LEACH, J.
¶ 1 The Department of Labor and Industries (Department) appeals a trial court decision awarding Bart A. Rowley Sr. industrial insurance benefits and presents an issue of first impression. We must decide what burden of proof and standard of proof apply when the Department claims the felony payment bar of RCW 51.32.020 prevents a worker from receiving benefits for an injury sustained in the course of employment.
¶ 2 Because courts liberally construe the Industrial Insurance Act, Title 51 RCW, to provide coverage and defer to the Board of Industrial Insurance Appeals (Board) in its area of expertise, we adopt the Board's conclusion that the Department has the burden of proving the felony payment bar by clear, cogent, and convincing evidence. But because the trial court erroneously required a laboratory test to establish a substance as a narcotic, we remand for further proceedings consistent with this opinion.
¶ 3 Bart Rowley worked as a truck driver for 33 years and spent 6 years working for Joseph B. Anderson.
¶ 4 Kent Police Officer Donevan Dexheimer went to the Harborview Medical Center emergency room to investigate. Dexheimer, a certified drug recognition expert, had training to perform a 12-step drug influence evaluation. An emergency staff member told him about a "surprise" found in Rowley's pocket: a small plastic "baggie" with smiley faces on it. By the time Dexheimer arrived, hospital staff had placed Rowley's clothes in the trash. Staff also dumped the white substance in the baggie in the sink and placed the baggie in the trash. At Dexheimer's request, a nurse retrieved the baggie from the trash. The baggie was "in a trash bag, a large trash bag that contained several smaller garbage bags that contained Mr.
¶ 5 Dexheimer placed the unconscious Rowley under arrest for DUI (driving under the influence of an intoxicant). Dexheimer gave another nurse two vials to hold blood samples, which the nurse took from Rowley in Dexheimer's presence. Dexheimer labeled the samples and gave the vials and the baggie to Trooper Nicholas King. King performed a field test on the substance in the baggie and determined it was likely methamphetamine. Though the blood samples were sent to the state toxicology lab, the baggie was not. Subsequent toxicology testing of the blood samples revealed 0.88 milligrams per liter of methamphetamine.
¶ 6 Rowley sustained extensive injuries, including a severed spinal cord. He remained in an induced coma for 40 days following the accident and has no memory of events from several days before the accident until 40 days afterward. He remains partially paralyzed and confined to a wheelchair.
¶ 7 In an October 27, 2008, order, the Department rejected Rowley's industrial injury claim and required repayment of time-loss benefits in the amount of $3,542.88. The order cited RCW 51.32.020
¶ 8 On July 8, 2011, an industrial appeals judge (IAJ) reversed the Department's order, concluding that Rowley's "injury did not result from the deliberate intention of Mr. Rowley himself while he was engaged in the attempt to commit, or in the commission of, a felony, within the meaning of RCW 51.32.020." The Department appealed the IAJ's order. On January 30, 2012, in a split decision, the Board likewise reversed the Department's January 13, 2009, order, concluding that "Mr. Rowley's industrial injury did not occur while he was engaged in the attempt to commit, or in the commission of, a felony, within the meaning of RCW 51.32.020."
¶ 9 The Department appealed to Pierce County Superior Court, which affirmed the Board's decision on December 7, 2012. The superior court adopted the Board's legal conclusion that "[t]he Department bore the burden of proving, by clear, cogent and convincing evidence that Mr. Rowley's injury occurred when he was in the commission of a felony, within the meaning of RCW 51.32.020, which burden the Department did not meet." The court also concluded, "Absent a confirming laboratory test the Department did not prove the white substance in the baggie, found in Mr. Rowley's clothes, was methamphetamine." The Department appeals.
¶ 10 In workers' compensation cases, this court reviews a superior court judgment as it does in other civil cases.
¶ 11 In this case we address three issues in the order identified: (1) what burden of
¶ 12 Washington's Industrial Insurance Act reflects a legislatively imposed compromise between employers and workers.
Because the Industrial Insurance Act is remedial in nature, courts liberally construe its provisions "in order to achieve its purpose of providing compensation to all covered employees injured in their employment, with doubts resolved in favor of the worker."
¶ 13 A worker who applies for benefits must prove an injury in the course of employment.
¶ 14 The parties do not dispute that Rowley's injury occurred in the course of his employment. However, the Department alleged that Rowley possessed methamphetamine when injured and ordered Rowley to repay the time-loss compensation previously paid to him. Possession of methamphetamine is a felony under the Uniform Controlled Substances Act, chapter 69.50 RCW.
¶ 15 In Rowley's appeal, the Board concluded that once a worker has established a prima facie case, the burden shifts to the Department "to prove by at least clear, cogent, and convincing evidence that the worker was injured while engaged in the attempt to commit or the commission of a felony as defined under state or federal criminal law." The superior court affirmed this legal conclusion.
¶ 16 The Department disagrees with this interpretation of RCW 51.32.020. It contends that Rowley must make an initial prima facie showing both that he was injured in the course of employment and that he was not engaged in the commission of a felony when injured. It also asserts that the preponderance of the evidence standard of proof applies rather than the clear, cogent, and convincing standard.
¶ 17 On cross appeal, Rowley makes three arguments. First, he contends that a worker establishes a prima facie entitlement to benefits by showing that an injury occurred in the course of employment. Next, he claims that when the Department asserts the felony payment bar, it must prove a felony conviction. Alternatively, he claims the Department must prove beyond a reasonable doubt that a worker's injury occurred during the commission of a felony.
¶ 18 We agree with the superior court: the Department must prove facts establishing the felony payment bar by clear, cogent, and convincing evidence.
¶ 19 We first address the burden of proof. As noted by the Board, felony payment bar appeals differ from ordinary industrial insurance appeals. The felony payment bar creates a statutory exception to the general rule that the Industrial Insurance Act
¶ 20 The legislative history for the felony payment bar in chapter 51.32 RCW provides no indication of any legislative intent to treat the absence of felonious conduct as an element of an industrial insurance claim. Proof that an industrial injury occurred during the commission of a felony does not negate any element of an industrial insurance claim. Thus, we conclude that the trial court properly treated the felony payment bar as an affirmative defense to be proved by the Department. We note that this allocation of the burden of proof furthers the general policy of construing the Industrial Insurance Act liberally "in order to achieve its purpose of providing compensation to all covered employees injured in their employment, with doubts resolved in favor of the worker."
¶ 21 Citing Stafford v. Department of Labor & Industries,
¶ 22 We next address the standard of proof. The preponderance of the evidence standard of proof usually applies in industrial insurance appeals.
¶ 23 For example, in American Products Co. v. Villwock,
¶ 25 While not controlling, the construction and application of a statute by an administrative agency charged with its enforcement often provides a valuable aid to the courts and should be given great weight.
¶ 26 Here, the legislature has not provided any standard of proof for the felony payment bar under RCW 51.32.020. Consistent with the purpose of the Industrial Insurance Act, the policy of liberal construction of the act, and other decisions of the Board involving the standard of proof, the Board adopted a clear, cogent, and convincing standard of proof. It provided a sound analysis for its decision that recognizes the significant differences and consequences between a felony payment bar appeal and an ordinary industrial insurance appeal. The trial court appropriately deferred to the expertise of the Board on this issue. Because we find the Board's justification for its decision persuasive, we hold that the State must prove the facts supporting the felony payment bar under RCW 51.32.020 by clear, cogent, and convincing evidence to deny a worker industrial insurance benefits the worker should otherwise receive.
¶ 27 The Department contends that Mercer v. Department of Labor & Industries
¶ 28 The Department also points to statutory exclusions in RCW 51.12.020 to show that a claimant has the burden to establish that he or she does not fall within these
¶ 29 We next address Rowley's arguments on cross appeal about the standard of proof. Rowley claims that the felony payment bar only applies if the Department proves a felony conviction. Alternatively, he contends that the Department must prove beyond a reasonable doubt the facts supporting the felony payment bar. We disagree with both contentions.
¶ 30 Although this case involves alleged criminal conduct, it is a civil case governed by civil law.
¶ 31 Alternatively, Rowley argues that due process requires that the Department should have to prove felonious conduct beyond a reasonable doubt. Rowley relies upon Mathews v. Eldridge
¶ 32 Next, we address the Department's challenge to the superior court's conclusion of law that "absent a confirming laboratory test the Department did not prove the white substance in the baggie, found in Mr. Rowley's clothes, was methamphetamine." The Department contends that it can satisfy the clear, cogent, and convincing standard of proof for the identity of the white substance without a laboratory test. We agree.
¶ 33 In a criminal prosecution, without a laboratory test, the State can establish beyond a reasonable doubt the identity of a controlled substance with lay testimony and circumstantial evidence.
¶ 34 Finally, we address the Department's challenge to the trial court's conclusion of law that the "Department could not reject a claim under the felony provision of
¶ 35 The Department argued to the trial court that the plain language of RCW 51.32.020 allowed the Department to properly reject Rowley's claim. The Department properly challenges the trial court's conclusion of law on appeal.
¶ 36 The relevant portion of the statute containing the felony payment bar reads,
¶ 37 The Department must be able to reject claims when payments are prohibited. Under the Industrial Insurance Act, the Department has powers expressly granted as well as implied powers.
¶ 38 The Department cites In re Mathieson,
¶ 39 When the Department appeals, the worker can recover attorney fees under RCW 51.52.130(1) if the worker's "right to relief is sustained." Because we must remand this matter to the trial court to decide if the Department presented sufficient evidence to prove Rowley possessed methamphetamine, we deny Rowley's fee request.
¶ 40 Because courts liberally construe the Industrial Insurance Act to provide coverage, we adopt the Board's conclusion that the Department has the burden of proving the felony payment bar of RCW 51.32.020 by clear, cogent, and convincing evidence. Because the trial court erroneously required a laboratory test to establish the identity of the substance allegedly possessed by Rowley, we remand for further proceedings consistent with this opinion.
WE CONCUR: TRICKEY, and BECKER, JJ.