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Reil v. St. Comp. Mut. Ins.8/18/1992
Submitted on briefs June 4, 1992.
Kenneth Reil, claimant, appeals from a judgment by the Workers' Compensation Court ordering him to reimburse the insurer for all benefits and attorney fees. The State Compensation Mutual Insurance Fund (State Fund) filed a cross-appeal from the Workers' Compensation Court order denying its motion to join an additional party defendant. We affirm.
The parties raise the following issues for our review:
1. Is the State Fund entitled to restitution of all compensation and medical benefits paid pursuant to a judgment of the Workers' Compensation Court which was subsequently reversed on appeal?
2. Is the claimant entitled to an award of attorney fees and costs?
3. Did the Workers' Compensation Court improperly deny joinder of claimant's attorney as a third party defendant?
On March 20, 1987, the Workers' Compensation Court (WCC) ruled that Mr. Reil was entitled to benefits under Montana's Workers' Compensation Act for injuries suffered while employed at Billings Processors, Inc. The State Fund appealed the judgment of the WCC to this Court on April 23, 1987. On July 21, 1987, pending a final decision on appeal, we issued an interim order denying the stay of execution of judgment and ordered the State Fund to pay all benefits accrued by the claimant pursuant to the WCC's judgment. The State Fund paid Mr. Reil approximately $13,750 in benefits, of which $3,000 was retained by Mr. Reil's counsel for costs and attorney fees.
On December 3, 1987, this Court reversed the judgment of the WCC finding that Mr. Reil failed to provide his employer with timely notice of his injury. Reil v. Billings Processors, Inc. (1987), 229 Mont. 305, 746 P.2d 617. Subsequently, the State Fund sought reimbursement for the amount paid to the claimant and his attorney in compliance with this Court's order of July 21, 1987. In a declaratory action, the WCC denied joinder of Mr. Reil's counsel as a third party defendant and ruled that restitution was proper. The WCC ordered Mr. Reil to reimburse the State Fund for all compensation benefits and medical expenses received.
I
Is the State Fund entitled to restitution of all compensation benefits and medical expenses paid pursuant to a judgment of the Workers' Compensation Court which was subsequently reversed on appeal?
Mr. Reil contends the WCC improperly ordered restitution. He claims that restitution is a common law remedy which is not applicable under Montana's Workers Compensation Act. Mr. Reil further contends that the Act, as of his date of injury, precluded the application of common law remedies to cases involving workers' compensation claims. Finally, Mr. Reil argues that the State Fund cannot recoup these benefits under the Act when the Act, which is the exclusive remedy for injured workers as well as the insurer, does not provide for restitution as a remedy.
The State Fund claims that § 39-71-411, MCA (1985), did not provide that the Act would be an exclusive remedy for insurers. Further, it contends that even if the Act was exclusive, Mr. Reil's injury was not covered under the Act. Thus, the exclusivity provisions of § 39-71-411, MCA (1985), do not apply.
The WCC concluded that Mr. Reil could not take refuge under the Act where he had no entitlement under the Act as a result of his failure to give timely notice of his injury to his employer. In ordering restitution the WCC stated:
The [Workers' Compensation Court's] original judgment for the claimant was reversed on appeal. The effect of the reversal was a determination that claimant had no entitlement to benefi
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