WERNER SCHMITT, Claimant,
v.
EAGLE ROCK TIMBER, INC. Employer,
and
LIBERTY NORTHWEST INSURANCE CORP., Petitioner,
and
STATE OF IDAHO, INDUSTRIAL SPECIAL INDEMNITY FUND, Defendants.
No. IC 15000123
Idaho Workers Compensation
Before the Industrial Commission of the State of Idaho
August 8, 2019
ORDER ON PETITION FOR DECLARATORY RULING
Thomas
P. Baskin, Chairman.
INTRODUCTION
This
Petition for Declaratory Ruling arises from a work-related
accident leading to the death of Werner Schmitt
(“Decedent” herein) on November 1, 2016. Liberty
Northwest Insurance Corp. (“Petitioner” herein)
paid medical and funeral expenses associated with the claim,
and conducted an investigation into whether or not Decedent
was survived by any dependents to whom workers’
compensation benefits might be payable pursuant to the
provisions of Idaho Code § 72-413. Having satisfied
itself that no such dependents existed as of the date of
Decedent’s death, Petitioner so notified the Commission
and requested leave to satisfy its obligation to pay $10,000
to the State Treasurer for the benefit of the Industrial
Special Indemnity Fund (“ISIF” herein) pursuant
to the provisions of Idaho Code § 72-420. The Commission
issued such Order on January 23, 2018. Thereafter, it became
apparent that Decedent may, in fact, have had certain
dependents at the time of his death, in particular his adult
daughter and minor grandchild, both of whom resided with
Decedent at the time of his death. These individuals
eventually filed claims for dependency benefits with the
Commission. Petitioner denied responsibility for the payment
of benefits, but eventually settled the claim of the
ostensible dependents by way of an Idaho Code § 72-404
settlement approved March 22, 2019. Thereafter, Petitioner
sought return of the $10,000 payment it had previously made
for the benefit of the ISIF as allowed by other provisions of
Idaho Code § 72-421. The ISIF refused to repay these
funds arguing that Petitioner did not satisfy the
requirements for repayment specified at Idaho Code §
72-421. This Petition for Declaratory Ruling by Petitioner
followed.
FINDINGS
OF FACT
1. At
the time of his death, Decedent was employed by Eagle Rock
Timber, Inc., Employer herein. On November 1, 2016, Decedent
sustained a fatal injury as the result of an industrial
accident arising out of and in the course of his employment.
2.
Timely claim was made for medical and funeral benefits on or
about August 16, 2017.
3. At
the time of Decedent’s death, Decedent’s adult
daughter, Alicia Schmitt (“Alicia herein”), and
Alicia’s minor son, Ryver Duarte (“Ryver”
herein), were residing with Decedent. No claim of dependency
on behalf of either Alicia or Ryver was made within one (1)
year following Decedent’s death. Petitioner conducted
its investigation to locate any Idaho Code § 72-410
dependents. By affidavit November 15, 2017, Julie Osler, an
agent of Petitioner, averred that diligent action had failed
to locate any dependents of Decedent.
4.
Thereafter, on January 23, 2018, the Commission entered its
Order requiring Petitioner to pay to the State Treasurer, for
the benefit of the Industrial Special Indemnity Fund, the sum
of $10,000, as required by the provisions of Idaho Code
§ 72-420. That payment was made by Petitioner.
5. On
or about June 22, 2018, Petitioner was notified of the
dependency claims of Alicia, and her minor son, Ryver. An
amended claim of dependency was filed on or about January 16,
2019.
6.
Petitioner undertook further investigation in connection with
the aforementioned claims of dependency. In the spring of
2019, Ryver, by and through his mother and natural guardian,
Alicia, entered into a lump sum settlement agreement pursuant
to which the dependency claim of Ryver was resolved. That
document does not reflect that the parties to the
agreement agreed that Ryver was a dependent of Decedent at
the time of Decedent’s death. Rather, the proposed lump
sum settlement reflects that Petitioner specifically denied
the dependency of Ryver, but proposed to resolve the dispute
over his dependency by the payment of the sum of $11,247.60.
Contemporaneous with the proposed lump sum settlement,
Petitioner sought the Commission’s Order requiring the
ISIF to refund the $10,000 sum which was paid to it...
