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
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No. 43636 -1 - II

them over to the Department. The Department administered these claims for almost two and a

half years until the last Dellen employee claim closed in May 2004.

After Dellen' s January 2002 default letter, ( 1) Dellen did not file quarterly or annual

reports with the Department, ( 2) Dellen did not pay the Department any industrial insurance

assessments, and ( 3) the Department paid Dellen' s injured workers' claims. A year later, in

January 2003, Wilkinson reported to Dellen that the Department had " assumed jurisdiction" over

Dellen' s workers' claims and that the surety bond' s balance was $ 403, 833. 58. Administrative

Record Exhibits (ARE) (Ex. 20).

A year later, in 2004, Dellen filed for bankruptcy. In connection with Dellen' s

bankruptcy proceeding, Wilkinson filed a declaration stating that ( 1) Dellen had surrendered its

insurance certification
self - to the Department on December 31, 2001; ( 2) Dellen had defaulted

on its self insurance
- obligations on January 31, 2002 ( one month later); and ( 3) as a result of this

default, Dellen has lost its right and title to any interest in and right to control its surety. ARE

Ex. 13).

Three years later, on June 19, 2008, Dellen sent the Department a letter requesting ( 1) the

return of all but $20, 000 of its remaining surety fund, and ( 2) treatment of its January 2002 letter

as Dellen' s written notice to terminate its status as a self -insurer under RCW 51. 14. 0509. Dellen

stated that the last day any employees had worked for Dellen had been December 31, 2001, and

the last day Dellen had operated as a business had been September 30, 2005. The Department