State Industrial Insurance System v. Vernon

787 P.2d 792, 106 Nev. 128, 1990 Nev. LEXIS 19
CourtNevada Supreme Court
DecidedFebruary 23, 1990
DocketNo. 20297
StatusPublished
Cited by1 cases

This text of 787 P.2d 792 (State Industrial Insurance System v. Vernon) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Industrial Insurance System v. Vernon, 787 P.2d 792, 106 Nev. 128, 1990 Nev. LEXIS 19 (Neb. 1990).

Opinion

[129]*129OPINION

By the Court,

Rose, J.:

This is a successive injury case, in which the disability claimant received three knee injuries, the first in Nevada, and the other two in California. Nevada’s “last injurious exposure rule” requires the employer at the time of the latest injury related to a disability to assume full liability for the disability. The question presented by this appeal is whether this rule applies where the employer at the time of the latest injury is an out-of-state employer. This is a question of first impression for this court. We hold that the last injurious exposure rule requires the disability claimant first to seek compensation from the out-of-state employer. We further hold that the claimant may later reapply for compensation in Nevada and is entitled to the full compensation authorized by Nevada law, but only to the extent that this compensation does not directly duplicate any compensation already awarded by the out-of-state employer.

FACTS

In January 1986, the claimant Lloyd Vernon (Vernon) injured [130]*130both his knees while employed as an ironworker in Las Vegas. Nevada’s State Industrial Insurance System (SIIS) paid for arthroscopic surgery on the right knee. In May 1986, SIIS released Vernon to work, but Vernon continued to complain of serious symptoms in both knees. Because a decision on his Nevada claim for permanent partial disability was delayed, Vernon went to work in California. He re-twisted the right knee on this second job and filed a claim for compensation with the California worker’s compensation system. Because that claim, too, was delayed, he found a third job located in California, but under an employer covered by the worker’s compensation system of the State of Washington. Here, he suffered his third injury, a bruise and infected cut on his left knee. Vernon then returned to Nevada to pursue his pending claim and was awarded rehabilitative and medical benefits. SIIS appealed to an administrative appeals officer who affirmed the award of benefits. SIIS now appeals the district court’s decision affirming the award of benefits by the appeals officer. At the time of the appeals officer’s decision, Vernon’s claim with the second employer was still pending. The third employer has compensated Vernon through the worker’s compensation system of the State of Washington, but only for the superficial wounds Vernon suffered in the third accident, not for Vernon’s underlying knee joint injuries.

DISCUSSION

I. The last injurious exposure rule.

In Nevada, the last injurious exposure rule is grounded in the decisions of this court, not in legislation. This court has stated the last injurious exposure rule as follows:

Full liability is placed on the carrier covering the risk at the time of the most recent injury that bears a causal relationship to the disability. 4 Larson Workmen’s Compensation Law § 95.20 (1986).
When an employee sustains a subsequent industrial accident which is found to be a new injury or an aggravation of the prior injury, the employer/insurer at the time of the second injury is liable for all the claimant’s benefits even if the second injury would have been much less severe in the absence of the prior condition, and even if the prior injury contributed to the final condition. 4 Larson Workmen’s Compensation Law § 95.21 (1986). . . . However, if the second injury is merely a recurrence of the first, and does not contribute even slightly to the causation of the disabling condition, the insurer/employer covering the risk at the time of the original injury remains liable for the second. 4 Larson Workmen’s Compensation Law § 95.23 (1986).

[131]*131SIIS v. Swinney, 103 Nev. 17, 20, 731 P.2d 359, 360-61 (1987) (applying the rule in a successive injury case); see also SIIS v. Jesch, 101 Nev. 690, 709 P.2d 172 (1985) (applying the rule in an occupational disease case). Unlike the present case, neither Swin-ney nor Jesch involved an out-of-state employer. Thus, the application of the last injurious exposure rule to an out-of-state employer presents a question of first impression for this court.

II. The parties’contentions.

Neither party contends that the second injury involving the right knee was a mere recurrence of the first injury in Nevada. Accordingly, both parties concede that the rule as stated in Swinney applies, at least as to the right knee injury. It is in the interpretation of that rule as applied to an out-of-state employer that the parties differ.

SIIS argues that this court should reverse the lower court’s decision on either of two grounds. First, SIIS seeks reversal on the basis of a literal application of the rule as stated in Swinney. Applied literally, SIIS argues, Swinney requires one of the later two out-of-state employers to assume exclusive liability, because one of these two employers was the employer at the time of the most recent injury related to the disability. Alternatively, SIIS proposes that this court adopt the middle-ground rule stated in Miville v. State Accident Insurance Fund Corp., 710 P.2d 159 (Or.App. 1985). In Miville, the court held that the previous in-state employer remains liable for the disability caused in part by a later injury under an out-of-state employer, only if: (1) the claimant first files for benefits in the other state, (2) the claimant has received a final determination of denial from the other state, and (3) the prior in-state injury contributes materially to the current disability. Miville, 710 P.2d at 161-62. Since Vernon applied for benefits from both the second and third employers, SIIS concludes, under Miville Vernon cannot seek any further compensation from SIIS.

Vernon makes two principal arguments in reply. First, he urges this court to adopt the “last in-state employer interpretation” of the last injurious exposure rule. This is the interpretation adopted by the appeals officer and the district court. Applying this interpretation, the appeals officer and the district court held, as a matter of law, that the last injury rule refers only to the last Nevada employer, i. e., that the rule applies only to Nevada employers. As a result, the appeals officer held that SIIS, not one of the out-of-state employers, was fully liable to compensate Vernon. Second, Vernon argues that the last injury rule has no application to Vernon’s left knee injury. Unlike the right knee, he notes, the left knee was never re-sprained in California. The only injuries to the left knee in California were, he says, the unrelated, [132]*132and more minor, puncture wound and bruise. Therefore, he concludes, his current problems in the left knee are mere “recurrences” of the original left knee injury, and, under Swinney, the Nevada employer remains fully liable for these recurrences.

III. Application of the last injurious exposure rule where the last relevant injury occurs under an out-of-state employer.

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Cite This Page — Counsel Stack

Bluebook (online)
787 P.2d 792, 106 Nev. 128, 1990 Nev. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-industrial-insurance-system-v-vernon-nev-1990.