Thorson v. Larson Manufacturing Co.

682 N.W.2d 448, 2004 WL 1058054
CourtSupreme Court of Iowa
DecidedJuly 9, 2004
Docket03-0328
StatusPublished
Cited by3 cases

This text of 682 N.W.2d 448 (Thorson v. Larson Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thorson v. Larson Manufacturing Co., 682 N.W.2d 448, 2004 WL 1058054 (iowa 2004).

Opinion

LARSON, Justice.

Julie Thorson, an employee of Larson Manufacturing Company, Inc., filed workers’ compensation claims against her employer and, as a part of her case, attempted to use a medical report from a Dr. Ban. The hearing deputy excluded the report because it was untimely under a prehear-ing order entered by the workers’ compensation commissioner. On judicial review, the district court affirmed the exclusion of the report except for its possible use on rebuttal. Thorson appealed, claiming the report should have been admitted in her case in chief. The employer and its insurance carrier, Atlantic Mutual Companies, (collectively Atlantic Mutual) cross-appealed, claiming the report was inadmissible for any purpose, including rebuttal. We hold the industrial commissioner erred in excluding the report, reverse the district court, and remand to the commissioner. In view of this disposition, we do not address the cross-appeal issue.

I. Facts and Prior Proceedings.

On June 29, 2000, the industrial commissioner entered a hearing assignment order that included a paragraph entitled “Case Preparation Completion Dates.” Under that paragraph,

[claimant shall complete case preparation, including discovery and responses, 60 days prior to the backup hearing *449 date, or the primary hearing date if the case' is not at the backup time. Defendant(s) shall complete case preparation, including discovery and responses, 30 days thereafter. These completion dates supersede Iowa Rule of Civil Procedure 125(c) [now 1.508(3)]. When admissibility of evidence is disputed, the completion date for case preparation will be enforced under a prejudice standard.

Under the provisions of this “sixty day” order, Thorson was required to “complete [her] case preparation, including discovery and responses,” sixty days before the hearing date. The hearing- date was set for November 21, 2000, so the ease-completion deadline was September 22, 2000. Thor-son did not provide the report by Dr. Ban within that time; in fact, Dr. Ban had not even examined Thorson by the case-completion deadline. The commissioner excluded the Ban report as untimely under this order.

Thorson argues that the sixty-day provb sion of the scheduling order is invalid for several reasons: the provision is ambiguous; it was merely an order, which had never been formally adopted as an agency rule; and it conflicted with a formal agency rule providing a timetable for the exchange of exhibits.

II. The Ambiguity Argument.

Under Thorson’s argument, the lack of definitions in the sixty-day order renders it too ambiguous to be enforced because

it is a “guess” as to whether “preparation” means that all exhibits and witnesses have to be' compiled and prepared 60 days before hearing or whether a party merely has to be prepared enough to “list” what the' “proposed” exhibits will be.

It is true these terms provide little guidance to parties attempting to comply with the sixty-day order, but there are more fundamental problems with the order: first, it conflicts with another provision of the same prehearing order that only requires a party to list exhibits — not to provide the exhibits themselves. That paragraph is entitled “Witness and Exhibit Lists” and sets out specific requirements for the exchange of information in advance of the hearing:

Unless otherwise agreed in writing, a party shall serve a list of proposed witnesses and exhibits to be offered into evidence at hearing upon opposing parties .on. or before the serving party’s case preparation completion date. Additional witnesses or exhibits may be allowed by the presiding deputy only if it is shown that a party is not unfairly surprised by their introduction into evidence.

(Emphasis added.) The juxtaposition of this paragraph and the “sixty day” paragraph in the same order creates confusion about what has to be furnished by the case-completion date — a listing of the exhibits 'and witnesses or delivery of the exhibits themselves. Second, the order fails to clearly override a formal agency rule regarding prehearing production of evidence — an issue we address in Division IV.

III. Lack of Formal Rule Status.

The claimant contends the sixty-day order is not a validly enacted agency rule, •but is only an order of the commissioner. Atlantic Mutual does not contend the sixty-day order is itself a validly enacted rule; it- does, however, contend the order is based on a valid exercise of the scheduling authority granted to the commissioner under a formal rule, Iowa Administrative Code rule 876-4.19, which states:

The workers’ compensation commissioner may provide for a calendar for pre-hearing procedures which may extend to all contested cases or be limited to any *450 type or class of such cases as may be prescribed.

We agree with Thorson that the commissioner’s power to enter scheduling orders is not so extensive as to allow the commissioner, by an order lacking the status of a formally adopted rule, to override a specific agency rule regarding the exchange of hearing exhibits — an issue that we discuss later.

In a related argument, Atlantic Mutual defends the exclusion of the Ban report as being within the commissioner’s discretion. Thorson responds that it is not an issue of discretion because the commissioner’s exclusion of the report in this case was an error of law, and we agree.

IV. Conflict With a Formal Rule.

We conclude the exclusion of the report on the basis of the sixty-day requirement was improper for another reason — it is unclear whether the hearing assignment order changed the deadlines of a specific workers’ compensation rule under which

[e]ach party to a contested ease shall serve all ... medical records and reports concerning the injured worker in the possession of the party upon each opposing party not later than 20 days following filing of an answer or, if not then in possession of a party, within ten days of receipt.

Iowa Admin. Code r. 876-4.17. Although rule 876-4.18 allows the commissioner to change the deadline to exchange medical records or reports by order, the language used by the commissioner in its hearing assignment order clearly fails to notify the parties the hearing assignment order was changing the deadlines established by rule 876-4.17. Iowa Admin. Code r. 876-4.18.

As of the expiration of twenty days following Atlantic Mutual’s answer, Thorson did not have possession of the Ban report. Therefore, the first part of'rule 876-4.17 was inapplicable. The alternative deadline provided by that rule, ten days after receipt of the report, applies instead. Thor-son’s attorney received Dr. Ban’s report and served it on Atlantic Mutual the same day. The requirement of rule 876-4.17 was therefore met. This formal rule controls over the commissioner’s scheduling order, which, as we have noted, fails to change the deadline established by rule 876^.17.'

V. The Interrogatory Issue.

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Bluebook (online)
682 N.W.2d 448, 2004 WL 1058054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thorson-v-larson-manufacturing-co-iowa-2004.