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Dilworth v. Weyerhaeuser Co.

Citations: 95 Or. App. 85; 767 P.2d 484Docket: WCB 85-05079; 85-11948; CA A41591; WCB 85-0050M; CA A41737

Court: Court of Appeals of Oregon; January 24, 1989; Oregon; State Appellate Court

Narrative Opinion Summary

In a dispute over workers' compensation liability, the Workers' Compensation Board upheld a referee's decision holding Weyerhaeuser Company responsible for a claimant's low back injury and accompanying psychological condition, while EBI/Orion Group was not found liable. The claimant's original back injury occurred in 1972 while employed by Weyerhaeuser, contributing to psychological issues. After starting work at EBI in 1984, his condition worsened, leading to a significant incident on January 8, 1985. Both Weyerhaeuser and the claimant contested the Board's decision regarding the psychological condition post-January 8, 1985. Weyerhaeuser denied reopening the 1972 claim due to expired aggravation rights, and EBI denied responsibility, claiming pre-existing conditions. The Board affirmed the referee's findings, attributing the claimant's exacerbated condition to the original 1972 injury and ordering Weyerhaeuser to provide benefits post-January 8, 1985. Furthermore, the Board addressed attorney fees, determining that Weyerhaeuser's cross-request for review under ORS 656.382(2) obligated them to cover the claimant’s attorney fees, owing to their initiation of the review process. The Board denied fees at the Board level, citing shared objectives with Weyerhaeuser to overturn EBI's denial. The outcome was a requirement for Weyerhaeuser to reopen the 1972 claim and provide temporary disability payments, while the claimant's request for employer-paid attorney fees was reversed except for actions initiated by Weyerhaeuser's cross-request.

Legal Issues Addressed

Attorney Fees in Workers' Compensation Appeals

Application: The Board denied the claimant's request for employer-paid attorney fees, noting that Weyerhaeuser's appeal objectives aligned with the claimant's in overturning EBI's denial, despite the initiation of a cross-request for review.

Reasoning: The Board denied the claimant's request for employer-paid attorney fees at the Board level, stating that Weyerhaeuser's review goals aligned with the claimant's: to overturn EBI's denial.

Claimant's Active Participation in Legal Proceedings

Application: The claimant's attorney's participation was deemed necessary due to the risk posed by Weyerhaeuser's broad denial, which included a challenge to the compensability of medical services.

Reasoning: The attorney for the claimant actively and justifiably participated in the proceedings before the Board due to Weyerhaeuser's actions.

Initiation of Review for Attorney Fees under ORS 656.382(2)

Application: The Board found that Weyerhaeuser's cross-request for review constituted an initiation under ORS 656.382(2), obligating them to pay reasonable attorney fees due to the claimant's active participation in the proceedings.

Reasoning: The Board noted that Weyerhaeuser's cross-request constituted an initiation under ORS 656.382(2).

Responsibility vs. Compensability in Workers' Compensation Claims

Application: The Workers’ Compensation Department interpreted EBI's denial as relating to compensability rather than responsibility, shifting the liability back to Weyerhaeuser for the claimant's conditions.

Reasoning: The Workers’ Compensation Department interpreted EBI's denial as one of compensability rather than responsibility.

Workers' Compensation - Employer Liability for Aggravation of Injury

Application: The Board determined that Weyerhaeuser is liable for the aggravation of the claimant's pre-existing injury from 1972, despite the expiration of aggravation rights, because the worsening condition was linked to the original injury.

Reasoning: The Board determined that the claimant's worsening condition was an aggravation of a 1972 injury for which Weyerhaeuser is liable.