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

Citation: Wash. Court of Appeals published opinion — D2 43636-1-II Published Opinion.pdf
Jurisdiction: Washington (state)
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From January 2002 to December 31, 2005, Dellen continued some operations

employees. Administrative Record ( AR) at 95.

In January 2002, Dellen' s Chief Financial Officer, Eugene Olsen, contacted Larry

Wilkinson, the Department' s self -insured certification manager, asking how the Department

could take over the administration of Dellen' s ongoing injured employee claims. Wilkinson told

Olsen that the Department would take over administration of the claims only if Dellen

defaulted "; Wilkinson advised Olsen to send a notice of " default. "6 Administrative Transcript

AT) at 44.

I. DELLEN' S INDUSTRIAL INSURANCE ACT DEFAULT

Soon thereafter, on January 18, 2002, Olsen sent the Department a letter ( 1) giving notice

that Dellen was electing to " default" on payment of injured workers' claims under the Act' s self-

insured employer program,7 and ( 2) asking the Department to take over administration of these
8
claims. AR at 111. Dellen provided the Department with a $ 422, 853. 81 surety deposit to cover

these claims. In response, Wilkinson retrieved Dellen' s injured employee claims files and turned

6 Wilkinson did not inform Olsen that by defaulting, Dellen would forfeit all right and interest to
its surety bond; nor did Olsen inquire about this subject.

WAC 296 -15- 125( 1) provides:
A default occurs when a self -insured employer no longer provides benefits to
its injured workers in accordance with Title 51 of the Revised Code of
Washington. A default can be a voluntary action of the self -insured employer, or
an action brought on by the employer' s inability to pay the obligation.

8 The letter contains a typographical error: It mistakenly states the year as 2001 instead of 2002.