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Wash. Court of Appeals published opinion — D2 43636-1-II Published Opinion.pdf

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Wash. Court of Appeals published opinion — D2 43636-1-II Published Opinion.pdf
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DELLEN WOOD PRODUCTS, INC., No. 43636 -1 - II

Appellant,

V.

WASHINGTON STATE DEPARTMENT OF
LABOR AND INDUSTRIES,
PUBLISHED OPINION

HUNT, J. — Dellen Wood Products, Inc. ( Dellen) appeals the superior court' s affirmance

of the Board of Industrial Insurance Appeals' ( Board) decision that Dellen defaulted on its

insured employer and
obligations as a self - thereby lost its right to its surety funds. Dellen' s first

argument presents an issue of first impression: whether the superior court erred in construing

default" under the Industrial Insurance Act' to mean a self insured
- employer' s failure to satisfy

its legal obligations under the Act, instead of ruling that " default" means only a self -insured

employer' s failure to pay workers' compensation benefits. Dellen also argues that the superior

court erred in ruling that ( 1) Dellen " defaulted "2 under the Act even though it intended to

3
terminate " its self -insured employer obligations under the Act; and ( 2) the Washington State

Title 51 RCW; RCW 51. 14. 020.

2
Br. of Appellant at 20.

3
Br. of Appellant at 22.
             

No. 43636- 1- 11

Department of Labor and Industries ( Department) did not violate Dellen' s due process rights in

retaining the excess surety funds.

We hold that as used in section RCW 51. 14. 020 of the Industrial Insurance Act, " default"

means a self -insured employer' s failure to satisfy any of its multiple legal obligations under the

Act, not solely its failure to satisfy its single obligation to pay workers' compensation benefits.

We further hold that substantial evidence supports the superior court' s ruling that ( 1) Dellen