Polich v. Whalen's O.K. Tire Warehouse

N0. 82-350
IN THE SUPREME COURT OP THE STATE OF MONTANA

1983

WILLIAM T. POLICH,
Claimant and Resp0ndent,
and
WHALEN'S O.K. TIRE WAREHOUSE,
Empl0yer and Appel1ant,
and
GLACIER GENERAL ASSURANCE CO.,

Defendant and Appellant.

Appea1 fr0m: W0rkers' C0mpensati0n C0urt
Hon0rable Tim0thy Reard0n, Judge presiding.

C0unSel of Rec0rd:
F0r Appe11ants:

Gar1ingt0n, L0hn § R0bins0n, Larry E. Ri1ey,
Miss0u1a, Montana

F0r Resp0ndent:

Th0mas D0w1ing, He1ena, M0ntana

Submitted on briefs: January 27, 1983

D€Cided: MB.I`Ch 3]_, 

Fi1ed: MAR;3l]983

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C1erk

Mr. Chief Justice Frank I. Haswell delivered the Opinion of
the Court.

Appellant, Glacier General Assurance Co., appeals the
June 28, l982, Workers‘ Compensation Court order awarding
William Polich, claimant and respondent, a lump sum payment
for an injury he received in the course of employment.

william Polich suffered a back injury while employed
at Whalen's O.K. Tire Warehouse. The injury was accepted as
compensable by Glacier General Assurance Co.

On July 7, l980, claimant petitioned the Workers' Com-
pensation Court to grant him a lump sum settlement so he and
his wife could sell their home and move to a more hospitable
climate. Judge william E. Hunt, after a hearing, determined
that claimant is totally and permanently disabled and a lump
sum settlement would be in claimant's best interest.

From this conclusion, Glacier General appealed to this
Court. Glacier contended that there was no substantial
evidence to support the Workers' Compensation Court's deter-
mination that a lump sum settlement was in the claimant's
best interest and that claimant was not entitled to attorney
fees and costs. We affirmed the Workers' Compensation Court
and remanded the case for determination of the amount of the
lump sum settlement and the attorney fees and costs. Polich
v. Glacier General Assurance Co. (l98l), ____ Mont. ____,
634 P.2d ll62, 38 St.Rep. l572.

On January 20, l982, Judge Timothy Reardon of the
Workers' Compensation Court heard the remanded case. In his
initial order dated April 29, l982, Judge Reardon estab-
lished that the appellant's maximum liability to claimant
was $ll3,389.05. The lump sum payment was conditioned on

the following:

"A. The Division shall determine what
amount of money the claimant is entitled
to after his future benefits are dis-
counted to present value according to the
usual lawful Division procedure.

"B. When claimant knows how much money
he can spend, the insurer shall advance a
reasonable amount of money for the claim-
ant and his wife to go down to Arizona
and select a house within their means,
taking into account the lump sum award
less the credits allowed the insurer for
benefits paid since the trial and the
amount of the advance.

"C. When the claimant has selected a
house, he shall bring the appropriate
documents (e.g., a contract for deed,
buy-sell agreement, or other suitable
real estate transfer documents) to this
Court for review. At that time the
insurer will be directed to pay the
claimant a lump sum subject to its maxi-
mum liability to be used for the purchase
of the house."

Attorney fees and costs in the amount of $6,433.63 were
ordered to be paid to the claimant.

Claimant objected to the April order and moved for a
rehearing. On June 28, l982, the Workers' Compensation
Court denied the motion, concluding that it had before it
all the evidence necessary to render a decision. Judge
Reardon modified the April order by stating:

"The Court is further convinced that the
Order on Remand did place the claimant in
an untenable legal position by requiring
claimant to purchase a house subject to
this Court's approval. Furthermore, the
remand instructions from the Supreme
Court do not require this Court to seek
further justification for the award of
the lump sum. Therefore, no further
justification will be required of the
claimant."
The appellant's maximum liability was discounted, and the
claimant was awarded $66,699.6l.

Glacier's request for a rehearing was denied. Glacier

appeals.

The sole issue on appeal is whether Glacier is
entitled to have reasonable conditions placed on the lump
sum award.

Glacier argues that since the justification for the
lump sum was claimant's proposed move to Arizona conditions
should be placed on the award to insure the money will be
used for such purpose. No authority is cited for this
contention.

Section 39-71-74l, MCA, reads in part: ". . . A con-
troversy between a claimant and an insurer regarding the
conversion of bi-weekly payments into a lump sum is con-
sidered a dispute for which the workers' compensation judge
has jurisdiction to make a determination." Section 39-7l-
2905, MCA, reads in part, ". . . If the dispute relates to

benefits due a claimant under ch. 7l, the judge shall fix

and determine any benefits to be paid and specify the manner

of payment. . ." (Emphasis added.)

we have held that the findings of the Workers' Compen-
sation Court will be presumed correct and affirmed if sup-
ported by substantial evidence. Willoughby v. Arthur McKee
and Co. (l980), ____ Mont. ____, 609 P.2d 700, 37 St.Rep.
620; Newman v. Kamp (l962), l40 Mont. 487, 374 P.2d l00.

Applying this standard, we affirm the order of the
Workers' Compensation Court here. Section 39-71-74l, MCA,
gives the Workers' Compensation Court Judge jurisdiction to
require an insurer to pay a lump sum as opposed to bi-weekly
payments. Section 39-7l-2905, MCA, clearly' empowers the
Workers' Compensation Judge to specify the manner of such
payment, including unconditional lump sum awards. The

evidence in the case at bar supports the conclusion reached

by Judge Reardon that the appellant pay the claimant a lump
sum without any conditions.

Affirmed.

Chief Justice v

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We concur:

 

J tices