Employers' Reinsurance Fund v. Labor Commission
2012 UT 76
| Utah | 2012Background
- On Oct 18, 1998, Henningson injured his back while employed by Sunnyside Coal; WCF paid temporary total and permanent partial disability benefits from Oct 14, 1993 through Jun 8, 1995.
- In May 1994, Henningson filed for social security disability benefits; SSA awarded disability in Apr 1995 backdated to the injury date.
- In 1997, physicians declared him totally and permanently disabled; he did not return to work after the injury.
- In March 2007, Henningson filed an Application for Hearing seeking permanent total disability; the ALJ tentatively found PTD beginning Dec 16, 1994; the Commission affirmed and backdated to Dec 16, 1994, allocating liability between WCF and ERF.
- ERF was first given notice in 2007 when Henningson filed for PTD, and Paoli v. Cottonwood Hospital recognizes SIF/ERF notice obligations; the Commission exercised continuing jurisdiction under 35-1-78 to modify the award for inadequacy; the court ultimately held Henningson may receive only prospective benefits from the filing date, with Sunnyside/WCF not liable for backdated PTD.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Original jurisdiction despite six-year limit | Henningson; informal filings insufficient to invoke jurisdiction. | Vigos allows informal notice to establish jurisdiction. | Original jurisdiction established. |
| Continuing jurisdiction to modify due to inadequacy | Henningson; continuing jurisdiction permitted for inadequacy. | Award was adequate; no basis to reopen. | Continuing jurisdiction properly exercised to modify for inadequacy. |
| Equitable backdating barred; prospective from filing date | Delays to file caused creditors to suffer; backdating appropriate. | Equitable to backdate to the accident date. | Equity bars backdating; benefits limited to prospective from 2007 filing. |
| Notice to ERF when its interests implicated | ERF notified when its liability could arise; 2007 notice suffices. | ERF could not be prejudiced by delayed notice. | ERF timely noticed when its interests were implicated. |
Key Cases Cited
- Vigos v. Mountainland Builders, Inc., 993 P.2d 207 (Utah 2000) (informal filing sufficient to invoke jurisdiction; continuing jurisdiction context)
- Dutson v. Utah State Ins. Fund, 646 P.2d 707 (Utah 1982) (liberal notice and coverage principles under WCA)
- Ortega v. Meadow Valley Constr., 996 P.2d 1039 (Utah 2000) (continuing jurisdiction bases: change in condition or inadequacy of award)
- Aetna Life Insurance Co. v. Industrial Commission, 274 P.2d 139 (Utah 1929) (change in condition and reassessment authority)
- Salt Lake City v. Industrial Commission, 215 P.1047 (Utah 1923) (original principle of continuing jurisdiction for post-award changes)
- Paoli v. Cottonwood Hospital, 656 P.2d 420 (Utah 1982) (SIF/ERF notice when interests implicated; procedural notice relevance)