On August 16, 1977, while employed at the potato processing plant of Carnation company, claimant suffered an industrial injury. Timely notice of the accident was given to the employer and claimant was released from work for medical treatment. Claimant was treated by several different doctors but was primarily under the care of Dr. Gnuechtel, an orthopedic surgeon who diagnosed claimant’s injury as a chronic low back strain. On March 29, 1978, he wrote to Travelers, rating claimant at a medical impairment of 10%. On May 2, 1978 he modified the impairment rating to 15% because of a recurrence of pain. Claimant was not released to return to work.
Based upon Dr. Gnuechtel’s first letter, Travelers Insurance prepared a compensation agreement with 10% impairment rating which claimant signed and returned to Travelers. After receipt of the agreement, Travelers received the changed medical impairment rating of Dr. Gnuechtel, and changed the agreement to read 15% impairment. Travelers then submitted the agreement to the Industrial Commission and the Commission approved the agreement on June 26, 1978.
At the request of Carnation Company, a field examiner for the rehabilitation division of the Industrial Commission met with claimant and Dr. Gnuechtel. The field examiner, in September 1979, found that *702claimant was not a candidate for rehabilitation, and did not consider claimant fit to return to her former employment.
In the fall of 1979, claimant petitioned the Commission to reopen the approved compensation agreement on the grounds of change in condition, fraud, and manifest injustice. She asserted that she was in fact 100% disabled, which constituted a change in the rating from the compensation agreement of 15% permanent partial impairment. Additionally, claimant contended that the compensation agreement covered only the 15% impairment and did not purport to settle her permanent disability.
At the hearing the uncontradicted evidence established that the claimant was indeed 100% disabled, but that such was also her condition when she signed the original agreement. Accordingly, the employer and surety argued that there was no change of condition and that the compensation agreement was final and binding under the doctrine of res judicata.
The Commission first entered its findings of fact, conclusions of law and award on March 19, 1981, finding that claimant had failed to establish either fraud or change of condition, but concluding that because the compensation agreement used the word “impairment” in describing claimant’s permanent rating, the agreement was not res judicata regarding the extent of “disability” at the time the agreement was approved. The Commission then cancelled the award, based oh the compensation agreement, and made a new award which included total permanent disability. Travelers filed a motion for reconsideration, upon which the Commission heard oral argument and received briefs. The Commission entered amended findings of fact, conclusions of law, and order. The Commission then reaffirmed its determination that appellant had neither established fraud nor change of condition, and reversed its determination that appellant was entitled to a total permanent disability rating, ruling that the compensation agreement was res judicata. The Commission did not specifically rule on the applicability of the manifest injustice provision of I.C. § 72-719(3). This appeal followed. We reverse and remand.
It is well recognized that a compensation agreement approved by the Industrial Commission is equivalent to an award under the Idaho Workmen’s Compensation laws. I.C. § 72-711. This court has held that except as provided by I.C. § 72-719, an award under the provisions of I.C. § 72-711 becomes final and conclusive if no appeal is taken. Sines v. Appel, 103 Idaho 9, 644 P.2d 331 (1982).
I.C. § 72-719 provides for reopening for modification of an award on the following grounds:
“(1) • • •:
(a) Change in the nature or extent of the employee’s injury or disablement; or
(b) Fraud.
(3) The commission, on its own motion .. . may review a case in order to correct a manifest injustice.”
In the instant case, the Commission did not have the benefit of our opinions in Sines v. Appel, supra, and Iverson v. Gordon Farming, 103 Idaho 527, 650 P.2d 669 (1982).
In Sines the Industrial Commission had narrowly interpreted the manifest injustice provision to cover only “situations where a worker suffers a latent injury or disease not discoverable within the limitations period.”
In Iverson this court remanded to the Industrial Commission because it appeared that the Commission had failed to fully consider its obligation to make specific findings and conclusions regarding the issue of manifest injustice. Sines \yas remanded because the Commission had taken too narrow a view of the scope of situations encompassed within the manifest injustice provision.
In the instant case, the Commission stated that the award could only be reopened “upon a showing of fraud or a change in condition.”
*703A reading of the findings and conclusions indicates the Commission was erroneously under the impression that the doctrine of res judicata precludes any consideration of the applicability of I.C. § 72-719(3) in the absence of either fraud or change of condition. Res judicata prevents only the relitigation of matters finally decided in an earlier decision of the Commission. Here the statute clearly over-rides that concept of finality, permitting the Commission to reopen its earlier decision if it finds it necessary to do so to correct a manifest injustice.
Accordingly, we reverse and remand for further findings and conclusions in conformance with this opinion. We note that I.C. § 72-719(3) becomes operative on the Commission’s own motion, but that fact does not preclude the Commission from exercising its powers when notice of a purported manifest injustice is brought to its attention either by a party or a third party.
Costs to appellant.
DONALDSON, C.J., and SHEPARD and BISTLINE, JJ., concur.