Wernecke v. St. Maries Joint School District 401

207 P.3d 1008, 147 Idaho 277, 2009 Ida. LEXIS 63
CourtIdaho Supreme Court
DecidedApril 14, 2009
Docket34539
StatusPublished
Cited by23 cases

This text of 207 P.3d 1008 (Wernecke v. St. Maries Joint School District 401) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wernecke v. St. Maries Joint School District 401, 207 P.3d 1008, 147 Idaho 277, 2009 Ida. LEXIS 63 (Idaho 2009).

Opinion

J. JONES, Justice.

This is an appeal from an order of the Idaho Industrial Commission holding that a 1994 settlement agreement between Patsy Werneeke and the Industrial Special Indemnity Fund (ISIF) barred all future claims by Werneeke against ISIF. We reverse the order and remand for further proceedings.

I.

In 1990, Patsy Werneeke suffered an industrial injury while employed as a nurse’s aide. She filed a worker’s compensation complaint against her employer, the State Insurance Fund, and ISIF. Disputes arose between the parties regarding pre-existing impairment, causation, and total and permanent disability. Once she reached medical stability, three physicians evaluated Wernecke and all concluded that despite her injury she was capable of light work, subject to certain physical restrictions. Werneeke settled with her employer and the State Insurance Fund. She later entered into a lump sum settlement agreement (the Agreement) with ISIF, compromising her claim of total and permanent disability for the sum of $6,500.00.

The Agreement states: “Claimant [Wernecke] contends, and the Fund [ISIF] denies, that Claimant is totally and permanently disabled and unable to work and that the Fund is liable for a portion of Claimant’s disability *281 due to [pre-existing] conditions.” The Agreement continues:

It is the contention of the Fund that there are disputes concerning: (1) whether Claimant suffered injuries as a result of an accident arising out of and in the course of employment on June 28,1990; (2) whether Claimant is totally and permanently disabled; (3) whether Claimant has a preexisting permanent physical impairment within the meaning of Section 72-332 Idaho Code; (4) if Claimant has a pre-existing physical impairment, whether said pre-existing impairment was manifest and constituted a hindrance or obstacle to Claimant obtaining employment; (5) whether in the event Claimant is totally and permanently disabled, Claimant has pre-existing impairments within the meaning of Section 72-332, Idaho Code, which contributed to said disability....

The Agreement goes on to bar Werneeke from recovering any additional compensation from ISIF for any claim of any nature. Werneeke, who was represented by an attorney, signed the Agreement, which the Commission approved in 1994. 1

Werneeke returned to work under the restrictions recommended by the examining physicians. Unfortunately, she sustained another injury in 2002 while working as a custodian. She filed a complaint against ISIF, her employer, and the State Insurance Fund, asserting that her pre-existing ailments, combined with a new shoulder injury, rendered her totally and permanently disabled. She settled her claims against the State Insurance Fund and her employer. ISIF, on the other hand, argued that the Agreement barred any further recovery from ISIF and filed a petition for a declaratory ruling pursuant to Rule 15 of the Commission’s Judicial Rules of Practice and Procedure. 2 Werneeke argued that the Agreement violated the Worker’s Compensation Act (the Act), and was therefore void. The Commission granted ISIF’s petition, finding the Agreement valid. It further held that Wernecke’s present claim against ISIF was barred by the doctrines of res judicata, collateral estoppel, and quasi-estoppel, and that she had waived her right to pursue another claim against ISIF. Werneeke appeals from the Commission’s order.

II.

A. Standard of Review

We do not disturb the Commission’s factual findings that are supported by substantial and competent evidence, but we exercise free review over the Commission’s legal conclusions. Arel v. T & L Enters., Inc., 146 Idaho 29, 31, 189 P.3d 1149, 1151 (2008).

This case requires us to consider whether the Agreement is violative of the Act. Whether a contract violates a statute is a question of law for the Court to determine from all the facts and circumstances of each case. Trees v. Kersey, 138 Idaho 3, 6, 56 P.3d 765, 768 (2002). A contract made for the purpose of furthering any matter prohibited by statute is illegal, unenforceable, and void. Kunz v. Lobo Lodge, Inc., 133 Idaho 608, 611, 990 P.2d 1219, 1222 (Ct.App.1999) (citing Porter v. Canyon County Farmers’ Mut. Fire Ins. Co., 45 Idaho 522, 525, 263 P. 632, 633 (1928)). When a court is faced with an illegal contract, it denies enforcement of the contract. 3 Trees, 138 Idaho at 9, 56 P.3d at 771.

*282 In order to determine if the Agreement violates the Act, we must engage in statutory interpretation, which is an issue of law over which we exercise free review. In re Daniel W., 145 Idaho 677, 679, 183 P.3d 765, 767 (2008). Statutory interpretation begins with the literal language of the statute. Paolini v. Albertson’s, Inc., 143 Idaho 547, 549, 149 P.3d 822, 824 (2006). The statute should be considered as a whole, and words should be given their plain, usual, and ordinary meanings. Id. When the statutory language is unambiguous, the plain meaning of the statute must be given effect, and the court need not consider rules of statutory construction. Payette River Prop. Owners Ass’n v. Bd. of Comm’rs of Valley County, 132 Idaho 551, 557, 976 P.2d 477, 483 (1999). It should be noted that the court must give effect to all the words and provisions of the statute so that none will be void, superfluous, or redundant. AmeriTel Inns, Inc. v. Pocatello-Chubbuck Auditorium Dist., 146 Idaho 202, 204, 192 P.3d 1026, 1028 (2008).

When interpreting the Act, we must liberally construe its provisions in favor of the employee in order to serve the humane purpose for which it was promulgated. Reese v. V-1 Oil Co., 141 Idaho 630, 633, 115 P.3d 721, 724 (2005); Davaz v. Priest River Glass Co., 125 Idaho 333, 337, 870 P.2d 1292, 1296 (1994). The Act is designed to provide sure and certain relief for injured workers and their families and dependents. Davaz, 125 Idaho at 337, 870 P.2d at 1296; I.C. § 72-201. The primary objective of an award of permanent disability benefits is to compensate the claimant for his or her loss of earning capacity. Davaz, 125 Idaho at 337, 870 P.2d at 1296. The purposes served by the Act leave no room for narrow technical constructions. Reese, 141 Idaho at 633, 115 P.3d at 724.

B. The Agreement Is Violative of the Act

Wernecke argues that Idaho Code section 72-318(2) prohibits any agreement wherein an employee waives his or her rights to compensation for future injuries.

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Cite This Page — Counsel Stack

Bluebook (online)
207 P.3d 1008, 147 Idaho 277, 2009 Ida. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wernecke-v-st-maries-joint-school-district-401-idaho-2009.