State v. Quick Transport, Inc.

• Decision Date: 28 April 2000
• Docket Number: No. 25150.,25150.
• Citation: 134 Idaho 240,999 P.2d 895
• Parties: STATE of Idaho, ex rel. Industrial Commission, Plaintiff-Appellant, v. QUICK TRANSPORT, INC., an Idaho corporation; Mary Cradduck, President; and Paula Miller, Secretary; in their individual and official capacities, Defendants-Respondents.
• Court: Idaho Supreme Court

999 P.2d 895

134 Idaho 240

STATE of Idaho, ex rel. Industrial Commission, Plaintiff-Appellant, v. QUICK TRANSPORT, INC., an Idaho corporation; Mary Cradduck, President; and Paula Miller, Secretary; in their individual and official capacities, Defendants-Respondents.

No. 25150.

Supreme Court of Idaho, Boise, January 2000 Term.

April 28, 2000.

Hon. Alan G. Lance, Attorney General, Boise, for appellant. A. Rene Martin, Deputy Attorney General, argued.

Thomas B. Dominick, Boise, argued for respondents.

TROUT, Chief Justice.

This is an appeal from the district judge's order affirming the magistrate judge's order granting summary judgment to the respondent, Quick Transport (Quick) and dismissing the Industrial Commission's (Commission) complaint for lack of subject matter jurisdiction.

I. FACTUAL AND PROCEDURAL BACKGROUND

In January 1995, the Commission's compliance department became aware that Quick was an Idaho employer with no worker's compensation insurance coverage in effect. On January 27, 1995, Kathy Vawter, Employer Compliance Specialist for the Commission, sent a letter informing Quick the Commission had no record of worker's compensation in effect for Quick, and penalties could be imposed for failure to maintain coverage. After receiving further information regarding Quick's alleged use of non-exempt employees without maintaining coverage for worker's compensation, the case was assigned to Lola Tucker, Employer Compliance Investigator, for investigation.

On December 19, 1996, Tucker visited Quick's business location in Payette, Idaho. During this visit, Tucker was informed that Quick had no non-exempt employees. Tucker asked Quick to provide a list of all corporate officers, their titles, and percentages of ownership in the corporation. One of Quick's officers, Mary Cradduck, agreed to provide the requested documentation. On January 27, 1997, having not yet received the requested information, Tucker sent a letter to Quick again requesting the documentation and advising Quick of the applicable penalties for failure to maintain worker's compensation coverage.

In February 1997, the compliance department received some information from Mary Cradduck. A letter was then sent to Quick requesting updated information and notifying Quick that, based on the information in the possession of the compliance department, it appeared Quick was using non-exempt employees in violation of Idaho's worker's compensation law. The letter also informed Quick of the compliance department's decision to assess penalties for the violation and that the matter had been referred to the Attorney General's office for legal action. There is nothing in the record to indicate the Commission held a hearing or approved in writing the findings contained in the letter.

On March 26, 1997, the Commission filed a complaint in district court alleging Quick had violated the worker's compensation statutes by employing individuals without a policy of worker's compensation insurance in effect. The complaint sought statutory penalties for the period of the violation, as well as an injunction. Later, the magistrate judge issued an order allowing the Commission to amend its complaint in order to increase the period of violation and the penalty amount.

Both the Commission and Quick filed motions for summary judgment. On October 16, 1997, the magistrate judge issued an order granting Quick's motion for summary judgment and dismissing the Commission's complaint for lack of subject matter jurisdiction. Following this decision, the Commission filed a motion for reconsideration, which was ultimately denied. Next, the Commission filed a notice of appeal with the district court. After briefing and argument, the district judge affirmed the magistrate judge's decision dismissing the Commission's complaint for lack of subject matter jurisdiction. This appeal then followed.

II. STANDARD OF REVIEW

When reviewing a trial court's ruling on a motion for summary judgment, this Court employs the same standard properly employed by the trial court when ruling on the motion. Student Loan Fund of Idaho v. Duerner, 131 Idaho 45, 49, 951 P.2d 1272, 1276 (1997). Summary judgment is proper when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Id. Additionally, the record must be liberally construed in favor of the party opposing summary judgment, drawing all reasonable inferences and conclusions supported by the record in favor of that party. Id. Finally, when this Court reviews the decision of a district judge rendered in his appellate capacity, the Court reviews the record of the trial court independently of, but with due regard for, the district judge's decision. Wilson v. Wilson, 131 Idaho 533, 535, 960 P.2d 1262, 1264 (1998).

III. DISCUSSION

Because the magistrate judge granted the motion for summary judgment based on a lack of subject matter jurisdiction, we must decide whether, under I.C. § 72-707 and our prior decisions, the Commission had exclusive jurisdiction over the question of whether a violation had occurred, the duration of the violation, and the amount of penalties to be assessed.

1. The magistrate judge erred in concluding he lacked subject matter jurisdiction.

A. I.C. § 72-707 does not bar the magistrate judge from hearing this case.

The magistrate judge determined the Commission had exclusive jurisdiction over this case based upon the language of I.C. § 72-707. The statute provides: "All questions arising under this law, if not settled by agreement or stipulation of the interested parties with the approval of the commission, except as otherwise herein provided, shall be determined by the commission." I.C. § 72-707. The Commission argues the magistrate judge incorrectly interpreted this provision because this exclusive grant of jurisdiction was intended to apply only to cases involving injured worker disputes. The Commission asserts the magistrate judge's interpretation is incorrect because it requires reading the statute out of context with the rest of Chapter 7 of the Worker's Compensation Act. As the Commission notes, with the exception of the workplace safety statutes, all of Chapter 7 deals with the Commission's role in deciding injured worker cases, not with the Commission's role as an executive agency. Therefore, if I.C. § 72-707 is read in context with the rest of Chapter 7, the Commission argues that the exclusive grant of jurisdiction contained in the statute relates only to those cases involving injured workers.

There are two flaws in this argument. First, according to the compiler's notes to I.C. § 72-707, the words "this law" refer to I.C. §§ 72-101 to 72-805, essentially the entire body of the Worker's Compensation Act. Thus, it appears the legislature's grant of exclusive jurisdiction to the Commission was intended to cover more than just disputes involving injured workers. From the plain words of the statute, the Commission was intended to have exclusive jurisdiction over all disputes arising under the worker's compensation statutes, unless the legislature otherwise provided. Secondly, even if the compiler's notes did not make it clear I.C. § 72-707 referred to more than just injured worker cases, this Court's past interpretation of that section would still make the Commission's position untenable. For example, in Smith v. O/P Transportation, Inc., 120 Idaho 123, 814 P.2d 23 (1991), this Court addressed the question of whether the Commission had exclusive jurisdiction to decide if a contract for worker's compensation insurance existed between the employer and the insurance company. Citing I.C. § 72-707, the Court held the Commission did have exclusive jurisdiction over the question because the dispute arose under I.C. § 72-311(2). Therefore, under the plain words of I.C. § 72-707 and this Court's interpretation of that statute, the Commission has exclusive jurisdiction over all disputes arising under the worker's compensation law, unless the legislature has otherwise provided. Because there is no question this case involves the worker's compensation statutes, we must next decide whether the legislature has otherwise provided the district court with jurisdiction over disputes arising from I.C. § 72-319.

B. Idaho Code § 72-319 fits within the "except as otherwise herein provided" language of I.C § 72-707.

At the outset, we note we have never directly addressed the issue of a district court's jurisdiction under I.C. § 72-319. In State v. Indian Country Enterprises, 130 Idaho 520, 944 P.2d 117 (1997), we addressed the question of whether the Commission could enforce worker's compensation law on a tribal reservation. The Commission had filed a complaint in district court under I.C. §§ 72-319(4) and (5) seeking penalties and an injunction against Indian Country Enterprises for employing workers without carrying worker's compensation insurance as required by I.C. § 72-301. The district judge dismissed the case for lack of jurisdiction. On appeal, we held state courts have jurisdiction over an action to enforce worker's compensation laws against a tribal member operating a business on the reservation pursuant to 40 U.S.C. § 290. Our focus in Indian Country was on the jurisdiction of state courts over businesses on a tribal reservation; not on whether the district court, as opposed to the Commission, had jurisdiction under I.C. § 72-319. Therefore, Indian Country is not dispositive of this case.

The issue of whether I.C. § 72-319 grants the district court jurisdiction over this case involves a question of statutory interpretation. An interpretation of a statute is a question of law over which the Court exercises free review. State v. Hagerman Water Right Owners, 130 Idaho 727, 732, 947 P.2d 400, 405 (1997). If the statutory language is clear and unambiguous, the Court need merely apply the statute without engaging in any statutory construction. Id. However, if it is...