Thompson v. State

2007 MT 185, 167 P.3d 867, 338 Mont. 511, 2007 Mont. LEXIS 386
CourtMontana Supreme Court
DecidedAugust 17, 2007
DocketDA 06-0365
StatusPublished
Cited by16 cases

This text of 2007 MT 185 (Thompson v. State) 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
Thompson v. State, 2007 MT 185, 167 P.3d 867, 338 Mont. 511, 2007 Mont. LEXIS 386 (Mo. 2007).

Opinions

JUSTICE NELSON

delivered the Opinion of the Court.

¶1 Lee Thompson, Darin Sharp, and Scott Bailey (collectively, “the Workers”) each filed claims in the Workers’ Compensation Court (‘WCC”) for workers’ compensation benefits. In a separate action, the Workers jointly filed a Petition for Declaratory Judgment in the WCC, naming the State of Montana (“State”) as the sole respondent. They sought a declaration stating that the claimant disclosure procedures, specifically the claimant disclosure waiver provisions set forth in §§ 39-[513]*51371-604(3) and 50-16-527(5), MCA (2003)1 violated their state constitutional right to privacy and deprived them of property without due process of law. The WCC allowed Liberty Northwest Insurance Corporation (“Liberty’) and Montana State Fund (“MSF”; collectively, “Intervenors”) to intervene in the action. The WCC then granted summary judgment in favor of the Workers and held that §§ 39-71-604(3) and 50-16-527(5), MCA, were unconstitutional. The WCC also awarded attorney’s fees and costs against the State. Subsequently, the WCC denied Libertys Motion for Reconsideration. The State and Intervenors (collectively, “Appellants”) appeal. We reverse.

¶2 Appellants raise multiple and overlapping issues on appeal, which we restate as follows:

1. Did the WCC err by concluding that it had jurisdiction to enter a declaratory judgment in the particular context of this case?

2. Did the WCC err when it awarded attorneys fees and costs against the State?

3. Did the WCC err by ruling that the claimant disclosure procedures of §§ 39-71-604(3) and 50-16-527(5), MCA, violate a workers’ compensation claimant’s constitutional right to privacy under Article II, Section 10 of the Montana Constitution?

4. Did the WCC err by ruling that the claimant disclosure procedures of §§ 39-71-604(3) and 50-16-527(5), MCA, deprive a workers’ compensation claimant of property without due process of law under Article II, Section 17 of the Montana Constitution?

¶3 Because the first two issues are dispositive of this appeal, we do not address Issue 3 or Issue 4. On appeal, MSF confines its arguments solely to Issues 3 and 4. Thus, we will not address MSF’s arguments. Instead, we will address the arguments presented by the State and Liberty pertaining to Issues 1 and 2.

FACTUAL AND PROCEDURAL BACKGROUND

¶4 On June 30, 2004, the Workers filed a Petition for Declaratory Judgment (“Petition”) in the WCC. The State was the only respondent named in the Petition. The Workers sought a declaratory judgment stating that §§ 39-71-604(3) and 50-16-527(5), MCA, are [514]*514unconstitutional under Article II, Section 10 of the Montana Constitution. Article II, Section 10 of the Montana Constitution provides that “[t]he right of individual privacy is essential to the well-being of a free society and shall not be infringed without the showing of a compelling state interest.”

¶5 Section 39-71-604(3), MCA, a provision of the Workers’ Compensation Act, states that “[a] signed claim for workers’ compensation or occupational disease benefits or a signed release authorizes a workers’ compensation insurer... to communicate with a physician or other health care provider about relevant health care information” and to receive such relevant information “without prior notice to the injured employee.” The Uniform Health Care Information Act, codified as §§ 50-16-501 to -553, MCA, provides that a patient may authorize a health care provider to disclose the patient’s health care information if the authorization identifies the nature of the information to be disclosed and identifies the person to whom the information is to be disclosed. Section 50-16-526, MCA. Section 50-16-527, MCA, in turn, explicitly provides an exception to the general rules set forth in § 50-16-526, MCA. Under § 50-16-527(5), MCA, a signed claim for workers’ compensation benefits or a signed release authorizes a workers’ compensation insurer to communicate with a physician or other health care provider about relevant health care information and receive such information without prior notice to the injured employee. The language of § 50-16-527(5), MCA, is, for all intents and purposes, identical to the language of § 39-71-604(3), MCA.

¶6 Essentially, the Workers argued that the claimant disclosure procedures set forth in §§ 39-71-604(3) and 50-16-527(5), MCA, violated their state constitutional right to privacy because there was no compelling state interest which supported the right of private insurers to engage in private communications with health care providers for an injured employee without prior notice to the employee. The Workers also asked the WCC to award reasonable attorney’s fees and costs against the State.

¶7 On July 21, 2004, pursuant to Admin. R. M. 24.5.309 and M. R. Civ. P. 24(a), Liberty moved to intervene in this action. According to Liberty, it is the “largest private workers’ compensation carrier in the State of Montana.” The WCC granted Liberty’s motion to intervene on July 26, 2004. MSF subsequently filed a motion to intervene, also pursuant to Admin. R. M. 24.5.309 and M. R. Civ. P. 24(a), on August 23,2004. MSF argued that a ruling on the constitutionality of § 39-71-604, MCA, would affect all workers’ compensation insurance carriers [515]*515in Montana, including MSF. On August 26, 2004, the WCC granted MSF’s motion to intervene.

¶8 The Workers moved for summary judgment on October 15, 2004, asserting that no genuine issues of material fact existed and that §§ 39-71-604(3) and 50-16-527(5), MCA, were unconstitutional as a matter of law under Article II, Section 10 of the Montana Constitution.

¶9 On January 25, 2005, before the WCC ruled on the motion for summary judgment, the Workers filed a motion to amend their Petition. In addition to their original request that §§ 39-71-604(3) and 50-16-527(5), MCA, be declared unconstitutional under Article II, Section 10 of the Montana Constitution, the Workers also sought a declaration stating that §§ 39-71-604(3) and 50-16-527(5), MCA, are unconstitutional under the Due Process Clauses of Article II, Section 17 of the Montana Constitution and the Fifth and Fourteenth Amendments to the United States Constitution. In other words, the Workers sought a declaratory judgment stating that §§ 39-71-604(3) and 50-16-527(5), MCA, are unconstitutional because they violated the Workers’ state constitutional right to privacy and deprived the Workers of property without due process of law under the Montana and United States Constitutions. The WCC granted the Workers leave to amend their Petition on February 11, 2005.

¶10 On May 6, 2005, the Workers filed a second motion for summary judgment, again asserting that no genuine issues of material fact existed. The Workers renewed their request for summary judgment on the right to privacy issue and also moved for summary judgment on the ground that §§ 39-71-604(3) and 50-16-527(5), MCA, violated their “rights to due process of law under Article II, § 17 of the Montana Constitution and under the 5th and 14th Amendments to the United States Constitution.”

¶11 On October 18, 2005, the WCC granted summary judgment in favor of the Workers. The WCC declared that §§ 39-71-604(3) and 50-16-527(5), MCA, violated Article II, Sections 10 and 17 of the Montana Constitution.

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Cite This Page — Counsel Stack

Bluebook (online)
2007 MT 185, 167 P.3d 867, 338 Mont. 511, 2007 Mont. LEXIS 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-state-mont-2007.