Western Hospital Association v. Industrial Accident Bd. of State, 5806

• Citation: 51 Idaho 334,6 P.2d 845
• Decision Date: 05 December 1931
• Docket Number: 5806
• Parties: WESTERN HOSPITAL ASSOCIATION, a Corporation, and GOLDENDALE MINING COMPANY, a Corporation, Plaintiffs, v. THE INDUSTRIAL ACCIDENT BOARD OF THE STATE OF IDAHO and JOEL BROWN, G. W. SUPPIGER and FRANK LANGLEY, as Members of Said Board, Defendants
• Court: United States State Supreme Court of Idaho

6 P.2d 845

51 Idaho 334

WESTERN HOSPITAL ASSOCIATION, a Corporation, and GOLDENDALE MINING COMPANY, a Corporation, Plaintiffs, v. THE INDUSTRIAL ACCIDENT BOARD OF THE STATE OF IDAHO and JOEL BROWN, G. W. SUPPIGER and FRANK LANGLEY, as Members of Said Board, Defendants

No. 5806

Supreme Court of Idaho

December 5, 1931

WORKMEN'S COMPENSATION LAW-INDUSTRIAL ACCIDENT BOARD-CONTRACT FOR HOSPITALIZATION.

1. Industrial Accident Board held empowered to pass on contracts between hospital and employer for care and treatment of sick and injured employees (C. S., secs. 6222, 6229, 6230, 6262 6273, and sec. 6230A as added by Laws 1921, chap. 217, sec 2).

2. Industrial Accident Board having jurisdiction to "approve" or "determine" hospital contracts for treatment of sick and injured employees could reject such contracts (C. S., secs. 6222, 6229, 6230, 6262 6273, and sec. 6230A as added by Laws 1921, chap. 217, sec 2).

APPLICATION for Writ of Mandate. Writ quashed.

Writ quashed. Costs to defendants. Petition for rehearing denied.

J. F. Ailshie and James F. Ailshie, Jr., for Plaintiffs.

Fred J. Babcock, Attorney General, and Maurice H. Greene and Sidman I. Barber, Assistant Attorneys General, for Defendants.

GIVENS, J. Lee, C. J., and Budge, Varian and McNaughton, JJ., concur.

OPINION

GIVENS, J.

The plaintiff, Goldendale Mining Company, engaged in the mining business in this state, with its principal place of business at Bovill, is an employer of labor under, and carries insurance with the State Fund in compliance with, the Workmen's Compensation Act, C. S., chap. 236.

July 1, 1931, this plaintiff entered into a contract ^[1] under C. S., sec. 6230, with plaintiff, Western Hospital Association, which maintains and operates medical and surgical hospitals in the state, for the care and treatment of sick and injured persons under contract with employers of labor.

The Industrial Accident Board refused to approve the contract above mentioned, in the following order or decision:

"The Industrial Accident Board decided that in the future it did not intend to approve any hospital contracts that contained the provision the instant one does, namely, that the party of the first part

"'Will deduct, withhold and collect the sum of $ 1 . . . . of each and every one of its employees . . . . who is employed in any of the occupations and territories hereinbefore mentioned for a period of more than 3 days in any calendar month, and the sum of 50[cents] from the earnings of such employee who is so employed 3 days, or less in any calendar month.'

"In lieu of this provision the Board prefers and will approve contracts that contain the following provision:

"'Will deduct, withhold and collect from the earnings of each and every of its employees who shall elect to receive the benefits of this agreement and medical, surgical and hospital attention provided for and who is employed in any of the occupations and territories hereinbefore mentioned, the sum of $ 1 per calendar month or any fraction of a month, ten (10) days or over; for a fraction of a month less than ten (10) days such deduction shall be ten cents for each day that the employee has been employed in the service of the party of the second part in any of its occupations and territories,' etc.

"If you will insert that provision in the proposed hospital contract, the Board will be glad to approve your contract."

If the contract were approved by the Board, the employer would be allowed a credit of twenty-five per cent on the regular premium charged under, and by reason of the Idaho State Insurance Fund Manual of Rules, Classifications and Premium Rates, effective January 1, 1930, Rule IV, Hospital Contracts:

"Hospital contracts shall be approved by the Industrial Accident Board of the State of Idaho prior to any reduction in basic premium rates on account thereof.

"1. A reduction of twenty-five per cent (25%) of the basic premium rate shall be allowed in all cases where no separate rate is quoted for use in connection with risks carrying hospital contracts."

The present writ of mandate was sued out by plaintiffs to compel the Industrial Accident Board to approve the hospital contract between the two plaintiffs, thus giving the employer the advantage of the rule of the State Insurance Fund above quoted, on the theory that C. S., sec. 6230, ^[2] gave the board jurisdiction over the contract only, as to services to be rendered to employees thereunder, and to limit rates to $ 1 per month except in certain circumstances mentioned in said section.

Defendants contend that C. S., secs. 6222 and 6273, give the board authority to pass upon all phases of the contract; hence, to approve or disapprove it.

The nib of the controversy is as to the payment of the hospital fee, thus stated by plaintiffs:

"Under the contract . . . . the employer collects from the employee, who makes the waiver, 50[cents] from the workman's wages for the first 3 days of the employment, and if he works more than 3 days, he retains the further sum of 50[cents], making a total of $ 1.00 per calendar month for hospital service, and, in addition to this, the employer pays the Association one half the sum that the employee pays. The Board now proposes that this method of payment shall be so changed that the employer shall collect 10[cents] per day from each employee for the first 10 days of his service each calendar month, instead of collecting it within the first 4 days as provided for in the existing contracts."

Plaintiffs also urge many practical reasons why the Board's requirement would be detrimental to the employer and the hospital contractor. If, however, the Board has no jurisdiction, these considerations are immaterial; if, on the other hand, the Board does have jurisdiction, they are matters for the Board to consider in exercising its discretion, and the question here must be determined on what authority the statutes give the Board; not whether the Board has unwisely exercised that discretion, for no complaint is herein made that the Board has abused its discretion, but that it possesses no right to exercise any discretion, except as specifically set forth in C. S., sec. 6230.

C. S., sec. 6222, ^[3] does not cover C. S., sec. 6230, because it applies only to systems of compensation or benefits "in lieu of the compensation provided by this chapter."

The state board contends that services under a hospital contract are a part of, and included within, compensation. It is doubtful if this contention is sound in view of the sections particularly pertaining thereto, but conceding it is, the hospital contracts contemplated by C. S., sec. 6230, and the one under consideration in particular, are not "in lieu of the compensation provided" in the chapter on workmen's compensation, but are within the chapter. What regulatory and supervisory powers the Board are given over such extrastatutory systems of compensation by C. S., sec. 6222, we need not, therefore, herein determine.

C. S., sec. 6273, ^[4] is the only section of the act providing for an appeal from any decision of the Board. An appeal was entertained in Johnston v. A. C. White Lumber Co., 37 Idaho 617, 217 P. 979, from a decision of the Board concerning C. S., sec. 6229, and though it is not indicated in the decision that any question thereto was raised, in effect, C. S., sec. 6273, was thereby considered applicable to decisions of the Board on matters other than awards for compensation mentioned in the part of the act designated "Procedure Before The Board." (C. S., secs. 6261-6275.)

If C. S., sec. 6273, applies to C. S., sec. 6229, as to appeals, it applies likewise to C. S., sec. 6230. If it applies to C. S., sec. 6230, as to appeals, why do not all of its provisions apply to C. S., sec. 6230?

C. S., sec. 6273, is entirely inclusive and says:

"All questions arising under this chapter, if not settled by agreement of the parties interested therein, with the approval of the board, shall, except as otherwise herein provided, be determined by the board."

The question involved here is one "arising under this chapter," and not outside; hence, though settled by agreement of the parties, vide the contract, and no employee complains herein, since not approved by the board, it must be determined and approved, or as hereafter shown, rejected by the board. Being a question under the chapter, it falls within the contemplation of C. S., sec. 6273.

"Approve" is defined as follows: "to commend; be satisfied with." (Bouvier's Law Dictionary, 3d Rev. 223.) "To confirm, ratify, sanction, or consent to some act or thing done by another." (1 Words & Phrases, 3d ser., 545, citing Board of Education of City of Hutchinson v. Reno Community High School, 124 Kan. 175, 257 P. 957, 959.) "To sanction officially; to ratify; to confirm." (Words & Phrases, 2d ser., 260, citing Long v. Needham, 37 Mont. 408, 96 P. 731, 733.) "To pronounce good; think or judge well of; admit the propriety or excellence of; be pleased with; commend; and as used in Pol. Code, § 17, providing that all contracts made by the state furnishing board must be 'approved' by the Governor or State Treasurer, means more than merely ministerial approval. They must exercise judicial discretion." (1 Words & Phrases, 475, citing State v. Smith, 23 Mont. 44, 57 P. 449.) "To regard or comment upon as worthy of acceptance, commendation or favorable attention; form or express a favorable judgment concerning; treat, receive or present with favor." (Funk & Wagnalls New Standard Dictionary.)

"Determine" is defined: "To reach a definite purpose concerning form the intention of doing or not doing; resolve; decide." (Funk & Wagnalls New Standard Dictionary.) "To fix or settle definitely; make specific...