Schulz v. State Compensation Department

448 P.2d 551, 252 Or. 211, 1968 Ore. LEXIS 739
CourtOregon Supreme Court
DecidedDecember 31, 1968
StatusPublished
Cited by9 cases

This text of 448 P.2d 551 (Schulz v. State Compensation Department) 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
Schulz v. State Compensation Department, 448 P.2d 551, 252 Or. 211, 1968 Ore. LEXIS 739 (Or. 1968).

Opinion

LANGTRY, J.,

(Pro Tempore).

The State Compensation Department (hereinafter referred to as the department), defendant, appeals from a judgment of the circuit court affirming action of the Workmen’s Compensation Board (hereinafter referred to as the board), which remanded plaintiff’s (hereinafter referred to as claimant) claim for compensation to a hearing officer for further determination of claimed liability.

Claimant had received an injury compensable under the Workmen’s Compensation Act of 1965 and on January 3,1967, the department made a determination of the compensation .he should receive. On June 8, 1967, he petitioned for a hearing pursuant to the act, and a: hearing was scheduled for September 15, 1967. At the beginning of the hearing the department and claimant agreed on a settlement and a stipulation was written in longhand and subscribed by claimant and respective attorneys, which the hearing officer approved.

The stipulation provided:

“* * * [T]he claimant is entitled to an award for permanent partial disability equal to 5% loss on an arm for an unscheduled disability * ® *.
“Attorneys fees are based on 25% of the increase in the award.”

*213 On October 3, 1967, pursuant to OES 656.289, the hearing officer entered an order making an award based on the stipulation and dismissing the request for hearing. On October 31, 1967, claimant filed with the board a request for review claiming that when he made the stipulation he misunderstood it; that he had not been released by his physician to return to work; and that due to the injury he was still unable to work. He alleged his medical expenses were now more than $1,000; that he was in need of continued medical care; and that he was permanently and totally or permanently partially disabled. His allegations were supported by his attached affidavit. Principal among the allegations of the affidavit was that at the time he stipulated he understood he would immediately return to his old job, but that when he tried to do so the physician for the employer refused to send him back to work because of his disability, and it appeared that he would not be able to get other work he could do for the same reason.

It appears that the money allowance made pursuant to the stipulation was $395.75, and after deduction of attorney fees claimant’s net was $299.07, and that at the time of the stipulation there were unpaid medical bills of $672.30 for which the department was responsible.

The board, after reviewing claimant’s request and affidavit, on January 4,1968, remanded the case to the hearing officer, stating in its order:

“The problem is complicated by the withdrawal *214 of counsel for claimant who participated in the agreed settlement. Subsequent withdrawal of counsel who in good faith participated in such a disposition of a claim is understandable.
<i* # # # #
“In the instant case, the stipulation leaves much to be desired and the Board is inclined to believe that all of the terms of the settlement were not incorporated in the written document. Under the broad authority of the Board pursuant to ORS 656.295(5) the matter is remanded to the Hearing Officer for hearing upon the merits of the extent of permanent partial disability, if any, suffered by the claimant.”

It is from this order that the department’s appeal was taken. The department poses the primary question to be whether the board can set aside “a stipulated order settling the controversies between the parties” in the absence of fraud, mistake, or any of the other causes upon which releases are nullified by courts. It also questions whether the board can consider an affidavit such as claimant used to support his request for review. We do not agree that such questions are involved.

The statutes under which this case was tried are new, having been enacted in 1965. The act, generally, became effective on January 1, 1966. The department is a separate entity from the board. The hearing officers work for the board (ORS 656.724) and their findings are subject to review of the board. ORS 656.295. ORS 656.289(3) provides that an order of a hearing officer shall become final unless a request for review by the board is made within 30 days. Claimant’s request in this case was made in less than 30 days.

*215 ORS 656.295(1) states that such a request “need only state that the party requests a review * * ®.” Subsection (5) provides “review by the board shall be based upon the record” and “if the board determines that a case has been improperly, incompletely or otherwise insufficiently developed or heard by the hearing officer, it may remand the case to the hearing officer for further evidence taking, correction or other necessary action.”

Subsection (6) provides that the “board may affirm, reverse, modify or supplement the order of the hearing officer and make such disposition of the ease as it determines to be appropriate * *

The parties have devoted much of their argument to the meaning of the following two sections of the new law.

ORS 656.236(1) provides:

“No release by a workman or his beneficiary of any rights under ORS 656.001 to 656.794 is valid.”

ORS 656.289(4) provides:

“(4) Notwithstanding ORS 656.236, in any case where there is a bona fide dispute over compensability of a claim, the parties may, with the approval of a hearing officer, the board or the court, by agreement make such disposition of the claim as is considered reasonable.”

There was no dispute about compensability of the claim in the instant case. The dispute was as to the extent of the disability. The provisions of ORS 656.236 speak only in terms of “release.” The stipulation quoted above did not purport to release anything. It merely agreed that claimant was entitled to a certain award. It became the basis of the hearing officer’s *216 order.

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Cite This Page — Counsel Stack

Bluebook (online)
448 P.2d 551, 252 Or. 211, 1968 Ore. LEXIS 739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schulz-v-state-compensation-department-or-1968.