No. 87-454 

IN THE SUPREME COURT OF THE STATE OF MONTANA 

STATE OF MONTANA, ex rel., PACIFIC 

EMPLOYERS INSURANCE CO., 

Relator, 

-VSTHE WORKERS' COMPENSATION COURT OF THE 

STATE OF MONTANA, THE HONORABLE TIMOTHY 

W. REARDON, Presiding and PETER J. WORTS, 

Respondents. 

ORIGINAL PROCEEDING: 

COUNSEL OF RECORD: 

For Appellant: 

Utick & Grosfield; Andrew J. Utick argued, Helena, 

Montana 

For Respondent : 

Lloyd E. Hartford argued, Billings, Montana 

Hon. Timothy J. Reardon, Workers' Compensation Judge, 

Helena, Montana 

For Amicus Curiae: 

Crowley Law Firm; T.G. Spear, (America Ins. Co., et 

al.) Billings, Montana 

Faye B. McKnight & Roy Andes, (Family Mediation 

Services, et al.) Helena, Montana 

James E. Vidal, (Arco Ketals) Kalispell, Montana 

John H. Bothe, Columbia Falls, Montana 

Submitted: January 6, 1988 

Decided: February 3, 1988 

Filed: @$ 3 .Q&j 

2552 */ u Q 

Clerk 
Mr. Justice Fred J. Weber delivered the Opinion of the Court. 

This is an application for writ of supervisory control. 

Pacific Employers Insurance Company (Pacific) asks the Court 

to overturn the determination of the Workers' Compensation 

Court that the 1987 amendments to the Workers' Compensation 

Act concerning dispute resolution and mediation do not apply 

to this case. We have accepted original jurisdiction. We 

reframe the issue as follows: Do the 1987 amendments to the 

Workers' Compensation Act concerning dispute resolution and 

mediation apply retroactively to a case in which a petition 

was filed with the Workers' Compensation Court before July 1, 

1987? We now hold that the amendments do not apply in such a 

case. 

On January 30, 1987, claimant Mr. Worts filed a Petition 

for Emergency Hearing with the Workers' Compensation Court, 

asking that the court rule that he was entitled to temporary 

total disability benefits from a work-related injury suffered 

in 1983. Pacific is the insurer. A pretrial conference was 

held on February 18, 1987. The trial was not scheduled until 

July 20, 1987. 

In the meantime, the legislature enacted 1987 Mont. Laws 

464 (Ch. 464), effective July 1, 1987. The pertinent parts 

of that bill are codified at §§ 39-71-2401 and 2406 through 

2411, and 39-71-2905, MCA. The bill provides for mandatory 

mediation before claims may be tried in the Workers' Compensation Court. 

Based upon Ch. 464, Pacific filed a motion to dismiss. 

Mr. Worts opposed the motion, arguing that the amendments did 

not apply to cases in which a petition was filed with the 

Workers' Compensation Court prior to the effective date of 
Ck. 464. The court denied the motion to dismiss, and Pacific 

filed its application for writ of supervisory control. This 

Court granted oral argument on the issue stated above. In 

addition, several amicus curiae briefs have been filed. 

Do the 1987 amendments to the Workers' Compensation Act 

concerning dispute resolution and mediation apply retroactively to a case in which a petition was filed with the 

Workers' Compensation Court before July 1, 1987? 

The Workers' Compensation Court is a creature of statute. It has no constitutional status, as its jurisdiction is 

fixed by the legislature. Under the law prior to July 1, 

1987, the Workers' Compensation Court had exclusive jurisdiction to make determinations concerning disputes regarding 

benefits when a party filed a petition with the court. 

Section 39-71-2905, MCA (1985). 

In the comprehensive amendments to the Workers' Compensation Act made in Ch. 464, the legislature provided that 

after July 1, 1987, the parties must resort to mediation 

before the Workers' Compensation Court acquires jurisdiction 

of a dispute over benefits. Thus the legislature redefined 

the court's acquisition of jurisdiction. The legislature 

said nothing in Ch. 464, however, as to the effect of the 

amendments on disputes over which the court had already 

acquired jurisdiction. 

The pertinent statutes are these: 

39-71-2401. Disputes-jurisdiction-evidence-settlement requirements-mediation. (1) A dispute concerning benefits arising under this chapter or chapter 

72, other than the disputes described in subsection 

(2), must be brought before a department mediator 

as provided in this part. If a dispute still 
exists after the parties satisfy the mediation 

requirements in this part, either party may petition the workers' compensation court for a 

resolution. 

39-71-2406. Purpose. The purpose of this part is 

to prevent when possible the filing in the workers' 

compensation court of actions by claimants or 

insurers relating to claims under chapter 71 or 72 

of this title if an equitable and reasonable resolution of the dispute may be effected at an earlier 

stage. To achieve this purpose, this part provides 

for a procedure for mandatory, nonbinding 

mediation. 

39-71-2408. Mandatory, nonbinding mediation. (1) 

Except as otherwise provided, in a dispute arising 

under chapter 71 or 72 of this title the insurer 

and claimant shall mediate any issue concerning 

benefits and the mediator shall issue a report 

following the mediation process recommending a 

solution to the dispute before either party may 

file a petition in the workers' compensation court. 

(2) The resolution recommended by the mediator is 

without administrative or judicial authority and is 

not binding on the parties. 

39-71-2905. Petition to workers' compensation 

judge. A claimant or an insurer who has a dispute 

concerning any benefits under chapter 71 of this 

title may petition the workers' compensation judge 

for a determination of the dispute after satisfying 

dispute resolution requirements otherwise provided 

in this chapter. The judge, after a hearing, shall 

make a determination of the dispute in accordance 

with the law as set forth in chapter 71 of this 

title. If the dispute relates to benefits due a 

claimant under chapter 71, the judge shall fix and 

determine any benefits to be paid and specify the 

manner of payment. After parties have satisfied 
dispute resolution requirements provided elsewhere 

in this chapter, the workers1 compensation judge 

has exclusive jurisdiction to make determinations 

concerning disputes under chapter 71, except as 

provided in 39-71-317 and 39-71-516 . . .. 

Chapter 464 also included section 72, which is not in 

the Montana Code Annotated. It states as follows: 

Section 72. Applicability. (1) Sections 8 and 52 

through 57 [the mediation statutes] apply retroactively, within the meaning of 1-2-109, to all 

injuries and diseases, regardless of the date of 

occurrence. With respect to rehabilitation disputes, sections 8 and 52 through 57 apply retroactively, within the meaning of 1-2-109, unless the 

division had jurisdiction over the dispute under 

the law in effect at the time of injury. 

(2) The remaining portions of this act apply only 

to injuries, diseases, and events occurring after 

June 30, 1987. 

In the present case, a petition was filed in the Workers' Compensation Court before July 1, 1987. Ch. 464 provides for mediation before a petition is filed. As is 

apparent from § 39-71-2406, MCA, the purpose of Ch. 464 is to 

prevent the filing of petitions with the Workers1 Compensation Court. This suggests that Ch. 464 was not intended to 

be applied where a filing had already taken place. That is 

consistent with 5 39-71-2905, MCA (1985), which granted 

jurisdiction to the court upon the filing of a petition prior 

to July 1, 1987. We conclude that the statement in section 

72 that the mediation statutes apply to "all injuries and 

diseases, regardless of the date of occurrence" does not 

override these implied limitations. As a matter of statutory construction, the purpose of Ch. 464 would not be served 

if it were construed to include cases in which petitions had 
already been filed with the Workers' Compensation Court. We 

therefore hold that the 1987 amendments to the Workers' 

Compensation Act concerning dispute resolution and mediation 

do not apply retroactively in cases in which petitions were 

filed with the Workers' Compensation Court before July 1, 

1987. 

- 

Retired Justick Frank I. Has !? ell 

sitting for Justice R.C. McDonough