Title: Stacy A. Gibson v. Ada County Sheriffs Office and Idaho State Insurance Fund Denial of claim for workers compensation benefits

State: idaho

Issuer: Idaho Supreme Court (civil)

Document:

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IN THE SUPREME COURT OF THE STATE OF IDAHO 
 
Docket No. 34368 
 
 STACY A. GIBSON,                                       
                                                       
          Claimant-Appellant,                          
                                                       
v.                                                     
                                                       
ADA COUNTY SHERIFF'S OFFICE,  
Employer, and IDAHO STATE INSURANCE  
FUND, Surety,                                
                                                       
          Defendants-Respondents.                                                
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Boise, January 2009 Term 
 
2009 Opinion No.  81    
 
Filed:  June 8, 2009 
 
Stephen Kenyon, Clerk 
 
Appeal from the Industrial Commission of the State of Idaho. 
 
The decision of the Industrial Commission is affirmed. 
 
Vernon K. Smith, Jr., Boise, for appellant.  
 
Elam & Burke, P.A., Boise, for respondents.  Jon M. Bauman argued. 
 
                     _______________________________________________ 
 
HORTON, Justice 
This appeal arises from an order from the Idaho Industrial Commission (Commission).  
Appellant Stacy Gibson appeals the Commission‟s denial of her claim for benefits under Idaho‟s 
worker‟s compensation law against the Ada County Sheriff‟s Office (Ada County) and the State 
Insurance Fund (SIF) (Ada County and SIF collectively referred to as Respondents).  Gibson 
alleges that she suffers from post-traumatic stress disorder (PTSD) arising from interviews 
conducted by her employer and that her condition is a compensable physical-mental injury.1  We 
affirm the decision of the Commission. 
                                                 
1  
A mental-mental claim is one in which a mental stimulus or impact results in a psychological condition.  
Luttrell v. Clearwater County Sheriff’s Office, 140 Idaho 581, 584, 97 P.3d 448, 451 (2002).  A mental-mental claim 
is barred by I.C. § 72-451.  A physical-mental claim is one in which a mental stimulus or impact results in a 
psychological condition that is accompanied by a physical injury.  Id. at 584-85, 97 P.3d at 451-52.  A physical-
mental claim is compensable under I.C. § 72-451, but only upon meeting the following conditions: 
1) The injury was caused by an accident and physical injury or occupational disease or 
psychological mishap accompanied by resultant physical injury; 
2) The injury did not arise from conditions generally inherent in every working situation or from a 
personnel related action; 
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I. FACTUAL AND PROCEDURAL BACKGROUND 
Ada County hired Gibson on July 10, 1997 as a records clerk.   Gibson earned $1,500 per 
month at that position.  In October of 1998, Ada County promoted and transferred Gibson to a 
new clerical position at the Ada County Jail.  Gibson‟s promotion included a raise of $50 per 
month, bringing her monthly salary to $1,550.  Due to a bookkeeping error, Gibson was paid 
both her old and new salaries for a total of $3,050 per month for the next eight months.  Gibson 
was overpaid in excess of $8,500 before Ada County realized the error.   
Although Ada County required Gibson to sign a pay voucher before receiving her 
monthly paycheck, Gibson asserts that she was unaware of the overpayments until confronted by 
detectives from Ada County on July 20, 1999.  Gibson testified that she never looked at the 
amount listed on her pay vouchers and simply signed them in order to receive her paycheck.  
Gibson also testified that she neither opened her bank statements nor balanced her checkbook 
during this time period.   
Upon learning of the overpayments, Ada County launched an investigation into the 
matter.  Detective Arville Glenn contacted Gibson on July 20, 1999 and asked her to report to 
work.  Gibson had recently had back surgery and was not scheduled to report back to work until 
July 25, 1999.  After reporting to work, Gibson was interviewed twice, first by Detective Glenn 
and then by Detective Scott Johnson.  The interviews lasted from approximately 3:00 p.m. to 
5:30 p.m.  Gibson testified that she was not physically threatened or physically injured during the 
interviews.  However, Gibson claims that she suffers from PTSD as a result of the interviews.  
Following the interviews, Ada County placed Gibson on leave.  Ada County referred the matter 
to conflict counsel, who ultimately decided not to prosecute Gibson. 
Gibson was treated by her physician, Dr. Stephen Spencer, on July 23, 1999, two days 
after the interviews.  Gibson complained to Dr. Spencer of sleeplessness, diarrhea, loss of 
appetite, difficulties with thinking, and migraine headaches.  Dr. Spencer diagnosed Gibson with 
acute depression secondary to situational distress and prescribed an antidepressant.  Dr. Spencer 
                                                                                                                                                             
3) Such accident and injury must be the predominant cause as compared to all other causes 
combined of any consequence; 
4) The causes or injuries must exist in a real and objective sense; 
5) The condition must be one which constitutes a diagnosis under the American Psychiatric 
Association‟s most recent diagnostic and statistics manual, and must be diagnosed by a 
psychologist or psychiatrist licensed in the jurisdiction in which treatment is rendered.   
Id. at 584, 97 P.3d at 451 (paraphrasing requirements found in I.C. § 72-451). 
 
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wrote a letter to Ada County on behalf of Gibson on August 5, 1999, stating that Gibson was 
unable to participate in an upcoming personnel hearing because of “tremendous emotional 
duress.”  Dr. Spencer wrote a second letter to Ada County on August 20, 1999, stating that 
Gibson had been under “extreme distress” related to her work and that she suffered from anxiety, 
depression, panic attacks, poor memory, and the inability to focus.  Dr. Spencer again advised 
that she was unable to participate in an upcoming personnel hearing.  Subsequently, Ada County 
arranged for a physician, Dr. Charles D. Steuart, to examine Gibson to determine whether 
Gibson could attend a personnel hearing.  Dr. Steuart concluded that Gibson was not capable of 
effectively participating in the personnel hearing and recommended that Ada County delay the 
hearing.  Ada County eventually terminated Gibson effective December 27, 1999. 
On July 16, 2001, Gibson filed with the Commission a First Report of Injury and 
Worker‟s Compensation Complaint asserting a claim for worker‟s compensation benefits for an 
accident that allegedly occurred on July 20, 1999.  This claim was based upon alleged physical-
mental injuries resulting from the interviews of that date.   
Dr. Spencer continued to treat Gibson until October 24, 2001, when Dr. Spencer noted 
that Gibson was no longer depressed.  Subsequently, Gibson‟s attorney referred her to Dr. F. 
Lamarr Heyrend, a psychiatrist, who examined Gibson on October 16, 2002.  Dr. Heyrend 
diagnosed Gibson with PTSD and opined that her condition ought to be considered “physical” 
because it involved changes to structures deep within the brain.   
SIF sought to have Gibson evaluated by an independent psychologist, Dr. Cynthia 
Brownsmith, pursuant to I.C. § 72-433.  After unsuccessfully resisting the evaluation, Gibson 
was examined by Dr. Brownsmith on June 20, June 24, and July 11, 2003.  Dr. Brownsmith 
concluded that Gibson suffered from chronic dysthymia, undifferentiated somatoform disorder 
and anxiety, but not PTSD.  Dr. Brownsmith updated her diagnosis of Gibson on April 14, 2005.  
Dr. Heyrend administered an electroencephalogram on Gibson on March 31, 2005, which he 
claims confirms his diagnosis of PTSD.  Gibson was also evaluated by Dr. Joseph Lipetzky, a 
clinical psychologist on April 29, 2004.  Dr. Lipetzky concluded that Gibson did not suffer from 
PTSD.  
SIF sought to have Gibson evaluated by neurologist Dr. Richard Wilson.  Gibson 
objected to the evaluation and failed to appear for the examination despite an Order entered May 
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10, 2005, compelling her to do so.  Dr. Wilson eventually examined Gibson on August 24, 2005, 
and concluded that Gibson did not suffer from PTSD.  
The Commission conducted a hearing on September 12, 2005.  Dr. Heyrend was unable 
to attend the hearing, and he therefore testified by post-hearing deposition on November 17, 
2005.  At Dr. Heyrend‟s November 17, 2005 deposition he provided a compilation of treatises, 
labeled as Exhibit 2, that were alleged to be consistent with his diagnosis.  Counsel for Gibson 
attempted to admit Exhibit 2, but Respondents objected pursuant to the Commission‟s Judicial 
Rule of Practice and Procedure 10 because the exhibit had not been timely disclosed.   
The Referee issued his Findings of Fact, Conclusions of Law, and Recommendation on 
March 16, 2007, recommending that the Commission deny Gibson‟s claim.  The Referee also 
sustained Respondent‟s objection to Exhibit 2 of Dr. Heyrend‟s November 17, 2005 deposition.  
The Commission adopted the Referee‟s proposed findings of fact and conclusions of law as its 
own, by way of order, on March 16, 2007.   
II. STANDARD OF REVIEW 
This Court exercises free review over the Commission‟s legal conclusions.  Kessler ex. 
Rel. Kessler v. Payette County, 129 Idaho 855, 859, 934 P.2d 28, 32 (1997) (citing O’Loughlin v. 
Circle A Constr., 112 Idaho 1048, 739 P.2d 347 (1987)).  This Court “must liberally construe the 
provisions of the worker‟s compensation law in favor of the employee, in order to serve the 
humane purposes for which the law was promulgated.”  Jensen v. City of Pocatello, 135 Idaho 
406, 413, 18 P.3d 211, 218 (2000) (citing Murray-Donahue v. Nat’l Car Rental Licensee Ass’n., 
127 Idaho 337, 340, 900 P.2d 1348, 1351 (1995)).  However, this Court will not disturb the 
Commission‟s factual findings on appeal if the findings are supported by substantial and 
competent evidence.  I.C. § 72-732; Neihart v. Universal Joint Auto Parts, Inc., 141 Idaho 801, 
803, 118 P.3d 133, 135 (2005).  Substantial evidence is relevant evidence that a reasonable mind 
might accept to support a conclusion.  Page v. McCain Foods, Inc., 141 Idaho 342, 344, 109 
P.3d 1084, 1086 (2005) (citing Zapata v. J.R. Simplot Co., 132 Idaho 513, 515, 975 P.2d 1178, 
1180 (1999)).  When reviewing the Commission‟s decision, this Court must view all facts and 
inferences in the record in the light most favorable to the party who prevailed before the 
Commission.  Luttrell v. Clearwater County Sheriff’s Office, 140 Idaho 581, 583, 97 P.3d 448, 
450 (2004).   
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III. ANALYSIS 
This is the fifth time this Court has considered a matter arising from Gibson‟s termination 
from her employment with Ada County.  This Court first dealt with the matter in Gibson v. Ada 
County, 134 Idaho 710, 8 P.3d 1253 (1999), an unpublished decision.  In Gibson v. Ada County, 
138 Idaho 787, 69 P.3d 1048 (2003), this Court affirmed the district court‟s decision upholding 
Ada County‟s decision to deny Gibson access to documents generated by conflict counsel.  In 
Gibson v. Ada County, 139 Idaho 5, 72 P.3d 845 (2003), this Court vacated and dismissed 
Gibson‟s case seeking judicial review of the decision by Ada County‟s personnel hearing officer 
to terminate Gibson from her employment.  In Gibson v. Ada County, 142 Idaho 746, 133 P.3d 
1211 (2006), this Court affirmed the district court‟s decision dismissing Gibson‟s civil rights 
complaint, denying Gibson‟s petition for judicial review of her termination, and granting Ada 
County‟s motion for summary judgment in an action to recover overpayments.   
 
In this case, Gibson raises five issues on appeal.  Gibson argues: (1) that her claim is not 
barred for lack of notice because Ada County had actual knowledge of her alleged accident or 
injury for purposes of I.C. § 72-704; (2) that Exhibit 2 of Dr. Heyrend‟s November 17, 2005 
post-hearing deposition should not have been excluded; (3) that she suffered a compensable 
psychological injury pursuant to I.C. § 72-451; (4) that the Commission violated her rights under 
the Due Process Clause and the Equal Protection Clause of the 14th Amendment of the U.S. 
Constitution; and (5) that she is entitled to an award of attorney fees and costs on appeal.  
Respondents ask that this Court affirm the decision of the Commission and also request an award 
of attorney fees and costs on appeal.  Because we conclude that Gibson‟s claim is barred for lack 
of notice, we decline to address Gibson‟s remaining arguments on appeal.  We award 
Respondents costs and attorney fees on appeal. 
A. There is substantial and competent evidence supporting the Commission’s finding 
that Gibson’s claim is barred by a lack of notice. 
 
The Commission adopted the Referee‟s finding that Gibson failed to provide Ada County 
with timely written notice of her accident as required by I.C. § 72-701 and that Ada County did 
not have the knowledge required to apply I.C. § 72-604.  Gibson argues that the Commission‟s 
finding that Ada County did not have actual knowledge of her injury or accident was not 
supported by substantial and competent evidence.  We disagree.   
An employee suffering a personal injury caused by an accident arising out of and in the 
course of any employment covered by the worker‟s compensation law is required to give written 
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notice of the accident to the employer.  Page, 141 Idaho at 345, 109 P.3d at 1087.  Idaho Code § 
72-701 requires that the employer receive notice within 60 days of the accident.  An absence of 
notice or delay in giving notice does not bar an employee from making a worker‟s compensation 
claim where the employer: (1) had actual knowledge of the injury or occupational disease, or (2) 
the employer is not prejudiced by the delay or lack of notice.2  I.C. § 72-704.  Whether an 
employer had actual knowledge of an injury or occupational disease is a question of fact.  Page, 
141 Idaho at 345, 109 P.3d at 1087.  With regard to actual knowledge, the inquiry is whether an 
employer had “considerable knowledge” of an accident or injury.  Id. (citing Murray-Donahue, 
127 Idaho at 340, 900 P.2d at 1351). 
In the instant case, Gibson does not dispute that she did not provide Ada County with 
timely written notice of her accident.  Our inquiry thus turns to whether Ada County had 
considerable knowledge of Gibson‟s alleged accident or injury arising out of the interviews.  I.C. 
§ 72-704.  An injury is “a personal injury caused by an accident arising out of and in the course 
of employment covered by the worker‟s compensation law.”  I.C. § 72-102(18)(a).  Accident 
means “an unexpected, undesigned, and unlooked for mishap, or untoward event, connected with 
the industry in which it occurs, and which can be reasonably located as to time when and place 
where it occurred, causing an injury.”  I.C. § 72-102(18)(b).  Idaho Code § 72-102(18)(c) 
provides in pertinent part that: “„[i]njury‟ and „personal injury‟ shall be construed to include only 
an injury caused by an accident, which results in violence to the physical structure of the body.”   
Gibson argues at length that representatives of Ada County had actual knowledge that she 
suffered a “psychological workplace injury.”  However, the pertinent inquiry is not whether Ada 
County had considerable knowledge that Gibson manifested psychological symptoms following 
the interviews, rather, the inquiry is whether Ada County had considerable knowledge that 
Gibson suffered violence to the physical structure of her body.  The record indicates that up until 
the time that Gibson began treatment with Dr. Heyrend, Gibson consistently denied that she 
suffered any physical injury as a result of the interviews.  Furthermore, counsel for Gibson 
acknowledged at oral argument before this Court that Ada County was only put on notice that 
Gibson suffered a mental disorder and that Ada County did not have notice of any physical 
component of a brain injury.  Gibson did not advance her claim that the interviews caused 
                                                 
2  
On appeal, consistent with her position before the Commission, Gibson does not claim that Ada County 
was not prejudiced by the delay or lack of notice.  Rather, she asserts that Ada County had actual notice of her 
claimed injury.   
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changes in certain deep structures of her brain until over two years after the interviews.  Because 
Gibson denied suffering any physical injury for much of the instant litigation and the claim that 
she had suffered injuries to her brain was first raised much later, the Commission could 
reasonably conclude that Ada County did not have considerable knowledge that Gibson suffered 
a physical injury as a result of the interviews.  We conclude that substantial and competent 
evidence supports the Commission‟s finding that Ada County did not have the knowledge required to 
excuse Gibson‟s failure to give proper notice of her claim for worker‟s compensation benefits.  As 
this conclusion is dispositive of Gibson‟s appeal, we do not address Gibson‟s remaining claims of 
error.     
B.  Respondents are entitled to attorney fees and costs on appeal. 
Both parties request attorney fees on appeal.  Gibson requests an award of attorney fees 
pursuant to I.C. §§ 12-117 and 72-804.  Gibson is not the prevailing party on appeal and 
therefore is not entitled to an award of attorney fees and costs.    See Giltner, Inc. v. Idaho Dep’t 
of Commerce & Labor, 145 Idaho 415, 421, 179 P.3d 1071, 1077 (2008) (citing Mercy Med. Ctr. 
v. Ada Co., 143 Idaho 899, 903, 155 P.3d 700, 704 (2007)) (pertaining to I.C. § 12-117); Page, 
141 Idaho at 312, 109 P.3d at 275 (citing Hoskins v. Circle A. Constr., Inc., 138 Idaho 336, 343, 
63 P.3d 462, 469 (2003)) (pertaining to I.C. § 72-804).   
Respondents request an award of attorney fees and costs pursuant to I.C. § 12-121 and 
I.A.R. 11.1.  Idaho Appellate Rule 11.1 provides in pertinent part: 
The signature of an attorney or party constitutes a certificate that the 
attorney or party has read the notice of appeal, petition, motion, brief or other 
document; that to the best of the signer‟s knowledge, information, and belief after 
reasonable inquiry it is well grounded in fact and is warranted by existing law or a 
good faith argument for the extension, modification, or reversal of existing law, 
and that it is not interposed for any improper purpose, such as to harass, or to 
cause unnecessary delay or needless increase in the cost of litigation.   
 
Although this opinion has not addressed the issues advanced by Gibson other than whether Ada 
County had substantial knowledge of an injury, we have carefully examined Gibson‟s remaining 
claims.  Rather than devoting pages of dicta to these claims, we observe the following:  (1) 
Gibson‟s claim of erroneous exclusion of the exhibit from Dr. Heyrend‟s deposition is without 
merit; (2) her physical-mental claim woefully failed to meet the requirements of I.C. § 72-451, 
perhaps most notably in that it was based upon an opinion that was not supported by objective 
evidence and was inconsistent with the recognized criteria for diagnosis of PTSD as set forth in 
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the DSM-IV-TR;3 and (3) Gibson‟s claim that the Commission violated her constitutional rights 
is nothing more than a bald assertion, unsupported by legal authority or meaningful argument.  In 
short, by this appeal, Gibson has done little more than ask this Court to reweigh the evidence 
presented to the Commission and, implicitly, to substitute our view of the evidence for that of the 
Commission.  We conclude that the instant appeal was brought for an improper purpose and we 
award attorney fees to Respondents on appeal against Gibson‟s attorney, personally, pursuant to 
I.A.R. 11.1. 
IV. CONCLUSION 
We affirm the decision of the Commission and award Respondents attorney fees pursuant 
to I.A.R. 11.1. 
 
Justices BURDICK, J. JONES, W. JONES, and Justice Pro Tem TROUT CONCUR. 
 
                                                 
3  
The DSM-IV-TR is the version of the American Psychiatric Association‟s diagnostic and statistics manual 
applicable to the instant case.