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Uninsured Employers' Fund v. Hume

11/18/2003

DECISION AND ORDER DENYING MOTION FOR SUMMARY JUDGMENT


Uncontroverted Facts


Claimant, Linda Gibson, filed a claim for workers' compensation benefits alleging she was injured while employed by respondent/employer, Ron Hume (Hume), on or about August 3, 1989. ([Respondent's] Statement of Uncontroverted Facts 1; Petition 1, 4.) Hume admits employing claimant at the time of her claimed injury. (Affidavit of Ron Hume; Petition 1.)


On November 30, 1989, the UEF issued an administrative Order Determining Liability of Uninsured Employer and mailed it to respondent. ([Respondent's] Statement of Uncontroverted Facts 2; Petition 5.) The Order included the following:


A thorough review of the Division's files failed to locate any workers' compensation coverage in effect for RJ's Country at the time of the claimant's injury.


IT IS THEREFORE HEREBY ORDERED the employer pay any benefits the claimant is entitled to under the Montana Workers' Compensation Act. The total owed for medical services to the claimant as a result of her industrial injury is $164.38. The total amount of $164.38 must be submitted within thirty (30) days from the date of this order.


The Division will bill the employer for any future medical services or loss of wages suffered by the claimant that are directly related to her industrial injury. There is a $50,000 maximum payable.


This Order Determining Liability of Uninsured Employer is signed by the Uninsured Employers' Fund Supervisor in the Insurance Compliance Bureau under delegated authority of the Administrator of the Division of Workers' Compensation. If you have any questions or objections about this, please FIRST contact us at (406) 444-6530. If your question or objection is still not resolved, you may seek relief by following procedures in the Administrative Rules of Montana, Title 24, Chapter 29, Part 2. If you want information about the procedures, you may contact the Administrator's office at the above address or phone (406) 444-6518.


(Exhibit A to UEF's Response to Employer's Motion for Summary Judgment.)


On that same date, the UEF mailed the first invoice claiming the right to reimbursement for medical expenses paid on behalf of Gibson. ([Respondent's] Statement of Uncontroverted Facts 2; Petition 5; Exhibit B to UEF's Response to Employer's Motion for Summary Judgment.) Like the Order, the invoice was mailed to "Ron Hume RJ's Country Box 1935 Colstrip, MT 59623." (Id.)


Nowhere in his moving papers or in his affidavit supporting this motion does respondent deny receiving notice of the UEF's order and demand.


Respondent closed his business and moved to Helena, Montana, in January of 1991. (Affidavit of Ron Hume 2; UEF Background Facts in Response to Employer's Motion 11.)


The present petition was filed in this Court on May 27, 2003.


Discussion


A two-year statute of limitations applies to actions by the UEF for indemnification from an uninsured employer. Uninsured Employers' Fund v. Gould, 2003 MTWCC 23 (applying Intermountain Deaconess Home v. State of Montana, 191 Mont. 309, 623 P.2d 1384 (1981)).


Respondent contends the UEF's petition is barred because it was not brought within two years. Indeed, the petition herein was filed more than fourteen years after the injury and the UEF's acceptance of the claim. In Gould, however, this Court held that the two-year limitations period was tolled by an administrative demand for payment made upon the uninsured employer by the UEF if that demand was made within the two-year limitations period. The decision was base

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