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No. 85-370 IN THE SUPREME COURT OF THE STATE OF MONTANA
1986

WILLIAM STELLING, JR., Claimant and Appellant,

RIVERCREST RANCHES, INC., Employer, and STATE COMPENSATION INSURANCE FUND, Defendant and Respondent and Cross-Appellant.

APPEAL FROM:

The Workers' Compensation Court, The Honorable Timothy Reardon, Judge presiding.

COUNSEL OF RECORD: For Appellant: Lloyd E. Hartford argued, Billings, Montana For Respondent: Hughes, Alke, Kellner Helena, Montana For Amicus Curiae: Milodragovich, Dale & Dye; Lon J. Dale argued for Gary Larson, Missoula, Montana Rossbach & Whiston; John Whiston argued for Rubye Kauffman, Missoula, Montana
&

Sullivan; Mike McCarter argued,

Submitted: Decided: Filed:

July 24, 1986
December 1 2 , 1986

Clerk

Mr. Justice Frank B. Morrison, Jr. delivered the Opinion of the Court. Claimant, William Stelling, Jr., appeals the June 27, 1985, judgment of the Workers' Compensation Court which

awarded him only a small portion of the lump-sum advance he had requested. We affirm the lump-sum advance and dismiss

the remainder of Stelling's appeal for lack of standing. Stelling was injured January 5, 1981, in the scope and course of his employment with Rivercrest Ranches, Inc. He

continued to work through June 8, 1981, entered the hospital June 10, 1981, and underwent back surgery June 15, 1981. second operation was performed November 1, 1982. The State Compensation Insurance Fund commenced paying Stelling workers' compensation benefits June 9, 1981. also paid all of his related medical expenses.
It

A

Thereafter,

the Fund requested permission to relieve itself of liability by purchasing an annuity to provide Stelling with the

expected benefits to which he would be entitled. On December 6, 1984, Stelling filed a petition for hearing with the Workers' Compensation Court, asking that the Fund's request be denied and that he be awarded a substantial lump-sum advance. 15, 1985. A pre-trial conference was held February After the

The hearing was held March 20, 1985.

taking of a post-trial deposition and the filing of briefs by all parties, the matter was submitted to the Workers'

Compensation Judge on May 31, 1985. Meanwhile, on April 15, 1985, the Montana Legislature enacted Senate Bill 281 in response to this Court's decision in Willis v. Long Construction Co. 434, 41 St.Rep. (Mont. 1984), 690 P.2d

2050. Willis forbid discounting to present compensation claimants.

value lump-sum awards to workers'

The bill

amended

5

39-71-741, MCA, by

(1) creating new

criteria for establishing the need for a lump-sum award; and (2) requiring that lump-sum payments of permanent total

disability benefits be discounted at 7% for each year of the estimated compensation period. Thereafter, with the permission of the Workers'

Compensation Judge, Stelling amended his pre-trial order to include Contract Clause, due process and equal protection challenges to the application of S.B. 281 to his case. Findings of fact, conclusions of law and a judgment were entered June 27, 1985, finding claimant to be permanently totally disabled and entitled to $219 in weekly benefits and a partial lump-sum payment sufficient to satisfy the balance due on his 1984 pickup truck. request for a lump-sum award The judge denied claimant's sufficient to purchase an

annuity paying $1297 a month for twenty years and to purchase a $65,000 house and $12,000 in furnishings. Compensation application Judge of also held constitutional of S.B. 281 The Workers' retroactive establishing

that

portion

procedures for proving entitlement to a lump-sum payment. However, he found retroactive application of the discounting provision to be unconstitutional. Stelling challenges the constitutionality of S.B. again on appeal and raises the following issues: 1. amended Whether the application of
by

281

39-71-741, MCA, as (1985), in the

Ch.

471,

Laws

of

Montana

determination of workers' compensation benefits to be awarded to workers injured before April 15, 1985, (the effective date of the amendment):

A.

violates the Contract Clauses found in art. 1, S 10

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