SAIF Corp. v. Drews

860 P.2d 254, 318 Or. 1, 1993 Ore. LEXIS 153
CourtOregon Supreme Court
DecidedOctober 28, 1993
DocketWCB 90-05597, 90-15186; CA A73419; SC S40093
StatusPublished
Cited by36 cases

This text of 860 P.2d 254 (SAIF Corp. v. Drews) 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
SAIF Corp. v. Drews, 860 P.2d 254, 318 Or. 1, 1993 Ore. LEXIS 153 (Or. 1993).

Opinion

*3 VAN HOOMISSEN, J.

In this workers’ compensation case, SAIF Corporation (SAIF) petitions for review of a Court of Appeals’ decision affirming an order of the Workers’ Compensation Board (Board) that held SAIF responsible for workers’ compensation benefit payments for claimant’s 1989 injury. SAIF v. Drews, 117 Or App 596, 845 P2d 217 (1993). The case involves two successive compensable injuries to the same part of claimant’s body. Claimant was employed by a different employer at the time of each injury. The case turns on the interpretation of ORS 656.308(1), in the context of assigning responsibility among successive employers for multiple compensable injuries.

The issues are: Which employer is responsible for the second injury? Does a second injury in a case such as this fall within the revised successive responsibility statutes enacted by the legislature in 1990? We answer the second question in the affirmative, which means that the answer to the first question is that, in this case, the insurance carrier for the first employer remains responsible. For the reasons explained below, we reverse the Court of Appeals’ decision and the Board’s order — both of which assigned responsibility to SAIF, the last carrier on the risk — and remand the case to the Board for further proceedings.

In 1986, while employed by Wausau Insurance Companies’ insured, claimant injured her low back and left leg. Wausau accepted the claim and paid benefits to claimant. In 1989, while employed by SAIF’s insured, claimant again injured her low back and left leg. Wausau denied the claim on the ground that, although claimant’s low-back condition had worsened, she had suffered a new injury and, therefore, SAIF was responsible. SAIF also denied the claim, asserting that Wausau remained responsible. Claimant appealed both denials.

ORS 656.308(1), enacted in 1990, 1 makes the following provisions for determination of responsibility among successive employers:

*4 “When a worker sustains a compensable injury, the responsible employer shall remain responsible for future compensable medical services and disability relating to the compensable condition unless the worker sustains a new compensable injury involving the same condition. If a new compensable injury occurs, all further compensable medical services and disability involving the same condition shall be processed as a new injury claim by the subsequent employer.”

ORS 656.003 provides: “Except where the context otherwise requires, the definitions given in this chapter govern its construction.” ORS 656.005(7)(a) provides the following definition:

“A ‘compensable injury’ is an accidental injury, or accidental injury to prosthetic appliances, arising out of and in the course of employment requiring medical services or resulting in disability or death; an injury is accidental if the result is an accident, whether or not due to accidental means, if it is established by medical evidence supported by objective findings, subject to the following limitations:
“(A) No injury or disease is compensable as a consequence of a compensable injury unless the compensable injury is the major contributing cause of the consequential condition.
“(B) If a compensable injury combines with a preexisting disease or condition to cause or prolong disability or a need for treatment, the resultant condition is compensable only to the extent the compensable injury is and remains the major contributing cause of the disability or need for treatment.” (Emphasis added.)

The limitations set forth in subparagraphs (A) and (B) were added by the 1990 amendments to the definition of “compen-sable injury” in ORS 656.005. Or Laws 1990 (Special Session), ch 2, § 3.

In November 1990, a referee determined that the 1990 amendments to the Workers’ Compensation Law applied to the issue of which of claimant’s employers were responsible for the costs of her 1989 injury. After reviewing ORS 656.308(1) and 656.005(7)(a)(B), the referee concluded that claimant’s 1989 injury was not “the major contributing cause” of claimant’s disability or need for treatment and, therefore, that the responsibility for compensation for the *5 1989 injury did not shift to her subsequent employer under ORS 656.308(1). Accordingly, the referee affirmed SAIF’s denial, set aside Wausau’s denial, and ordered Wausau to process the claim. Wausau sought Board review.

The Board agreed with the referee that the 1990 amendments applied to the claim. The Board concluded, however, that claimant’s 1989 injury was “a material contributing cause” of her disability or need for treatment and that “the major contributing cause” limitation contained in ORS 656.005(7)(a)(B) does not apply, because it should be applied only after an initial determination has been made that the injury is compensable. Instead, the Board looked to the provisions of ORS 656.308(1) and the Board’s previous interpretations of that statute. The Board held that Wausau, as the last carrier against whom claimant had an accepted low-back injury claim, must demonstrate that there has been a “new compensable injury involving the same condition” under ORS 656.308(1) and that it need only show that the 1989 injury was “a material contributing cause” of disability or need for treatment. The Board concluded that, in the present case, Wausau had sustained its burden and, thus, the responsibility for claimant’s condition shifted to the subsequent employer and to SAIF, because claimant’s 1989 injury was “a material contributing cause” of her disability or need for treatment. The Board’s analysis did not address the policy considerations underlying the legislature’s 1990 amendments and did not discuss any legislative history. SAIF petitioned for judicial review.

In the Court of Appeals, SAIF contended that the Board erred in finding SAIF responsible for claimant’s 1989 injury, because the 1989 injury was not the major contributing cause of her disability or need for treatment. SAIF argued that the Board misinterpreted the 1990 amendments. The Court of Appeals agreed with the Board’s analysis and affirmed its order. SAIF v. Drews, supra.

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Cite This Page — Counsel Stack

Bluebook (online)
860 P.2d 254, 318 Or. 1, 1993 Ore. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saif-corp-v-drews-or-1993.