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Schneider v. Farmers Merchant, Inc.
678 P.2d 33
Idaho
1983
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*1 thеreby directed to retain jurisdiction; sought the matters to be considered here petition rehearing proper- can be

ly dealt with.

678 P.2d 33 SCHNEIDER,

Larry L.

Plaintiff-Appellant, MERCHANT, INC.,

FARMERS an Idaho

corporation, Defendant-Respondent.

No. 14390.

Supreme Court of Idaho.

Dec. 1983.

Rehearing Denied March *2 August

the Industrial Commission on 19, 1979, April On Schneider filed a suit Farmers, alleging that as a result supply Farmers’ failure to guard a chain protective grain and other devices on the auger, plaintiff’s left thumb was severed trial, his hand. Prior from Farmers’ insurer, Aetna Company, Insurance en- Cantrill, Mercer, David W. and Hollis A. agreement into an tered with Nelson’s in- Skinner, Boise, plaintiff-ap- Cantrill & surer, Argonaut Company. Insurancе Pur- pellant. agreement, suant to this agreed Aetna Smith, Ramsden, Quane, How- Michael $3,000.00, Argonaut Argonaut if would Hull, Boise, defendant-respon- ard & discharge Farmers, release and and in- its dent. Aetna, demand, any from surer claim or May based on the 1977 acci- DONALDSON, Chief Justice. dent.1 total this case we decide the jury assessed Schneider’s are available to $20,000, attributing sixty percent compensation who received workmen’s ben- fault forty percent Farmers and employer, efits from his and later recov- Schneider. Sсhneider made alternative mo- damages against ered tions for a new trial or notwith- separate negligence suit. We also decide verdict, standing contending jury of these proper apportionment contrary reduced his award express party. as and third between jury instructions. These motions were de- nied. 13, 1977, Larry suf- May On Schneider employed a truck injury fered an while Farmers made motion to reduce the Inc., (hereinafter driver for Nelsons’ $5,638.52, judgment by the amount of Nelson). injury ferred to as occurred workmеn’s benefits Schneid- loading grain into

while Schneider er had received. Farmers contended it had auger supplied by truck with an owned and discharged subrogation rights Nelson’s Merchant, (Farmers). Inc. Argo- Farmers by agree- virtue of release this amount insurer, Company, naut Insurance Nelson’s initially ment. This motion was denied un- Schneider supplied til with suffi- Farmers the court $5,638.52. totaling A compensa- benefits support request. cient evidence to this agreement evidence, to this effect Upon receiving was entered the court hеld 18, 1977, August approved into and a reduction in by that Farmers was entitled to suits, actions, action, agreement provided rights, pertinent 1. The release ner of causes of covenants, contracts, part: judgments, agreements, claims, (Assured Nelson’s, Argonaut whatsoever in law or and demands "That Ins. Co. contribution, Inc., Schneider) Larry equity, including aris- claimant for and in claims for any by consideration of the sum of Three thousand and all from and reason Dollars, ($3,000.00), receipt UNKNOWN, and no/100 AND FORESEEN KNOWN AND sufficiency hereby and of which is acknowl- personal injuries bodily and UNFORESEEN remise, edged, hereby release and forev- does death, property, damage and the conse- or Merchant, discharge Aet- er Farmers Inc. and been, thereof, quences heretofore have Dargan and as- na Cravens & his successors by may hereafter be sustained and which heirs, executors, his, her, signs, their and/or any persons, Undersigned associ- and all or administrators, any and persons, and also and all other corporations, herein whether and ations corporations, associations not, especially referred to or named or not, whether herein named or referred liability arising out of an occurrence all from who, above-named, together may with the day of happened ‍‌‌‌‌‌​​​‌‌​​‌​​‌​​​​‌‌‌​‌​​‌‌​‌‌‌‌​​‌‌‌‌‌​​‌​​​​‍on or about the 13th jointly severally Under- be signed, liable Blackfoot, May, Idaho." at or near all, from and all man- of and injured employee but that an the amount workmen’s paid, “to receive workmen’s benefits Therefore, by plaintiff.” bring and thereafter award, total reduced Schneider’s a third tortfeasor who was a $20,000.00, representing amount § nonemployer. 7-223.” I.C. percent, forty plaintiff’s negligence, (Citations omitted.) at 169. *3 compensation workmen’s the amount of employee brings against If an a suit received, $5,638.52, result- he had benefits party receiving to a third in addition work $6,361.48. ing in of judgment benefits, compensation this Court this appeals judgment, from Schneider system apportioning has established a of first, trial court errone- claiming that the employee’s damages the between the em by ously judgmеnt his the amount reduced ployer party. and third The focus of this paid, compensation benefits of workmen’s (1) in apportionment Court is two-fold: to determining negligence the without first an equitable liability achieve distribution employer. Appellant further asserts the employee’s injuries as between the erroneously reduced his that the trial employer party, and the third based on the prevent in order to re- case, (2) prevent facts of each to the covery. Finally, appellant contends i.e., оvercompensation employee, of an to erroneously the trial court denied his mo- retaining employee the from both tions a new trial or notwith- compensation the workmen’s standing disagree verdict. We all recovery. the full tort counts. system has apportionment Our foun- § § 72-209, 72-223, I.C. and former I.C. § 72-223(3). We summarized dation I.C. provide analysis. the framework for this Tucker, interpretation our of this section § employer’s 1.C. li- 72-209 establishes 100 Idaho P.2d at 169. ability under the Workmen’s § employer an provides “I.C. 72-223 provision, employer’s Act. this Under rights may subrogated be to the of the exclusive, subject only to I.C. § employee employee extent that the to the in Tucker previously held 72-223.2 We California, v. has benefits. In Union Oil Co. received 100 Idaho Adams, Liberty Ins. (1979), Mutual Co. 603 P.2d 156 these reme- however, (1966), appears dies are cumulative. “There no Appellant brought rights subrogated suit under I.C. shall be the em- former provided ployee, against party § 72-223 follows: such third recover employer’s party liability. (1) Third extent "72-223. — right liability. under this not law shall by injury, occupa- "(4) by the fact that the any recovery employee affected On or death is cir- tional disease caused under employer pay party, shall third creating person in some cumstances other subrogated portion or have deducted from his legal liability employer than the ages dam- thereof, proportionate share of costs and therefor, person being such so liable attorney’s by employee in incurred fees party. party ferred to as third Such third obtaining recovery. such employers shall include thоse described “(5) injury or oc- If results from death 72-216, having under section them contrac- employee cupational leaves disease and if tors plied have or subcontractors who in fact com- dependents to benefits under this no entitled provisions with the of section 72-301. law, right of surety have a shall action “(2) may Action be instituted such recovery against benefits, party income the third party employee, com- in event expenses of medical and reasonable awarded, pensation has been claimed and expense actually and burial related services employer employee jointly, the employee’s in the surety paid and for name, or, employee if the refuses special paid industrial into the in- amounts action, by employer participate in such 72-420, demnity pursuant to section fund employee’s name. in the any be in addition such of action shall "(3) compensation has been claimed and If personal repre- cause of of the heirs or awarded, having paid employer such com- deceased." sentatives of the therefor, having pensation become liable right of employer an to such Typically, employer subro- or the third gation and ability its to obtain reimburse- party seeks to determine whether the em employee ment from the was limited. ployer negligent, hoping each to re The Court held that when employer’s an cases, liability. duce In negli his such negligence, together with the gence must be determined. tortfeasor, of a third nonemployer аgreement view of the release in this concurrently contributed injury case, however, the determination of the employee, neither the employer’s negligence unnecessary. As surety may obtain reimburse- [sic] noted, previously $3,000.00 Farmers ment for bene- consideration for Nelson’s release of fits from an who recovers dam- had, claim Nelson have based on the ages from a third tortfeasor.” May subroga 1977 accident. Nelson’s compen- reimbursement of workmen’s rights extinguished, were vir sation negligent employer benefits to a has Nelson, payment tue of Farmers’ Farm *4 largely contrary been denied because it is subrogated right ers became to Nelson’s policy (or employer of the law for an May Trucking Co. v. In reimbursement. insurer) his profit wrong. to from his own Co., 319, ternational Harvester 97 Idaho Montgomery McDrummond v. Elevator 321, 1159, (1975); Williams 543 P.2d 1161 Co., 679, (1976); 97 Idaho 551 P.2d 966 Johnston, 292, 298, v. 92 Idaho 442 P.2d Adams, Liberty Mutual Ins. Co. v. 91 Ida- 178, (1968). Thus, 184 in the event Nel 151, (1966); ho 417 P.2d 417 Associated litigated, son’s was Nelson Engineering Construction & Co. v. Work- negligent, was found not Farmers held Nel Bd., ers Appeals 22 Cal.3d ‍‌‌‌‌‌​​​‌‌​​‌​​‌​​​​‌‌‌​‌​​‌‌​‌‌‌‌​​‌‌‌‌‌​​‌​​​​‍right son’s to be reimbursed the work 829, 888, Cal.Rptr. (1978); 150 587 P.2d 684 compensation paid. benefits Con Jackson, v. 57, Cal.Rptr. Witt 57 17 Cal.2d versely, in the event Nelson was found 369, 641, (1961). 366 P.2d 649 negligent, Farmers retained its to apportionment, Based on our focus in receive a judgment, credit towards his § 72-223, the foundation of compensation amount of the workmen’s system apportionment generally works event, paid. benefits In either Farmers as follows. In those situations where the $5,638.52, was entitled to the by way either employer negligent, employer is not is of reimbursement or a credit. There subrogate employee’s entitled to fore, posture case, in the of this the deter covery against party, a third and thus ob- employer’s negligence mination of the was of the workmen’s tain reimbursement unnecessary. compensation paid. benefits Converse- relies on Pocatello Indus- plaintiff ly, employer in those situations where the West, Inc., trial Park v. Co. Steel 101 negligent, employer is is denied this 783, (1980), reimbursement and the third is enti- proposition employer’s negligence tled to a credit his in the that the Pocatello, compensation amount of the workmen’s must be determined. In we held Tucker, employer paid. benefits the 100 that order for the doctrine of collater- “[i]n 603, Thus, Idaho at 603 P.2d at 169. estoppel apply al the issue in employee’s award is reduced the amount actually litigated have and re- been compensation he received. 786, workmen’s suit.” Id. prior at 621 solved event, employee not re- In either does (Emphasis original.) Be- P.2d at 402. compensation tain both the workmen’s ben- cаuse Pocatello was decided on the basis of Tucker, recovery. efits and the full tort requirements, estoppel collateral its hold- 603, 169; Shields 603 P.2d at ing inapposite before to the issues now Laboratories, Inc., 95 Idaho Wyeth this Court. Associated Construc- (1973); 404 513 P.2d 686; judg his tion, Appellant next asserts that Cal.Rptr. 587 P.2d at 150 Witt, ment reduced the amount Cal.Rptr. at 366 P.2d at 650. be in order and third arrived at a mu- holding respective recovery. agreement tual of their double Our agreement. Wyeth, in Shields v. of their 95 Idaho virtue release This Shields, (1973), agreement from litigat- otherwise. relieved the cоurt instructs ing or its employer’s negligence, discussed whether the the issue we credit, surety prejudicing recovery. was entitled to a in lieu without Schneider’s Second, subrogation, where the settled allow Schneider retain both third-party permanent to- claim before the the workmen’s benefits and disability was issued. cited recovery, tal award We the full tort would be overcom- following approval excerpt from pensatory, contrary with our holding Compensa- Larson’s treatise on Workmen’s Shields. tion. Finally, Schneider сontends that the equally elementary “It is that the claim- erroneously trial court denied his motion keep ant should not allowed be for a trial or new notwithstand entire amount of his both jury’s verdict because the assess damage award and common-law grossly inadequate. ment of ____ held We have many “It is jurisdictions true that in firmly “this Court is committed to the employee may collect both possesses rule a trial a discre- damages, the defendant’s granting wisely tion to exercised objection recovery, dou- since grant refusing to trial a new and that ble recovery prevented by employ- such discretion will not be disturbed on obligation ee’s over the amount *5 appeal clearly appears unless it to have employer insurer. unwisely been exercised to have But it in any jurisdiction is not true hav- manifestly been abused.” ing a third-party employ- statute that the Byers, 665, 671, Blaine v. 91 Idaho 429 may keep ee both recoveries.” (1967) 397, (emphasis original); 403 in 573-574,

95 Idaho at 513 P.2d at 405-406. approval Finch, cited with in Dinneen v. Shields, granted we the a 620, (1979), 100 Idaho 603 P.2d 575 against credit in thе amount Smith, v. 563, Meissner 94 Idaho 494 P.2d settlement, third-party the the based ‍‌‌‌‌‌​​​‌‌​​‌​​‌​​​​‌‌‌​‌​​‌‌​‌‌‌‌​​‌‌‌‌‌​​‌​​​​‍on (1972). 567 following rationale. Dinneen, Furthermore, in nothing “We can find in the Idaho Work- 626, 603 P.2d 575 we as held follows: Laws in effect at evidence, “While we must review the we the brought time this was suit to indicate position in ‘weigh’ are not a it as a legislature contemplated that allow- Rather, power trial can. court injured an workman a ‘double recov- this inadequate Court over excessive or ery’ in where a situations was damages only exists when facts are damages liable to for sustained such inadequacy ap- that excess or workman and a settlement pears aas matter of law. Blaine v. was effected before a supra; Byers, v. Mendenhall MacGre- award was made.” Co., gor Triangle 145, Idaho 358 P.2d [83 574, Idaho 95 at 513 P.2d at 406. v. (1961) citing Bond United Rail- 860 ] Shields, reasoning We affirm the roads, 270, (1911).” 159 P. Cal. 113 366 hold that it in case was not erroneous this inadequate here are not the trial reduce Schneider’s law, a matter nor has Schneider demon- by award amount strated that the trial discretion court’s was This com- benefits. result unwisely manifestly exercised abused. ports apportionment with our in deci- focus Therefore, we affirm the trial court’s deni- First, appor- sions discussed above. al a of Schneider’s motions for new trial or equitable tionment of in this notwithstanding a judgment the verdict. A case. reimbursement did not inure to negligent employer. the benefit of a on We affirm all counts. respondent. be made so as avoid allowance Costs Witt, Cal.Rptr. recovery. at attorney appeal. No fees on Moreоver, many 366 P.2d on read find in Witt ings of I remain unable to BAKES, J., concurs. anything substantiating opinion whatever BISTLINE, Justice, concurring in the that statement. It was a mere unreasoned specially concurring. Court’s apparently made gratuity which the court in under I concur the Court’s in from Witt distinguishing in the facts of stare decisis principle view of Rogers, Baugh 24 Cal.2d facts Witt, decision in Tucker v. Oil Union (1944), Court’s 148 P.2d 633 discussed Co., (1979) 377-378, 100 Idaho 603 P.2d 156 Cal.Rptr. at 366 P.2d at 649-50. —a vigorously from which I dissented. decision Tucker my I hold to the views set forth given “Recognition must be to the fact today part and reiterate them in dissent statutory its еnact- scheme since and bar: the benefit of bench gave employer subrogar ment in 1917 holdings major I concur with the “While This, however, nothing to rights. has opinion, per- I am of the Court’s [Tucker\ employ- do with the of whether an blindly this Court should not suaded industrial accident insur- ee who obtains recovery’ accept the unfortunate ‘no double ance and thereafter success- Witt language of as a basis for a new rule fully maintains a injured employee’s an of law that gaining third-party tortfeasor is somehow third-party tortfeasor recovery.’ only awarded It illustrates a ‘double legislature disposition in all instances be reduced (in employ- reality favor the compensation he has amount of workmen’s surety) by affording opportunity er’s received. The Court did not do so Liber- notwithstanding that come out Adams, Company v. ty Mutual Insurance harmless — compensa- injured employee’s claim for (1966), where vigorously re- tion benefits have been applied, but Witt was first considered and necessary pause It becomes sisted. contrаry allow the on the did upon happened had in 1917. reflect what recovery’ loosely used term ‘double —a quite reality. which is at odds with “The of Idaho’s Workmen’s enactment *6 Compensation away Law took Liberty Mutual was “The sole issue in Idaho to seek a workman damages negligent employer, negli- whose whether negligence of his injuries occasioned along of a third gence with that provided employer, in return he was from an injury, could obtain produced the recently compensation, until speсific which of work- injured employee reimbursement totally inadequate, and now has been paid, the compensation benefits em- men’s legislative adequate. The just barely par- having recovered from the third ployee through accomplish this scheme was to damages. The in a action for ty where the program, ‘no-fault’ insurance holding negative, in the answered Court compensation awards would be made surety and its negligent that in turn companies would insurance who Liberty not so recover. The Mutuаl could assuming premiums in return for accept recovery’ with ‘double remained so-called legislature, The if it the risks of loss. injured employee. employee might receive that the considered the Court “While it is correct money employer some sum of from his Liberty Mutual relied Witt upon purchase to such workmen’s with which Idaho, page of 91 proposition stated at instead pay premium, insurance and not P.2d,2 the Court did page procure 422 of 417 the insur- at directed working approve, even mention the аdopt, pay premium. all or at ance and man, involuntarily lost his common further statement of Witt having that a reduction injury, became the action for damages awarded law cause of employee’s policies of industrial beneficiary of these must third-party tortfeasor against the suit accident workman from a health and insurance. receives acci- [Footnote omitted.] purchased policy dent he has legislature perceived it was not full inadequacy only working knowing man well of the of industri- wise that not be payments al are purchasing his insurance. Such insurance entrusted with own industri- benefits, they are coverage, no sense al but that he for tort. should back what benefits he received a recovery

if was able to effect from a third-party payback This tortfeasor. travesty “... It would be indeed to be, however, never theory said to disqualification negli- hold that working that a man should not be able to gent employer somehow inure to should collect both insurance benefits and dam- negligent third-party benefit of the tort- ages occasioned him the third-party tort- feasor. I know of nor can neither divine readily acceptable feasor —but on the more any principle requires of law which that an theory, and less obvious well known in the injured employee extent of industry, insurance that an insurance com- payments suffer received elsewhere a re- pany always which has wants duction of the tort he has ob- subrogated employee’s rights to be against negligent third-party tained tort- payments extеnt of made. The Ida- recovery feasor. A double it is others, legislature, arranged ho as with so tortfeasor, tortfeasors, not. While legislatures it. no instance did the required pay damages should not be including of the states Idaho consider injury, they twice for the he or same subrogation that such provisions indiscrimi- given pay- should not the benefit nately subrogation rights awarded negli- injured person ments to which he gent non-negligent employers. as well as to they did This is the not make. collateral say All of which is recovery’ that ‘dоuble source doctrine. involved, was not is still not involved. joint and several been person’s injury Double injured collects tort are victim—make him never been pensation ages, a second against any Law supposed course, even under the Workmen’s law that a satisfied of those pretended approach making is caused is involved where a are whole tortfeasors justly compensate responsible no Law. the others. Dam- as it were. twice. specified Damages two or more it the *7 Cоmpensa- is a bar to has ever Where a injured person Work- It has com- Justice White in the third that the gress Act seeks to inequity indicate and supra, statutory inequity appears "... this so-called [61 intended to [443 L.Ed.2d If on the party having scheme, ‍‌‌‌‌‌​​​‌‌​​‌​​‌​​​​‌‌‌​‌​​‌‌​‌‌‌‌​​‌‌‌‌‌​​‌​​​​‍it is should protect.’ U.S. employee have the benefit thought 521] longshoreman Edmonds inevitable place 256] but recovery, we find it, appropriate: presume to be S.Ct. in the burden of the language Compagnie, inequitable nothing whom the that Con- [2753] present ‘Some fact, major In underly- workеr whole. ing premise Compensa- of the Workmen’s “A principle clear-cut of law evolved working

tion Law is to take from man from in Lib- holding the Court’s unanimous his common law to sue in tort for Mutual; erty by of that virtue decision the damages, him relegate and to the status of statutory law was modified to picks policy up an insured under a which negligent employer recovering from back expenses, gives his medical him a modest compensation payments might whether it mends, weekly stipend while an attempt injury employeе to do so from equally specific per- modest award for the negligent party. Today or the third injury. manent does not presented slightly Such amount to issue is in a different damages. Payments negligent received from indus- party context —with third regarded any wanting payments trial insurance should not be of the benefit those differently injured employer by payments negligent than an which the virtue of

248 proposition in regain. The an- tomed on the this state may not Liberty Mutual profit by wrong. exactly the same as it was no one should own swer should be by forecast Liberty in Mutual and as “Unfortunately it was destined to a short non-negligent in em- language Court’s life, its de- and I am saddened to observe ployer case of Wyeth. Shields v. A so- deeply regret I more that it is laid to mise. balancing equities does not called of the any epitaph of rest without the comfort negligent third-party tort- require that the recognizing it appropriately has now apples which given the windfall be feasor Perhaps solace been overruled. negligent from the tree of the have fallen brought into found that Idaho is now back employer. forty-eight majority line with a clear “ that, significance in the case ‘It is of prefer to talk in terms other states which bench, talking really about we are that, recovery’ to the end where of ‘double an rights obligations between had, worker a so-called windfall is to be party directly. On employer and third negli- give way in either to the rights contrary, deciding we are negligent gent employer or to the employer’s obligations between person.” party’s in- insuranсe carrier and a third 2""'Thus, brought by whether an action is compa- surance carrier. Each insurance employee, or the the third undertak- ny paid premiums for has been able to invoke the concur tortfeasor should be It is neither the the risks involved. of the to defeat its either rent right event, reimbursement, since, in suffers employer nor the third who brought the action is for the benefit shifting between the by virtue of employer to the extent that bene responsibility insurance carriers of the paid employee.’"” (My fits have been emphasis.) specified percentages employee. Most injured suffered 606-13, 603 P.2d at 172-179 employers entities. The are business (Bistline, J., dissenting) (emphasis origi- a cost of premiums of insurance is cost nal). doing passed on to the business which SHEPARD, Justice, concurring third- the business. Most customers of dissenting part. enti- party tortfeasors are also business majority I While concur much of premi- in which the cost of insurance ties opinion, I must dissent from the result doing represent part ums of the cost affirming the final achieved custom- paid that is business the trial court. Schneider contends Thus, the amount ers of these entities. grossly were inade- awarded employee that injured erred in quate and hence the trial court paid by the insurance carriers or a denying his motion for a new trial reality party is in the third view, agree. my I judgment n.o.v.. employ- customers of the financed $6,361.48 for the loss ultimate award party. The costs of the er and the third inadequate a matter grossly a thumb is as spread, are awards to workers law, notwithstanding was de- Schneider therefore, segment among a substantial negligent and work- termined to be 40% society.’ had been Engineering Construction & Associated that, agree I on behalf of Schneider. Compensation Appeals Co. Workers’ pos- majority, the trial court stated Board, Cal.Rptr. Cal.3d granting or re- discretion in the sesses J., (1978)(Jefferson, However, my opin- fusing trial. a new dissenting). *8 unwisely ion, such discretion was exercised majority vote of the Court member- “A in instant case. and abused course, is, change the sufficient to ship Justice, HUNTLEY, concurring Although v. Adams Liberty Mutual law. dissenting part. and Court, ‍‌‌‌‌‌​​​‌‌​​‌​​‌​​​​‌‌‌​‌​​‌‌​‌‌‌‌​​‌‌‌‌‌​​‌​​​​‍it was my time on the antedated opinion majority I concur in all of opinion,joined in opinion written my a well that the portion which holds Court, soundly except for that and bot- by a unanimous did trial court not abuse its discretion require

failing accept defendants to or a

“additur” new trial due the inade-

quacy damages. damage award for loss of thumb $20,000 prior to figure being

duced Schneider’s negligence and 40% workmen’s compensation received. had

The loss of a thumb is a severe

disabling impediment clearly and the court

abused its discretion failing to correct aspect judgment. STEPHENS, Plaintiff-Appel-

Mildred G.

lant, Cross-Respondent,

Thornton B. STEARNS and Diane C.

Stearns, wife, husband and

Defendants-Respondents, Koch, ux., wife,

Ronald et husband and Defendants, Third-Party-Plaintiffs,

Cross-Defendants, Respondents, Albanese, ux., M.

Arthur et husband and wife, Defendants, Cross-Claimants,

Respondents, Cross-Appellants, 8; through

John Does and XYZ Cor-

porations through 8, Defendants, Boise,

City Third-Party-Defendant.

No. 13976.

Supreme Court of Idaho.

Jan. 1984.

Rehearing Denied March

Case Details

Case Name: Schneider v. Farmers Merchant, Inc.
Court Name: Idaho Supreme Court
Date Published: Dec 29, 1983
Citation: 678 P.2d 33
Docket Number: 14390
Court Abbreviation: Idaho
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