Utah Court Rules in Favor of Workers Comp Fund

On Feb. 2, 2005, Utah Third District Judge Leslie A. Lewis ruled in favor of Workers Compensation Fund, dismissing an action brought by the Utah State Auditor. In that action, the State Auditor asserted that WCF was a state agency and WCF’s assets were owned by the state.

In making her decision, Judge Lewis referred to Third District Court Judge Timothy Hanson’s March 2004 ruling, which stated that Utah “has no ownership in Workers Compensation Fund or its assets, other than as a policyholder.”

Judge Lewis’ determination, like Judge Hanson’s, is consistent with several previous court decisions, including three prior rulings from the Utah Supreme Court, dating back as early as 1936. This line of cases declares WCF’s assets are owned by its policyholders, not the State of Utah.

“This ruling provides yet another legal clarification of WCF’s ownership,” said Lane A. Summerhays, WCF president and CEO. “For decades, Workers Compensation Fund has operated essentially as a private insurance company. Its assets are mutually owned by its policyholders. We are pleased to continue serving our owners, WCF’s policyholders—promoting safer workplaces, providing services for injured workers, curbing fraud, and supporting policyholder needs.”

Topics Legislation Workers' Compensation