Schmill v. Liberty Northwest Ins. Corp.

2003 MT 80, 67 P.3d 290, 315 Mont. 51, 2003 Mont. LEXIS 153
CourtMontana Supreme Court
DecidedApril 10, 2003
Docket01-663
StatusPublished
Cited by19 cases

This text of 2003 MT 80 (Schmill v. Liberty Northwest Ins. Corp.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmill v. Liberty Northwest Ins. Corp., 2003 MT 80, 67 P.3d 290, 315 Mont. 51, 2003 Mont. LEXIS 153 (Mo. 2003).

Opinions

JUSTICE TRIEWEILER

delivered the Opinion of the Court.

¶ 1 The Petitioner, Cassandra Schmill, filed a petition in the Montana Workers’ Compensation Court, in which she alleged that she suffered from an occupational disease arising from her employment with Muralt’s Travel Plaza. Muralt’s is insured by the Respondent, Liberty Northwest Insurance. Schmill contended that because § 39-72-706, MCA, of the Occupational Disease Act required reduction of disability benefits for non-occupational factors, while the Workers’ Compensation Act did not, her right to equal protection was violated. The Workers’ Compensation Court held that § 39-72-706, MCA, violates the equal protection clause of the United States and Montana Constitutions and awarded Schmill full benefits without reduction for non-occupational factors. Liberty Northwest appeals that conclusion. We affirm the judgment of the Workers’ Compensation Court.

¶2 The sole issue on appeal is, whether the Workers’ Compensation Court erred when it concluded that § 39-72-706, MCA, violates the equal protection clause of the United States and Montana Constitutions?

FACTUAL AND PROCEDURAL BACKGROUND

¶3 In the Spring of 1999 the Respondent, Cassandra Schmill, had been working at Muralt’s Travel Plaza as a waitress for approximately five years when she began experiencing discomfort in her left heel. She was subsequently diagnosed with chronic left Achilles peritendonitis and tendonosis, an occupational disease. Schmill began physical therapy for her condition and filed a temporary total disability claim with Muralt’s insurer, Liberty Northwest Insurance. Liberty Northwest accepted the claim pursuant to Montana’s Occupational Disease Act. Despite physical therapy and treatment for the pain, her condition did not improve and surgery was performed by Dr. Glenn [53]*53Jarrett in February of 2000.

¶4 After Schmill reached maximum medical improvement, she was given a 3% physical impairment rating of the whole body by Dr. Jarrett. Dr. Jarrett indicated that it would be difficult for Schmill to walk continuously and a job that allowed her to rest periodically was more appropriate to her condition. In spite of her limitations, Schmill did not suffer an actual wage loss as the result of her occupational disease. Therefore, Schmill requested an impairment award for the disability caused by her occupational disease pursuant to the Workers’ Compensation Act. That request was denied by Liberty Northwest. Schmill sought benefits pursuant to the WCA rather than the ODA because the ODA did not provide partial disability or impairment benefits.

¶5 On March 12, 2001, Schmill filed a petition in the Workers’ Compensation Court in which she alleged that she was entitled to the same impairment award that was available pursuant to the WCA. Liberty Northwest filed a motion for summary judgment and argued that Schmill’s impairment was the result of an occupational disease and that, therefore, she was not entitled by statute to benefits.

¶6 Subsequently, the Workers’ Compensation Court issued its decision in Stavenjord v. State Compensation Ins. Fund, 2001 MTWCC 25, which required that permanent partial disability benefits be paid to occupational disease claimants pursuant to the WCA. Schmill filed a response to Liberty Northwest’s motion for summary judgment, which cited the Workers’ Compensation Court’s decision in Stavenjord in support of her claims.

¶7 Based on the Stavenjord decision, Liberty Northwest agreed to pay Schmill’s impairment award. However, Liberty Northwest deducted twenty percent from her award for non-occupational factors that contributed to her disability pursuant to § 39-72-706, MCA. Schmill maintained that she was entitled to a full payment pursuant to the WCA and that the apportionment of benefits pursuant to § 39-72-706, MCA, violated her right to equal protection of the law. The issue that remained for the Workers’ Compensation Court was whether the apportionment statute of the ODA, found at § 39-72-706, MCA, violated Schmill’s constitutional right to equal protection of the law.

¶8 On June 22, 2001, the Workers’ Compensation Court concluded that § 39-72-706, MCA, violated the Montana and United States Constitutions’ guarantees of equal protection because it provided disparate treatment to injured workers and those with what are now [54]*54defined as occupational diseases. Consequently, it held that Schmill was entitled to the full amount of the impairment award without a reduction for non-occupational factors.

STANDARD OF REVIEW

¶9 The Workers’ Compensation Court’s decision on the merits was based on its construction of constitutional law. Our review of questions of constitutional law is plenary. In re Custody of Krause, 2001 MT 37, ¶ 16, 304 Mont. 202, ¶ 16, 19 P.3d 811, ¶ 16. We review conclusions of law to determine whether they are correct. Henry v. State Compensation Ins. Fund, 1999 MT 126, ¶ 10, 294 Mont. 449, ¶ 10, 982 P.2d 456, ¶ 10.

¶10 All legislative enactments are presumed to be constitutional. Henry, ¶ 11. The party challenging the constitutionality of a statute bears the burden of proving the statute unconstitutional beyond a reasonable doubt. Henry, ¶ 11.

DISCUSSION

¶11 Liberty Northwest contends that the Workers’ Compensation Court erred when it concluded that the ODA’s apportionment statute is unconstitutional because the equal protection clause does not require that diseased and injured workers be treated in the same manner. In the alternative, Liberty Northwest maintains that there is a legitimate government interest for apportioning compensation based on the percentage of a disease that is attributable to non-occupational factors. Finally, Liberty Northwest contends that the WCA reduces compensation in a similar fashion and that, therefore, workers are not treated differently by the ODA and the WCA.

¶12 Article II, Section 4 of the Montana Constitution provides that “[n]o person shall be denied equal protection of the laws.” The equal protection clause requires that “all persons be treated alike under like circumstances.” Grooms v. Ponderosa Inn (1997), 283 Mont. 459, 467, 942 P.2d 699, 703. An equal protection claim brought by an injured or diseased worker is reviewed pursuant to the rational basis test. Henry, ¶ 33. “The rational basis test requires the government to show (1) that the statute’s objective was legitimate, and (2) that the statute’s objective bears a rational relationship to the classification used by the legislature/’ Henry, ¶ 33. ‘“A classification that is patently arbitrary and bears no rational relationship to a legitimate government interest offends equal protection of the law.’” Henry, ¶ 36 (quoting Davis v. Union Pacific R. Co. (1987), 282 Mont 233, 242-43, 937 P.2d 27, 32 [55]*55(citation omitted)).

¶13 Liberty Northwest argues that the apportionment clause is valid pursuant to this Court’s holding in Eastman v. Atlantic Richfield Co. (1989), 237 Mont. 332, 777 P.2d 862. In Eastman we considered a pro se appellant’s equal protection challenge of the ODA that was raised for the first time on appeal.

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Bluebook (online)
2003 MT 80, 67 P.3d 290, 315 Mont. 51, 2003 Mont. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmill-v-liberty-northwest-ins-corp-mont-2003.