STATE EX REL. INDUS. COM'N v. Word

224 P.3d 169
CourtArizona Supreme Court
DecidedFebruary 8, 2010
DocketCV-09-0174-PR
StatusPublished

This text of 224 P.3d 169 (STATE EX REL. INDUS. COM'N v. Word) is published on Counsel Stack Legal Research, covering Arizona 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. INDUS. COM'N v. Word, 224 P.3d 169 (Ark. 2010).

Opinion

224 P.3d 169 (2010)

STATE of Arizona ex rel. INDUSTRIAL COMMISSION OF ARIZONA, Plaintiff/Judgment Creditor/Appellee,
v.
Tommy WORD dba Pacific Mechanical Service, Defendant/Judgment Debtor/Appellant.

No. CV-09-0174-PR.

Supreme Court of Arizona, En Banc.

February 8, 2010.

Industrial Commission of Arizona By Michael P. Primiano, Phoenix, Attorney for State of Arizona and Industrial Commission of Arizona.

Philip R. Wooten, P.C. By Philip R. Wooten, Phoenix, Attorney for Tommy Word and Pacific Mechanical Service.

OPINION

HURWITZ, Vice Chief Justice.

¶ 1 This case requires us to interpret A.R.S. § 23-907(E) (Supp.2009), which governs recovery of payments made by the Industrial Commission to injured workers whose employers fail to maintain workers' compensation insurance.

*170 I.

A.

¶ 2 On August 2, 1991, Robert Ruehrmund was injured while employed by Tommy Word. Because Word did not carry workers' compensation insurance, Ruehrmund had the option of either pursuing tort remedies or seeking benefits from the Commission's Special Fund. A.R.S. § 23-907(A)-(B) (Supp. 1990). The Special Fund is financed by assessments against workers' compensation insurance premiums and self-insured employers. A.R.S. § 23-1065(A) (Supp.2009).

¶ 3 Ruehrmund sought workers' compensation. After a hearing, an administrative law judge issued an award on April 10, 1992 (the "1992 Award"), granting Ruehrmund continuing hospital, surgical, medical, and compensation benefits. After the administrative law judge denied his request for review, Word filed a special action in the court of appeals, which upheld the award. Word v. Indus. Comm'n, 175 Ariz. 474, 477, 857 P.2d 1328, 1331 (App.1993).

B.

¶ 4 The Commission made payments to Ruehrmund pursuant to the 1992 Award from the Special Fund through November 18, 1998. When an injured worker receives such payments, the uninsured employer is liable to the Special Fund under § 23-907(E) for the payments, statutory penalties, and interest.

¶ 5 Section 23-907(E) requires the Commission to notify the employer periodically of his liability to the Special Fund. On December 3, 1993, the Commission issued a "Continuing Award," listing payments made from the Special Fund to Ruehrmund between August 2, 1991, and November 29, 1993. On May 20, 1994, and March 9, 1998, the Commission issued two "Supplemental Continuing Awards." Each of these documents identified payments to Ruehrmund from the Special Fund during a specified period and a "balance forward," accumulating payments, penalties, and interest to date.

¶ 6 On October 11, 2000, the Commission issued a "Final Award" (the "2000 Final Award"), which covered payments from December 20, 1997, through November 18, 1998. The 2000 Final Award listed a total "balance forward" of $84,325.28. Word did not contest the 1993 Continuing Award, the two Supplemental Continuing Awards, or the 2000 Final Award.

C.

¶ 7 The Commission filed the 2000 Final Award with the Maricopa County Superior Court Clerk on July 11, 2001, and with the Maricopa County Recorder on July 25, 2001. In 2007, the Commission attempted to collect amounts owed to the Special Fund through writs of garnishment. In response, Word filed a motion pursuant to Arizona Rule of Civil Procedure 60(c), arguing that the Commission was barred from seeking recovery for any liabilities incurred under the 1992 Award because the eight-year limitations period in § 23-907(E) had expired. The superior court denied the motion.

¶ 8 The court of appeals reversed, holding that § 23-907(E) required the Commission to file the 1992 Award with the superior court clerk before pursuing its remedies against Word. State ex rel. Indus. Comm'n v. Word, 221 Ariz. 283, 286-87 ¶¶ 14, 19, 211 P.3d 1267, 1270-71 (App.2009). The court held that the Commission's ability to recover payments from Word had expired eight years from the date of the 1992 award. Id. at 288 ¶ 22, 211 P.3d at 1272.

¶ 9 We granted the Commission's petition for review because interpretation of § 23-907(E) is an issue of statewide importance. We have jurisdiction pursuant to Article 6, Section 5(3) of the Arizona Constitution and A.R.S. § 12-120.24 (2003).

II.

A.

¶ 10 Arizona law has provided for a workers' compensation system since statehood. Ariz. Const. art. 18, § 8; see also Grammatico v. Indus. Comm'n, 211 Ariz. 67, 70-71 ¶¶ 10-17, 117 P.3d 786, 789-90 (2005) (recounting history). The workers' compensation system provides an alternative to traditional *171 tort law, assuring the injured worker of compensation for employment-related injuries regardless of fault. Grammatico, 211 Ariz. at 71 ¶ 17, 117 P.3d at 790.

¶ 11 To ensure the payment of benefits, Arizona law has long required that employers either obtain workers' compensation insurance or provide the Commission with satisfactory evidence of their financial ability to self-insure. See 1925 Ariz. Sess. Laws, ch. 83, § 48 (Reg.Sess.) (current version at A.R.S. § 23-961(A) (Supp.2009)). Since 1925, an injured worker of an uninsured employer has had the option of either suing in tort or obtaining a workers' compensation award from the Commission. Id. The 1925 act required that the employer promptly pay benefits awarded by the Commission directly to the worker, and provided that

[a]n abstract of the award may be filed in the office of the clerk of the superior court in any county in the state and shall be docketed in the judgment docket thereof, and when so filed and docketed shall be a lien upon the property of the employer situated in the county for a period of eight years from the date of the award; execution may be issued thereon within eight years in the same manner and with like effect as if said award were a judgment of the superior court.

Id. (as codified at Ariz. Rev.Code 1928, § 1433).

¶ 12 In 1968, the legislature gave the Commission the discretion to compensate workers of non-insured employers directly from the Special Fund. 1968 Ariz. Sess. Laws, ch. 6, § 12 (4th Spec.Sess.); see also State Comp. Fund v. Superior Court, 15 Ariz.App. 597, 599 n. 2, 490 P.2d 426, 428 n. 2 (1971) (noting statutory change). If the Commission did so, it was assigned the worker's cause of action against the employer. 1968 Ariz. Sess. Laws, ch. 6, § 12 (codified as amended at A.R.S. § 23-907(B) (1970)). The 1968 act retained, without material change, the filing and lien provisions of the 1925 act quoted above. Id.

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State ex rel. Industrial Commission v. Word
224 P.3d 169 (Arizona Supreme Court, 2010)
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490 P.2d 426 (Court of Appeals of Arizona, 1971)

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Bluebook (online)
224 P.3d 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-indus-comn-v-word-ariz-2010.