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Stout v. State Compensation Fund2/8/2000
good faith and fair dealing when the parties failed to agree on a compromise of the lien and the Fund declined to approve the proposed settlement between the Stouts and Luna Tech. We conclude that the lien applies to Debbie Stout's third-party recovery to the extent of the benefits received by her and to Logan Stout's recovery, to the extent he individually receives any benefits from the Fund. We reverse the finding that the lien applies to Pat Stout's recovery. Finally, we conclude that impressing a workers' compensation lien against loss-of-consortium recovery is not unconstitutional.
The Fund requests an award of its attorneys' fees incurred in this appeal pursuant to A.R.S. ยง 12-341.01 based on the bad faith allegations of the case. Because the bad faith issue is a minor portion of the case and the other issues provide no basis for an award of fees, we decline to award fees. Because the Fund has prevailed on all major issues, it is entitled to an award of its costs incurred on appeal.
CONCURRING: WILLIAM F. GARBARINO, Judge JAMES B. SULT, Judge
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