McCallister v. State ex rel. Dep't of Workforce Servs.

Citation2022 WY 66
Decision Date03 June 2022
Docket NumberS-21-0214
PartiesBLAINE M. McCALLISTER, Appellant (Petitioner), v. STATE OF WYOMING, ex rel. DEPARTMENT OF WORKFORCE SERVICES, WORKERS' COMPENSATION DIVISION, Appellee (Respondent).
CourtWyoming Supreme Court

Appeal from the District Court of Albany County The Honorable Tori R.A. Kricken, Judge.

Representing Appellant:

Jason A. Matzen, Pence and MacMillan LLC, Laramie, Wyoming.

Representing Appellee:

Bridget Hill, Wyoming Attorney General; Mark Klaassen, Deputy Attorney General; Peter F. Howard, Senior Assistant Attorney General.

Before FOX, C.J., and KAUTZ, BOOMGAARDEN, GRAY, and FENN, JJ.

KAUTZ Justice.

[¶1] The Office of Administrative Hearings (OAH) upheld the Wyoming Workers' Compensation Division's (Division) denial of Blaine M. McCallister's request for an endless pool to treat his work-related injury, and the district court affirmed that decision. Mr. McCallister claims the OAH committed various errors of law. We affirm.

ISSUES

[¶2] The issues on appeal are:

1. Did the Division err by referring Mr. McCallister's case to the OAH rather than the Medical Commission?
2. Did the OAH err by applying collateral estoppel to bar Mr McCallister from relitigating his right to an endless pool for treatment of his work-related injury because the issue was fully decided in a 2017 OAH order denying his claim? [1]
FACTS

[¶3] We previously decided another case involving Mr. McCallister's right to worker's compensation benefits for his 2012 cervical and thoracic spine injury. McCallister v. State ex rel. Dep't of Workforce Servs., Workers' Comp. Div., 2019 WY 47, 440 P.3d 1078 (Wyo. 2019). Our resolution of the earlier case is relevant to our decision here, so we will incorporate some of the facts from that decision, supplementing with the salient facts from this case.

[¶4] In 2016, Mr. McCallister requested the Division preauthorize the purchase of several pieces of "non-typical" durable medical equipment (DME), including a small pool with an underwater treadmill known as an endless pool, to help him manage his medical condition at his home in rural Albany County. See id., ¶ 4, 440 P.3d at 1079. The Division denied his request for an endless pool, in part, because it was a non-compensable "personal item." Mr. McCallister objected and requested a hearing. The OAH held a contested case hearing in 2017 and upheld the Division's determination. McCallister, ¶ 4, 440 P.3d at 1079. Mr. McCallister petitioned for judicial review of the OAH decision, and the district court affirmed. Id., ¶ 8, 440 P.3d at 1080-81. Mr. McCallister appealed to this Court, and we held the district court did not have jurisdiction over Mr. McCallister's case because he filed his petition for review in the county where he was injured instead of the county where the administrative action was taken or the county where he lived, as required by Wyo. Stat. Ann. § 16-3-114 (LexisNexis 2017). Id., ¶¶ 1-2, 50, 440 P.3d at 1079, 1090-91. Consequently, we dismissed his appeal and vacated the district court's decision, making the OAH decision final. Id.

[¶5] In 2020, Mr. McCallister submitted another request[2] to the Division for preauthorization of DME, including an endless pool. The Division denied his request on several grounds: the request was not filed by a healthcare provider; the pool was a non-compensable "personal item" under the relevant statutory and regulatory definitions; the pool was not reasonable or necessary to treat his work-related injury; and he was collaterally estopped from bringing his claim for an endless pool because the OAH had denied the same request in the 2017 proceeding. Mr. McCallister objected and demanded the Division refer the matter to the Medical Commission for a contested case hearing. The Division, however, referred the matter to the OAH.

[¶6] The OAH found it was the proper agency to resolve Mr. McCallister's claim because the issues were primarily legal. After a contested case hearing, the OAH disagreed with the Division's determination that Mr. McCallister's request for an endless pool was not properly submitted by a healthcare provider and found Mr. McCallister had met his burden of showing the endless pool was reasonable and necessary for treatment of his work-related injury. However, the OAH upheld the Division's denial of his claim because he was collaterally estopped from relitigating his right to the endless pool by the 2017 decision and the endless pool was a non-compensable "personal item" under Wyoming law. Mr. McCallister filed a proper petition for review, the district court affirmed, and he filed a timely notice of appeal to this Court.

STANDARD OF REVIEW

[¶7] When an appeal is taken from a district court's review of an administrative agency's decision, we examine the case as if it came directly from the agency, giving no special deference to the district court's decision. In re Vinson, 2020 WY 126, ¶ 25, 473 P.3d 299, 308 (Wyo. 2020); Guerrero v. State ex rel. Dep't of Workforce Servs., Workers' Comp. Div., 2015 WY 88, ¶ 11, 352 P.3d 262, 265 (Wyo. 2015) (citing Dale v. S & S Builders, LLC, 2008 WY 84, ¶ 8, 188 P.3d 554, 557 (Wyo. 2008)). Wyo. Stat. Ann. § 16-3-114(c) (LexisNexis 2021) governs judicial review of administrative decisions:

(c) To the extent necessary to make a decision and when presented, the reviewing court shall decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action. In making the following determinations, the court shall review the whole record or those parts of it cited by a party and due account shall be taken of the rule of prejudicial error. The reviewing court shall:
(i) Compel agency action unlawfully withheld or unreasonably delayed; and
(ii) Hold unlawful and set agency action, findings and conclusions found to be:
(A) Arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law;
(B) Contrary to constitutional right, power, privilege or immunity;
© In excess of statutory jurisdiction, authority or limitations or lacking statutory right;
(D) Without observance of procedure required by law; or
(E) Unsupported by substantial evidence in a case reviewed on the record of an agency hearing provided by statute.

[¶8] In accordance with § 16-3-114(c)(ii)(E), we review the agency's findings of fact by applying the substantial evidence standard. Vinson, ¶ 26, 473 P.3d at 308. Findings of fact are supported by substantial evidence if there is relevant evidence in the record which "a reasonable mind might accept in support of the agency's conclusion." Dale, ¶ 11, 188 P.3d at 558. See also, Kenyon v. State ex rel. Wyo. Workers' Safety & Comp. Div., 2011 WY 14, ¶ 11, 247 P.3d 845, 849 (Wyo. 2011) ("Substantial evidence means 'such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.'" (quoting Bush v. State ex rel. Wyo. Workers' Comp. Div., 2005 WY 120, ¶ 5, 120 P.3d 176, 179 (Wyo. 2005)) (other citations omitted)). "'We review an agency's conclusions of law de novo[] and will affirm only if the agency's conclusions are in accordance with the law.'" Middlemass v. State ex rel. Wyo. Workers' Safety & Comp. Div., 2011 WY 118, ¶ 13, 259 P.3d 1161, 1164 (Wyo. 2011) (quoting Kenyon, ¶ 13, 247 P.3d at 849) (other citations omitted).

DISCUSSION

The Division's Referral of the Case to the OAH [¶9] Mr. McCallister claims the Medical Commission rather than the OAH had subject matter jurisdiction to address his 2017[3] and 2020 cases because they were "medically contested." "'The existence of subject matter jurisdiction is a question of law that we review de novo.'" MH v. First Jud. Dist. Ct., 2020 WY 72, ¶ 4, 465 P.3d 405, 407 (Wyo. 2020) (quoting Harmon v. Star Valley Med. Ctr., 2014 WY 90, ¶ 14, 331 P.3d 1174, 1178 (Wyo. 2014), and Excel Constr., Inc. v. Town of Lovell, 2011 WY 166, ¶ 12, 268 P.3d 238, 241 (Wyo. 2011)). Our determination of the OAH's jurisdiction requires interpretation of Wyoming statutes and administrative rules and regulations, which are also matters of law reviewed de novo. Tarver v. City of Sheridan Bd. of Adjustments, 2014 WY 71, ¶ 20, 327 P.3d 76, 83 (Wyo. 2014) ("Interpretation of statutes [and] administrative regulations . . . is a matter of law, which we review de novo.") (citing J & T Props., LLC v. Gallagher, 2011 WY 112, 256 P.3d 522 (Wyo. 2011) (statutes), and Laramie Cnty. Sheriff's Dep't v. Cook, 2012 WY 47, 272 P.3d 966 (Wyo. 2012) (administrative regulations)). In interpreting statutes, we search for the legislature's intent. Miller v. Life Care Ctrs., 2020 WY 155, ¶ 26, 478 P.3d 164, 171 (Wyo. 2020) (citing Vance v. City of Laramie, 2016 WY 106, ¶ 12, 382 P.3d 1104, 1106 (Wyo. 2016)). "When the statutory language is 'sufficiently clear and unambiguous'" to allow us to discern that intent, "we apply 'the words according to their ordinary and obvious meaning.'" Williams v. Sundstrom, 2016 WY 122, ¶ 19, 385 P.3d 789, 794 (Wyo. 2016) (quoting DB v. State (In re CRA), 2016 WY 24, ¶ 15, 368 P.3d 294, 298 (Wyo. 2016)). "The rules of statutory interpretation also apply to the interpretation of administrative rules and regulations." State ex rel. Wyo. Dep't of Rev. v. Buggy Bath Unlimited, Inc., 2001 WY 27, ¶ 6, 18 P.3d 1182, 1185 (Wyo. 2001) (citing Antelope Valley Improvement v. State Bd. of Equalization, 992 P.2d 563, 566 (Wyo. 1999), opinion clarified at 4 P.3d 876 (Wyo. 2000)).

[¶10] When an employee disagrees with the Division's determination of his worker's compensation claim, he may object and request a contested case hearing. See Wyo. Stat. Ann. § 27-14-601(a), (b), (k) (LexisNexis 2021). Upon receipt of an employee's request for a hearing, the Division "shall...

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