State Ex Rel. Cobbs v. Montana Department of Social & Rehabilitation Services

906 P.2d 204, 274 Mont. 157, 52 State Rptr. 1166, 1995 Mont. LEXIS 255
CourtMontana Supreme Court
DecidedNovember 21, 1995
Docket95-184
StatusPublished
Cited by11 cases

This text of 906 P.2d 204 (State Ex Rel. Cobbs v. Montana Department of Social & Rehabilitation Services) 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
State Ex Rel. Cobbs v. Montana Department of Social & Rehabilitation Services, 906 P.2d 204, 274 Mont. 157, 52 State Rptr. 1166, 1995 Mont. LEXIS 255 (Mo. 1995).

Opinion

JUSTICE TRIEWEILER

delivered the Opinion of the Court.

The appellant, Celia Cobbs, filed an application in the District Court for the Nineteenth Judicial District in Lincoln County for a Writ of Mandate that would have directed the Department of Social and Rehabilitation Services (SRS) to disburse funds from the Industrial Accident Rehabilitation (IAR) Account for her rehabilitation expenses, as authorized by the Department of Labor. The District Court concluded that SRS had no clear duty to disburse the funds, and that Cobbs’ exclusive remedy was provided by law. Therefore, the court denied her application. Cobbs appeals from the order and judgment of the District Court. We reverse.

The issue on appeal is:

Does the State Department of Social and Rehabilitation Services owe a clear legal duty to distribute funds from the Industrial Accident Rehabilitation Account when the Montana Department of Labor authorizes the distribution pursuant to § 39-71-2001, MCA (1993)?

*160 FACTUAL BACKGROUND

Celia Cobbs is an injured worker entitled to workers’ compensation benefits. She is unable to return to her former job because of a work-related injury. She had a dispute with her employer’s insurer over her right to rehabilitation benefits and filed a petition in the Workers’ Compensation Court to resolve that dispute. After a trial, she settled her claim by agreeing upon a rehabilitation plan with her employer’s insurer. The plan called for payment from the IAR Account in the amount of $680.75 for tuition and fees, together with $250.00 per semester for books and materials during a two-year course of study at Flathead Valley Community College. The State Department of Labor, Employment Relations Division, and the Workers’ Compensation Court approved the plan.

On January 13, 1994, the Department of Labor wrote to SRS and authorized the expenditure of funds from the IAR Account for the tuition, books, and materials described in the rehabilitation plan. The authorization specified that it was for expenditure of funds and that Cobbs was not seeking rehabilitation services. SRS, however, refused to disburse funds from the IAR Account based on its conclusion that Cobbs did not qualify for that Department’s rehabilitation services.

Cobbs then applied to the District Court in Lincoln County for a peremptory Writ of Mandate to compel the Department of Social and Rehabilitation Services to distribute funds pursuant to her rehabilitation plan. Cobbs contended in District Court that the IAR Account was established exclusively for workers’ compensation claimants and that while the funds may be used to provide rehabilitation services through SRS pursuant to § 39-71-1003, MCA, the funds could also be used pursuant to § 39-71-2001(l)(d), MCA (1993), when the Department of Labor authorizes use of the funds for expenses related to a private rehabilitation plan.

The District Court concluded that the IAR Account is statutorily dedicated to payment for rehabilitation services for injured workers provided by the State of Montana’s vocational rehabilitation program, and that because Cobbs was not a client of that program she was prohibited from receiving funds from the Account. The District Corut also held that § 39-71-1003, MCA, provides that § 53-7-106, MCA, is Cobbs’ exclusive remedy for denial of SRS services.

On appeal, Cobbs points out that she did not seek rehabilitation services or payments pursuant to § 39-71-1003, MCA. She agrees that she does not qualify for those services, but contends that she is *161 entitled to rehabilitation expenses which are related to her privately developed plan pursuant to § 39-71-2001(l)(d), MCA (1993).

DISCUSSION

Does the State Department of Social and Rehabilitation Services owe a clear legal duty to distribute funds from the Industrial Accident Rehabilitation Account when the Montana Department of Labor authorizes the distribution pursuant to § 39-71-2001, MCA (1993)?

The issuance or denial of a writ of mandate is a matter of legal interpretation which we will review to determine whether the district court’s legal interpretation is correct. Phillips v. City of Livingston (1994), 268 Mont. 156, 161, 885 P.2d 528, 531. A two-part standard applies to the issuance of a writ of mandate. State ex rel. Chisholm v. District Court (1986), 224 Mont. 441, 443, 731 P.2d 324, 325. The writ is available when the party who requests it is entitled to the performance of a clear legal duty by the party against whom the writ is sought, and where no speedy and adequate remedy in the ordinary course of law is available. Section 27-26-102, MCA; see State ex rel. Galloway v. City of Great Falls (1984), 211 Mont. 354, 358, 684 P.2d 495, 497.

A negative answer to the first question bars the issuance of the writ, and, irrespective of the answer to that question, an affirmative answer to the second, divests the court of authority to issue it.

Chisholm, 731 P.2d at 325.

On appeal, Cobbs contends that the District Court’s denial of her application was incorrect on both grounds. First, Cobbs contends that SRS has a clear legal duty to disburse the funds from the IAR Account. Second, Cobbs asserts that the SRS appeal process pursuant to § 53-7-106, MCA, is inapplicable because she did not seek SRS services.

Cobbs contends that SRS has a clear legal duty to disburse funds pursuant to § 39-71-2001, MCA (1993), which authorizes privately developed rehabilitation plans, and therefore, that the District Court abused its discretion when it failed to find a clear legal duty on the part of SRS and denied the writ. SRS asserts that application for SRS services pursuant to § 39-71-1003, MCA, is the only route to the IAR funds, and therefore, that all recipients of IAR Account monies must independently be eligible clients of SRS rehabilitation programs. We conclude that SRS’s position, which was adopted by the District Court, is inconsistent with statutory law.

*162 The SRS is statutorily required to provide “vocational rehabilitation” and “vocational rehabilitation services” pursuant to the Federal Rehabilitation Act of 1973.29 U.S.C. §§ 701-796. These services must be provided to anyone who qualifies pursuant to SRS criteria found at § 53-7-105, MCA. Vocational rehabilitation must also be provided by workers’ compensation insurers to claimants who, by virtue of a work-related injury, are “physically unable to work at the job the worker held at the time of injury.” Section 39-71-2001(l)(b), MCA (1993). This is a different standard than the standard by which eligibility for SRS services is determined.

The IAR Account is provided for at § 39-71-1004, MCA. It is funded by self-insured employers, Plan II insurers, and the Department of Labor.

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Cite This Page — Counsel Stack

Bluebook (online)
906 P.2d 204, 274 Mont. 157, 52 State Rptr. 1166, 1995 Mont. LEXIS 255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-cobbs-v-montana-department-of-social-rehabilitation-mont-1995.