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Safeway Stores, Inc. v. Dupape

Citations: 106 Or. App. 126; 806 P.2d 191; 1991 Ore. App. LEXIS 295Docket: 87-18387; CA A63496

Court: Court of Appeals of Oregon; February 26, 1991; Oregon; State Appellate Court

Narrative Opinion Summary

In this case, an employer sought judicial review of a Workers’ Compensation Board decision that reversed its denial of a claimant's out-of-state medical treatment expenses. The claimant, initially injured while working in Oregon, moved to Washington and received treatment from local practitioners. The employer initially covered medical expenses but later denied coverage for out-of-state services, arguing a lack of prior approval. The Board found the employer's denial unjustified, as it did not sufficiently demonstrate that the out-of-state physician would fail to meet reporting requirements. The case centered on the interpretation of ORS 656.245, which allows workers to choose medical providers within Oregon but does not preclude out-of-state options. The Board concluded that employer objections to out-of-state treatment must be based on statutory compliance concerns per OAR 436-60-050(5), a stance affirmed by the court. The decision underscores the limited nature of employer veto power over medical provider choices, upholding the claimant's right to treatment under statutory provisions. The Board's decision was affirmed, and an award for attorney fees was granted to the claimant's counsel for review services.

Legal Issues Addressed

Claimant's Right to Medical Services

Application: The claimant retains the right to medical services, irrespective of location, as supported by precedent, reinforcing the limited scope of employer objections.

Reasoning: Claimants have the right to receive medical services under ORS 656.245(1) regardless of location, as established in Day v. S. S Pizza Co.

Employer's Objection to Out-of-State Medical Services

Application: The employer's denial of coverage for out-of-state treatment was found unjustified as it failed to show non-compliance with reporting requirements by the chosen physician.

Reasoning: The Board found the employer's denial unjustified because it failed to demonstrate that Chan would not comply with reporting requirements.

Regulatory Standards for Employer Objections

Application: Under OAR 436-60-050(5), employers' objections to out-of-state treatment must be based on compliance issues, aligning with the statute's purpose of ensuring reasonable claims administration.

Reasoning: OAR 436-60-050(5) confirms that employers' objections must be based on concerns related to compliance with reporting requirements or other relevant statutory purposes.

Statutory Interpretation of ORS 656.245

Application: The statute allows workers to choose attending physicians within Oregon, implying distinctions in treatment options but not eliminating choices, thereby limiting the employer's veto power.

Reasoning: ORS 656.245(3) allows workers to choose attending physicians within Oregon, implying a distinction between in-state and out-of-state options but does not eliminate the worker's treatment choices.

Workers' Compensation and Out-of-State Medical Treatment

Application: The Board determined that employers cannot unconditionally veto a claimant's choice of out-of-state medical treatment unless justified by specific statutory criteria.

Reasoning: While employers can object to out-of-state treatment, their veto power is not absolute.