Newlon v. Teck American, Inc.

Summary

The Montana Supreme Court affirmed a Workers’ Compensation Court judgment requiring Teck American, Inc. to continue providing medical benefits for Nick Newlon’s knee and back injuries. The court held that the parties formed an enforceable settlement contract promising lifetime medical coverage and that Teck could not invoke the 60-month limitation in § 39-71-704(1)(d), MCA (1991), to avoid that contractual obligation.

Holdings

1. Teck and Newlon formed a valid and enforceable contract granting Newlon lifetime medical coverage for his knee and back injuries.
2. The 60-month rule did not permit Teck to deny Newlon’s medical benefits because Teck contracted to provide lifetime coverage and no applicable statute prohibited that promise.
3. The court would not consider Teck’s argument concerning the second element of equitable estoppel because Teck raised that theory for the first time on appeal.

Questions Presented

1. Whether Teck and Newlon formed an enforceable contract under which Newlon received a lump-sum payment and lifetime medical benefits in exchange for closing several workers’ compensation claims.
2. Whether Teck could invoke the 60-month rule in section 39-71-704(1)(d), MCA (1991), to avoid its contractual promise to provide lifetime medical benefits.

Disposition

affirmed