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L.L.C. v. The Industrial Commission of Arizona

Court of Appeals of Arizona, First Division

May 9, 2019

MENO'S CONSTRUCTION, L.L.C.****, Petitioner/Employer,
v.
THE INDUSTRIAL COMMISSION OF ARIZONA, Respondent, AIG INSURANCE COMPANY****, Petitioner/Carrier, VICTOR M. REYES, Respondent Employee, THE YOUNGER BROTHERS GROUP, INC.*; GENARO'S FRAMING CONSTRUCTION, L.L.C.***, Respondent Employers, COPPERPOINT INDEMNITY INSURANCE COMPANY*; TRAVELERS INSURANCE COMPANY***, Respondent Carriers, ROBERTO CARLOS NAVARRO PADILLA**; JUAN ESTOPELLAN*****, Respondent Uninsured Employers, SPECIAL FUND DIVISION/NO INSURANCE SECTION**, *****, Respondent Party in Interest. SPECIAL FUND DIVISION/NO INSURANCE SECTION**, *****, Petitioner/Party in Interest,
v.
THE INDUSTRIAL COMMISSION OF ARIZONA, Respondent, VICTOR M. REYES, Respondent Employee, THE YOUNGER BROTHERS GROUP, INC.*, GENARO'S FRAMING CONSTRUCTION, L.L.C.***, MENO'S CONSTRUCTION, L.L.C.****, Respondent Employers, COPPERPOINT INDEMINTY INSURANCE COMPANY*, TRAVELERS INSURANCE COMPANY***, AIG INSURANCE COMPANY****, Respondent Carriers, ROBERTO CARLOS NAVARRO PADILLA**, JUAN ESTOPELLAN*****, Respondent Uninsured Employers.

          Special Action - Industrial Commission ICA Claim Nos. 20153-6580041**, *****, 20160-420048*, ***, *** Carrier Claim Nos. 15102126*, ***, ****, None**, ***** The Honorable Rachel C. Morgan, Administrative Law Judge

         COUNSEL

          Jardine Baker Hickman & Houston P.L.L.C., Phoenix By Stephen C. Baker Counsel for Petitioner Employer Meno's Construction, L.L.C. and Petitioner Carrier AIG Insurance Co.

          Industrial Commission of Arizona, Phoenix By Gaetano J. Testini Counsel for Respondent

          Taylor & Associates P.L.L.C., Phoenix By Javier C. Grajeda Counsel for Respondent Employee

          CopperPoint Mutual Insurance Company, Phoenix By Mark A. Kendall Counsel for Respondent Employer The Younger Brothers Group, Inc. and Respondent Carrier CopperPoint Indemnity Insurance Co.

          Hendrickson & Palmer, P.C., Phoenix By Adam P. Palmer Counsel for Respondent Employer Navarro Padilla

          Hoffman Kelley Lopez, L.L.P, Scottsdale By Michelle D. Lopez Counsel for Respondent Employer/Carrier Genaro's Framing Construction L.L.C.

          Lundmark Barberich La Mont & Salvin, P.C., Phoenix By Kirk A. Barberich, Danielle Vukonich Counsel for Petitioner Party in Interest Special Fund Division/No Insurance Section

          Judge Kenton D. Jones delivered the Opinion of the Court, in which Presiding Judge James B. Morse Jr. and Judge Jon W. Thompson joined.

          OPINION

          JONES, JUDGE

         ¶1 In this consolidated statutory special action, Meno's Construction, L.L.C. and AIG Insurance Co. (collectively, MC) and the Special Fund Division/No Insurance Section (the Fund) challenge an Industrial Commission of Arizona (ICA) decision finding MC and Juan Estopellan were Victor Reyes's employers at the time of his December 2015 industrial injury. We affirm the factual findings and conclusions of the administrative law judge (ALJ) with respect to those employers. We also hold that an ALJ is required to evaluate the liability of each contractor and subcontractor made a party to a workers' compensation claim. Because the ALJ did not do so in this case, we set aside the award.

         FACTS AND PROCEDURAL HISTORY

         ¶2 In 2012, Taylor Morrison contracted with Younger Brothers Group, L.L.C. (YB) to complete the framing for various new home construction and lot improvement projects in and around Phoenix, including at Lot 31 of a housing development in Gilbert.[1] That contract required YB to provide supervision, labor, materials, and services necessary to complete the work and provided that "no ...


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