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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Original Source: https://www.courts.wa.gov/opinions/pdf/D2%2043636-1-II%20%20Published%20Opinion.pdf ↗

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responded on July 28, stating that when Dellen sent its January 18, 2002 letter expressing intent

9
The legislature amended RCW 51. 14. 050 in 2010. LAWS of 2010, ch. 8, § 14004. The

amendments did not alter the statute in any way relevant to this case; accordingly, we cite the
current version of the statute.

No. 43636 -1 - II

to default on its self -insurance obligations, it lost all rights to the surety fund it had provided

under RCW 51. 14. 020( 2).

II. PROCEDURE

On September 19, 2008, the Department issued an order reiterating its July 28 decision

that Dellen had lost all rights and interest to its surety fund when it defaulted in January 2002 and

asked the Department to administer Dellen' s injured employees' claims. Dellen appealed this

Department order.

An Industrial Appeals Judge ( IAJ) ruled that ( 1) Dellen had defaulted on its RCW

51. 14. 020( 2) self -insured employer obligations and consequently lost its rights, title to, interest

in, and any right to control the surety; ( 2) Dellen did not comply with WAC 296 -15- 121( 8),

which set forth requirements for a former self insured
- employer that " terminates" its self -insurer

status, instead of " defaults" on its obligations; and ( 3) therefore, Dellen had " defaulted" under

WAC 296 -15 - 125. The IAJ issued an order affirming the Department' s September 19 2008

order and ruling that Dellen had forfeited all its interest in the surety fund. Dellen appealed the

IAJ' s decision to the Board.

The Board affirmed the IAJ' s rulings and entered the following conclusions of law: ( 1)

Dellen defaulted on its obligations as a self insured
- employer under RCW 51. 14. 020( 2) and