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Rivera v. Cimarron Dairy

7/30/1999

SYLLABUS BY THE COURT


1. Where there has been a full presentation of the facts to the Workers Compensation Board regarding jurisdiction and jurisdiction was found to be lacking, the Board's order dismissing the case is not a preliminary order but a final order.


2. It is the intent of the legislature that the Workers Compensation Act shall be liberally construed for the purpose of bringing employers and employees within the provisions of the Act to provide the protection of the Act to both. K.S.A. 1998 Supp. 44-501(g).


3. It is the duty of the Workers Compensation Board and the court, as far as practicable, to reconcile the different provisions of the Workers Compensation Act so as to make them consistent, harmonious, and sensible.


4. Unless an agricultural employer elects, the Workers Compensation Act does not apply to agricultural pursuits and employments incident thereto. K.S.A. 1998 Supp. 44-505(a)(1).


5. Each employer who employs employees in employments which are excepted from the provisions of the Workers Compensation Act shall be entitled to come within the provisions of the Act by filing with the Director of Workers Compensation a written statement of election to accept thereunder. Such written statement of election shall be effective from the date of filing until such time as the employer files a written statement withdrawing such election with the director. K.S.A. 1998 Supp. 44-505(b).


6. Employees of an employer exempted from the provisions of the Workers Compensation Act who does not file a written statement of election but purchases an insurance policy that provides workers compensation coverage are subject to the Workers Compensation Act so long as the insurance policy is in effect.


7. Although the Workers Compensation Act is to be liberally construed to provide workers compensation coverage, the Kansas Legislature did not adopt a substantial compliance standard for bringing employers within the Act. Even by liberally construing the requirements of K.S.A. 1998 Supp. 44-505, it cannot be found that the legislature intended that by purchasing an insurance policy the employer filed an election with the Director to be subject to the Act.


Appeal from the Workers Compensation Board. Opinion filed July 30, 1999. Affirmed.


Stanley R. Ausemus, of Stanley R. Ausemus, Chartered, of Emporia, was on the briefs for appellants.


D. Shane Bangerter, of Foulston & Siefkin, L.L.P., of Dodge City, argued the cause and was on the brief for appellee Cimarron Dairy.


Workers appeal the order of the Workers Compensation Board (Board) that an agricultural dairy enterprise, not subject to mandatory coverage of the Workers Compensation Act (Act), which purchased workers compensation insurance during construction of the dairy and later allowed the insurance policy to lapse without filing an election to withdraw, was no longer subject to the Act. The dairy enterprise asserts that this court has no jurisdiction to review the Board's decision because its order resulted from a preliminary hearing.


This is a consolidated appeal of two workers, Manuel Rivera and Martin Ortega, who were employed by Cimarron Dairy (Cimarron). Each sustained injuries in unrelated accidents at work. The facts of the accidents are not pertinent to the issues on appeal and, therefore, are not set out in detail. The issue before the Board on review of the preliminary award of benefits was whether Cimarron, which had failed to file an election to withdraw from workers compensation coverage, was subject to the Act.


Cimarron was a corporation engaged in the business of operating

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