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Schmill v. Liberty Northwest Insurance Corp.6/22/2001
DECISION AND JUDGMENT
Case summary: Claimant suffers from an occupational disease. Even though the Occupational Disease Act (ODA) makes no provision for impairment awards, she filed a petition alleging that she is entitled to one. Following this Court's decision in Stavenjord v. State Compensation Ins. Fund, 2001 MTWCC 25, which held that claimants suffering from occupational diseases are entitled to at least the same permanent partial disability benefits available to workers suffering industrial injuries, the insurer conceded liability for the impairment award but, relying on the apportionment provision of the ODA, § 39-72-706, MCA (1989-1999), reduced the award by 20% due to the 20% contribution of non-occupational factors to the claimant's condition.
Held: The apportionment provision of the ODA, § 39-72-706, MCA (1989-1999), violates the Equal Protection Clauses of the United States and Montana Constitutions. Therefore, claimants under the ODA are entitled to full benefits without any reduction based upon the contribution of non-occupational factors. Attorney fees and a penalty are denied since the insurer was entitled to rely on the presumption that the provisions of the ODA are constitutional.
Topics:
Constitutional Law: Constitutional Challenges: Burden. Statutes are presumed to be constitutional and party raising constitutional challenge must persuade the Court beyond a reasonable doubt that the statute is in fact unconstitutional.
Constitutional Law: Equal Protection. Occupational Disease Act provision which requires reduction of benefits based upon non-occupational factors (§ 39-72-706, MCA (1989-1999)) violates the Equal Protection clauses of the United States and Montana Constitutions since there is no equivalent provision in the Workers' Compensation Act.
Attorney Fees: Unreasonable Denial or Delay in Payment. Where insurer denied benefits based upon its reliance on a statute which the Court declares unconstitutional, the insurer's denial is not unreasonable and attorney fees will not be awarded. Statutes are presumed constitutional and ordinarily it is not unreasonable for a party to rely on that presumption.
Benefits: Impairment Awards. Occupational Disease Act provision which requires reduction of benefits based upon non-occupational factors (§ 39-72-706, MCA (1989-1999)) violates the Equal Protection clauses of the United States and Montana Constitutions since there is no equivalent provision in the Workers' Compensation Act. Therefore, workers with occupational disease are entitled to the full impairment award without reduction for non-occupational factors.
Penalties: Insurers. Where insurer denied benefits based upon its reliance on a statute which the Court declares unconstitutional, the insurer's denial is not unreasonable and a penalty will not be awarded. Statutes are presumed constitutional and ordinarily it is not unreasonable for a party to rely on that presumption.
Occupational Disease Act: Apportionment. Occupational Disease Act provision which requires reduction of benefits based upon non-occupational factors (§ 39-72-706, MCA (1989-1999)) violates the Equal Protection clauses of the United States and Montana Constitutions since there is no equivalent provision in the Workers' Compensation Act. Therefore, workers with occupational disease are entitled to full benefits without reduction for non-occupational factors.
This matter is submitted for decision upon agreed facts. The essential facts, as taken from the parties' Stipulation For Submission on Agreed Facts and admitted allegations in the petition, are as follows:
A Claimant suffer
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