Court of Appeals Rejects SIF Claim for Failure to Prove a Second Injury

In Housley v. Second Injury Fund of Iowa, No. 20-0016 (Iowa App. April 14, 2021), claimant suffered an injury with her employer and was paid benefits, but did not formally settle the case or receive an a decision from the agency finding that claimant suffered a permanent injury.  Claimant subsequently filed a SIF claim, not naming the employer.  The agency dismissed the action, finding that claimant had failed to carry her burden of proving a second injury for Fund purposes.  The commissioner and district court agreed.

On appeal, the court of appeals notes that under section 85.64, claimant must establish a loss of use, which must be work-related and claimant must also establish permanent disability from the injury.  The court noted that under Braden, the Fund's obligation could not be assessed until the employer's liability is fixed.  In this case, since there had  been no settlement or determination of a permanent work-related injury and the Fund had not agreed to the establishment of permanency, an action against the Fund was inappropriate.  In this case, the employer was a necessary party according to the court.  Earlier cases where the employer was not considered a necessary party were inapposite as they involved settlement with the employer.  The dismissal of the case against the employer was affirmed.