DocketNumber: Case No. 20150203
Judges: Lee, Pearce, Durrant, Durham, Himonas
Filed Date: 12/1/2017
Status: Precedential
Modified Date: 10/19/2024
Justice Pearce filed an opinion concurring in the result.
Chief Justice Durrant
Introduction
¶ 1 This case presents the question of whether Utah Code section 35-1-65 (1982) operates as an unconstitutional statute of repose under the Open Courts Clause of the Utah Constitution. The statute provides that an injured worker who is temporarily totally disabled "shall receive" a specified amount of compensation per week, but that "[i]n no case shall compensation benefits exceed 312 weeks ... over a period of eight years from the date of the injury."
¶ 2 Mr. Petersen filed a petition for review with this court. He argues that the statute cuts off his right to temporary total disability compensation before it accrued, thus operating as an unconstitutional statute of repose in violation of the Open Courts Clause of the Utah Constitution. We hold that section 35-1-65 does not abrogate any previously existing remedy and so is not subject to an Open Courts Clause challenge. We disagree with Mr. Petersen's contention that his common law tort cause of action was abrogated with no adequate substitute remedy and hold that the Workers' Compensation Act as a whole is an adequate substitute. We therefore affirm the Commission's decision.
Background
¶ 3 On November 10, 1982, Mr. Petersen injured his back while working for Granite. Mr. Petersen underwent back surgery in December 1983. Granite paid the medical costs of this surgery, as well as temporary total disability compensation following this surgery.
¶ 4 Mr. Petersen returned to work, and in July 1987, experienced a second work accident. He underwent a second back surgery in March 1988 and a third back surgery in December 1989. Granite paid for medical costs and temporary total disability compensation following both surgeries. In January 2004, more than twenty years after the date of the original accident, Mr. Petersen underwent a fourth back surgery. He was off work for seven months, and Granite paid for both the medical costs of surgery and temporary total disability compensation for this period.
¶ 5 In June 2011, while still working for Granite, Mr. Petersen slipped and fell into a trench, landing with his back on an exposed rock. He was off work for two weeks and then returned to his regular work duties. In March 2014, Mr. Petersen underwent a fifth surgery, but this time Granite refused to pay temporary total disability compensation. Mr. Petersen then sought a hearing before the Commission, seeking temporary total disability compensation for work missed following the 2014 surgery.
¶ 6 The ALJ referred the case to a medical panel, which concluded that Mr. Petersen's 1982 accident, and not his 2011 accident, medically necessitated the 2014 surgery.
¶ 7 Mr. Petersen appealed the ALJ's decision to the Appeals Board. The Appeals Board disagreed with the ALJ, concluding that section 35-1-65 is a statute of repose that may be unconstitutional under the Open Courts Clause of the Utah Constitution. But because the Appeals Board concluded that it lacked authority to adjudicate the constitutionality of the statute, it affirmed the ALJ's order denying temporary total disability compensation. Mr. Petersen then filed a petition for review, which was certified to this court. His sole contention before this court is that section 35-1-65 operated as an unconstitutional statute of repose under the Open Courts Clause.
Standard of Review
¶ 8 This court "has jurisdiction to review all final agency action resulting from formal adjudicative proceedings"
Analysis
¶ 9 There are two issues on appeal: first, whether Utah Code section 35-1-65, the temporary total disability statute, is a statute of limitation or a statute of repose. If it is a statute of limitation, our analysis ends.
¶ 10 We conclude that section 35-1-65 is not a statute of limitation, but that, in any event, it does not operate to abrogate a previously existing remedy and so is not subject to challenge under the Open Courts Clause. Moreover, we conclude that the only plausible challenge Mr. Petersen could raise is that section 35-1-65 is an inadequate substitute remedy for the loss of an injured employee's common law tort claim. We hold, however, that such a challenge must fail because the Utah Workers' Compensation Act (WCA) as a whole is an adequate substitute remedy for the loss of such a tort claim.
I. Utah Code Section 35-1-65 Is Not a Statute of Limitation and Does Not Abrogate a Previously Existing Remedy
¶ 11 The first issue we must decide is whether Utah Code section 35-1-65 is a statute of limitation or repose. After examining how section 35-1-65 operates within the WCA context, we conclude that it is not a statute of limitation. We next assess whether the statute is one of repose that abrogates a remedy in a manner implicating the Open Courts Clause of the Utah Constitution. Because it does not operate to abrogate a previously existing remedy, we hold that section 35-1-65 does not implicate our open courts jurisprudence.
A. Section 35-1-65 Is Not a Statute of Limitation Because It Does Not Specify a Time Period Following the Accrual of a Cause of Action During Which a Claim Must Be Brought
¶ 12 As noted above, we must determine whether section 35-1-65 is a statute of limitation or repose. "A statute of limitations requires a lawsuit to be filed within a specified period of time after" a cause of action accrues.
¶ 13 "[A] cause of action accrues upon the happening of the last event necessary to complete the cause of action."
¶ 14 The relevant portions of section 35-1-65 provide:
In case of temporary disability, the employee shall receive 66 2/3% of that employee's average weekly wage at the time of the injury so long as such disability is total .... In no case shall compensation benefits exceed 312 weeks ... over a period of eight years from the date of the injury.
We note from the outset that while the statute runs from the "date of the injury," we have consistently interpreted this phrase to mean the date of the workplace accident.
¶ 15 Granite argues that Mr. Petersen's "cause of action" for temporary total disability, unlike a claim for death benefits,
¶ 16 Mr. Petersen's cause of action for temporary total disability compensation did not fully accrue when he was first injured in 1982. Instead, that right accrued at the moment he became temporarily disabled and therefore entitled to compensation. This is because the period of disability is the "last event necessary to complete the cause of action" under the statute, which provides that temporary total disability compensation "shall" be awarded "so long as" the "disability is total."
B. Section 35-1-65 Does Not Violate the Open Courts Clause, Because It Does Not Cut Off a Previously Existing Remedy
¶ 17 Mr. Petersen argues that section 35-1-65 is a statute of repose that abrogates his right to a remedy in violation of our Open Courts Clause. After briefly reviewing our open courts jurisprudence, we conclude that even if the statute qualifies as a statute of repose, it does not violate our constitution because it does not operate to cut off a previously existing remedy, and so Mr. Petersen's challenge to the statute fails.
¶ 18 A "statute of repose bars all actions after a specified period of time has run from the occurrence of some event other than the occurrence of an injury that gives rise to a cause of action."
it bars all actions for temporary total disability after eight years have run from the occurrence of the workplace accident, which, as discussed above, is not the last event necessary to create a cause of action for temporary total disability.
¶ 19 But a closer review of section 35-1-65 and its history reveals that it does not operate to cut off a
previously existing
remedy. Because it does not, section 35-1-65 is not akin to those statutes we have found susceptible to Open Courts Clause challenges.
¶ 20 The Open Courts Clause of the Utah Constitution provides:
All courts shall be open, and every person, for an injury done to him in his person, property or reputation, shall have remedy by due course of law, which shall be administered without denial or unnecessary delay; and no person shall be barred from prosecuting or defending before any tribunal in this State, by himself or counsel, any civil cause to which he is a party.21
This provision provides a substantive check against legislative power
¶ 21 Mr. Petersen's challenge to section 35-1-65 does not survive step one of this analysis. He argues that the statute abrogates a remedy because it bars him from obtaining temporary total disability beyond eight years from the date of his workplace accident. We disagree.
¶ 22 First, we have never accepted an interpretation of the Open Courts Clause that
affirmatively requires
the legislature to
provide a remedy for every type of injury.
¶ 23 The heart of the problem is that Mr. Petersen would not have been able to bring a cause of action to receive temporary total disability benefits more than eight years
¶ 24 He nevertheless proceeds on the theory that the legislature has deprived him of the right to a lifetime of eligibility for temporary total disability compensation. The problem with this view is that Mr. Petersen is seeking something to which no one in Utah has ever been entitled. The logical extension of his argument is that he is entitled to temporary total disability compensation whenever he becomes temporarily totally disabled, presumably at any point during the remainder of his life. Neither the common law nor the Utah legislature ever provided for such a remedy. Therefore, it is inaccurate to say that section 35-1-65 abrogates a remedy.
¶ 25 We recognize that this conclusion is in apparent tension with dicta in
Stoker v. Workers' Compensation Fund of Utah
.
¶ 26 First, it is unclear whether we concluded in
Stoker
that section 35-1-65 will necessarily cut off rights in some cases, or if we merely reserved the question of whether it could do so for a future case.
¶ 27 The only plausible argument Mr. Petersen could raise, though he does not articulate his argument in these terms, is that his right to recover against his employer in tort at common law was abrogated by the WCA's exclusive remedy provision,
II. The Workers' Compensation Act Does Not Violate the Open Courts Clause, Because It Provides an Adequate Substitute Remedy
¶ 28 The best argument Mr. Petersen could advance is that section 35-1-65 is an inadequate substitute for the loss of his common law tort remedy.
¶ 29 We have held that the Open Courts Clause "is satisfied if the law provides an injured person an effective and reasonable alternative remedy."
¶ 30 With these principles in mind, we note that we have consistently recognized that, as a global matter, the package of WCA benefits is an adequate substitute for the loss of the employee's common law tort action against his or her employer.
¶ 31 To assert a common law tort claim for a workplace accident before the enactment of the WCA in 1917,
¶ 32 In place of that system, the legislature has provided a scheme that removes many of those hurdles. Under the temporary total disability statute, Mr. Petersen is entitled, without showing his employer's fault or lack of his own, to obtain up to 312 weeks of wage compensation by demonstrating that he is temporarily totally disabled by an injury that occurred in the course of his employment. Moreover, beyond simply providing for temporary total disability compensation,
¶ 33 Having outlined an employee's rights under these two regimes, our task is to assess whether the WCA benefits are "substantially equal in value or other benefit" to a common law tort action. In some ways, the two systems might seem to be apples and oranges. One system of rights contains no time limitation on the years of recoverable lost wages, so long as they are provable at the time of trial, but is subject to jury and evidentiary uncertainties. The other features time-limited remedies, but is not subject to the evidentiary and other demands of a common law negligence cause of action. Some injured workers will no doubt have strong proof of their employer's fault and damages, and thus will likely lose out on a significant tort judgment by virtue of the WCA. On the other hand, many injured workers who can obtain no evidence of their employers' fault, or who face substantial evidence of their own fault, will in some sense have gained a windfall under the WCA.
¶ 34 We recognize that a given employee's recovery under the workers' compensation scheme might amount to more or less than the employee would have recovered under the common law tort system in place before the passage of the WCA. But under our precedent, we do not analyze the facts of a particular individual's case to determine the adequacy of a substitute remedy. Instead, we look to the package of rights the individual enjoyed before and after the abrogation, and we assess whether the substituted package "provid[es] essentially comparable substantive protection to one's person property, or reputation"
¶ 35 We conclude that "although the form of the substitute remedy [is] different," the workers' compensation scheme nevertheless "provid[es] essentially comparable substantive protection to one's person, property, or reputation" for injuries arising from workplace accidents as existed under the common law.
Conclusion
¶ 36 While Utah Code section 35-1-65 is not a statute of limitation, it nevertheless is valid under the Open Courts Clause because it does not abrogate a previously existing legal remedy.
Associate Chief Justice Lee, concurring in the judgment
¶ 37 I concur in the judgment in this case on the basis of my opinion in
Waite v. Utah Labor Commission
,
Utah Code § 35-1-65 (1982). This court applies the law as it existed at the time of the injury.
Brown & Root Indus. Serv. v. Indus. Comm'n
,
The ALJ and the Appeals Board agreed with the medical panel that the 1982 events, and not the 2011 events, were the medical cause of the 2014 surgery. Mr. Petersen has not challenged this finding on appeal.
Utah Code § 63G-4-403(1).
Employers' Reinsurance Fund v. Labor Comm'n
,
Mr. Petersen has not argued that the statute, if one of limitation, would be unconstitutional. If he had, such a challenge would rest on an uncertain legal foundation. The constitutionality of a statute of limitation under the Open Courts Clause has not been addressed by this court, because such a challenge does not pass even the first step of the Open Courts Clause analysis-the legislature has not "abrogated" a cause of action by specifying a reasonable period of time after accrual during which the cause of action must be asserted.
See
Berry ex rel. Berry v. Beech Aircraft Corp.
,
Berry ex rel. Berry v. Beech Aircraft Corp.
,
Becton Dickinson & Co. v. Reese
,
Color Country Mgmt. v. Labor Comm'n
,
Stoker v. Workers' Comp. Fund
,
Our court, as well as the court of appeals and the Commission, has consistently assumed that the "date of the injury" referred to in section 35-1-65 is the date of the workplace accident.
See, e.g.
,
U.S. Smelting, Ref. & Mining Co. v. Nielsen
,
See
Hales v. Indus. Comm'n
,
Our court of appeals has accepted this view, holding that a cause of action for temporary total disability benefits fully accrues on the date of the accident.
See
Middlestadt v. Indus. Comm'n
,
For example, we have stated that "[a] claim for compensation under the Industrial Act is only
one claim
, no matter how many hearings are had or how many distinct awards are made. It is a claim by the employee for compensation
for the injury he has sustained
, notwithstanding the compensation may be determined from time to time resulting in many distinct awards."
Vigos v. Mountainland Builders, Inc.
,
Utah Code § 35-1-65.
See supra ¶ 12.
Berry
,
See
Utah Const. art. I, § 11.
We note that we requested supplemental briefing on whether we should overrule this aspect of our precedent. We asked the parties to address the issue of whether the Open Courts Clause "provide[s] a substantive guarantee against the elimination of remedies recognized by the law in the past" or whether it is "only a procedural guarantee of access to our courts 'by due course of law' for any remedies currently recognized by our law?" In essence, this question asks whether the Open Courts Clause provides a substantive protection against the legislature prospectively changing the remedies available for injuries, or whether it merely guarantees procedural safeguards for injured persons to obtain access to the courts in order to obtain whatever legal remedies are currently provided by law. While we appreciate the parties' and amici's thoughtful arguments on this point, we do not reach this issue. Because we conclude that section 35-1-65 is constitutional even under our current interpretation of the Open Courts Clause, we do not address the issue of whether we should overrule Berry and its progeny and adopt a procedural interpretation of that clause. We consider this to be a matter of constitutional avoidance; we will not overturn decades of precedent in the context of a case whose factual basis does not require us to do so.
Berry
,
Laney v. Fairview City
,
Berry
,
E.g.,
Craftsman Builder's Supply, Inc. v. Butler Mtg. Co.
,
Scott v. Universal Sales, Inc.
,
Mr. Petersen actually has two more years than he would have had under the 1917 version of the statute, which provided for temporary total disability compensation for six years from the date of the injury. 1917 Laws of Utah 330, ch. 100, § 76 (codified at Utah Code § 42-1-61 (1933)). Mr. Petersen has eight years under the 1982 version of the statute. The legislature has since amended the statute to extend the period of compensation eligibility to twelve years from the date of the injury. Utah Code § 34A-2-410 (2016).
This would be a different case if the legislature had initially provided a remedy in the WCA in 1917 that it subsequently took away. Comparing the temporary total disability statute with the permanent partial disability statute helps illustrate this point. When first enacted, the permanent partial disability statute provided that an employee "shall receive, during such disability and for a period not to exceed six years ... a weekly compensation." Utah Code § 42-1-62 (1933). This court interpreted the "six year" limitation to mean that a claimant was entitled to receive up to six years' worth of compensation, no matter how long had passed between the date of injury and the disability period.
See
Hardy v. Indus. Comm'n
,
The legislature amended the permanent partial disability statute in 1939, adding the words "from the date of the injury" after the six year limitation, to clarify that the six-year period was to run from the calendar date of the injury. The permanent partial disability amendment could operate to cut off a previously existing remedy, because it could cut off a right that existed after the enactment of the WCA, but before its amendment. Temporary total disability compensation, on the other hand, has featured a time limitation of "six years from the date of injury" since its original enactment in 1917, and therefore does not cut off a previously existing remedy. 1917 Laws of Utah 330, ch. 100, § 76 (codified at Utah Code § 42-1-61 (1933)).
See
We also note another portion of
Stoker
that is inconsistent with our opinion in this case and with our precedent. We stated there that, although section 35-1-65 did not operate as a statute of repose against Mr. Stoker, he was nevertheless entitled, under the continuing jurisdiction statute, to go back before the Commission and ask it to modify his prior award.
Stoker
,
Utah Code § 34A-2-105.
For example, Mr. Petersen argues that "the legislature has arbitrarily taken critical life-sustaining benefits from injured workers and their dependents ... without their consent." We construe this argument to be an attack on the adequacy of WCA benefits as a substitute for the loss of the injured employee's tort claim. Viewed in any other light, the lack of an available remedy is merely damnum absque injuria , harm the law has never recognized as legal injury.
The parties also dispute whether the abrogation of temporary total disability compensation after eight years from the injury is an "arbitrary or unreasonable" means to eliminate a "clear social or economic evil." Again, this argument stems from the incorrect premise that such a remedy was abrogated. Because we conclude that an adequate substitute remedy has been provided for the remedy that was actually abrogated, we do not address the "social or economic evil" prong of the analysis.
Sun Valley Water Beds of Utah, Inc. v. Herm Hughes & Son, Inc.
,
See
Masich v. U.S. Smelting, Ref. & Mining Co.
,
Berry ex rel. Berry v. Beech Aircraft Corp.
,
See
Masich
,
The supplemental briefing in this case addressed the question of whether the rights protected by the Open Courts Clause should be limited to only those rights existing at the time of the adoption of the Utah Constitution. Our cases have held to the contrary.
See, e.g.,
Day v. State
,
See
Grandin v. S. Pac. Co.
,
See
Hone v. Mammoth Mining Co.
,
See
Dunn v. Or. Short Line R.R. Co.
,
See
Atwood v. Utah Light & Ry. Co.
,
The parties here dispute which portions of the WCA we should take into account when assessing whether the legislature has provided a substitute remedy. Mr. Petersen argues that other remedies available under the Workers' Compensation scheme, such as permanent total disability benefits, cannot be considered as a substitute for the loss of his remedy of temporary total disability beyond eight years from the accident. Granite contends that Mr. Petersen's claim for permanent total disability compensation was an adequate alternative remedy in place of his barred claim for temporary total disability compensation. Granite also contends that Mr. Petersen has an adequate alternative remedy because he has "alternative remedies ... outside of Utah's workers['] compensation act." For example, Granite notes that short or long term disability or social security disability benefits could be available to Mr. Petersen.
Mr. Petersen correctly notes that we have held that the legislature cannot simply rely on existing remedies to fill a void left by the abrogation of a remedy.
See
Sun Valley Water Beds
,
Utah Code § 35-1-81 (1982).
Sun Valley Water Beds
,
Justice Lee "would affirm on the ground that the Open Courts Clause does not limit the legislature's authority to prospectively alter the law giving rise to a legal right of action," based on his arguments set forth in his concurrence in
Waite v. Labor Commission
,