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Preston v. Transportation Insurance Co.12/1/2004
Submitted on Briefs: March 27, 2003
Laurie Preston (Preston) appeals the judgment of the Workers' Compensation Court denying her petition to set aside the settlement Preston entered into with Transportation Insurance Company (Transportation), insurer to her former employer, Waste Management.
We affirm in part, reverse in part, and remand for further proceedings consistent with this Opinion.
We address the following issues on appeal:
1. Does filing a petition for mediation with the Department of Labor and Industry commence an "action?"
2. Does the statute of limitations for filing an action to set aside a settlement of a workers' compensation claim toll during the pendency of a statutorilymandated mediation?
Transportation raises the following issue on cross-appeal which we affirm:
3. Did the Workers' Compensation Court err in finding that the statute of limitations began running on August 9, 1999?
FACTUAL AND PROCEDURAL BACKGROUND
On September 14, 1994, while working at Waste Management, Preston went into the bathroom. As she closed the door, an eight foot, fifteen to twenty pound stretcher that was kept in the bathroom fell on her from behind. As a result of this accident, Preston injured her left arm, for which she received medical treatment.
Transportation accepted liability for Preston's industrial accident under Montana's Workers' Compensation Act. Subsequently, in the summer of 1995, Preston settled her claim with Transportation for $5,874.75.
At the time of her settlement, both Preston and Transportation knew that Preston had been diagnosed with depression.
Preston continued working for Waste Management for the next four years; however, her mental condition deteriorated over time. Consequently, Preston was referred to a psychiatrist.
Preston saw a psychiatrist on February 12, 1999. At that time, the psychiatrist diagnosed Preston with severe panic disorder with agoraphobia, severe major depressive disorder, post traumatic stress syndrome, and pathological gambling. The psychiatrist also, at that time, stated that it was her belief that one causal factor of Preston's mental condition was the industrial accident.
Preston felt she could no longer continue working due to her mental conditions, so she tendered her letter of resignation to Waste Management on August 9, 1999. Thereafter, Preston resigned from her position on August 25, 1999, and has not since worked.
On August 17, 1999, Preston's then-attorney wrote a letter to the workers' compensation claims' adjuster in an attempt to reopen her formerly-settled claim. The claims' adjuster denied this request.
Subsequently, after waiting more than one year after the denial of this request, Preston petitioned the Department of Labor to mediate her dispute with the claims' adjuster on November 29, 2000. The mediator issued her mediation report and recommendation on January 4, 2001.
Preston then petitioned the Workers' Compensation Court for a hearing on September 19, 2001, regarding the reopening of her formerly-settled claim. Preston submitted this petition after waiting more than nine months after the mediator issued her report.
After a hearing, the Workers' Compensation Court determined that there existed a mutual mistake of fact between Preston and Transportation regarding the severity of Preston's mental illness as a result of her industrial accident. However, the Workers' Compensation Court determined that reopening Preston's formerly-settled claim based on this mutual mis
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