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Thayer v. Uninsured Employers' Fund12/7/1999
APPEAL FROM: Workers Compensation Court, State of Montana, The Honorable Mike McCarter, Judge presiding.
Submitted on Briefs: August 12, 1999
Clerk Justice Terry N. Trieweiler
1 Phyllis Thayer filed a petition in the Montana Workers' Compensation Court in which she alleged that the Uninsured Employers' Fund wrongfully terminated payment of her survivor benefits pursuant to § 39-71-511, MCA. The Workers' Compensation Court concluded that the Uninsured Employers' Fund properly terminated Phyllis' benefits and that § 39-71-511, MCA, did not violate Article II, Section 16 of the Montana Constitution. Phyllis appeals from that decision. We affirm the judgment of the Workers' Compensation Court.
2 Thayer raises the following issues on appeal:
3 1. Did the Workers' Compensation Court err when it held that the Uninsured Employers' Fund properly terminated Phyllis' benefits pursuant to § 39-71-511, MCA?
4 2. Did the Workers' Compensation Court err when it held that § 39-71-511, MCA, does not violate Article II, Section 16 of the Montana Constitution?
FACTUAL BACKGROUND
5 Gerald Thayer was an employee of Richard Smith. On October 15, 1992, Gerald was injured in the course and scope of his employment when his clothing caught fire and he was severely burned. On October 31, 1992, Gerald died as a result of his injuries.
6 Phyllis Thayer is Gerald's widow. She was entitled to workers' compensation death benefits pursuant to §§ 39-71-704 and -721, MCA. However, Smith, Gerald's employer did not carry workers' compensation insurance. As a result, Phyllis was eligible to receive medical and death benefits provided by the Uninsured Employers' Fund pursuant to § 39-71-503, MCA.
7 Preceding his death, Gerald incurred medical expenses for the treatment of his burn injuries in the amount of $253,207.98. The Uninsured Employers' Fund paid $85,000 to reimburse the Montana Department of Public Health and Human Services for the costs of Gerald's medical treatment. The Department accepted the $85,000 payment in full satisfaction of its claim.
8 In 1993 and 1994, Phyllis commenced actions against several defendants for damages caused by Gerald's injuries and death. Phyllis alleged that Gerald's injuries and death were caused by the negligence of his employer Smith, and his co-employee Garry Thompson, and that the retail seller and the manufacturer of CHEX liquid, the product that was being used by Gerald at the time of his injuries, were liable based on negligence and product liability theories. Phyllis sought total damages in the amount of $1,856,067.
9 Prior to trial, Phyllis settled all of the claims except for the claim of negligence against Thompson, Gerald's co-employee. The negligence claim against Smith was settled for the amount of $100,000. The negligence and product liability claim against the retail seller was settled for the amount of $130,000. The product liability claim against the manufacturer was settled for $75,000 and the negligence claim against the manufacturer was dismissed. Following a jury trial in which the jury found Thompson negligent, Phyllis settled with Thompson for the amount of $100,000.
10 On June 25, 1997, the Uninsured Employers' Fund advised Phyllis that by reason of her receipt of the $100,000 settlement from Gerald's employer Smith and pursuant to § 39-71-511, MCA, Phyllis was no longer entitled to receive further benefits from the Uninsured Employers' Fund. As of that date, the Uninsured Employers' Fund had paid death benefits to Phyllis in the total amount of $71,878.78 representing 246 weeks of benefits. The maxim
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