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Owsley v. Idaho Industrial Commission1/31/2005 e Commission clearly had prejudged the merits of the factual basis for the workers' claims, and was not simply deciding whether the agreement was in the best interests of the parties. Pursuant to J.R.P XVIII, the Commission requires the parties to submit the terms of the lump sum settlement, including the claimant's current medical and employment status, lists of medical providers paid and summary of benefits paid, outstanding and unpaid medical expenses, the method of calculating benefits and supporting data, together with information on attorney fees and "an affirmative statement that the agreement is in the best interests of the parties." It is hard to imagine how that summary information would be sufficient for the Commission to examine pre-existing injuries, whether they constituted a "subjective hindrance" and whether the claimant is now totally and permanently disabled, absent some preconceived desire to deny the claim in a particular case. That summary information would be sufficient, however, for the Commission to determine that the lump sum agreement is of benefit to all parties, which is all the Commission is to do under the statute.
I think the plaintiffs' allegations of prejudgment are sufficient to implicate the exception to the rule that a party must exhaust administrative remedies. Thus, I disagree with the Court's opinion that the plaintiffs' allegations are not sufficient to withstand a Rule 12(b) motion to dismiss. Under our lenient standards for notice pleading, I think these allegations are sufficient and I believe the district judge should be reversed and the matter remanded for further proceedings.
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