Snyder v. ND Workers Comp. Bureau, 20000204.

• Decision Date: 20 February 2001
• Docket Number: No. 20000204.,20000204.
• Citation: 2001 ND 38,622 N.W.2d 712
• Parties: Wilbur SNYDER, Claimant and Appellant, v. NORTH DAKOTA WORKERS COMPENSATION BUREAU, Appellee.
• Court: North Dakota Supreme Court

622 N.W.2d 712

2001 ND 38

Wilbur SNYDER, Claimant and Appellant, v. NORTH DAKOTA WORKERS COMPENSATION BUREAU, Appellee.

No. 20000204.

Supreme Court of North Dakota.

February 20, 2001.

Deborah J. Carpenter, Carpenter Law Offices, Bismarck, ND, for claimant and appellant.

Lawrence E. King, Special Assistant Attorney General, Bismarck, ND, for appellee.

KAPSNER, Justice.

[¶ 1] Wilbur Snyder has appealed a judgment affirming a North Dakota Workers Compensation Bureau ("Bureau") order affirming an earlier order requiring Snyder to forfeit all further benefits relating to his 1988 injury and to repay benefits of $3,741.64. We affirm.

I

[¶ 2] Snyder suffered a work-related injury in 1988. The Bureau accepted liability and awarded benefits. In 1990, the Bureau notified Snyder "we have changed your status to permanent total disability" and that he would receive total disability payments "as long as you remain totally disabled." In 1998, the Bureau initiated an investigation to determine if Snyder was working at the Midtowner Restaurant in Mandan. On November 4, 1998, the Bureau mailed Snyder a notice of intention to discontinue benefits, stating, in part:

THE BUREAU HAS RECEIVED EVIDENCE YOU HAVE MADE FALSE STATEMENTS. YOU FAILED TO REPORT TO THE BUREAU THE RECEIPT OF INCOME FROM WORK. ACCORDINGLY, AND PURSUANT TO 65-05-33, ALL BENEFITS ARE FORFEITED AS OF 11/25/98. A LEGAL ORDER WILL BE FORTHCOMING.

In an order of December 21, 1998, the Bureau found Snyder had performed a number of activities at the Midtowner Restaurant, for which the owner paid him $80 per month and gave him $30-60 per month in meals. The Bureau found that on 12 income and work status cards mailed to Snyder in 1998, Snyder was asked, "Have you done any work, whether for pay or not?" The Bureau found Snyder twice did not respond to the question, eight times answered in the negative, and twice indicated he had worked and received $80 per month. The Bureau further found Snyder willfully made false statements in connection with his claim, forfeited any additional benefits in connection with the claim, and was required to repay benefits of $3,741.64.

[¶ 3] On December 23, 1998, Snyder requested a hearing "on the issues of fraud and alleged overpayment." On May 11, 1999, a temporary administrative law judge ("TALJ") issued a notice of hearing and a specification of issues, stating the issues would be whether Snyder made willful false statements about his work activities and receipt of income, and whether he failed to report income to the Bureau. After a hearing on June 30, 1999, the TALJ issued recommended findings of fact, conclusions of law, and order on August 9, 1999. The TALJ recommended finding:

X.

... The claimant said that since the end of May 1998, he had been opening the Midtowner Restaurant on a daily basis at 5:00 a.m. and staying until approximately 7:00 a.m. The claimant admitted that he routinely opened the restaurant for business, baked rolls, turned on the grill, made coffee, and signed receipts for delivery of bread. He also disclosed that if a customer came in, he would cook and serve the meal and collect money at the cash register. The claimant also admitted that he periodically picks up supplies from Barlow's Supervalue [sic] and also assisted Joe Zachmeier with some light maintenance work at the restaurant.... [T]he claimant finally admitted that he had received a cash payment of $80 per month from Zachmeier from June through September 1998 for work that he did at the Midtowner Restaurant ....

XIII.

The Bureau also contends that it mails out Income and Work Status Cards to claimants every 28 days to verify their continued eligibility to receive disability benefits. In 1998, ... [o]n these cards the claimant was asked, "Have you done any work, whether for pay or not?" The claimant responded "No" on all of the cards except the February 6, 1998, June 1, 1998, October 19, 1998, and December 1, 1998, cards. On the February and June cards the claimant did not respond to the question, but on the October and December 1998 cards he indicated that he had done work and received $80 per month.

....

XXIII.

The claimant testified in response to questioning from his attorney that he had never denied the activities that he performed at the Midtowner Restaurant and it was his position that such activities did not constitute "work". Instead, he said it was simply therapy.

The TALJ also recommended finding the owner of the Midtowner Restaurant admitted paying Snyder $80 per month and giving him $30-60 of food per month, and that Snyder was listed as an employee with Job Service North Dakota.

[¶ 4] The TALJ recommended concluding:

XVI.

... This hearing officer concludes, as a matter of law, that the greater weight of the evidence supports a finding that there were false claims or statements made by the claimant, Wilbur Snyder, and that such false statements were made "willfully", and that the act of making the false statements as previously identified in the findings of fact was done intentionally. Further, the greater weight of the evidence has clearly established that the claimant's state of mind was purposeful in making the false statements. Snyder admitted to such at the hearing.

....

XXV

This hearing officer concludes, as a matter of law, that the false claims or false statements attributable to the claimant (Wilbur Snyder) are sufficiently material and that such false statements could have misle[]d the Bureau in their determination of the claim. The information provided to the Bureau by the claimant was less than candid and forthright. Such information certainly could have misle[]d the Bureau in its efforts to verify the claimant's entitlement to continued benefits. The greater weight of the evidence also supports a finding that the claimant's false statements were sufficiently material to support a forfeiture of future benefits.

[¶ 5] The TALJ proposed ordering "that the Bureau's Order Denying Further Benefits be affirmed." In a final order of October 1, 1999, the Bureau modified four of the TALJ's recommended findings and rejected a commentary on the evidence made by the TALJ. The Bureau otherwise adopted the TALJ's recommended findings and conclusions, and ordered "that the Bureau's final Order dated December 21, 1998, is AFFIRMED and that the claimant shall forfeit all further benefits and shall be obligated to repay benefits in the amount of $3,741.64."

[¶ 6] Snyder appealed to the district court, which affirmed the Bureau's order. Snyder appealed to this Court.

II

[¶ 7] On appeal, we review the decision of the administrative agency, rather than that of the district court, although the district court's analysis is entitled to respect. Wanstrom v. North Dakota Workers Comp. Bureau, 2000 ND 17, ¶ 5, 604 N.W.2d 860. "The interpretation of a statute is a question of law, which is fully reviewable by this court." Id. We recently reiterated the scope of our review:

On appeal, we review the decision of the Workers Compensation Bureau. Siewert v. North Dakota Workers Comp. Bureau, 2000 ND 33, ¶ 18, 606 N.W.2d 501. Under N.D.C.C. §§ 28-32-19 and 28-32-21, we affirm the Bureau's decision unless its findings of fact are not supported by a preponderance of the evidence, its conclusions of law are not supported by its findings of fact, its decision is not supported by its conclusions of law, its decision is not in accordance with the law or violates the claimant's constitutional rights, or its rules or procedure deprived the claimant of a fair hearing. Negaard-Cooley v. North Dakota Workers Comp. Bureau, 2000 ND 122, ¶ 7, 611 N.W.2d 898. We exercise restraint in determining whether the Bureau's findings of fact are supported by a preponderance of the evidence and do not make independent findings or substitute our judgment for that of the Bureau, but determine only whether a reasoning mind reasonably could have determined the findings were proven by the weight of the evidence from the entire record. Renault v. North Dakota Workers Comp. Bureau, 1999 ND 187, ¶ 16, 601 N.W.2d 580.

Jacobson v. North Dakota Workers Comp. Bureau, 621 N.W.2d 141, 2000 ND 225, ¶ 7.

III

[¶ 8] The Bureau terminated Snyder's benefits because he made false statements about work activities and failed to report income from work. Snyder contends the Bureau was not entitled to seek return-to-work information from him. Section 65-05-08(3), N.D.C.C., requires individuals receiving disability or rehabilitation benefits to report to the Bureau:

Any employee who is eligible for, or receiving disability or rehabilitation benefits under this title shall report any wages earned, from part-time or full-time work from any source. If an employee fails to report wages earned, the employee shall refund to the bureau any disability or vocational rehabilitation benefits overpaid by the bureau for that time period.... If the employee willfully fails to report wages earned, the employee is subject to the penalties in section 65-05-33. An employee shall report whether the employee has performed work or received wages. The bureau periodically shall provide a form to all injured employees receiving disability or rehabilitation benefits which the injured employee must complete to retain eligibility for further disability or rehabilitation benefits, regardless of the date of injury or claim filing.... An injured employee who is receiving disability or vocational rehabilitation benefits must report any work activities to the bureau whether or not the injured employee receives any wages.... For purposes of this subsection, "work" does not include routine daily activities of self-care or family care, or routine maintenance of the home and yard, and "activities" does not include recreational gaming or passive investment endeavors.

Snyder argues N.D.C.C. § 65-05-08, providing for monthly reports to the Bureau, is inapplicable to him because it was not in effect at the time of his work...