1, Department A.

March 27, 1997.
Review Denied September 19, 1997.

*832 Van Baalen Law Offices by Peter T. Van Baalen, Phoenix, for Plaintiff-Appellant, Cross-Appellee.

Teilborg, Sanders & Parks by Mark G. Worischeck, Melinda K. Cekander, David E. Koval, Phoenix, for Defendant-Appellee, Cross-Appellant.

OPINION

RYAN, Judge.

Joe Saenz ("Saenz") appeals from the trial court's entry of summary judgment in favor *833 of the Arizona State Compensation Fund ("the Fund") on Saenz's claims for bad faith, breach of contract, and punitive damages. Saenz claimed that the Fund acted in bad faith and breached the parties' settlement agreement when it transmitted a portion of the settlement amount to the clerk of the superior court under an order of assignment. We hold that in complying with the order of assignment, the Fund was not required to wait thirty-one days before transmitting the funds and was in fact required to do so within ten days of the date it agreed to pay Saenz. See Arizona Revised Statutes Annotated ("A.R.S.") § 12-2454.01(F).[1] We also conclude that the Fund is entitled to have its attorneys' fees request considered by the trial court.

BACKGROUND

Saenz was injured in 1991 while working for Pinnacle Commercial, which provided workers' compensation insurance through the Fund. The Industrial Commission ("the Commission") awarded Saenz permanent partial disability benefits of $379.46 per month. Saenz disputed this award and later settled with the Fund for a lump sum cash payment of $22,500. The Commission approved the settlement on March 16, 1994.

At the time, Saenz was $17,880.36 in arrears on his court-ordered child support obligation. The Attorney General's office consequently filed a request for an order of assignment to collect that amount from the $22,500 that the Fund owed Saenz. On March 25, 1994, the trial court issued a limited order of assignment directing the Fund to pay $17,880.35 to the Clerk of the Maricopa County Superior Court "no later than 10 days after this order becomes binding under A.R.S. § 12-2454."[2]

To comply with the order of assignment, the Fund issued a $17,880.35 check to the clerk and distributed the remaining funds to Saenz. On April 12, 1994, Saenz filed a request to stop the order of assignment. The court denied the request. Based on the Fund's failure to pay him the full settlement amount, Saenz filed this action against the Fund alleging bad faith and breach of contract, and seeking punitive damages. The trial court granted the Fund's motion for summary judgment, but denied its request for attorneys' fees. Saenz timely appealed, the Fund timely cross-appealed from the denial of attorneys' fees, and we have jurisdiction. See A.R.S. § 12-2101(B).

DISCUSSION

To grant a motion for summary judgment, the trial court must find that no genuine issue of material fact exists and that the moving party is entitled to judgment on the merits as a matter of law. Orme School v. Reeves, 166 Ariz. 301, 305, 802 P.2d 1000, 1004 (1990). We view the evidence in the light most favorable to the party against whom summary judgment was granted, and "we determine de novo whether there are any genuine issues of material fact and whether the trial court erred in its application of the law." Gonzalez v. Satrustegui, 178 Ariz. 92, 97, 870 P.2d 1188, 1193 (App. 1993). The interpretation of a statute is a question of law that we consider de novo. Barry v. Alberty, 173 Ariz. 387, 389, 843 P.2d 1279, 1281 (App.1992).

The Fund Properly Complied With the Order of Assignment

The trial court's order of assignment to the Fund provided:

TO: STATE COMPENSATION FUND
Holder of Benefits, Funds or Property Owed To: [Saenz]
YOUR [sic] ARE HEREBY ORDERED to send $17,880.36 of that entitlement to the MARICOPA COUNTY CLERK OF THE SUPERIOR COURT....
*834 You must send a certified check or money order for the above amount no later than 10 days after this order becomes binding under A.R.S. § 12-2454 [sic].

Saenz argues that under A.R.S. § 12-2454.01(F) the limited order of assignment did not become binding until thirty-one days after the Fund received it. He contends that the Fund improperly and in bad faith transferred funds to which he was entitled.

Section 12-2454.01 provides in part:

D. Following receipt of the petition or request, the clerk of the superior court, without notice to the person obligated to pay support or maintenance, shall order the person to make an assignment of a portion of the person's earnings, income, entitlements or other monies without regard to source as is sufficient to pay the amount ordered by the court to the person or agency entitled to receive the child support or spousal maintenance. The order shall operate as an assignment and is binding upon any existing or future employer or other payor of the person ordered to pay support or spousal maintenance upon whom a copy of the order is served....
....
F. An assignment order made pursuant to this section does not become binding until thirty-one days after service of a copy of this subsection and subsections G, H, J, K, N, O and P of this section and two copies of the petition or request, order and notice upon an employer or other payor.... The employer or other payor shall withhold the amount specified in the assignment from the earnings, income, entitlements or other monies payable to the person obligated to support and shall transmit such amount to the clerk of the superior court or support payment clearinghouse within ten days after the date the employee is paid.

(Emphases added). Saenz maintains that the first sentence of A.R.S. § 12-2451.01(F) precludes a payor from transmitting any funds until thirty-one days have elapsed. He asserts that the statute obligates the payor to pay the employee/obligor any amounts owed within thirty-one days, regardless of the existence of the order of assignment. Saenz's interpretation of A.R.S. § 12-2451.01(F) is flawed in several respects.

First, Saenz ignores A.R.S.

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Bluebook (online)
943 P.2d 831, 189 Ariz. 471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saenz-v-state-fund-workerss-comp-ins-arizctapp-1997.