ADJ9094160 · November 13, 2024

The Rapid City Thrillers waived personal jurisdiction by making a general appearance and entering into a Compromise and Release; insurance coverage existed for California; liability under section 5500.5 was properly assigned to Rapid City Thrillers; applicant cannot proceed against Tulsa Fast Breakers as last year of injurious exposure liability falls on Rapid City Thrillers who settled.

From the decision · page 75500.5 because applicant did not play a single game with them in California, and thus, no personal jurisdiction exists over the Rapid City Thrillers Applicant further argues that no insurance coverage existed in California and that any dispute as to coverage should have gone to mandatory arbitration.

Rapid City Thrillers waived personal jurisdiction by making a general appearance and entering into a Compromise and Release settlement.

Favours Defendant prevailed

This waived their right to contest personal jurisdiction, allowing the Board to exercise jurisdiction over them.

From the decision · page 7Applicant's petition fails to acknowledge that the Rapid City Thrillers waived personal jurisdiction in this matter. It may be true that the Rapid City Thrillers had valid arguments that they could have raised as to personal jurisdiction. But they never raised them. As soon as one makes a general appearance in a case, personal jurisdiction is waived. Not only did the Rapid City Thrillers make general appearances, but they also entered into a Compromise and Release settlement and submitted it to the Appeals Board for approval. Personal jurisdiction was clearly waived in this case.

Insurance carrier Allianz admitted coverage in California and participated in the Compromise and Release settlement.

Favours Defendant prevailed

This admission established that Rapid City Thrillers had insurance coverage in California, supporting liability under section 5500.5.

Applicant played for Tulsa Fast Breakers during the injurious exposure period but liability falls on Rapid City Thrillers as last lawfully insured employer who settled.

Favours Defendant prevailed

This legal principle under Labor Code section 5500.5 bars applicant from proceeding against Tulsa Fast Breakers after settling with Rapid City Thrillers.

From the decision · page 7Whether applicant played any games in California with Rapid City Thrillers is immaterial. The Tulsa City Fast Breakers employed applicant during the injurious exposure period and their employment was later in time. This case is no different than any other cumulative injury claim where applicant has multiple employers over the span of many years. The employer(s) who employ applicant during the last covered year of injurious exposure is liable for the entire claim. (§ 5500.5.) The fact that applicant entered into a Compromise and Release with the last liable employer does not permit applicant to proceed against other defendants further back in time.

Orthopedic QME report dated October 6, 2015, referenced in the Compromise and Release settlement with Rapid City Thrillers.

International Shoe Co. v. Washington (1945) 326 U.S. 310

Personal jurisdiction requires minimum contacts with the forum state to satisfy due process.

Applied to determine personal jurisdiction over Rapid City Thrillers.

From the decision · page 5Due process requires that a defendant have certain minimum contacts with a state so that the maintenance of an action in the state does not offend traditional notions of fair play and substantial justice. (International Shoe Co. v. Washington (1945) 326 U.S. 310 [66 S. Ct. 154, 90 L. Ed. 95].)

Labor Code section 5500.5(a)

Liability under Labor Code section 5500.5 falls on the last year of lawfully insured employment if employers are uninsured.

Applied to assign liability to Rapid City Thrillers as last lawfully insured employer.

From the decision · page 7In the event that none of the employers during the above referenced periods of occupational disease or cumulative injury are insured for workers' compensation coverage or an approved alternative thereof, liability shall be imposed upon the last year of employment exposing the employee to the hazards of the occupational disease or cumulative injury for which an employer is insured for workers' compensation coverage or an approved alternative thereof.

Labor Code section 5275

Disputes over insurance coverage are subject to mandatory arbitration under Labor Code section 5275, but coverage admitted by insurer is not disputable.

Applied to reject applicant's argument that coverage dispute should go to arbitration.

From the decision · page 9The last argument raised is that the WCJ was without power to find that insurance coverage existed with the Rapid City Thrillers as issues of coverage are subject to mandatory arbitration. (§ 5275.) This argument borders on frivolous. Section 5275 exists to resolve disputes when coverage is denied. When an insurance company admits that coverage exists, applicant cannot dispute coverage in good faith.

Applicant did not play any games in California with Rapid City Thrillers but they waived personal jurisdiction by general appearance and settlement.

From the decision · page 7Applicant's petition fails to acknowledge that the Rapid City Thrillers waived personal jurisdiction in this matter. It may be true that the Rapid City Thrillers had valid arguments that they could have raised as to personal jurisdiction. But they never raised them. As soon as one makes a general appearance in a case, personal jurisdiction is waived. Not only did the Rapid City Thrillers make general appearances, but they also entered into a Compromise and Release settlement and submitted it to the Appeals Board for approval. Personal jurisdiction was clearly waived in this case.

Insurance carrier Allianz admitted coverage in California and participated in the Compromise and Release settlement.