Another chapter has unfolded in the long-running legal battle over who owns the Workers Compensation Fund, and a district court judge again has ruled essentially that the WCF is not owned by the state of Utah.
Third District Judge Leslie Lewis recently ruled that Utah's state auditor did not have the statutory authority to request certain information from the WCF.
Lewis also said in a written opinion that the issue brought before her by the auditor is moot because a previous ruling by 3rd District Judge Timothy Hanson says WCF's assets are not owned by the state.
"We're very pleased," said Lane Summerhays, the WCF's president and chief executive officer. "We have felt all along that the state auditor didn't have jurisdiction in the issue he was pushing, and we're pleased the court agreed with us."
"The core issue in the dispute is who owns the Workers Compensation Fund," Summerhays said.
Summerhays contends the WCF is owned by its 30,000 policyholders, who comprise most of the businesses in Utah and which includes the state as one of many policyholders.
But that view is not held by state officials.
Assistant Attorney General Tom Roberts said the state plans to file an appeal of Lewis' ruling.
"She ruled that Judge Hanson's decision precluded her from reviewing the issues in this case, and we disagree with that," Roberts said. "We think it was appropriate for her to look at the issues raised in this lawsuit having to do with the authority of the auditor to audit WCF under the auditor statutes as well as a special statute involving privatization of independent agencies."
Roberts said the state also disagrees with the judge over whether the case was moot.
"The auditor doesn't think that answers the question of whether he had the duty to audit during the time when WCF was seeking privatization," he said.
The ongoing dispute gained momentum when the WCF filed a lawsuit in 2003 asking the court to rule whether the state owned WCF assets. In that case, Hanson decided in 2004 that the state had no ownership in the WCF except as a policy holder. The action has been appealed and will be heard by the Utah Supreme Court April 5.
Then the state auditor brought a lawsuit against the WCF seeking to enforce a subpoena looking for certain records pertaining to the Legislature and a tax ruling, which Lewis addressed.
A third lawsuit subsequently was filed by the state in 2004. The state is seeking a court declaration that says, among other things, the WCF is a public entity and that its assets are not owned by its policyholders.
The WCF wants this dismissed or delayed pending the Supreme Court's decision on the Hanson ruling.
E-mail: lindat@desnews.com