Constitutional Law: Contract Clause
Gunder
v. CIGNA [5/3/99] 1999 MTWCC 31 Claimant appealed from the decision
of Department of Labor holding that failure of the insurer to deny an
occupational disease claim within 30 days does not preclude the insurer
from contesting the claim. Claimant asked the WCC to find the "retroactive"
application of section 39-71-606(5), MCA (1997) unconstitutional. That
section, which specifies that failure to deny within 30 days does not
constitute acceptance, was expressly made applicable by the Montana
Legislature to matters pending prior to its enactment. The WCC held
that application of section 39-71-606(5), MCA (1997) to claims existing
prior to the effective date of the statute does not violate the contract
clause of either the Montana or United States Constitutions. Given the
statement in section 39-72-103, MCA (1995) that rights to compensation
for occupational diseases did not vest and could be changed by the legislature,
an occupational disease claimant had no contractual right to benefits
as described in a particular year's legislation. Given this and in light
of applicable precedent, the retroactive application of the 1997 amendment
to section 39-71-606(5), MCA was constitutional. (Note:
the appeal to the Montana Supreme Court, Gunder
v. CIGNA, No. 99-337, was ordered
dismissed on May 18, 2000, based upon notice from the parties that the
matter had settled.) |