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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Reply Br. of Appellant at 3 ( quoting AT at 44).

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No. 43636 -1 - II

B. Dellen " Defaulted" under the Act

Dellen challenges the superior court' s findings of fact that it " defaulted" on its

obligations and that Dellen did not " terminate" its status as a self -
insured employer under the

Act. Dellen argues that the superior court erred in entering these findings because ( 1) Dellen

defaulted on paying its employees benefits and after ending its status as a self -insured employer,

2) Dellen failed to file annual or quarterly reports, ( 3) Dellen failed to pay assessments, and ( 4)

Dellen' s January 2002 letter informing the Department of its election to " default" did not

constitute a default under the Act because Dellen used the word " default" only because of the

Department' s instructions and Dellen instead intended the letter to be 'a notice of "termination"

of self -insurer status under RCW 51. 14. 050. Br. of Appellant at 20. These arguments fail.

1. Dellen' s letter elected " default"

Under WAC 296 -15- 125( 1), a " default" occurs when a self -insured employer no longer

provides benefits to its injured workers in accordance with Title 51 RCW. A default can be a

voluntary action" of the self -insured employer or an action precipitated by the self insured
-

employer' s inability to pay its industrial insurance obligations. WAC 296 -15- 125( 1). When

such a default occurs, the Department takes over administration of the former self -insured

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employer' s injured workers' benefits claims. RCW 51. 14. 060( 2).

In contrast, when an employer " terminates" its self insured
- status, the Department does