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Liberty Northwest Insurance Corp. v. Halling11/5/2003
DECISION AND DECLARATORY JUDGMENT
This matter involves death benefits. The decedent, Steven R. Oliver, died of work-related injuries on October 6, 1999. At the time of his death, his employer was insured by Liberty Northwest Insurance Corporation (Liberty), which has accepted liability for death benefits. However, questions arose regarding the entitlement of various persons to those benefits, hence, it filed the present petition.
Decedent's survivors, and potential beneficiaries, include two natural children and two putative wives. The first born child is Steven Rick Oliver (Steven), born March 27, 1985. His mother is Deborah Klein Oliver. Deborah was married to decedent, and, although they separated in 1985 and divorce proceedings were initiated, she may not have ever been legally divorced from him. The second child is Siobhan Oliver (Siobhan), born October 19, 1996. Her mother is Brenda J. Halling, who claims to have been married to decedent at the time of his death. The parties agree that one or the other of the mothers would have been found to be the surviving spouse of the decedent had the dispute gone to trial.
After the filing of Liberty's petition, this Court's hearing examiner mediated a settlement agreement with the parties. Under the agreement, the two mothers effectively ceded any entitlement they may have had to death benefits to their children in exchange for nominal payments. Under the agreement, Deborah received $5,000 in a lump sum, and Brenda $7,500 in a lump sum. There was no dispute over the beneficiary status of either of the children. Under the agreement, Steven's interest was handled through the purchase of an annuity for $55,000. The annuity provides future payments to Steven and is approximately equal to a one-half share of death benefits to age twenty-two. For Siobhan the agreement provides for payment of biweekly benefits at one-half the total benefit rate during her eligibility or "until otherwise ordered by a Court of competent jurisdiction." (Stipulation for Entry of Partial Judgment, filed April 8, 2002.)
At the time of the agreement (April 2002), Steven was seventeen years old. Siobhan was six and one-half years old. The annuity for Steven in essence provided him with a half share of death benefits until age twenty-two. The agreement specifically left open the question of whether Siobhan is entitled to the full amount of death benefits upon Steven reaching age twenty-two or only to a continuation of her current, one-half share. Having reserved that question for the Court to determine, on May 30, 2003, Liberty filed a motion for summary judgment requesting the Court to issue a declaratory ruling holding that she will continue to be entitled to only a one-half share of death benefits after Steven reaches age twenty-two on March 27, 2007.
Discussion
All parties agree that the issue is proper for declaratory judgment. The matter was argued in West Yellowstone on October 1, 2003. At the conclusion of that argument the Court indicated that it would find that upon Steven reaching twenty-two years of age on March 27, 2007, Siobhan is entitled to the full amount of death benefits, not merely a one-half share. This Decision and Declaratory Judgment confirm that indication.
Resolution of the dispute is a matter of statutory interpretation of the statutes governing death benefits.
Section 39-71-721(1)(a), MCA (1999), establishes the right to death benefits in the first instance. It provides:
39-71-721. Compensation for injury causing death -- limitation. (1) (a) If an injured employee dies and the injury was the proximate cause of the death, the beneficiary of
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