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Asarco Inc. v. Industrial Commission

Citations: 204 Ariz. 118; 60 P.3d 258Docket: No. 1 CA-IC 01-0108

Court: Court of Appeals of Arizona; January 7, 2003; Arizona; State Appellate Court

Narrative Opinion Summary

The case involves the Industrial Commission of Arizona's award of death benefits to the widow of Roy D. Duke, which became final despite an error in calculating the benefits due to the application of an incorrect statute. Duke was injured in 1996 and died in 1999, after which his widow applied for benefits. The State Compensation Fund initially applied a 1999 statutory revision instead of the correct statute, resulting in overpayments. The widow did not contest the notice within the ninety-day period, making it final. The Fund later attempted to correct this error, but an Administrative Law Judge found the original notice binding. The court reviewed the case de novo and confirmed the finality of the notice. The Fund argued that the notice was void due to clerical error and misapplication of the law, but the court disagreed, affirming that the error did not constitute a clerical mistake. Furthermore, the court ruled that a notice is not void unless it contradicts substantive evidence on record or is unsupported, differentiating this case from Roseberry and other precedents. Consequently, the Commission's award was affirmed, and the Fund's appeal was denied, as it was not deemed frivolous.

Legal Issues Addressed

Clerical Error vs. Mistake of Law

Application: The court determined that the Fund's error in applying the incorrect statute was a mistake of law, not a clerical error, and thus did not justify setting aside the final award.

Reasoning: The court agrees with the Claimant, stating that a mistake of law does not qualify as a clerical error justifying the setting aside of a final award, referencing Page v. Industrial Commission and Jacobsen v. Industrial Commission.

Finality of Commission Awards

Application: The court confirmed that a notice of benefits becomes final and res judicata if not contested within the stipulated timeframe, even when there is an error in the calculation of benefits.

Reasoning: The Industrial Commission of Arizona awarded benefits related to the death of Roy D. Duke, affirming that the notice of Permanent Disability or Death Benefits issued was final and res judicata despite an error in the calculation of benefits.

Jurisdiction under Res Judicata

Application: The court held that the notice was not void simply because it calculated benefits contrary to the applicable statute, distinguishing it from cases where notices contradicted supporting medical evidence.

Reasoning: However, the Claimant counters that Roseberry is not applicable here, as this case does not involve a notice of claim status or a directly contradictory medical report, referencing other cases that support this distinction.

Void vs. Voidable Judgments

Application: Judgments are not considered void if the entity had the authority to act but made an error; such judgments are voidable only upon timely appeal.

Reasoning: The Fund incorrectly conflates the lack of authority to act, which renders a determination void, with the situation where an entity is authorized but acts erroneously, which only makes a determination voidable upon timely appeal.