American Home Assurance v. Liberty Mutual Fire Insurance Company

Summary

The Iowa Supreme Court held that a workers’ compensation insurer seeking indemnity or contribution from another carrier must obtain an Iowa Code section 85.21 reimbursement order before the evidentiary hearing in the underlying proceeding. American Home Assurance paid benefits under an arbitration award but did not file the required notice before that hearing, so it could not obtain reimbursement for those previously paid benefits from Liberty Mutual. The court affirmed the court of appeals, reversed the district court, and remanded.

Holdings

1. The workers' compensation commissioner may require an insurance carrier to obtain a reimbursement order under Iowa Code section 85.21 before an evidentiary hearing in order to assert indemnity or contribution against another carrier.
2. American Home was not entitled to reimbursement for benefits paid before it obtained the section 85.21 consent order because it had not invoked the applicable procedural rule before the evidentiary hearing.

Questions Presented

1. Whether the workers' compensation commissioner may require an insurer to obtain an Iowa Code section 85.21 reimbursement order before an evidentiary hearing in order to seek indemnity or contribution from another insurer.
2. Whether the commissioner properly applied the Van Wyngarden procedural rule to deny reimbursement for benefits American Home paid before obtaining a section 85.21 consent order.

Disposition

reversed_and_remanded