Holiday Ret. Corp. v. State Div. of Indus. Relations

Employee was injured while working for Employer. An MRI revealed evidence of previous back surgeries, which was the first record provided to Employer of Employee's previous permanent physical impairment. Employer eventually awarded Employee permanent partial disability (PPD) benefits. Employer's Insurance carrier sought reimbursement from the subsequent injury account for private carriers (Account) under Nev. Rev. Stat. 616B.587(4). The Nevada Division of Industrial Relations (DIR) denied the request for reimbursement, noting that section 616.587(4) had not been satisfied because Employer did not have knowledge of Employee's prior permanent physical impairment until after her industrial injury. An appeals officer affirmed. The district court denied Employer's petition for judicial review based on its determination that the appeals officer interpreted section 616.587 correctly. The Supreme Court affirmed, concluding that the district court did not err in its judgment because an employer is required to acquire knowledge of an employee's permanent physical impairment before a subsequent injury occurs to qualify for reimbursement from the subsequent injury account for private carriers under section 616B.587(4).