The long-running dispute over ownership of the Workers Compensation Fund of Utah could have another round in court.
The state filed a complaint for declaratory relief in 3rd District Court on Thursday, asking a judge to declare that the WCF is a public entity, its assets are not owned by its policyholders, and it is subject to control and direction of the state.
The state also is appealing a March decision by 3rd District Judge Timothy Hanson. In March, the judge ruled the state had no ownership in the WCF, except as a policyholder.
However, the judge did not decide if the WCF and its assets were owned by policyholders, court documents state, and the state is pursuing the complaint for declaratory relief because officials for the WCF allegedly have stated in court pleadings in an Indiana case that ownership is with policyholders.
An attorney who was named as a representative of the WCF did not return a message to the Deseret Morning News on Thursday night.
A spokesman for the Utah Attorney General's Office said Thursday night lawyers representing the state could not be reached for comment.
The Utah Legislature created the WCF in 1988, and it handles payouts and premiums of the State Injury Fund, created in 1917. The fund is an insurer of last resort for on-the-job injuries for businesses that cannot buy workers compensation insurance on the open market.
The Legislature designed the WCF to act as an independent agency that was quasi-public, court documents state.
The WCF is exempt from paying federal taxes but has a for-profit subsidiary, Advantage Insurance, that sells workers compensation insurance in other states where Utah businesses have employees.
An Idaho administrative law judge ruled that Advantage was violating Idaho law because it was owned directly or indirectly by a government.
E-mail: lhancock@desnews.com