Silva v. Maplewood Care Center

582 N.W.2d 566, 1998 Minn. LEXIS 517, 1998 WL 469707
CourtSupreme Court of Minnesota
DecidedAugust 13, 1998
DocketC5-97-1282
StatusPublished
Cited by5 cases

This text of 582 N.W.2d 566 (Silva v. Maplewood Care Center) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silva v. Maplewood Care Center, 582 N.W.2d 566, 1998 Minn. LEXIS 517, 1998 WL 469707 (Mich. 1998).

Opinions

OPINION

PAUL H. ANDERSON, Justice.

Minnesota Statutes section 176.191 was amended in 1995 to provide that equitable apportionment of liability for an injury under this section is not allowed but for certain limited exceptions for settlement and arbitration. The amendment to section 176.191 was made effective for apportionment proceedings instituted after July 1, 1995. The issue we must decide is whether the 1995 amendment to section 176.191 that applies to equitable apportionment proceedings instituted after July 1, 1995 — a Saturday — governs a petition for equitable apportionment that was mailed on Thursday, June 29, 1995, but was not received and filed by the Department of Labor and Industry (DLI) until the following Monday, July 3,1995. A compensation judge dismissed the petition on the grounds that the 1995 amendment divested the compensation judge of jurisdiction over this matter. The Workers’ Compensation Court of Appeals (WCCA) reversed the decision of the compensation judge. Concluding that the 1995 amendment does not apply here, we affirm the WCCA.

Respondent Donna M. Silva sustained two work-related back injuries while working for two different employers. The first injury occurred in July 1993 while Silva was working as a -nursing assistant for relator Maple-wood Care Center, which was insured for workers? compensation liability by relator Minnesota Health Care Association/GAB Robins, Inc. (Maplewood). Silva sustained her second back injury in September 1994 while working as a nursing assistant for respondent Beverly Enterprises, d/b/a Greeley Healthcare Center, which was -insured for workers’ compensation liability by respondent Insurance Company of the State of Pennsylvania/ Constitution State Service Company (Greeley). Greeley admitted liability for this second injury and paid more than $33,574.27 in various workers’ compensation benefits to Silva.

Greeley petitioned for contribution and reimbursement from Maplewood, alleging that “a substantial portion, if not all, of the indemnity benefits and medical expenses [it] paid” .on Silva’s behalf were attributable to the July 1993 injury. Greeley’s attorneys mailed the petition on or about Thursday, June 29,1995, and the petition was received and filed by the Workers’ Compensation Division of DLI on Monday, July 3, 1995. .Maplewood filed an answer in which it denied liability and contended that the payments for which Greeley sought reimbursement were “unreasonable, unnecessary, excessive, and unrelated to any injury sustained during [Silva’s] employment” with Maplewood.

Following a prehearing conference, a compensation judge dismissed Greeley’s petition without prejudice, concluding that Minn.Stat. [568]*568§ 176.191 as amended and made effective after July 1,1995 provided arbitration as the exclusive remedy available to employers and insurers for resolution of disputes in contribution actions. The judge therefore determined that .the amendments to the statute divested the Office of Administrative Hearings of jurisdiction Over this matter. The judge rejected Greeley’s claim that, because July 1, 1995 fell on a Saturday, the amendments should not apply to a petition mailed before July 1 but received and filed by DLI on Monday, July 3. Greeley’s only recourse, according to the compensation judge, was to pursue its claim through arbitration.

On appeal, the WCCA reversed. Relying on its decision in Schmoll v. Washington Scientific Indus., Inc., 55 Workers Comp. Dec. 530 (Minn. Workers’ Comp. Ct.App.1996), the WCCA held that an arbitrator’s role under section 176.191 is limited to determining the percentage of equitable apportionment attributable to each employer and insurer only after liability has been admitted or a compensation judge has decided whether the earlier injury substantially contributed to the. subsequent disability. The WCCA did not address whether the 1995 amendment to section 176.191 governs Greeley’s petition, and remanded the matter to the Office of Administrative Hearings for further proceedings. Maplewood then petitioned to this court for a writ of certiorari.

Workers’ compensation laws are designed to provide a comprehensive system for compensating injured employees regardless of fault or negligence. Strict liability is imposed on the employer, and the employee’s recovery is limited to a fixed schedule. See Lambertson v. Cincinnati Corp., 312 Minn. 114, 120-21, 257 N.W.2d 679, 684 (1977). The law evolved such that an employer takes an employee with whatever preexisting maladies he or she may have. See, e.g., Gillette v. Harold, Inc., 257 Minn. 313, 322, 101 N.W.2d 200, 207 (1960). Consequently, “[wjhen a disability develops gradually, or when it comes as the result of a succession of accidents, the insurance carrier covering the risk at the time of the most recent injury or exposure bearing a causal relation to the disability is usually liable for the entire compensation.” 9 Arthur Larson & Lex K. Larson, Larson’s Workers Compensation Law, § 95.00 (1998); see also Michels v. American Hoist & Derrick, 269 N.W.2d 57, 59 (Minn.1978) (holding that employee is entitled to prompt payment of full benefits when employment immediately preceding total disability contributed to the disability). The harshness for insurers of this policy of requiring that a single insurer assume the entire cost of any single injury has been tempered in Minnesota and other jurisdictions by a practice that permits apportionment between two carriers when two successive injuries combine to produce the final disability. Larson & Larson, supra, § 95.31.

In Minnesota, common law principles of equitable apportionment have long been applied to permit apportionment between insurance carriers when two or more successive injuries combine to produce the final disability. We have required successive employers and their, insurers each to contribute their proportionate share of the total responsibility for wage loss benefits when those benefits had been awarded on the basis of a single permanency rating of the disability resulting from more than one compensable injury. See, e.g., DeNardo v. Divine Redeemer Mem. Hosp., 450 N.W.2d 290, 292 (1990) (providing for equitable apportionment of wage loss benefits). See also Goetz v. Bulk Commodity Carriers, 303 Minn. 197, 199-200, 226 N.W.2d 888, 890 (1975) (providing equitable apportionment of disability and medical expenses). In 1995, however, the legislature amended Minn.Stat. § 176.191 to add subdivision la, which provides that “[ejquitable apportionment of liability for an injury under this chapter is not allowed,” with certain exceptions for settlement and arbitration. Subdivision la applies to all injuries except occupational diseases, in which case Minn. Stat. § 176.66 continues to allocate liability in multiple employer/insurer cases. See Minn. Stat. § 176.66 (1996).

Under section 176.191, subdivision la, employers and their insurers in a successive injury case may stipulate to an apportionment of liability. ■ Alternatively, under subdivision 5, also added in 1995, they may compel arbitration if $10,000 in medical benefits or [569]

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Silva v. Maplewood Care Center
582 N.W.2d 566 (Supreme Court of Minnesota, 1998)

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Bluebook (online)
582 N.W.2d 566, 1998 Minn. LEXIS 517, 1998 WL 469707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silva-v-maplewood-care-center-minn-1998.