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Matter of Gaither8/21/1990
Submitted April 24, 1990.
This case involves the rights to benefits under the Workers' Compensation law where the decedent who died in the course of his employment is survived by two children of a prior marriage, and by the widow of a second marriage through whom he had no children. We determined here that the surviving widow may waive or abandon her right to benefits; and that upon such waiver the surviving children are entitled to no more than their proportionate share of the benefits provided by law. In so holding we affirm in part and reverse in part the judgment of the Workers' Compensation Court.
Richard M. Gaither married Donna L. Paulson in Maryland on December 8, 1973. Two children were born of the marriage, Heather, on December 24, 1976, and Heidi on January 30, 1978.
On December 31, 1979, Richard and Donna were divorced in Maryland, custody of the children being awarded to their mother, with Richard obligated for their support. However, on December 9, 1981, with the consent of both Richard and Donna, the two children were adopted by their then stepfather, George A. Yorkston, to whom Donna had remarried. Substitute Certificates of Birth were issued by the State of Maryland for each of the children.
On December 24, 1984, Richard married Laurie K. Baugher at Seattle, Washington, a marriage that was in effect at the time of his death.
Richard and Laurie maintained a home in Edmonds, Washington, though Richard spent most of the six months preceding his death in Helena, Montana. He was employed as a pilot by Corporate Air of Billings, Montana. While acting in the course and scope of his employment on February 3, 1988, and subject to the benefits and obligations of the Workers' Compensation Law of Montana, Richard was killed in the crash of an airplane owned by Minuteman Aviation, a Montana corporation.
No litigation ensued respecting the liability of Minuteman or others, relating to Richard Gaither's death. However his insurer and others with potential liability for death claims settled with the widow, Laurie, in a structured settlement for substantial sums, which have been paid and are to be paid in escalating amounts monthly until May 15, 2009. The approximate accumulation of funds should she live to that date will be in the sum of $758,800.00. After that date, and for the remainder of her life, she will receive the sum of $3,000 per month.
Heather and Heidi are not parties to the structured settlement, and derived no benefit therefrom. Laurie, as the surviving widow never filed a claim for Workers' Compensation benefits, though one was prepared and filed by Corporate Air, Richard's employer. Travelers Indemnity Insurance Company, the compensation carrier for Corporate Air, upon such filing, began paying one-third (1/3) of the compensation benefits to Laurie, as Richard's widow and beneficiary, and reserved two-thirds (2/3) of the benefits pending final determination of the children's status as beneficiaries. Laurie advised Travelers, on April 25, 1988 that she did not wish to receive any Workers' Compensation benefits and returned those she had previously been issued by Travelers. Since April 28, 1988, all benefits have been held in reserve pending the final ruling of the courts in these proceedings.
Travelers petitioned the Workers' Compensation Court for a declaratory ruling on August 23, 1988. The issues before the Workers' Compensation Court were (1) whether the widow could legally renounce her benefits entitlement, and (2) whether the adoption of the children by the mother's second husband terminates their entitlement to death benefits, thereby mandating 100 percent of the benefi
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