Opinion ID: 2615033
Heading Depth: 1
Heading Rank: 2

Heading: is there substantial evidence in the record to support the board's application of equitable estoppel, implied waiver, and laches in denying wausau any setoff (or reimbursement) for social security survivor's benefits received by van biene?

Text: The Board concluded that Wausau impliedly waived its right to take a social security offset to both past and future workers' compensation benefits. In so doing the Board relied on the doctrine of waiver articulated in Milne v. Anderson, 576 P.2d 109, 112 (Alaska 1978) where we said: An implied waiver arises where the course of conduct pursued evidences an intention to waive a right, or is inconsistent with any other intention than a waiver, or where neglect to insist upon the right results in prejudice to another party... . To prove an implied waiver of a legal right, there must be direct, unequivocal conduct indicating a purpose to abandon or waive the legal right, or acts amounting to an estoppel by the party whose conduct is to be construed as a waiver. Id. at 112 (citations omitted). The Board found that there was no express waiver of the right to a social security offset by Wausau. The Board determined, however, that there had been an implied waiver. It stated: We find, under the facts of this case, that Petitioners impliedly waived their right to take a social security offset of both past and future workers' compensation benefits. Specifically, we find, under one of the alternative tests in Milne, that although Petitioners initially asserted their right to the SSA offset, their subsequent neglect in bringing up the offset during any ensuing discussions with Respondent resulted in prejudice to Respondent. Although Mr. Gerke recalls discussing the SSA offset with attorney Wagstaff, he was unable to recall dates, times and content of the conversations. The Board concluded that although Wausau initially asserted its right to the offset, Wausau's subsequent neglect in pursuing the offset for three years resulted in prejudice to Van Biene. In addition, the Board decided that Wausau should be estopped from taking any social security survivors' benefits offset. In making this determination the Board referred to elements of estoppel alluded to in Jamison v. Consolidated Utilities, 576 P.2d 97, 102 (Alaska 1978). These elements are: assertion of a position by word or conduct, reasonable reliance thereon by another party, and resulting prejudice. The Board determined that Van Biene could not have relied on any express statements regarding social security offsets because she did not learn of the possibility of any such offsets until 1989. The Board nevertheless found reasonable reliance on Van Biene's part based on its conclusion that she could have relied on her discussion with Gerke on the appropriate compensation rate, the resulting compromise in the rate, and Wausau's long period of inactivity before it finally was successful in obtaining information regarding Van Biene's social security benefits. Further the Board found that Hollis Van Biene was prejudiced when she relied on ... [Wausau's] statements, on her compensation rate and assertions to the lending company, in making her financial commitment to buy a home. [15] The type of implied waiver created by neglect to insist upon a right is, in reality, a type of equitable estoppel. This is implied in the language from Milne v. Anderson quoted above in that prejudice to another party is required as well as acts amounting to an estoppel by the party whose conduct is to be construed as a waiver. As one key element of estoppel is communication of a position, it follows that neglect to insist upon a right only results in an estoppel, or an implied waiver, when the neglect is such that it would convey a message to a reasonable person that the neglectful party would not in the future pursue the legal right in question. Our review persuades us that there is an absence of substantial evidence in the record to support the Board's holdings that application of the doctrines of implied waiver and estoppel preclude Wausau from obtaining setoffs or reimbursements for past or future social security benefits received, or to be received, by Van Biene. Of particular significance to our determination is the fact that Van Biene was apprised by Wausau, both orally and in writing, that worker's compensation benefits would be reduced by offsets in the event that she received social security survivor's benefits. Also of importance is the fact that no representations were made by Wausau to Hollis Van Biene that it would not seek to offset social security survivor's benefits in the event that she received such payments. We conclude, therefore, that a finder of fact could not reasonably find that a person in the position of Van Biene could reasonably interpret Wausau's conduct as amounting to an implied communication that no social security offset would be required. At best, such conduct subsequent to Gerke's conversation and letter indicates only neglect or an internal mistake. We therefore conclude that the Board lacked substantial evidence to support its invocation of implied waiver and estoppel against Wausau's attempts to assert its statutory rights to social security survivors' benefit offsets as well as reimbursement for overpayments of compensation made to Van Biene. REVERSED and REMANDED to the superior court with directions to REMAND to the Board for further proceedings consistent with this opinion.