Court Opinion

ID: 9688939
Source: CourtListenerOpinion
Date Created: 2023-08-24 18:13:52.319743+00
Date Added: 2024-06-11T18:18:43.144325
License: Public Domain

*623SABERS, Justice
(dissenting).
[¶ 42.] I dissent.
[¶ 43.] Homestake has a vested right to pursue reimbursement from .Fund. As the majority opinion states in paragraph 21: “Under our workers’ compensation statutes, Homestake’s right to make these claims against the Fund vested at the time of the injuries.” Gordon v. St. Mary’s Healthcare Center, 2000 SD 130, ¶ 19, 617 N.W.2d 151, 156; Salmon v. Denhart Elevators, 72 S.D. 110, 118, 30 N.W.2d 644, 648 (1948).
Rights and obligations of an interested party under the Workmen’s Compensation Law become vested at the date of a compensable accident, unless death results. Until such time as an accident occurs the [Legislature may change the scale of weekly or other benefits, but to make such a change after the accident occurs would impair the obligations of contracts.

Id.

[¶ 44.] The majority opinion also cites to South Dakota Subsequent Injury Fund v. Homestake Mining Company, 1999 SD 159, 603 N.W.2d 527, in footnote one,’ which sets forth the purpose of Fund.
The SIF was created under South Dakota [workers’] compensation law for the purpose of encouraging employers to “hire or retain disabled or handicapped workers.” Those participating in the fund are éntitled to be reimbursed from SIF for that portion of the disability sustained by the previously injured employee that occurred because of or was aggravated by the existence of a previous injury or physical condition. The money within the fund comes from assessments made by the South Dakota Division of Insurance to [workers’] compensation insurance carriers and self-insured employers.
Id. at ¶ 14, 603 N.W.2d at 530 (internal citations omitted) (emphasis added).
[¶ 45.] Homestake’s rights against Fund vested before the Legislature’s attempted repeal of Fund in 1999. Home-stake submitted its claims to Fund prior to June 30, 1999, thus making Fund aware that it intended to preserve its rights to reimbursement. At all times, Fund knew of Homestake’s claims. It cannot claim ignorance or surprise at their existence. Simply stated, Fund can claim no harm as a result of allowing Homestake to pursue reimbursement for its vested workers’ compensation claims.
[¶ 46.] Moreover, the repeal of SDCL 62-4-34.1 during the 1999 Legislative Session and the 2001 enactment of SDCL 62-4-34.7 purported to bar Homestake from claiming reimbursement from Fund for its vested claims. By prohibiting Homestake from seeking reimbursement for vested claims, from a fund which Homestake paid into, the Legislature negated the very purpose of Fund, which is to encourage employers to hire or retain disabled or handicapped workers and reimburse the employers if the employees suffer work-related injuries.
[¶ 47.] The Legislature should not be permitted to arbitrarily eliminate statutes under which these vested claims were created. By condoning the Legislature’s actions, the majority opinion is allowing the Legislature to deprive Homestake of its own money.
[¶48.] At all times material herein, Fund was on notice of Homestake’s claims. Under Smith v. Neville, a unanimous opinion, Fund should be estopped from claiming otherwise. 539 N.W.2d 679 (S.D.1995). In Smith, a motorist, who was involved in a collision with a state snowplow, received a check from the state’s claims adjuster for property damage. Id. at 680-81. The motorist then filed suit, seeking damages *624for personal injuries. Id. The State moved for summary judgment alleging that the motorist failed to provide timely notice to the State. Id. This Court determined that the State’s actions, specifically the adjuster’s act of sending the motorist a check, “[would have caused] an objectively reasonable person to believe that the proper authorities of the State had received notice and that nothing else was necessary on the part of the private citizen to have his claim processed.” Id. at 682. Accordingly, the State and its employee were estopped from claiming a defense of failure to timely notify in order to “prevent manifest injustice.” Id. (citation omitted).
[¶ 49.] In this case, an objectively reasonable person would not only believe, but know, that Fund was on notice of Home-stake’s claims. In fact, it is undisputed that Fund knew. To prevent manifest injustice, Fund should be estopped from now claiming that Homestake’s vested claims are untimely. We should reverse and remand to the trial court to decide these claims on their merits. Anything short of that is robbing Homestake of its own money-