Williams v. Hofley Manufacturing Co.

424 N.W.2d 278, 430 Mich. 603, 1988 Mich. LEXIS 1005
CourtMichigan Supreme Court
DecidedJune 9, 1988
Docket79949, (Calendar No. 12)
StatusPublished
Cited by47 cases

This text of 424 N.W.2d 278 (Williams v. Hofley Manufacturing Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Hofley Manufacturing Co., 424 N.W.2d 278, 430 Mich. 603, 1988 Mich. LEXIS 1005 (Mich. 1988).

Opinions

Boyle, J.

We are asked in this appeal to consider a procedural due process challenge to the constitutionality of two-member, interest-designated panels of Michigan’s Workers’ Compensation Appeal Board as provided in 1985 PA 103, § 261, MCL 418.261; MSA 17.237(261).1 We conclude that [606]*606use of these designated panels does not violate the Due Process Clauses of US Const, Am XIV and Const 1963, art 1, § 17. We therefore affirm the decision of the appeal board’s award of benefits to the plaintiff in this matter.

i

The plaintiff was employed by the defendant from the period of August 31, 1978, until March 19, 1980. On June 26, 1980, he filed a petition for hearing with the Bureau of Workers’ Disability Compensation, alleging an injury to his right arm, an injury to his lower back, and aggravation of a nervous condition. By order of the bureau dated July 31, 1981, the plaintiff was awarded a closed period of disability benefits commencing on his last day of work and ending on November 25, 1980.

The defendant appealed the decision of the bureau, contesting the bureau’s findings regarding a personal injury, the date of injury, and the effect of defendant’s May 16, 1980, offer of favored work.2 The appeal board affirmed in an opinion and order dated September 8, 1986. The board’s opinion was written by member Sheila H. Hughes, a designated representative of the general public. Board member Ramona L. Fernandez, a designated representative of employee interests, concurred in the opinion.

The defendant applied for leave to appeal in the [607]*607Court of Appeals, arguing that the two-member appeal board panel was unconstitutional, that the appeal board had erred ais a matter of law in finding a work-related personal injury, and in failing to suspend the plaintiffs benefits for his refusal of favored work. The Court of Appeals denied leave to appeal in an order dated November 26, 1986. Defendant subsequently applied for leave to appeal in this Court and, in an order dated June 30, 1987, we granted leave, limited to the issue whether the defendant was denied due process of law because of the composition of the two-member appeal board panel.3

n

At the time of its inception in 1912, the Industrial Accident Board, predecessor of the current wcab, was composed of only three members who sat as a single appeal panel.4 The Industrial Accident Board members were not designated by interest group, although the act specified that no more than two members of the board could belong to the same political party.5 1947 PA 357 abolished the Industrial Accident Board and created a four-member Workmen’s Compensation Commission.6 The [608]*608commission continued to sit as a single appeal panel. Its members were not designated by interest group, and the party qualification provision of the Industrial Accident Board was deleted.7

1955 PA 62 abolished the commission and created a three-member Workmen’s Compensation Appeal Board.8 Board members were not designated by interest group or party. The appeal board continued to review the decisions of the hearing referees as a single panel.9

1965 PA 139 expanded the appeal board to seven members10 and divided the board into rotating four-member hearing panels.11 Under the 1965 amendment, board members’ panel assignments were alternated so that members served with each other on a substantially equal basis. Again, board members were not designated by interest group or party affiliation. 1973 PA 73 further expanded the appeal board to eleven members, with five-member hearing panels, but the procedure was otherwise unchanged.12

1978 PA 456 further expanded the appeal board to fifteen members and, for the first time, required appeal board members to be appointed from designated employer, employee, and general public interest groups.13 Hearing panels were reduced to three members, although panel members continued to be alternated without regard to their interest designation. Id. This procedure necessarily resulted in some hearing panels which were comprised solely of members of one designated interest [609]*609group. It also spawned several constitutional challenges on due process grounds.14 The statute was amended again in 1980 to require that the three-member hearing panels be comprised of one member from each of the employee, employer, and general public interest groups.15

1985 PA 103 contains the most recent amendment of appeal board procedure and the statutory provision challenged by the defendant. 1985 PA 103 provides in pertinent part:

Except as otherwise provided for in this act, a matter pending review before the appeal board shall be assigned to a panel of 2 members of the board for disposition, with each panel comprised of 1 member each from the employee and employer representatives, the employee and general public representatives, the employer and general public representatives, or 2 members representative of the general public. The decision reached by the assigned members of a panel shall be the final decision of the board. If the members of a panel cannot reach a decision, the chairperson of the board shall assign a third panel member to review the matter. The third member shall be from a designated representative group that is not already represented on the panel, except for a panel of 2 members representative of the general public in which case the third member shall be a representative of the general public. The decision of the third member shall be controlling and shall be considered to be the final decision of the board. [MCL 418.261(2); MSA 17.237(261)(2).]

The defendant argues that the “unbalanced” [610]*610appeal board panels instituted by 1985 PA 103 created a risk of bias which deprived it of the right to procedural due process. It is well established, however, that the requirements of procedural due process are triggered only by the implication of protected property or liberty interests, Bd of Regents of State Colleges v Roth, 408 US 564, 569; 92 S Ct 2701; 33 L Ed 2d 548 (1972); Perry v Sindermann, 408 US 593, 599; 92 S Ct 2694; 33 L Ed 2d 570 (1972). It is only when a protected interest has been found that we may proceed to determine what process is due. Logan v Zimmerman Brush Co, 455 US 422, 428; 102 S Ct 1148; 71 L Ed 2d 265 (1982). Therefore, we must first consider what, if any, protected interest the defendant has in this litigation.

hi

The applicability of procedural due process guarantees depends initially on the presence of a "property” or "liberty” interest within the meaning of the Fifth or Fourteenth Amendment. Arnett v Kennedy, 416 US 134, 165; 94 S Ct 1633; 40 L Ed 2d 15 (1974). However, as the United States Supreme Court has explained:

To have a property interest in a benefit, a person clearly must have more than an abstract need or desire for it. He must have more than a unilateral expectation of it. He must, instead, have a legitimate claim of entitlement to it.

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Cite This Page — Counsel Stack

Bluebook (online)
424 N.W.2d 278, 430 Mich. 603, 1988 Mich. LEXIS 1005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-hofley-manufacturing-co-mich-1988.