State Ex Rel. Blankenship v. Richardson

474 S.E.2d 906, 196 W. Va. 726, 1996 W. Va. LEXIS 117
CourtWest Virginia Supreme Court
DecidedJuly 17, 1996
Docket23119
StatusPublished
Cited by59 cases

This text of 474 S.E.2d 906 (State Ex Rel. Blankenship v. Richardson) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Blankenship v. Richardson, 474 S.E.2d 906, 196 W. Va. 726, 1996 W. Va. LEXIS 117 (W. Va. 1996).

Opinion

MeHUGH, Chief Justice.

Petitioners herein, twenty-two West Virginia workers’ compensation claimants, invoke this Court’s original jurisdiction pursuant to W.Va. Const. Art. VIII, § 3 and W.Va.Code, 51-1-3 [1923] and seek a writ of mandamus against respondent Andrew N. Richardson, Commissioner of the Division of Workers’ Compensation, Bureau of Employment Programs 1 (hereinafter “Commissioner”). Petitioners challenge the constitutionality of certain provisions of Enrolled Senate Bill 250 (hereinafter “S.B. 250”), which amended the West Virginia Workers’ Compensation Act.

The haste with which this comprehensive legislation was enacted is revealed by the sequence of legislative events. S.B. 250 was introduced on February 2, 1995 and received final legislative approval eight days later, on February 10, 1995. The provisions of S.B. 250 became effective on date of passage, the legislature having voted to override the ninety-day waiting period between passage and date of effect. See W.Va. Const. Art. VI, § 30 (“[N]o act of the legislature ... shall take effect until the expiration of ninety days after its passage, unless the legislature shall by a vote of two thirds of the members elected to each house ... otherwise direct.” Id., in part.) See also Perry v. Barker, 169 W.Va. 531, 533 n. 1, 289 S.E.2d 423, 425 n. 1 (1982) (The purpose of the ninety day period “is to provide a sufficient period of time to give notice to the public of the contents of the new law, and to provide government officials sufficient time to perform the duties contemplated by the law.”)

I.

Prior to the introduction and enactment of S.B. 250, the Workers’ Compensation Fund (hereinafter “the Fund”) was commonly perceived to be in dire financial straits. See generally Emily A. Spieler, Assessing Fairness in Workers’ Compensation Reform: A Commentary on the 1995 West Virginia Workers’ Compensation Legislation, 98 W.Va.L.Rev. 23 (1995). Despite the general consensus that the fiscal integrity of the Fund was clearly threatened, there remains considerable debate as to what actually propelled the Fund to its precarious position.

Petitioners maintain that two primary developments in West Virginia contributed most significantly to the Fund’s financial fragility. Petitioners first point to the decline in employment in certain industries, such as coal mining, which traditionally have high injury rates and high wages. Quoting Emily A Spieler, Social Welfare Policy in the Context of Economic Restructuring: Lessons from the West Virginia Workers’ Compensation Programme, 30 Urban Studies 351, 357- *730 58 (1993), petitioners maintain that ‘“Misplaced workers from these industries filed large numbers of claims for disabilities arising from their prior work. During critical years, the premium rates charged to those industries were far too low, resulting in inadequate revenue to the fund. With the decline in payroll in those industries, it is now impossible to fund the cost of those prior injuries with premiums collected from the same industry[.]’ ” Id.

The second development, according to petitioners, was that of “ ‘political manipulation of the [workers’ compensation] programme, particularly an unjustifiable, and probably illegal, decision by the former Governor of West Virginia [Arch Moore] to reduce employers’ premium rates below sound financial levels. Effective 1 July 1985, these rates were reduced by 30 percent for every industry, against the advice of the consulting actuarial expert[.]’ ” Id. 2 As a result, petitioners argue, the Fund began losing money “ ‘on a cash basis, as well as an accrual basis; that is, the revenue collected each year not only failed to fund the future costs of injuries which occurred in that year, but actually was less than the money that was paid out in that year.’” Id. Finally, petitioners maintain that the Fund’s past failure to aggressively collect workers’ compensation premiums from employers who were in default also contributed to the Fund’s financial crisis.

The Commissioner, on the other hand, maintains that the Fund’s imminent insolvency is rooted primarily in the legislative and judicial liberalization of permanent total disability (PTD) eligibility, resulting in awards of PTD benefits to West Virginia claimants in numbers far higher than the national average. 3 Liberally conferring these awards, argues the Commissioner, also served as an incentive for claimants with slight medical impairments to apply for lifetime PTD awards instead of returning to work or to a vocational rehabilitation program. See, e.g., Cardwell v. State Workmens’ Compensation Comm’r, 171 W.Va. 700, 301 S.E.2d 790 (1983). The Commissioner additionally points to the state’s poor economy, the failure to provide incentives to employers to encourage safety and accident prevention, the failure of the benefit structure to encourage vocational rehabilitation and return to *731 work incentives for drawn out litigation within the workers’ compensation system, and administrative inefficiencies as having contributed to the Fund’s financial difficulties.

Though the parties herein differ as to the causes of the Fund’s financial plight, they agree that the state of the Fund warranted legislative change. They further agree that it is clearly within the legislature’s authority to enact legislation such as S.B. 250, 4 as its power is almost plenary. The legislature’s power will not be negated by this Court unless the legislative enactment violates constitutional guarantees. Lewis v. Canaan Valley Resorts, Inc., 185 W.Va. 684, 690, 408 S.E.2d 634, 640 (1991) (‘“The Constitution of West Virginia being a restriction of power rather than a grant thereof, the legislature has the authority to enact any measure not inhibited thereby.’ Syl. Pt. 1, Foster v. Cooper, 155 W.Va. 619, 186 S.E.2d 837 (1972)” 5 ); Lester v. State Workmen’s Compensation Com’r, 161 W.Va. 299, 315, 242 S.E.2d 443, 452 (1978) (the legislature is vested with the authority to modify this State’s workers’ compensation system as it sees fit so long as no constitutional provision is infringed).

Accordingly, when this Court is called upon to determine the constitutionality of a statute, we are guided by the following restraints imposed upon our judicial powers:

‘ “In considering the constitutionality of a legislative enactment, courts must exercise due restraint, in recognition of the principle of the separation of powers in government among the judicial, legislative and executive branches. [W.Va Const. Art.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Everett Frazier v. Nathan Talbert
West Virginia Supreme Court, 2021
Hall v. Hall
818 S.E.2d 838 (West Virginia Supreme Court, 2018)
State of West Virginia v. Kristopher Dale Nutter
West Virginia Supreme Court, 2015
In Re BRANDI B.
743 S.E.2d 882 (West Virginia Supreme Court, 2013)
State ex rel. Cooper v. Tennant
730 S.E.2d 368 (West Virginia Supreme Court, 2012)
State Ex Rel. Potter v. Office of Disciplinary Counsel
697 S.E.2d 37 (West Virginia Supreme Court, 2010)
STATE EX REL. BURDETTE v. Zakaib
685 S.E.2d 903 (West Virginia Supreme Court, 2009)
KASSERMAN AND BOWMAN, PLLC v. Cline
675 S.E.2d 890 (West Virginia Supreme Court, 2009)
Worley v. Beckley Mechanical, Inc.
648 S.E.2d 620 (West Virginia Supreme Court, 2007)
Hartley Hill Hunt Club v. County Commission of Ritchie County
647 S.E.2d 818 (West Virginia Supreme Court, 2007)
Bias v. Eastern Associated Coal Corp.
640 S.E.2d 540 (West Virginia Supreme Court, 2006)
Subcarrier Communications, Inc. v. Nield
624 S.E.2d 729 (West Virginia Supreme Court, 2005)
Jones v. West Virginia State Board of Education
622 S.E.2d 289 (West Virginia Supreme Court, 2005)
Louk v. Cormier
622 S.E.2d 788 (West Virginia Supreme Court, 2005)
Stern v. Chemtall Inc.
617 S.E.2d 876 (West Virginia Supreme Court, 2005)
Lucas v. Fairbanks Capital Corp.
618 S.E.2d 488 (West Virginia Supreme Court, 2005)
West Virginia Ex Rel. McGraw v. Minnesota Mining & Manufacturing Co.
354 F. Supp. 2d 660 (S.D. West Virginia, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
474 S.E.2d 906, 196 W. Va. 726, 1996 W. Va. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-blankenship-v-richardson-wva-1996.