Opinion ID: 2634086
Heading Depth: 1
Heading Rank: 4

Heading: The Derivative Nature of the Fund's Liability

Text: ¶ 15 The special indemnity statutes do not impose a primary or original obligation upon the Fund. As Levi v. Special Indemnity Fund, 1964 OK 32, ¶ 7, 389 P.2d 620, 621-622, explained: The Special Indemnity Fund Act does not undertake to cast upon the Fund prime liability which could be viewed as original and wholly distinct, independent and disconnected from that of the last employer. What that law does contemplate is rather characterized as an apportionment or division of obligation between the employer and the Fund in accordance with the statutory formula. Special Indemnity Fund v. Farmer, et al, 195 Okl. 262, 156 P.2d 815. ¶ 16 The Fund's obligation is derived from the anterior obligation of the employer, it merely supplements the employer's obligation, and it does not attach until the extent of the employer's primary liability for the subsequent work-related injury has been judicially determined. J.C. Penney Co. v. Crumby, 1978 OK 80, ¶ 10, 584 P.2d 1325, 1329. We have repeatedly recognized the derivative nature of the Fund's liability. Id.; Levi v. Special Indemnity Fund, 1964 OK 32 at ¶ 9, 389 P.2d at 622; Special Indemnity Fund v. Mickey, 1977 OK 38, ¶ 6, 563 P.2d 123, 125; Reynolds v. Special Indemnity Fund 1986 OK 64 at ¶ 11, 725 P.2d at 1268.