Summary
The Supreme Court of Oklahoma answered a certified question from the Tenth Circuit concerning whether workers' compensation benefits are fully exempt from garnishment or subject to the $50,000 exemption in Oklahoma's general exemption statute. The court held that 85 O.S. 2001 § 48 provides the exclusive exemption for workers' compensation claims and benefits, making them completely exempt from creditors' claims except for valid child-support liens or assignments. The exemption continues to apply to benefits before payment and to unmingled proceeds deposited in a bank account.
Holdings
- Workers' compensation claims for compensation or benefits due are completely exempt from creditors' claims, levy, execution, attachment, and other debt-collection remedies under 85 O.S. 2001 § 48, subject to the statutory exception for valid child-support liens or income assignments.
- The $50,000 exemption in 31 O.S. 2001 § 1(A)(21) does not apply to claims for compensation or benefits due under the Oklahoma Workers' Compensation Act; § 48 is the exclusive statutory authority for workers' compensation exemptions.
- Workers' compensation proceeds retain their exempt character after payment when deposited in a bank account without being commingled with other funds.
- The § 48 exemption extends to contingent or unliquidated workers' compensation claims before payment, as well as to benefits after payment.
Questions Presented
- Whether workers' compensation claims and benefits due to an injured worker are completely exempt from creditors' garnishment under 85 O.S. 2001 § 48.
- Whether the $50,000 exemption for a person's interest in a workers' compensation claim under 31 O.S. 2001 § 1(A)(21) limits the exemption provided by § 48.
- Whether the § 48 exemption continues to protect workers' compensation proceeds after payment, including when the proceeds are deposited in an unmixed bank account.
- Whether the § 48 exemption extends to contingent or unliquidated workers' compensation claims and protects the injured worker and the worker's dependents.
Disposition
other
Cases Cited (24)
- Beavin v. State ex rel. Department of Public Safety, 1983 OK 34, 662 P.2d 299(followed)
- Upton v. Department of Corrections, 2000 OK 46, 9 P.3d 84(followed)
- Hill v. Board of Education, 1997 OK 111, 944 P.2d 930(followed)
- Wal-Mart Stores, Inc. v. Switch, 1994 OK 59, 878 P.2d 357(followed)
- Special Indemnity Fund v. Treadwell, 1984 OK 91, 693 P.2d 608(followed)
- Lang v. Landeros, 1996 OK CIV APP 4, 918 P.2d 404(followed)
- Edmond Independent School District No. 12 v. Oklahoma Tax Commission, 1943 OK 62, 135 P.2d 57, 192 Okla. 241(followed)
- Security Building & Loan Ass'n v. Ward, 1935 OK 996, 50 P.2d 651, 174 Okla. 238(followed)
- Young v. Rimer, 1998 OK CIV APP 49, 964 P.2d 911(partially followed and distinguished)
- In re Anderson, 1996 OK 135, 932 P.2d 1110(limited)
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