Bundy v. NuStar GP, LLC ( 2017 )


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  • 282	                         December 29, 2017	                            No. 67
    IN THE SUPREME COURT OF THE
    STATE OF OREGON
    Danny BUNDY,
    Petitioner on Review,
    v.
    NUSTAR GP, LLC;
    and Shore Terminals, LLC,
    Respondents on Review.
    (CC 110810280; CA A152918; SC S064188)
    On review from the Court of Appeals.*
    Argued and submitted May 08, 2017.
    Carl Post, Portland, argued the cause and filed the briefs
    for the petitioner on review.
    Thomas W. Songdag, Lane Powell PC, Portland, argued
    the cause and filed the brief for the respondents on review.
    James S. Coon, Thomas Coon Newton & Frost, Portland,
    filed the brief amicus curiae Oregon Trial Lawyers
    Association.
    David L. Runner, Salem, filed the brief amicus curiae
    SAIF Corporation, Timber Products Company and BDI
    Staffing.
    Before Balmer, Chief Justice, and Kistler, Walters,
    Landau, Nakamoto, Flynn, and Duncan, Justices.**
    FLYNN, J.
    The decision of the Court of Appeals is reversed. The
    judgment of the circuit court is reversed, and the case is
    remanded to the circuit court for further proceedings.
    ______________
    **  Appeal from Multnomah County Circuit Court Christopher J. Marshall,
    Judge. 277 Or 785, 373 P3d 1141 (2016)
    **  Brewer, J., retired June 30, 2017, and did not participate in the decision of
    this case.
    Cite as 362 Or 282 (2017)	283
    Case Summary: Plaintiff attempted to allege civil negligence claims against
    his employer for harm arising out of plaintiff’s exposure to gasoline vapors at
    work. He sought to rely on ORS 656.019 to avoid the exclusive remedy provision
    of ORS 656.018 by alleging that the conditions for which plaintiff seeks recovery
    in the negligence action were determined to be not compensable under the work-
    ers’ compensation laws on the basis that plaintiff failed to prove the work inci-
    dent was the major contributing cause. The trial court denied plaintiff’s motion
    to amend based on its agreement with defendant’s argument that ORS 656.019
    does not apply because plaintiff has a compensable initial workers’ compensa-
    tion claim for the same work incident. The Court of Appeals issued a written
    decision affirming the judgement of the trial court. Held: ORS 656.019 applies
    to both denied initial and subsequent workers’ compensation claims. The court
    reserves ruling, however, on whether ORS 656.019 functions as the exception to
    ORS 656.018 that plaintiff assumes it does. Defendant did not challenge that
    assumption below, and the issue is beyond the scope of the ruling on which the
    court allowed review.
    The decision of the Court of Appeals is reversed. The judgment of the cir-
    cuit court is reversed, and the case is remanded to the circuit court for further
    proceedings.
    284	                                         Bundy v. NuStar GP, LLC
    FLYNN, J.
    This case arises out of plaintiff’s attempt to allege
    civil negligence claims against his employer, defendant
    NuStar GP, LLC, for harm arising out of plaintiff’s exposure
    to gasoline vapors at work.1 The trial court denied plain-
    tiff’s motion to amend his complaint to allege those claims
    after concluding that the claims are barred by the so-called
    “exclusive remedy” provision of the Workers’ Compensation
    Law, ORS 656.018, a provision that generally immunizes
    employers from civil liability for injuries to a worker arising
    out of the worker’s employment.2 Plaintiff contends that his
    negligence claims are not barred by ORS 656.018 because
    they are allowed by ORS 656.019, a statute that governs
    negligence actions for an injury “that has been determined
    to be not compensable [under the Workers’ Compensation
    Law] because the worker has failed to establish that a work-
    related incident was the major contributing cause of the
    worker’s injury.” Although plaintiff alleged that he suffers
    from medical conditions that were determined to be “not
    compensable” under that major contributing cause stan-
    dard, the trial court and Court of Appeals concluded that
    ORS 656.019 does not apply to plaintiff’s negligence action
    because the conditions on which plaintiff relies were denied
    after defendant accepted a compensable workers’ compensa-
    tion claim for plaintiff’s initial condition arising out of the
    same workplace incident.
    We allowed review to consider whether the Court of
    Appeals correctly construed the scope of ORS 656.019, and
    we conclude that “the claim” to which ORS 656.019 refers
    includes subsequent claims. In responsive briefing in this
    court, defendant suggests for the first time that it disputes
    the premise that underlies plaintiff’s argument, contending
    that, regardless of the scope of ORS 656.019, the statute
    does not confer a “substantive right” but merely establishes
    1
    Although plaintiff has designated defendant Shore Terminals, LLC as an
    additional respondent on review, only NuStar GP, LLC, is named as defendant in
    the negligence claims that are at issue on review. Our references to “defendant”
    throughout the opinion are, thus, references to defendant NuStar GP, LLC.
    2
    Unless otherwise noted, all statutory references are to the 2011 version of
    the Oregon Revised Statutes. There have been no amendments to the pertinent
    language.
    Cite as 362 Or 282 (2017)	285
    procedural requirements for filing actions that are other-
    wise exempt from the exclusive remedy provision. That con-
    tention is beyond the scope of the statutory construction
    ruling that we allowed review to consider, and we expressly
    reserve a ruling on the issue for a future appeal in which the
    briefing provides the court with fully developed arguments
    on the issue.
    BACKGROUND
    While employed by defendant as a terminal opera-
    tor, plaintiff was assigned to stay and monitor the air quality
    from malfunctioning machinery without being given safety
    equipment, and he was exposed to dangerous levels of die-
    sel, gasoline and ethanol fumes. After that incident, defen-
    dant initially accepted a workers’ compensation claim for
    “non-disabling exposure to gasoline vapors.”3 Later, plaintiff
    asked defendant to accept and pay compensation for addi-
    tional conditions arising out of the same incident, including
    “somatization disorder” and “undifferentiated somatoform
    disorder” (which we refer to collectively as “somatoform
    disorders”). Defendant specified that it was treating each
    of plaintiff’s subsequent requests as a “consequential con-
    dition claim” and was denying those claims on the basis
    that plaintiff’s work exposure was not the major contribut-
    ing cause of the subsequent conditions. Plaintiff challenged
    those denials through the workers’ compensation system,
    but he was unable to establish that the work incident was
    the major contributing cause of his somatoform disorders.
    The Workers’ Compensation Board ultimately issued a final
    order determining that the disorders were not compensable
    conditions because plaintiff failed to establish that his work-
    related incident was the major contributing cause.
    In the meantime, plaintiff also filed this civil action
    against defendant in which he attempted to allege a claim
    for relief that would come within an exception to the immu-
    nity afforded by the exclusive remedy provision. To that end,
    3
    We are ultimately asked to decide whether plaintiff’s allegations state a
    negligence claim for which relief is available, so we accept as true the facts that
    plaintiff has alleged. Philibert v. Kluser, 360 Or 698, 700, 385 P3d 1038 (2016).
    We also describe additional facts that are undisputed and were set out in exhibits
    that plaintiff attached in support of his motion to amend.
    286	                                         Bundy v. NuStar GP, LLC
    plaintiff filed multiple amended complaints, each of which
    defendant successfully moved to dismiss. When defendant
    moved to dismiss plaintiff’s Third Amended Complaint,
    plaintiff sought leave to file a Fourth Amended Complaint to
    allege that he had received the board order described above.4
    Plaintiff argued that the board’s determination brought his
    civil negligence claims within the scope of ORS 656.019 and,
    therefore, precluded defendant from relying on the exclusive
    remedy provision to defeat plaintiff’s negligence claims.
    Defendant did not dispute plaintiff’s premise that claims
    within the scope of ORS 656.019 are statutorily exempt
    from the exclusive remedy provision, but it contended that
    ORS 656.019 does not apply when the injured worker has an
    accepted workers’ compensation claim.
    The trial court agreed with defendant that plain-
    tiff’s allegations—including the negligence claims that he
    proposed to plead in a fourth amended complaint—failed to
    state a claim for relief that could avoid the exclusive remedy
    provision of ORS 656.018. In the Court of Appeals, plaintiff
    assigned error to several rulings of the trial court, including
    the court’s ruling that ORS 656.019 does not allow plaintiff to
    bring his civil negligence claims.5 Plaintiff argued that ORS
    656.019 is not limited to “entire claims” and, instead, applies
    to any claim for an injurious condition that is determined to
    be not compensable under workers’ compensation law on the
    basis that the worker failed to establish that a work-related
    incident was the major contributing cause. Thus, plaintiff
    argued, ORS 656.019 applied to his somatoform conditions.
    The Court of Appeals rejected that argument, emphasizing
    that ORS 656.019 provides that the injured worker may
    pursue the action “ ‘only after an order determining that
    the claim is not compensable has become final.’ ” Bundy v.
    NuStar GP, LLC, 277 Or App 785, 806, 373 P3d 1141 (2016)
    4
    Plaintiff’s proposed Fourth Amended Complaint alleged that numerous
    injuries were determined by the order to be not compensable and did not specify
    that he was seeking damages only for the somatoform disorders. In this court,
    however, plaintiff contends that he is relying on ORS 656.019 only to pursue a
    negligence action for damages related to the somatoform disorders.
    5
    Plaintiff also argued in the Court of Appeals that his allegations stated a
    claim for intentional injury and that he has a constitutional right to bring his
    negligence action. Bundy, 277 Or App at 786. The Court of Appeals rejected both
    arguments, and plaintiff has not challenged those determinations on review.
    Cite as 362 Or 282 (2017)	287
    (quoting ORS 656.019; emphasis in original). Because plain-
    tiff conceded that defendant accepted plaintiff’s initial claim
    for the work-related incident, the Court of Appeals agreed
    with the trial court that “plaintiff could not bring his negli-
    gence claims based on ORS 656.019.”
    DISCUSSION
    On review, plaintiff urges this court to conclude
    that the Court of Appeals and trial court misconstrued the
    scope of ORS 656.019.6 Plaintiff relies on the first sentence
    of ORS 656.019(1)(a), which provides:
    “An injured worker may pursue a civil negligence action
    for a work-related injury that has been determined to be
    not compensable because the worker has failed to establish
    that a work-related incident was the major contributing
    cause of the worker’s injury only after an order determin-
    ing that the claim is not compensable has become final.”
    Defendant responds that there is one workers’ compensation
    claim for any given work incident, which is either accepted
    or denied entirely, and that the Court of Appeals correctly
    construed ORS 656.019 as applying only when that initial
    claim is denied.
    A.  Historical context for ORS 656.019
    We begin by describing the historical context out
    of which ORS 656.019 arose, because that context is signif-
    icant to the issue of statutory construction that we address.
    Since inception, the workers’ compensation laws have con-
    tained a provision specifying that benefits for work-related
    injuries are “in lieu of” other claims against the employer.7
    6
    Plaintiff does not contend that he had a right to file a Fourth Amended
    Complaint. See ORCP 23A (providing that “[a] pleading may be amended by a
    party once as a matter of course,” subject to certain exceptions but “[o]therwise
    * * * only by leave of court or by written consent of the adverse party”). However,
    the trial court denied his motion to amend entirely on the basis of its construc-
    tion of ORS 656.019, and we review that determination for legal error. See Alfieri
    v. Solomon, 358 Or 383, 391, 365 P3d 99 (2015) (explaining that, even when a
    decision is a matter of discretion for the trial court, “where a court’s exercise of
    discretion turns on a legal question, such as the meaning of a statute, we review
    that determination as a matter of law”).
    7
    When the workers’ compensation system was initially enacted, participa-
    tion was “not compulsory”; an employer was “free to accept the provisions of the
    act or to reject them as he may see fit,” and an employee elected at the time of
    288	                                         Bundy v. NuStar GP, LLC
    Or Laws 1913, ch 112, §12. When the workers’ compensa-
    tion laws were recodified in 1965, that provision was set out
    at ORS 656.018, which specified that a complying employer
    “is relieved of all other liability for compensable injuries,”
    except as specifically provided otherwise. ORS 656.018
    (1965) (emphasis added). In 1995, however, the legislature
    amended ORS 656.018 to provide that the exclusive remedy
    provision would apply to all work-related injuries “whether
    or not they are determined to be compensable under this
    chapter.” Or Laws 1995, ch 332, § 5.8 That expansion of the
    exclusive remedy provision created a category of injury for
    which the workers’ compensation laws barred a civil negli-
    gence action but did not provide compensation benefits in
    exchange.
    Initially, the legislature made the expansion of the
    exclusive remedy provision temporary, providing in the same
    1995 law that the new language would be deleted from ORS
    656.018 on December 31, 2000 (metaphorically, a “sunset”
    of the expanded exclusive remedy). Or Laws 1995, ch 332,
    §§ 5a, 66. The legislature later postponed that sunset date
    in 1999 as part of a compromise package of amendments
    to the workers’ compensation laws. Or Laws 1999, ch 6,
    §§ 1, 4, 5.
    In the meantime, at least one injured worker was
    challenging the expanded exclusive-remedy bar as a viola-
    tion of the right to a remedy that is guaranteed by Article
    1, Section 10, of the Oregon Constitution, at least when
    applied to certain work-related injuries for which the work-
    ers’ compensation laws provided no compensation. Smothers
    v. Gresham Transfer, Inc., 149 Or App 49, 53, 941 P2d 1065
    (1997), rev’d, 332 Or 83, 23 P3d 333 (2001). This court was
    considering Smothers at the same time that the 2001 legis-
    lature began hearings on another comprehensive package of
    amendments to the workers’ compensation laws, including
    employment “whether or not he will come under the terms of the act.” Evanhoff v.
    State Indus. Acc. Com., 78 Or 503, 517, 518, 
    154 P. 106
    (1915) (describing Or Laws
    1913, ch 112, § 12).
    8
    Oregon Laws 1995, chapter 332, section 5, added that language in a new
    paragraph (6) to ORS 656.018. The language is identical to the current ORS
    656.018(7).
    Cite as 362 Or 282 (2017)	289
    an amendment that would make the expansion of ORS
    656.018 permanent. SB 485 (2001); Senate Journal, Regular
    Session, SB 485, S-94 (2001). After that 2001 bill passed
    out of the assigned Senate committee, and five days before
    the bill was taken up by the House of Representatives, this
    court issued a decision in Smothers that ruled in favor of
    the injured worker. See Smothers v. Gresham Transfer, Inc.,
    332 Or 83, 23 P3d 333 (2001), overruled by Horton v. OHSU,
    359 Or 168, 376 P3d 998 (2016); Minutes, Senate Business,
    Labor & Economic Development Committee, Mar 14, 2001,
    2; Minutes, House Business, Labor & Consumer Affairs
    Committee, May 15, 2001, 5.9
    The worker in Smothers had sought to bring a neg-
    ligence action for injuries that he suffered at work, after the
    injuries were determined to be not compensable under the
    workers’ compensation laws for the reason that the worker
    “could not prove that the work exposure was the major con-
    tributing cause of his injuries.” 332 Or at 135. This court
    held that applying the exclusive remedy provision to bar
    that worker’s negligence action would unconstitutionally
    deny him the right to a remedy guaranteed by Article 1,
    section 10, of the Oregon Constitution.10 
    Id. at 135-36.
    In
    the wake of Smothers, the 2001 legislature approved three
    amendments to the pending workers’ compensation bill,
    one of which became ORS 656.019. Minutes, House Rules,
    Redistricting and Public Affairs Committee, June 18, 2001,
    5; Tape Recording, Third Reading to the House, SB 485,
    July 4, 2001, Tape 234, Side B; Tape Recording, Senate
    Floor Proceedings, SB 485, July 5, 2001, Tape 277, Side
    A (Senate concurred in House amendments and repassed
    bill.). That historical context is a significant focus of defen-
    dant’s arguments.
    90
    SB 485 passed through two House committees before being passed to the
    floor. On May 24, 2001, the House Speaker ordered the measure referred from
    the House Business, Labor & Consumer Affairs Committee to the House Rules,
    Redistricting and Public Affairs Committee “[w]ithout recommendation as to
    passage.” Senate Journal, Regular Session, SB 485, S-94 (2001).
    10
    This court in Horton overruled the construction of the remedy clause on
    which Smothers relied. 359 Or at 218. But Horton did not specifically overrule
    Smothers’ ultimate holding that injured workers who “receive no compensation
    benefits” have a constitutional right to pursue a civil action for their injury. See
    Smothers, 332 Or at 125.
    290	                               Bundy v. NuStar GP, LLC
    B.  The scope of ORS 656.019
    The parties’ dispute regarding the scope of ORS
    656.019 turns on the meaning of the first sentence of the
    statute:
    “An injured worker may pursue a civil negligence action
    for a work-related injury that has been determined to be
    not compensable because the worker has failed to establish
    that a work-related incident was the major contributing
    cause of the worker’s injury only after an order determin-
    ing that the claim is not compensable has become final.”
    ORS 656.019(1)(a). As we have emphasized, under the appro-
    priate methodology for interpreting a statute, the first step
    is to examine the statutory text and context. State v. Gaines,
    346 Or 160, 171, 206 P3d 1042 (2009).
    From plaintiff’s perspective, a plain reading of the
    text of ORS 656.019 describes requirements that he has sat-
    isfied: each of his two somatoform disorders, for which he is
    pursuing a civil negligence action, is “a work-related injury”;
    the conditions have “been determined to be not compensa-
    ble because the worker has failed to establish that a work-
    related incident was the major contributing cause”; and he
    received a final “order determining that the claim [for each
    condition] is not compensable.” Although defendant argues
    that plaintiff cannot satisfy the requirement of a final “order
    determining that the claim is not compensable,” we conclude
    that plaintiff’s construction is more consistent with the text
    and context of the statute than defendant’s construction.
    1.  “The claim.”
    We begin with the statutory language that the
    Court of Appeals viewed as dispositive: “the claim.” Plaintiff
    argues that the workers’ compensation law defines the term
    “claim” expansively to mean any
    “written request for compensation from a subject worker or
    someone on the worker’s behalf, or any compensable injury
    of which a subject employer has notice or knowledge.”
    ORS 656.005(6). Under that definition, plaintiff contends,
    a single work-place incident can give rise to multiple indi-
    vidual “claims.” He argues that the legislature intended the
    Cite as 362 Or 282 (2017)	291
    expansive definition of “claim” when it used the term in ORS
    656.019.
    Our review of the workers’ compensation laws
    reveals multiple examples of the use of the term “claim” in
    the expansive sense described by plaintiff—as including
    subsequent requests for compensation that are filed after
    the employer has accepted as compensable an initial claim
    for a work-related incident. For example, ORS 656.273, pro-
    vides than an injured worker must “file a claim for aggra-
    vation” if, after the last award of compensation, the worker
    experiences a worsened condition. (Emphasis added.) The
    workers’ compensation laws also use the term “claim” to
    describe the process that workers must follow “[t]o initiate
    omitted medical condition claims * * * or new medical con-
    dition claims,” for additional conditions that are “related to
    an initially accepted claim.” ORS 656.267(1), (2)(a); ORS
    656.262(7)(a) (emphasis added).
    Defendant argues, however, that the workers’ com-
    pensation statutes also use the term “claim” to refer to the
    aggregate of all requests for compensation that relate to an
    initial claim for a work-related incident. Defendant argues
    that ORS 656.019, similarly, applies only when “the claim”
    that is determined to be not compensable is the initial claim
    that the injured worker files after the work-related incident.
    Defendant is correct that the workers’ compensation laws
    sometimes seem to use the term “claim” in that more lim-
    ited sense. For example, an injured worker must give writ-
    ten notice to the employer within 90 days after “an accident
    resulting in an injury.” ORS 656.265(1). The notice of accident
    resulting in injury is treated as a “claim” that the employer
    must accept or deny within 60 days. ORS 656.262(6)(a). The
    procedures for “claim closure” seem to use the term “claim”
    to refer to the aggregate of all compensable conditions that
    relate to the initial claim for a work-place incident. Those
    procedures specify that the insurer “shall close the worker’s
    claim” when the worker “has become medically stationary
    and there is sufficient information to determine permanent
    disability.” ORS 656.268(1). Once an insurer determines
    that “the claim qualifies for claim closure,” the insurer must
    issue “an updated notice of acceptance that specifies which
    292	                                          Bundy v. NuStar GP, LLC
    conditions are compensable,” and, “[i]f a condition is found
    compensable after claim closure, the insurer or self-insured
    employer shall reopen the claim for processing regarding
    that condition.” ORS 656.262(7)(c).
    It, thus, appears that the workers’ compensation
    laws sometimes use the term “claim” in the expansive sense
    suggested by the definition that the legislature has given to
    the term in ORS 656.005(6) and sometimes use the term in
    the more limited sense that refers to all requests for com-
    pensation that relate to the initial claim for injury arising
    out of a single work-related incident. To determine which
    meaning the legislature intended for the term “claim” in
    ORS 656.019, we turn first to the context of the surrounding
    words in that statute.
    2.  “A work related injury that has been determined to be
    not compensable”
    As a threshold matter, we observe that, grammat-
    ically, “the claim” that must be the subject of a final “order
    determining that the claim is not compensable” refers back
    to the injury that is described at the beginning of the sen-
    tence as “not compensable”: “a work-related injury that has
    been determined to be not compensable because the worker
    has failed to establish that a work-related incident was the
    major contributing cause of the worker’s injury[.]” ORS
    656.019. Plaintiff contends that the phrase “work-related
    injury” is generally an expansive term that includes each
    separate condition that arises out of a work-related incident
    and that the use of that term in ORS 656.019 provides con-
    text for “the claim” to which the statute refers. We agree.11
    We have observed that “an ‘injury’ can refer to an
    incident that causes or results in harm, or it can refer to the
    harm itself.” Brown v. SAIF, 361 Or 241, 254, 391 P3d 773
    (2017). We also observed in Brown that examples of both
    uses of the term “injury” can be identified in the workers’
    compensation laws, so that the meaning of the term in a
    11
    Although defendant does not specifically dispute that each of claimant’s
    conditions is a “work-related injury,” we specifically address that question
    because,”[i]n construing a statute, this court is responsible for identifying the
    correct interpretation, whether or not asserted by the parties.” Stull v. Hoke, 326
    Or 72, 77, 948 P2d 722 (1997).
    Cite as 362 Or 282 (2017)	293
    particular provision must be determined by considering the
    relevant statutory context. 
    Id. at 253-54.
    In Brown, we con-
    cluded that the statute at issue, ORS 656.005(7)(a), used
    the term “injury” in a way that suggested a reference to “a
    medical condition that is the result of an accidental incident”
    rather than to the incident itself. 
    Id. at 255
    (emphasis in
    original).
    In ORS 656.019(1)(a), the legislature has also used
    the term “injury” in a way that suggests a reference to
    medical conditions. The statute specifies that it applies to
    “a work-related injury that has been determined to be not
    compensable because the worker has failed to establish that
    a work-related incident was the major contributing cause of
    the worker’s injury.” ORS 656.019(1)(a) (emphasis added).
    That sentence has meaning only if the “work-related injury”
    is something distinct from the “work-related incident.” We,
    thus, conclude that the term “work-related injury” in ORS
    656.019(1)(a) refers to a medical condition that is the result
    of a work-related incident. That plaintiff’s medical condi-
    tions are an “injury” within the meaning of ORS 656.019
    (1)(a) suggests that his claim for those work-related injuries
    falls within the statute’s reference to “an order determining
    that the claim is not compensable.”
    3.  Statutory context
    The context provided by related statutes also sug-
    gests that the legislature used “the claim” in ORS 656.019
    in the expansive sense that encompasses subsequent
    requests for compensation that are denied after an initial
    claim has been accepted. The language that is codified at
    ORS 656.019 was part of a bill that more comprehensively
    modified the workers’ compensation laws. SB 485 (2001); Or
    Laws 2001, ch 865. In other language added by the same
    bill, the legislature repeatedly used the term “initial claim”
    when it intended a meaning different from “claims” in the
    expansive sense that includes a subsequent request for com-
    pensation. See Or Laws 2001, ch 865, § 1 (amending defi-
    nition of a “preexisting condition,” in ORS 656.005(24)(a),
    to distinguish between the meaning of that term as used
    “[i]n claims for an initial injury or omitted condition” and in
    “claims for a new medical condition”); 
    id. at §
     3 (providing
    294	                               Bundy v. NuStar GP, LLC
    for different calculation of disability benefits if worker pro-
    vided notice of employment in multiple jobs “within 30 days
    of receipt of the initial claim”); 
    id. at §
     10 (specifying that
    “[c]laims properly initiated for new medical conditions and
    omitted medical conditions related to an initially accepted
    claim shall be processed pursuant to ORS 656.262”); 
    id. at §
     14 (addressing payment for medical services “in response
    to an initial claim for a work-related injury”). Given those
    repeated references to an “initial claim” elsewhere in SB
    485, the legislature’s failure to qualify the term “claim” in
    that way in ORS 656.019 strongly suggests that it did not
    intend the term “claim” to refer to only an “initial claim.”
    See Northwest Natural Gas Co. v. City of Gresham, 359 Or
    309, 323, 374 P3d 829 (2016) (“[I]f the legislature uses dif-
    ferent terms in related statutes, it likely intended them to
    have different meanings.” (Emphasis in original.)).
    Nevertheless, defendant contends that the context
    of preexisting case law demonstrates that ORS 656.019
    applies only when an initial claim for compensation is
    denied on major contributing cause grounds. Defendant
    argues that the legislature’s use of the term “claim” in ORS
    656.019 was necessarily informed by this court’s earlier dis-
    cussion of claims in Johnson v. Spectra Physics, 303 Or 49,
    733 P2d 1367 (1987), which described multiple conditions
    arising out of single work incident as “aspects of a single
    claim.” 
    Id. at 56.
    According to defendant, the “legislature,
    consistent with Johnson, understood that new and omitted
    condition ‘claims’ * * * remained a part of that initial claim.”
    (Emphasis in original.)
    However, the point of Johnson is that each injury
    or condition is considered on its separate merits and, thus,
    that the insurer’s acceptance of the claimant’s back injury
    claim did not preclude it from denying compensability of a
    carpal tunnel syndrome condition that was diagnosed after
    the claimant filed her initial claim. 
    Id. at 58-59.
    Indeed,
    the opinion specifically refers to the claimant’s subsequent
    request for compensation for her carpal tunnel syndrome as
    a “claim” that the insurer was required to accept or deny
    within “60 days after the claim was filed.” 
    Id. at 59.
    Johnson
    thus adds nothing to the inquiry beyond illustrating that
    Cite as 362 Or 282 (2017)	295
    our case law has also used the term “claim” in varying ways,
    to refer to both separate requests for compensation and to
    the aggregate of all requests arising out of the same work-
    related incident. Moreover, Johnson predates the statutory
    amendments in 2001, in which the legislature authorized
    employers to deny “new or omitted” conditions after previ-
    ously accepting a claim for other conditions arising out of the
    same work incident. ORS 656.267; Or Laws 2001, ch 865,
    § 10. In doing so, the legislature specifically identified those
    requests to accept new and omitted medical conditions as
    “claims.” 
    Id. That is
    the more pertinent statutory context.
    4.  Legislative history
    Finally, defendant argues that the legislative
    history demonstrates that the legislature intended ORS
    656.019 to address only the initial claim for injury arising
    out of a work-related incident. As indicated above, the pro-
    vision that became ORS 656.019 was added to an existing
    package of amendments to the workers’ compensation laws,
    SB 485, after this court held in Smothers that ORS 656.018
    cannot constitutionally be applied to bar certain negligence
    actions. According to defendant, the legislative history
    demonstrates that the legislature intended ORS 656.019 to
    reach only those actions that Smothers made exempt from
    the exclusive-remedy bar. The plaintiff in Smothers filed his
    negligence action after his employer denied the initial (and
    only) workers’ compensation claim that the plaintiff filed
    for injury arising out of the work-related incident, and the
    opinion emphasizes that the court was addressing the cate-
    gory of injured workers who “receive no compensation ben-
    efits.” 332 Or at 125. Defendant argues that the legislature
    intended ORS 656.019 to apply only to the circumstances
    described in Smothers—an initial claim that is determined
    to be not compensable.
    Defendant is correct that the legislative history
    reveals an intention to capture and limit the kind of civil
    actions that the legislature believed Smothers would allow.
    See Tape Recording, House Floor Proceedings, SB 485,
    July 4, 2001, Tape 234, Side B (statement of Representative
    Carl Wilson) (explaining that “[t]he bill will not, quote
    unquote, fix Smothers, but it does create a means for
    296	                                         Bundy v. NuStar GP, LLC
    addressing this new and significant exposure for employers,”
    in part because it would “lessen the impact of that decision”
    by “shielding all parties from the extra cost of having to pur-
    sue both the workers’ compensation claim and court case
    at the same time,” through the exhaustion requirement);
    see also Tape Recording, Senate Floor Proceedings, SB 485,
    July 5, 2001, Tape 277, Side A (statement of Senator Roger
    Beyer) (testifying that SB 485 “should keep more cases out
    of the court system”).
    It is not clear, however, that the legislature
    intended to address those concerns by restricting the scope
    of ORS 656.019 to the factual circumstances of Smothers.
    A key proponent of SB 485 advised one of the House com-
    mittees considering the bill that “there are important ques-
    tions that are left unanswered by the Smothers decision,”
    including whether its rationale would “apply to subsequent
    denials such as partials, aggravations and new conditions.”
    Testimony, House Committee on Rules, Redistricting, and
    Public Affairs, SB 485, June 15, 2001, Ex D at 2 (state-
    ment of John Shilts, Administrator, Workers’ Compensation
    Division, Department of Consumer and Business Services
    (DCBS)). Shilts emphasized that the bill “provides a
    means to address * * * [those] questions.” Id.; see also Tape
    Recording, House Committee on Rules, Redistricting and
    Public Affairs, SB 485A, June 15, 2001, Tape 150, Side A
    (statement of Tim Nesbitt, president of Oregon AFL-CIO)
    (explaining that there was “still a lot of uncertainty about
    how the [workers’ compensation] world will look * * * under
    Smothers,” and that the amendments would help to address
    those questions). The uncertainty whether Smothers might
    permit actions for injuries that were the subject of a subse-
    quent claim denial and Shilts’ emphasis that the bill “pro-
    vides a means to address * * * [those] questions” suggest that
    the legislature may have intended to make the procedural
    limitations of ORS 656.019 applicable to that broader cate-
    gory of “claims.”12
    12
    Although Shilts and Nesbitt were witnesses, rather than legislators who
    voted for the bill, their statements to legislators regarding the potential impact
    of Smothers, inform our understanding of the type of actions that the legisla-
    ture may have intended to reach in order to “lessen the impact” of Smothers. See
    Tape Recording, House Floor Proceedings, SB 485, July 4, 2001, Tape 234, Side
    B (statement of Representative Carl Wilson).
    Cite as 362 Or 282 (2017)	297
    Ultimately, the significance of the legislative history
    is that it does not disclose a clear intent to limit the reach
    of ORS 656.109 to initial workers’ compensation claims. We
    have emphasized that the best evidence of what the legisla-
    ture intended a statute to mean is the wording of the statute
    that it adopted into law. See Brown, 361 Or at 249 (describ-
    ing essential principle). Here, that best evidence persuades
    us that the legislature used the terms “work-related injury”
    and “the claim” in the expansive sense that encompasses
    claims—like plaintiff’s—for a condition that is denied on
    major-contributing-cause grounds after an initial claim
    acceptance has been issued. The Court of Appeals erred in
    construing the statute otherwise.
    C.  Defendant’s argument regarding the function of ORS
    656.019
    In their arguments regarding ORS 656.019 in the
    trial court and Court of Appeals, both parties assumed that
    a conclusion that ORS 656.019 applies to subsequent con-
    dition claims would mean that plaintiff should have been
    allowed to file his Fourth Amended Complaint. As indicated
    above, the first sentence of ORS 656.019(1)(a) provides that
    “[a]n injured worker may pursue a civil negligence action
    for a work-related injury that has been determined to be
    not compensable because the worker has failed to establish
    that a work-related incident was the major contributing
    cause of the worker’s injury only after an order determin-
    ing that the claim is not compensable has become final.”
    Plaintiff—and until now defendant—has assumed that the
    phrase “may pursue” expresses a grant of authority to pursue
    actions that fall within the scope of the statutory language.
    That construction is consistent with the ordinary meaning
    of the term “may” as “have permission to.” Webster’s Third
    New Int’l Dictionary 1396 (unabridged ed 2002); see Gaines,
    346 Or at 166 (A statute providing that a party “ ‘may’ offer
    legislative history to the court” means the party “is statuto-
    rily entitled, but not obligated, to offer the court legislative
    history.”).
    In its respondent’s brief in this court, however,
    defendant questions that assumption. Defendant argues
    that the verb “may” should be understood as modified by
    298	                                           Bundy v. NuStar GP, LLC
    the final clause of the sentence, so that it expresses a single
    proposition. Defendant excerpts the text to illustrate that
    way of reading the statute: “An injured worker may pursue
    a civil negligence action * * * only after an order determin-
    ing that the claim is not compensable has become final.”
    (Emphasis in original.) According to defendant, the statute
    read in that way merely explains “when an assumed right
    may be exercised” without additionally creating the right.
    (Emphasis in original.)
    Defendant’s interpretation of the phrase is also
    plausible. Although a statute providing that a person “may
    pursue” a particular action “only after” a particular event
    can imply that the legislature is also providing a right to
    pursue the action after the particular event, the two prop-
    ositions are not logically equivalent.13 Imposing procedural
    limitations on a particular type of action may simply mean
    that the legislature understood some external authority to
    already authorize the type of action. Indeed, as explained
    above, the legislature adopted ORS 656.019 at a time when it
    understood that Smothers made at least some of the actions
    described in ORS 656.019 constitutionally exempt from the
    exclusive-remedy bar.
    We expressly reserve for another day, however, the
    comprehensive statutory analysis needed to resolve whether
    the legislature intended ORS 656.019 to function as a sub-
    stantive exception to the exclusive remedy provision. We
    resolve only the single issue of statutory construction that
    was raised by the petition for review and argued by the par-
    ties below—whether ORS 656.019 applies if the negligence
    action is for injuries that were determined to be not com-
    pensable after an initial workers’ compensation claim was
    accepted. Because the parties assumed in the trial court
    that ORS 656.019 would allow plaintiff to file his Fourth
    Amended Complaint if the statute applied to plaintiff’s neg-
    ligence claims, we reverse the trial courts denial of plain-
    tiff’s motion to amend. That limited holding is not intended
    13
    Rephrased as an if-then logical proposition, the statute provides: “if there
    is not an order, then the worker may not pursue a civil action.” That proposition
    is not logically equivalent to the proposition: “if there is an order, the worker may
    pursue a civil action.” Both statements may be true, but not necessarily so.
    Cite as 362 Or 282 (2017)	299
    to preclude these or future parties from properly present-
    ing an argument that the legislature did not intend ORS
    656.019 to function as a substantive exception to the exclu-
    sive remedy provision.
    The decision of the Court of Appeals is reversed.
    The judgment of the circuit court is reversed, and the case
    is remanded to the circuit court for further proceedings.
    

Document Info

Docket Number: S064188

Filed Date: 12/29/2017

Precedential Status: Precedential

Modified Date: 12/29/2017