No. 13621 IN THE SUPREME COURT OF THE STATE OF .?,%OPITANA 1978

PETE V. VIGUE, Claimant, Claimant and Respondent,-vsM & M CONSTRUCTION CO., Employer, and ARGONAUT NORTHWEST INEULXANCE CO., Defendant and Appellant, and F1 & ?,I CONSTRUCTION CO. 

### , Employer, and STATE COMPENSATION INSURANCE FUND, Defendant and Respondent, and NELSON LOGGING CO., Employer, and GLACIER GENERAL ASSURANCE CO., Defendant and Respondent.

Appeal from: Workers' Compensation Court Honorable William E. Hunt, Judge presiding. Counsel of Record: For Appellant: Harris, Jackson & Murdo, Helena, llontana Robert ?I. Murd.o argued, Helena, Yontana For Respondents: Robb and Botsford, Missoula, Montana Norman Robb argued, Missoula, Montana Thomas Keegan argued, Helena, !lantana Dexter Delaney, Missoula, Montana

Submitted: January 20, 1978 Decided: 

## FEB

# 1-1978 Filed: 

## X&r 

## A .#@

### Mr. JusticeJohn Conway Harrison..delivered the Opinion of the Court:

Defendant Argonaut Northwest Insurance Company appeals from the findings and conclusions of theWorkers' Compensation Court, entered September 2, 1976. The court concluded it lacked jurisdiction over the claim inquestion and the claim should properly come under thejurisdiction of the Idaho Industrial Accident Board. 

### It 

### is not disputed that claimant Pete V. Vigue was employed by M & M Construction Company, a corporation registered in the stateof Montana with 

### its corporate headquarters inMissoula, Montana. M & M 

### is engaged inroad construction and has operated exclusively inIdaho since 1972 or 1973. M & M 

### is insured under the workers' compensation laws of Idaho by appellantArgonaut and inMontana by respondent State Compensation Insurance Fund (State Fund). Claimant, a resident of Lolo, Montana, was hired by M & M to operate a "Cory" shovel on a road construction project inIdaho. M & M subcontractedpart of the operation to Nelson Logging Company, and Nelson Logging agreed to supply the equipment for the initialclearingwork. This equipment included a Cory shovel located inLolo, Montana. Claimant was told to accompany the shovel from Lolo to Idaho and drive a "flag car". On July 21, claimant met with Ray Richardson, a truck driver employed by M & M, to load the shovel onto a lowboy transport trailer for the triptoIdaho. Claimant was attempting toadjust the position of the shovel on the trailerwhen the shovel overturned. Claimant was injured in the accident.Claimant has filed claims for compensation inIdaho with appellant Argonaut and inMontana with respondent StateFund. StateFund investigated the Montana claim and requested a hearing before theWorkers' Compensation Court. A hearing was held involving claimant and allthree insurers: StateFund;: Argonaut; and Glacier General Assurance Company (the carrier forNelson Logging). The Workers' Compensation Court held it lacked jurisdiction over the claim, Basic tothe Court's decision 

### is its finding: "That, as a matter of law, the valid reciprocity agreement between the Stateof Montana and the Stateof Idaho iscontrolling in thismatter." In the reciprocity agreement, effective February 

### 1, 1968, the IndustrialAccident Board of Idaho agreed to: 

### "*

# *

# * assume and exercise extraterritorial jurisdiction over compensation claims of any Idaho workman injured in the Stateof Montana. 

# ** *I' The court found that claimant was an:"Idaho workman1'within the terms of the agreement. The effect of the reciprocity agreement 

### iscrucialbecause theWorkers' Compensation Act of Montana does not apply if the provisions of section 92-614(3), R.C.M. 1947, aremet: "If a worker from another stateand his employer from another stateare temporarily engaged inwork within this state, this act shallnot apply to them: "(a) if the employer and employee arebound by the pcovisions of theWorkers' Compensation Law or similar law of such other statewhich applies to them while they are in the state of Montana, and "(b) if theWorkers' Compensation Act of this state 

### is recognized and given effect as the exclusive remedy forworkers employed in this statewho are injured while temporarily employed in such other state.'' (Emphasis added.) The reciprocity agreement clearly stateshow it 

### is tobe implemented:"For the purpose of implementing the terms of this agreement, the parties agree upon the following procedures: "The Idaho IAB 

### willupon request and on behalf of an Idaho employer issue a certificate of extraterritorial coverage to the Montana IAB and the latterupon request and on behalf of a Montana employer 

### willissue 

### its certificate of extraterritorial coverage to the Idaho IAB. Such certificates may be cancelled or revoked atthe discretionof the issuing agency. Due notice of issuance, modification and cancellation of any such certificate shallbe given to the employer and tohis insurance carrier, if any." In the instant case no certificatewas ever obtained or introduced intoevidence to show that the Idaho Industrial Accident Board would exercise extraterritorial coverage while claimant was inMontana. The issuance of such a certificate 

### is expressly authorizedby statute, and 

### isprima facie evidence of the application of theWorkers' Compensation Law of the certifying state. Section 92-614(4), R.C.M. 1947. In the absence of the issuance of a certificate of extraterritorial coverage, it 

### is clear the reciprocity agreement was never properly implemented, and therewas no showing that claimant was covered by theworkers' compensation law of Idaho while inMontana. The finding of theWorkers' Compensation Court that the reciprocity agreement 

### is controlling 

### is erroneous. The judgment of theWorkers' Compensation Court 

### is reversed and the case 

### is remanded for furtherproceedings inaccord with this opinion. This appeal did not include a challenge to the finding of theworkers' Compensation Court that M & M, and not Nelson Logging, was claimant's employer. Therefore, this appeal is dismissed as toNelson Logging and 

### its insurer, Glacier General Assurance Company. 

# ,P-Wy ~htief ~ustice.

### We Concur: