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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Shawn Murphy v. Fairbanks North Star Borough (9/3/2021) sp-7555

Shawn Murphy v. Fairbanks North Star Borough (9/3/2021) sp-7555

           Notice:   This opinion is subject to correction before publication in the P                    ACIFIC  REPORTER.  

           Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,  

                                                                                                                        

           303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email  

                                                                                                                          

           corrections@akcourts.gov.  



                      THE SUPREME COURT OF THE STATE OF ALASKA                                       



SHAWN  MURPHY,                                                   )  

                                                                 )    Supreme  Court  No.  S-17530  

                                Appellant,                       )  

                                                                                                   

                                                                 )    Alaska Workers' Compensation  

                                                                                                                 

           v.                                                    )    Appeals Commission No.  18-008  

                                                                 )  

                                        

  AIRBANKS NORTH STAR                                                                     

F                                                                )    O P I N I O N  

BOROUGH,                                                         )  

                                                                                                               

                                                                 )    No.7555 - September 3, 2021  

                                Appellee.                        )  

                                                                 )  



                                                                                                         

                     Appeal from the Alaska Workers' Compensation Appeals  

                     Commission.  



                                                                                                         

                     Appearances:              Andrew  D.  Wilson,  Rehbock  &  Wilson,  

                                                                                                              

                     Anchorage,  for  Appellant.                     Zane  D.  Wilson,  CSG,  Inc.,  

                                                                                                       

                     Fairbanks, and Wendy Dau, Fairbanks North Star Borough,  

                                              

                     Fairbanks, for Appellee.  



                                                                                         

                     Before:  Bolger, Chief Justice, Winfree, Maassen, Carney,  

                                                               

                     and Borghesan, Justices.  



                                                 

                     BORGHESAN, Justice.  



I.         INTRODUCTION  



                                                                                                                             

                     The  Alaska  Workers'  Compensation  Act  has  long  applied  a  two-year  


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                                                                                                                                                           1  

limitations period to claims for "compensation for disability."                                                                                               In 1988 the legislature        



reconfigured   one   type   of   compensation   -   for  permanent   partial   disability   -   as  



compensation   for  permanent   partial   impairment.     The   claimant   argues   that   this  



amendment  exempted   claims   for   impairment   compensation   from   the   statute   of  



limitations.   We   disagree.   Because   the   statutory   text  contains   ambiguity   and   the  



legislative history evinces no intent to exempt impairment claims from the statute of                                                                                                                             



limitations, we rule that claims for impairment compensation are subject to the Act's                                                                                                                     



two-year limitations period.                                           



                                 A    secondary    issue    in    this    case    is    whether   the    Alaska    Workers'  



Compensation Board properly denied paralegal costs for work related to other claims.                                                            



The   applicable   regulation  requires   a   claim for                                                                   paralegal   costs   be   supported   by   the  

                                                                                                                                                   2     We reject the claimant's  

paralegal's own affidavit attesting to the work performed.                                                                                                                                   



argument that this regulation is contrary to statute and the constitution.  

                                                                                                                                                                                  



II.              FACTS AND PROCEEDINGS  

                                                      



                 A.              Murphy's Injury And Early Compensation Claims  

                                                                                                                                                       



                                 In 1998 Shawn Murphy injured his back while working as a mechanic for  

                                                                                                                                                                                                                 

the Fairbanks North Star Borough.3  

                                                                                         The Borough began paying Murphy temporary total  

                                                                                                                                                                                                             



disability benefits effective from the date of the injury. After a referral from a Fairbanks  

                                                                                                                                                                                             



physician, Murphy went to California for surgeries related to this injury in 1998 and  

                                                                                                                                                                                                              



 1999.  



                                 Murphy was found eligible for reemployment benefits in September 1999  

                                                                                                                                                                                                           



after his surgeon, Dr. Noel Goldthwaite, concluded Murphy would not have the physical  

                                                                                                                                                                                                   



                 1               AS 23.30.105(a).                             



                 2                8 Alaska Administrative Code (AAC) 45.180(f)(14) (2011).                                                                           



                 3               He had previously injured it in 1995.                                          



                                                                                                    -2-                                                                                                    7555
  


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                                                                                 4  

capacities to return to work as a mechanic.                                         The parties partially settled reemployment            



benefits, with the Borough paying Murphy a flat sum for                                                              costs related to a degree          



program at the University of Alaska.                                     When Murphy began taking classes, he was not                                           

                               5                                                                                                                           6  The  

                                 and continuedto receive temporary total disability compensation.    

medically stable                                                                                                                



partial settlement did not discuss stipend payments under AS 23.30.041(k) that may be  

                                                                                                                                                                 



available to injured workers during reemployment, nor did it address other types of  

                                                                                                                                                                 



compensation.  

                         According to a compensation report7  the Borough filed with the Board,  

                                                                                                                                                         



             4            Reemployment benefits are meant to ensure that injured employees who                                                               



cannot return to their former jobs acquire skills that enable them to "earn a living after                                                   

an injury."           Arnesen v. Anchorage Refuse, Inc.                                  , 925 P.2d 661, 665 (Alaska 1996).                     



             5           AS 23.30.395(28) defines "medical stability" as follows:  

                                                                                                                       



                         the       date        after        which           further          objectively              measurable  

                                                                                                                    

                          improvement from the effects of the compensable injury is  

                                                                                                                                         

                         not reasonably expected to result from additional medical  

                                                                                                                             

                          care  or  treatment,  notwithstanding  the  possible  need  for  

                                                                                                                                      

                          additional medical care or the possibility of improvement or  

                                                                                                                                         

                          deterioration  resulting  from  the  passage  of  time;  medical  

                                                                                                                            

                          stability  shall  be  presumed  in  the  absence  of  objectively  

                                                                                                                      

                         measurable  improvement  for  a  period  of  45  days;  this  

                                                                                                                                    

                         presumption  may  be  rebutted  by  clear  and  convincing  

                                                                                                                      

                          evidence[.]  



             6           See  former  AS  23.30.041(k)  (1996)  (providing  that  temporary  total  

                                                                                                                                                            

disability compensation ends if employee "reaches medical stability before completion  

                                                                                                                                                

of the plan").  We apply the version of the Act in effect at the time of Murphy's injury.  

                                                                                                                                                                       

See Louie v. BP Expl. (Alaska), Inc., 327 P.3d 204, 209 (Alaska 2014) ("In general the  

                                                                                                                                                                

statute in effect on the date of injury applies to a workers' compensation claim.").  

                                                                                                                                            



             7            The Act formerly required an employer to notify both the Board and the  

                                                                                                                                                                

employee about certain changes in compensation payment "on a form prescribed by the  

                                                                                                                                                                

[B]oard."              Former  AS  23.30.155(c)  (1996).                                    The  form  used  in  this  case  included  

                                                                                                                                                     

                                                                                                                                            (continued...)  



                                                                             -3-                                                                            7555
  


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Murphy began receiving permanent partial impairment benefits instead of temporary                                                                                                                                                                                                                                             



total disability benefits in September 2000,                                                                                                                                    after Dr. Goldthwaiteconcluded                                                                                                        Murphy was   



medically stable.                                                          Dr. Goldthwaite prepared his permanent partial impairment rating                                                                                                                                                                                                      



report   in   February   2001.     Using   the   Fourth   Edition   of   the   American   Medical  



Association's Guides to theEvaluation ofPermanent                                                                                                                                                                        Impairment (theAMAGuides),                                                                                                          the  



reference required by statute, Dr. Goldthwaite rated Murphy as having a 30% whole                                                                                                                                                                                                                                                               



person   impairment.   The   Borough  did   not   controvert   or   otherwise   question   Dr.  



Goldthwaite's rating.   



                                                        Dr. RichardCobdeninFairbanks                                                                                                           then began                                     treating Murphy for his injury.                                                                                                  



In March 2001 Dr. Cobden concurred with Dr. Goldthwaite's earlier rating, but Dr.                                                                                                                                                                                                                                                                          



Cobden told Murphy to return to discuss some issues "before this report is finalized."                                                                                                                                                                                                                                                                                         



In April 2001 Dr. Cobden noted that Murphy had "gradually improved," suggesting that                                                                                                                                                                                                                                                                       



up to that time Murphy may not have been medically stable, and that his impairment was                                                                                                                                                                                                                                                                    



then "ready for documentation."                                                                                                              Dr. Cobden rated Murphy as having a 23% whole                                                                                                                                                     



person impairment using the Fifth Edition of the AMA Guides, which the Board had                                                                                                                                                                                                                                                                          



adopted as the updated statutory reference effective February 28, 2001.  The Borough                                                                                                                                                                                                 



did not controvert Dr. Cobden's rating.                                                                                                  



                                                        In June 2001 the Borough filed a compensation report with the Board                                                                                                                                                                                                                    



 showing a change from permanent partial impairment benefits to reemployment stipend                                                                                                                                                                                                                                                        

                                    8  The report left blank the form's section related to the impairment rating and  

benefits.                                                                                                                                                                                                                                                                                                                                                  



                            7                           (...continued)  



                                                                                                                                                                                                                                                                                                                                                         

information specificto impairment benefits and also warned employeesinbold-facetype  

                                                                                                                                                                                                                                                                                                                                                   

that they had two years from the date of the compensation report to file a written claim  

                                                                                                                        

for additional compensation payments.  



                            8                           See  former  AS  23.30.041(k)  (1996)  (providing  that  if  "employee's  

                                                                                                                                                                                                                                                                                                                 

permanent impairment benefitsareexhausted beforethecompletion or termination ofthe  

                                                                                                                                                                                                                                                                                                                                                              

                                                                                                                                                                                                                                                                                                                   (continued...)  



                                                                                                                                                                        -4-                                                                                                                                                                           7555
  


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the   total   impairment   compensation   due;   the   boxes  to   indicate   whether   impairment  



                                                                                                               9  

benefits had been paid as a lump sum or in installments were also blank.                                                          

                                                                                                                  The June 2001  



                                                                                                        

report indicated the Borough had paid $20,963.38 in impairment benefits.  



                                                                                                                                       

                     In a letter dated August 29, 2001, a Board employee asked the Borough to  



                                                                                                                                

"complete [the report] with the [permanent partial impairment] rating" because "[t]he  



                                                                                                                              

total  [impairment  benefit]  paid  does  not  seem  to  relate  to  a  [permanent  partial  

                                        10   The Borough responded with an undated handwritten note  

                                                                                                                                   

impairment] percentage." 



on the Board's letter showing calculations based on a 13% rating.   This 13% figure  

                                                                                                                                



indicated  the  Borough  used  Dr.  Cobden's  impairment  rating  of  23%,  adjusted  for  

                                                                                                                                    

Murphy's preexisting 10% impairment from his previous injury.11                                           A "corrected" June  

                                                                                                                                  



2001  compensation  report  with  similar  information  is  in  the  record  with  no  stamp  

                                                                                                                                



showing when it was filed with the Board. Both the letter with the adjuster's handwritten  

                                                                                                                       



note and the corrected compensation report have a May 2, 2002 fax stamp at the bottom.  

                                                                                                                                           



The"corrected"compensationreport saidMurphy hada13%impairment, which equaled  

                                                                                                                              



           8         (...continued)  



                                                                                                                            

reemployment  process,  the  employer  shall  provide  wages"  in  an  amount  detailed  

therein).  



           9  

                                                                                                                            

                     Murphy later argued that these blanks in thecompensation reportsimpeded  

                                                                                                                                     

him from realizing that he was owed additional impairment compensation, justifying the  

                                                              

delay in filing his claim for additional compensation.  



           10        The amount of permanent partial impairment compensation is a sumset out  

                                                                                                                                     

in the statute "multiplied by the employee's percentage of permanent impairment of the  

                                                                                                                                     

whole person." AS 23.30.190(a). At the time Murphy was injured, the statutory amount  

                                                                                                                              

was $135,000.  Former AS 23.30.190(a) (1996). The legislature increased the statutory  

                                                                                                                            

amount in 2000.  Ch. 105, § 17, SLA 2000.  

                                                                       



           11        AS 23.30.190(c) ("The impairment rating determined under (a) of this  

                                                                                                                                    

section shall be reduced by a permanent impairment that existed before the compensable  

                                                                                                                     

injury.").  

                  



                                                               -5-                                                               7555
  


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 $17,550, as total impairment benefits.                                                                                                                                                                                       The amount of impairment benefits listed in the                                                                                                                                                                                                                        



payment    section    remained    unchanged,    but    a    handwritten   remark    indicated    an  



impairment-benefits-related                                                                                                                                                       overpayment                                                                                had                                been                                      deducted                                                            from                                      ongoing  



reemployment stipend payments. The corrected compensation report continued to show                                                                                                                                                                                                                                                                                                                                                                                                       



 a change from temporary total disability to impairment benefits in September 2000.                                                                                                                                                                                                                                                                                                                                                                                  



                                                                              The Borough's final compensation report in December 2001 left blank the                                                                                                                                                                                                                                                                                                                                                



 questions related to the percentage of impairment and the way it was paid.                                                                                                                                                                                                                                                                                                                                                                                         Like the   



 original June 2001 report, the December report showed that temporary total disability                                                                                                                                                                                                                                                 



 ended in September 2000, that impairment benefits of $20,963.38 were paid, and that                                                                                                                                                                                                                                                                                                                                                                                                            



reemployment stipend benefits began in May 2001.                                                                                                                                                                                                                                                           Murphy did not file a written claim                                                                                                                                         



 for additional impairment benefits at that time.                                                                                                                                                                                                



                                       B.                                     Murphy's 2017 Claim For Additional Impairment Compensation                                                                                                                                                                                                                                                                 



                                                                              Afterfinishinghis retraining, Murphy worked asacomputertechnician                                                                                                                                                                                                                                                                                                                                                   and  



 continued to have follow-up care for his back over the years.                                                                                                                                                                                                                                                                                                                   The Borough in 2016                                                                                    



 controverted any care that exceeded statutory frequency standards.                                                                                                                                                                                                                                                                      



                                                                              An attorney entered an appearance on Murphy's behalf in 2016, and in                                                                                                                                                                                                                                                                                                                                                        



 early 2017 Murphy filed a written workers' compensation claim.                                                                                                                                                                                                                                                                                                                           The claim included a                                                                                                  



request for additional impairment compensation, alleging the "full rating was not paid"                                                                                                                                                                                                                                                                                                                                                                                                



 and that the employer "paid [impairment benefits] according to the wrong AMA Guides                                                                                                                                                                                                                                                                                                                                                                                          



 edition."   The Borough's answer denied all claims.                                                                                                                                                                                                                                                              It also asserted that the claim for                                                                                                                                                



 additional   impairment   compensation   was   barred   by   the   statute   of   limitations   in  

                                                                                       12                The parties settled several of the disputes in mediation but did not  

AS 23.30.105.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      



                                       12                                     At the time of Murphy's injury AS 23.30.105(a) provided:                                                                                                                                                                                                                                    



                                                                              The right to compensation for disability under this chapter is                                                                                                                                                                                                                                                                                    

                                                                              barred unless a claim for it is filed within two years after the                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                           (continued...)  



                                                                                                                                                                                                                                          -6-                                                                                                                                                                                                                                               7555
  


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resolve the issue of impairment compensation, which proceeded to hearing.                                                                                          



                            In his pre-hearing brief, Murphy argued that AS 23.30.105(a)'s two-year                                                                   



limitations period does not apply to claims for impairment compensation.                                                                                       Noting that  



the statute provides that the "right to compensation for disability . . . is barred unless a                                                                                          



claim for it is filed within two years" and that this court's decisions have drawn a                                                                                                  

distinctionbetween                        compensation for "disability"and                                       compensationfor "impairment,"                                       13  



Murphy argued that his impairment claims were not subject to the limitations period.  

                                                                                                                                                                      



                            Hearing testimony relevant to the impairment claim addressed the two  

                                                                                                                                                                                



different  impairment  ratings:                                     Dr.  Cobden's  and  Dr.  Goldthwaite's.                                                The  Borough  

                                                                                                                                                                     



presented testimony from two adjusters:  Melody Kokrine, who worked on the claim in  

                                                                                                                                                                                    



2000 and 2001, and Nichole Hanson, who was then working on it. Kokrine remembered  

                                                                                                                                                              



              12	            (...continued)  



                             employee   has   knowledge   of   the   nature   of   the   employee's  

                             disability   and   its   relation   to   the   employment   and   after  

                             disablement.     However,   the   maximum   time   for   filing   the  

                             claim in any event  other than arising  out  of  an occupational  

                             disease   shall  be   four  years   from  the  date   of  injury,  and  the  

                            right   to   compensation   for   death   is   barred   unless   a   claim  

                            therefor  is  filed within  one year after  the  death,  except  that,  

                            if  payment  of  compensation  has  been  made  without  an  award  

                             on  account  of  the  injury  or  death,  a  claim  may  be  filed  within  

                            two  years  after  the  date  of  the  last  payment  of  benefits  under  

                            AS          23.30.180,                  23.30.185,                  23.30.190,                 23.30.200,                  or  

                            23.30.215.    It   is   additionally provided   that,   in   the   case   of  

                             latent defects  pertinent to and causing compensable disability,  

                            the   injured   employee   has   full   right   to   claim   as   shall   be  

                             determined  by  the  board,  time  limitations  notwithstanding.  



              13            See, e.g., Alaska Airlines, Inc. v. Darrow, 403 P.3d 1116, 1125-27 (Alaska  

                                                                                                                                                                        

2017)  (emphasizing  distinction between  permanent  partial  disability  and permanent  

                                                                                                                                                                 

partial impairment for purposes of offsetting benefits received against compensation for  

                                                                                                                                                                                  

permanent total disability).  

                                                           



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little about adjusting the claim but indicated she probably used the later rating because  



                                                                                                                               

Dr. Cobden noted that Murphy had improved.  Hanson testified that had she been the  



                                                                                                                                

adjuster  in  2000,  she  would  have  considered  the  second  rating  "a  correction  or  



                                                                                                                               

amendment to the previous rating."  On cross-examination Hanson said she thought the  



                                                                                                                       

second rating was "correct" because it was done by a Fairbanks physician (Dr. Cobden)  



                                                                                                                               

who in her view was "more familiar" with Murphy.  But she stated that typically she  



                                                                                                                                

would use the later date for medical stability if doctors disagreed about the date of  



                                                                         

medical stability.  Murphy did not testify at the hearing.  



                                                                                                                             

                    In  closing  Murphy  argued  that  the  Borough  erred  by  pairing  Dr.  



                                                                                                                             

Goldthwaite's  date  of  medical  stability  with  Dr.  Cobden's  impairment  rating  and  



                                                                                                                     

contended that the Borough had underpaid his impairment benefits.  Murphy reiterated  



                                                                                                                               

that AS 23.30.105(a) did not apply to his impairment claim and argued that even if it did,  



                                                                                                                            

his claim was timely because the two-year period did not begin to run until 2016, when  



                                                                                                                              

he retained an attorney and learned of the alleged error in impairment payment.  The  



                                                                                                                          

Borough disagreed, arguing that the statute of limitations applies to impairment claims  



                                                                                                                               

and that Murphy knew enough in 2001 to inquire about the amount paid because his  



                                                            

doctors gave two different impairment ratings.  



                                                                                                                  

                    The Board decided that AS 23.30.105(a) barred Murphy's impairment  



                                                                                                                    

claim.  The Board noted that the legislature in 1988 revised AS 23.30.190 by redefining  



                                                                                                                          

compensation for permanent partial disability as compensation for permanent partial  



                                                                                                                              

impairment.  The Board then observed that AS 23.30.105(a)'s limitations period had  



                                                                                                                               

long applied to permanent partial disability claims (a species of "compensation for  



                                                                                                                    

disability")  and  that  the  legislature  inserted  an  express  reference  to  AS  23.30.190  



                                                                                                              

(formerly         permanent           partial      disability,       now       permanent           partial      impairment)  



                                                                                                                               

in AS 23.30.105(a) to provide that voluntary payment of impairment benefits tolls the  



                                                                                                                          

limitations period for a compensation claim.  In light of these amendments, the Board  



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----------------------- Page 9-----------------------

concluded that thelegislature"intendedtocontinueapplication ofthetwo-year limitation                                                                                                                                                                                                                                        



period to the newly re-defined benefit."                                                                                       



                                                       The Board then reviewed arguments and evidence that the claim was stale                                                                                                                                                                                                                   



and should be barred, including Kokrine's testimony suggesting she had no real memory                                                                                                                                                                                                                                             



of the details of the claim. The Board wrote that it was "eminently [sic] clear to anyone"                                                                                                                                                                                                                                       



that   Dr.   Cobden's   23%   impairment   rating   "represents   a   lesser   benefit"   than   Dr.  



Goldthwaite's  30%   rating,   putting   Murphy   on   notice   that   he   "should   have   sought  



assistance in determining which of the two was . . . 'correct.' "                                                                                                                                                                                              The Board decided the                                                                   



Borough had been prejudiced by the long delay and denied the claim.                                                                                                                                                                                                  



                                                       In calculating Murphy's costs                                                                                            andattorney's                                              fees relatedtoother issues, the                                                                              



Board disallowed $993.75 in paralegal costs.                                                                                                                                                  The paralegal time was documented in                                                                                                                         



Murphy's attorney's billing records, with no affidavits from the two paralegals who did                                                                                                                                                                                                                                                               



the work.                                  The Board refused to award this cost because its regulation requires an                                                                                                                                                                                                                                      

affidavit by the paralegal itemizing the services performed.                                                                                                                                                                                        14  



                            C.                         Murphy's Administrative Appeal  

                                                                                                                                                                          



                                                       Murphy   appealed   to   the   Alaska   Workers'   Compensation   Appeals  

                                                                                                                                                                                                                                                                                                                             

Commission, which affirmed the Board's decision.15                                                                                                                                                                              The Commission first discussed  

                                                                                                                                                                                                                                                                                                                           



AS 23.30.105(a)'s application to the case. The Commission acknowledged that the first  

                                                                                                                                                                                                                                                                                                                                                   



 sentence describes a limitations period for claims for "compensation for disability" and  

                                                                                                                                                                                                                                                                                                                                                    



that disability and impairment are distinct forms of compensation.  But like the Board,  

                                                                                                                                                                                                                                                                                                                        



                            14                         8 AAC 45.180(f) includes "fees for the services of a paralegal or law clerk"                                                                                                                                                                                                        



in the costs the Board may award, but these costs may be awarded "only if the paralegal                                                                                                                                                                                                                                       

 . . . files an affidavit itemizing the services performed and the time spent in performing                                                                                                                                                                                                                          

each service."                                              8 AAC 45.180(f)(14)(D).           



                            15                         The Borough cross-appealed to the Commission the Board's decision on  

                                                                                                                                                                                           

attorney's fees, but it did not cross-appeal to this court the Commission's  decision  

                                                                                                                                                                                                                                                               

affirming the Board.  

                                                        



                                                                                                                                                                     -9-                                                                                                                                                                        7555
  


----------------------- Page 10-----------------------

the Commission emphasized the express inclusion of the impairment compensation                                                                                                                                                                                                                                                                                                        



 statute (AS 23.30.190) in the second sentence.                                                                                                                                                                                                         It reasoned that "[e]ven if [use of the                                                                                                                                                 



term] disability in the first sentence would not limit the time for filing a claim for                                                                                                                                                                                                                                                                                                                                                         



 [impairment] benefits, the next sentence expressly limits such a claim to the necessity of                                                                                                                                                                                                                                                                                                                                                           



being filed within two years of the last payment of [impairment] benefits."                                                                                                                                                                                                                                                                     



                                                                      The Commission next determined when the two-year limitations period                                                                                                                                                                                                                                                                                     



began to run. Because the Borough voluntarily paid impairment benefits in installments,                                                                                                                                                                                                                                                                                                        



 and because the compensation reports showed that the Borough replaced Murphy's                                                                                                                                                                                                                                                                                                                            



impairment benefits with reemployment stipend benefits in June 2001, the Commission                                                                                                                                                                                                                                                                                                            



decided the limitations period for Murphy's claim for increased impairment benefits                                                                                                                                                                                                                                                                                                                                   



began running at that time.                                                                                                                 The Commission said Murphy knew or should have known                                                                                                                                                                                                                             



"when he received his last [impairment] payment that there might be a question as to the                                                                                                                                                                                                                                                                                                                                                         



proper amount of [impairment benefits] owed to him." Because he did not file his claim                                                                                                                                                                                                                                                                                                                                              



 for increased impairment until 2017, the statute of limitations barred the claim.                                                                                                                                                                                                                                                                                                       



                                                                      The Commission rejected Murphy's challenge to the Board's regulation on                                                                                                                                                                                                                                                                                                       



paralegal costs.   Murphy had argued that the regulation was invalid because requiring                                                                                                                                                                                                                                                                                                                          



 a paralegal to independently document the services provided requires the paralegal to                                                                                                                                                                                                                                                                                                            

                                                                                                                                                                                                         16             The Commission disagreed.  Observing that  

 attest to unauthorized practice of law.                                                                                                                                                                                                                                                                                                                                                                                                    



Murphy's attorney supervisedtheparalegals, theCommission reasonedthat aparalegal's  

                                                                                                                                                                                                                                                                                                                                                                                                   



 affidavit documenting activities performed at the direction of an attorney neither attests  

                                                                                                                                                                                                                                                                                                                                                                                                                                



to the practice of law nor represents that the paralegal is an attorney.  

                                                                                                                                                                                                                                                                                                                     



                                                                     Murphy appeals.  

                                                                                                                                                               



III.                               STANDARD OF REVIEW  

                                                                                                                                   



                                                                      "In   an   appeal   from   the   Alaska   Workers'   Compensation   Appeals  

                                                                                                                                                                                                                                                                                                                                                                                                               



                                   16                                See  Alaska  Bar  R.  63  (defining  unauthorized  practice  of  law).  



                                                                                                                                                                                                                -10-                                                                                                                                                                                                                    7555  


----------------------- Page 11-----------------------

                                                                                                                                                           17  

Commission, we review the Commission's decision rather than the Board's . . . ."                                                                               We  



apply   our   independent   judgment   to   questions   of   constitutional   law   as  well   as   "to  



questions of 'statutory interpretation requiring the application and analysis of various                                                                 

                                                                        18     "We  exercise  our  independent  judgment  in  

canons   of   statutory   construction.'   "                                                                                                                      

determining   the   validity   of   an   administrative   regulation."19                                                            "Regulations   are  

                                                                                                                                                               



presumptively  valid  and  will  be  upheld  as  long  as  they  are  'consistent  with  and  

                                                                                                                                                               

reasonably necessary to implement the statutes authorizing [their] adoption.' "20  

                                                                                                                                                     



IV.	         DISCUSSION  



             A.	          AlaskaStatute23.30.105(a)'s                                Two-YearLimitationsPeriodAppliesTo                                           

                          Claims For Impairment Benefits.                    



                          To decide whether Murphy's claim for impairment benefits is timely, we                                                                 



must first interpret AS 23.30.105(a), a statute of limitations for certain compensation  

                                                                                                                                            

claims.21             When  Murphy  was  injured,  the  statute  provided  that  "[t]he  right  to  

                                                                                                                                                                  



             17           Humphrey v. Lowe's Home Improvement Warehouse, Inc.                                                           , 337 P.3d 1174,       



 1178 (Alaska 2014).        



             18           Burke v. Raven Elec., Inc., 420 P.3d 1196, 1202 (Alaska 2018) (quoting  

                                                                                                                                                      

ARCTEC Servs. v. Cummings , 295 P.3d 916, 920 (Alaska 2013)).  

                                                                                                                 



             19           Alaska  Airlines,  Inc.  v.  Darrow,  403  P.3d  1116,  1121  (Alaska  2017)  

                                                                                                                                                           

(quoting Lauth v. State, 12 P.3d 181, 184 (Alaska 2000)).  

                                                                                                  



             20           State, Bd. of Marine Pilots v. Renwick, 936 P.2d 526, 531 (Alaska 1997)  

                                                                                                                                                           

(alteration in original) (citation omitted) (quoting Chevron U.S.A. v. LeResche, 663 P.2d  

                                                                                                                                                              

923, 927 (Alaska 1983)).  

                                   



             21           Claims  for  medical  treatment  are  governed  by  a  different  limitations  

                                                                                                                                                 

framework. AS 23.30.095(a); see also Egemo v. Egemo Constr. Co., 998 P.2d 434, 440  

                                                                                                                                                                

(Alaska 2000) ("[N]ew medical treatment entitles  a worker to restart the statute of  

                                                                                                                                                                  

limitations for medical benefits.").   New medical treatment that results in wage loss  

                                                                                                                                                               

allows a new disability claim that restarts the statute of limitations in AS 23.30.105(a).  

                                                                                                                                                                         

                                                                                                                                             (continued...)  



                                                                             -11-	                                                                           7555
  


----------------------- Page 12-----------------------

compensation for disability under this chapter is barred unless a claim for it is filed                                                   



                                                                                                                                               22  

within two years" of the employee learning of the injury and its relation to employment.                                                            



Relying on our decision in Alaska Airlines, Inc. v. Darrow, which distinguished between  

                                                                                                                                     

                                                                                                                23  Murphy contends  

compensation for "disability" and compensation for "impairment,"                                                                   

                                                                                         



that the statute places a limitation on disability claims only, not impairment claims.  

                                                                                                                                                    



Impairment claims, he argues, are not subject to any limitations period.  We disagree.  

                                                                                                                                                    



Considering the statutory text in its entirety, the legislative history, and the policies  

                                                                                                                                     



underlying the Act, we conclude that the legislature intended the limitations period in  

                                                                                                                                               



AS 23.30.105(a) to apply to impairment claims, just as it applies to claims for other  

                                                                                                                                         



"indemnity  benefits"  -  cash  benefits  that  compensate  employees  for  losses  and  

                                                                                                                                           

expenses other than the cost of medical treatment.24  

                                                                    



                       "The goal of statutory construction is to give effect to the legislature's  

                                                                                                                              



           21          (...continued)  



                                                                                                                           

Id. at 439.  Murphy did not allege that his claim for increased impairment compensation  

                                                                             

was related to new medical treatment; it was based solely on an alleged rating error in  

2001.  



           22          Former  AS  23.30.105(a)  (1996).  In  2000  the  legislature  amended  

                                                                                                                                  

AS 23.30.105(a), effective July 1, 2000, to include AS 23.30.041.  Ch. 105, §§ 10, 23,  

                                                                                                                                             

SLA 2000.  

          



           23          403 P.3d at 1126.  

                                            



           24          See Harris v. Millennium Hotel, 330 P.3d 330, 336 (Alaska 2014) ("Death  

                                                                                                                                     

benefits are one type of indemnity benefits."); see also AS 23.30.001(1) (expressing  

                                                                                                                               

legislative intent that the Act be interpreted "to ensure the quick, efficient, fair, and  

                                                                                                                                            

predictable delivery of indemnity and medical benefits to injured workers at a reasonable  

                                                                                                                                

cost to the employers . . . subject to [it]" (emphasis added)); ch. 79, § 1, SLA 1988  

                                                                                                                                          

(expressing same legislative intent, without codification).  

                                                                           



                                                                   -12-                                                                  7555
  


----------------------- Page 13-----------------------

                                                                                                                                                  25  

intent, with due regard for the meaning the statutory language conveys to others."                                                                     "We  



interpret a statute 'according to reason, practicality, and common sense, considering the                                                                  

                                                                                                                                        26   We do not  

meaning of the statute's language, its legislative history, and its purpose.' "                                                                            



strictly apply the plain meaning rule but construe statutes using a sliding scale approach,  

                                                                                                                                              



under which "[t]he plainer the statutory language is, the more convincing the evidence  

                                                                                                                                                

of contrary legislative purpose or intent must be."27  

                                                                                                   



                         1.          The statutory text is ambiguous.  

                                                                                                       



                         In analyzing the text of AS 23.30.105(a) at the time of Murphy's injury, we  

                                                                                                                                                           



focus in particular on two portions of the statute.   The first key portion describes a  

                                                                                                                                                             



limitations period: "The right to compensation for disability under this chapter is barred  

                                                                                                                                                    



unless a claim for it is filed within two years after the employee has knowledge of the  

                                                                                                                                                          



nature  of  the  employee's  disability  and  its  relation  to  the  employment  and  after  

                                                                                                                                                       

disablement."28  

                                                                                                                                      

                               The second key portion tolls the limitations period for a compensation  



                                                                                                                                       

claim so long as the employer voluntarily pays benefits: "[I]f payment of compensation  



                                                                                                                                                        

has been made without an award on account of the injury or death, a claim may be filed  



                                                                                                                                            

within two years after the date of the last payment of benefits under AS 23.30.180,  



            25           City  of   Valdez  v.  State,  372  P.3d  240,  254  (Alaska  2016)  (quoting  City  of  



Fairbanks  v.  Amoco  Chem.  Co.,  952  P.2d   1173,   1178  (Alaska   1998)).   



            26           Vandenberg  v.  State,  Dep't of  Health   &  Soc.  Servs.,   371  P.3d   602,   606  



(Alaska  2016)   (quoting  Louie  v. BP  Expl. (Alaska),  Inc.,   327  P.3d  204,  206   (Alaska  

2014)).  



            27           Gov't  Emps.  Ins.   Co.   v.   Graham-Gonzalez,   107   P.3d   279,   284   (Alaska  



2005).  



            28           Former  AS  23.30.105(a)  (1996).  



                                                                          -13-                                                                        7555
  


----------------------- Page 14-----------------------

                                                                                           29  

23.30.185,   23.30.190, 23.30.200,                              or  23.30.215."                  The statutes cited                 in the tolling     

portion pertain to various types of indemnity benefits:                                                  permanent total disability,                      30  



                                                    31                                                               32    temporary   partial  

                                                          permanent   partial   impairment,                                                    

temporary   total   disability,                                                              

                                



                  33                                    34  

                      and death benefits.                    

disability,                              



                        Reading the first part of this statute in isolation tends to support Murphy's  

                                                                                                                                           



argument that only claims for disability, and not claims for impairment, are subject to the  

                                                                                                                                                        



two-year limitations period. The Act specifically defines the terms "compensation" and  

                                                                                                                                                       



"disability."  "Compensation" is "the money allowance payable to an employee or the  

                                                                                                                                                       

dependents of the employee as provided for in this chapter."35                                                           "Disability" means  

                                                                                                                                                 



"incapacity because of injury to earn the wages which the employee was receiving at the  

                                                                                                                                                        

time of injury in the same or any other employment."36  When a statute's terms have a  

                                                             



legislativedefinition, wemust construethemaccording totheir "peculiar and appropriate  

                                                                                                                                         

meaning"37   unless  doing  so  "would  be  inconsistent  with  the  manifest  intent  of  the  

                                                                                                                                                       



            29          Id .  



            30          AS 23.30.180.               



            31          AS 23.30.185.               



            32  

                                                    

                        AS 23.30.190.  



            33          AS 23.30.200.   



            34          AS 23.30.215.   



            35  

                                                            

                        AS 23.30.395(12).  



            36  

                                

                        AS 23.30.395(16).  



            37  

                                

                        AS 01.10.040.  



                                                                        -14-                                                                       7555
  


----------------------- Page 15-----------------------

                     38  

legislature."             And as Murphy correctly points out, we have repeatedly recognized that                                               



compensation for "disability" and compensation for "impairment" are different kinds of                                                            



               39  

                                                                                                                                       

benefits.          Accordingly the plain text of the first sentence of AS 23.30.105(a) suggests  



                                                                                                               

that the limitations period does not apply to impairment claims.  



                                                                                                                                   

                       But we do not read portions of a statute in isolation.  "[W]hen construing  



                                                                                                                                              

a statute, 'we must, whenever possible, interpret each part or section of a statute with  



                                                                                                                 40  

                                                                                                                      

every other part or section, so as to create a harmonious whole.' " 



                                                                                                                                             

                       The express mention of impairment benefits in the tolling portion casts  



                                                                                                                                                

doubt on the otherwise plain language of the first portion.  The tolling portion of the  



                                                                                                                                                 

statute provides that if the employer voluntarily pays compensation of various types -  



                                                                                                                                                

including impairment benefits - then "a claim may be filed within two years" after the  



                                        41  

                                                                                                                                              

                                            In other words, voluntary payment ofimpairment benefits tolls  

last voluntary payment. 



                                                                                                                                            

the limitations period for a claim. However, the statute does not specify the type of claim  



                                                                         

for which the limitations period is tolled.  



                                                                                                                                               

                       The most natural reading (from a purely grammatical perspective) is that  



                                                                                                                                                

the "claim" for which the limitations period is tolled is the same claim described in the  



                                                                                                                            

first portion of the statute: a claim for "compensation for disability" and "compensation  



            38         AS 01.10.020.   



            39         See Alaska Airlines, Inc. v.Darrow,403 P.3d1116, 1125-30 (Alaska 2017)  

                                                                                                                                            

(distinguishing  "impairment"  from "disability"  when  construing  AS  23.30.180  and  

                                                                                                                           

AS 23.30.190); Rydwell v. Anchorage Sch. Dist., 864 P.2d 526, 529-31 (Alaska 1993);  

                                                                                                                                          

see  also  Unisea,  Inc.  v.  Morales  de  Lopez,  435  P.3d  961,  973-74  (Alaska  2019)  

                                                                                                                                          

(distinguishing between impairmentanddisabilityin context oftemporary total disability  

                                                                                                                                      

benefits).  



            40         Darrow, 403 P.3d at 1127 (quoting State, Dep't of Commerce, Cmty. &  

                                                                                                                                                  

Econ. Dev., Div. of Ins. v. Progressive Cas. Ins. Co., 165 P.3d 624, 629 (Alaska 2007)).  

                                                                                                                                                       



            41         AS 23.30.105(a).  

                              



                                                                     -15-                                                                   7555
  


----------------------- Page 16-----------------------

for death." But that reading produces an anomalous result: an impairment benefits claim                                                                                                                                                    



is not subject to any limitations period, but voluntary payment of impairment benefits                                                                                                                                              



tolls the limitations period for a disability benefits claim. It is hard to make sense of that                                                                                                                                                  



policy, which implies that the legislature believed impairment benefits to be so distinct                                                                                                                                             



from   disability   benefits   as   to   not   warrant   the   same   limitations   period,   while   also  



believing these benefits similar enough that voluntary payment of                                                                                                                         one justifies tolling the                               



limitations period for the other.                                                             

                                                                                                                                                                       42  thatthelegislatureincluded  

                                       This incongruitysuggests adifferent reading:                                                                                                                                                



impairment benefits in the tolling portion of the limitations statute because it believed  

                                                                                                                                                                                                                                  



impairment claims are themselves subject to the limitations statute.   In other words,  

                                                                                                                                                                                                                                       



although  the  text  of  the  limitations  statute  refers  to  claims  of  "compensation  for  

                                                                                                                                                                                                                                                 



disability," the legislature believed this phrase includes impairment compensation too.  

                                                                                                                                                                                                                                                              



                                       Hadthelegislatureintended thelimitations period toapplytocompensation  

                                                                                                                                                                                                                   



for impairment as well as "compensation for disability," wouldn't it have said so?  

                                                                                                                                                                                                                                                



Maybe  not.                                   Although   parts   of  the  Act   clearly   distinguish   "disability"   from  

                                                                                                                                                                                                                                          



"impairment," in other parts it is not so clear that the legislature intended the term  

                                                                                                                                                                                                                                             



"disability" to exclude impairment.  In Alaska Airlines, Inc. v. Darrow we considered  

                                                                                                                                                                                                                           



whether permanent total disability benefits may be reduced by the amount of permanent  

                                                                                                                                                                                                                            

partial impairment benefits previously paid to the employee.43  We looked to the 1988  

                                                                                                                                                                                                                                            



amendments to the Act, in which the legislature made two significant changes:  (1) it  

                                                                                                                                                                                                                                           



replacedpermanentpartialdisability benefits with permanent partial impairmentbenefits;  

                                                                                                                                                                                                                                   



and (2) it added a provision requiring that an award of permanent total disability benefits  

                                                                                                                                                                                                                                    



                   42                  See Fed. Deposit Ins. Corp. v. Laidlaw Transit, Inc.                                                                                                        , 21 P.3d 344, 351                          



(Alaska 2001) ("[E]ven when a statute's language meaning seems plain on its face,                                                                                                                                                           

ambiguity may arise if applying that meaning would yield anomalous consequences.").                                                                                                                       



                   43                  403 P.3d at 1125-31.  

                                                                          



                                                                                                                    -16-                                                                                                                     7555
  


----------------------- Page 17-----------------------

                                                                                                                           44  

be offset by any permanent partial disability benefits awarded.                                                                Yet under the plain           



language of the revised statute, which applied only to future compensation awards, an   



offset would never occur because permanent partial disability benefits would no longer                                                                     

                       45   We recognized the possibility that the legislature may have "meant to say  

be awarded.                                                                                                                                                      



permanent partial impairment instead of permanent partial disability" and consulted the  

                                                                                                                                                                 



legislative history for clues, but in the end were unable to discern  the legislature's  

                                                                                                                                               

intent.46  



                          Here is another example.  A key component of the Act is the rebuttable  

                                                                                                                                                    



presumption  of  coverage,  which  now  provides  that  "compensation  or  benefits  are  

                                                                                                                                                                



payable under this chapter for disability or death or the need for medical treatment . . .  

                                                                                                                                              



if the disability or death or the employee's need for medical treatment arose out of and  

                                                                                                                                                                

in the course of the employment."47  The rebuttable presumption requires the Board to  

                           



"evaluate the relative contribution of different causes" and award compensation "if, in  

                                                                                                                                                                   



relation to other causes, the employment is the substantial cause of the disability or death  

                                                                                                                                                             

                                                              48    The statute does not mention impairment, and the  

or need for medical treatment."                                                                                                                                  

                                         

impairment statute contains no comparable eligibility standard.49                                                             Yet it seems doubtful  

                                                                                                                                                       



that the legislature intended to exclude impairment claims entirely from the coverage  

                                                                                                                                                     



presumption. Although this statutory language was added in 2005 and does not directly  

                                                                                                                                                        



             44          Id.  at 1126.   



             45          Id.  at 1129.            



             46          Id. at 1129-31.  

                                                        



             47           AS 23.30.010(a).  

                                  



             48          Id.  



             49           Compare id., with AS 23.30.190.  

                                                                      



                                                                             -17-                                                                            7555
  


----------------------- Page 18-----------------------

shed light on the intent of the legislature that revised AS 23.30.105(a) years earlier, the                                                                                                                                                                                            



persistent    ambiguity    over    decades    in    the    way    the    term    "disability"    is    used  

notwithstanding its statutory definition is hard to ignore.                                                                                                                                  50  



                                                                                                                                                                                                                                                                                     

                                             In  the  end,  the  statutory  text  does  not  clearly  indicate  whether  the  



                                                                                                                                                                                                                                                                                                    

legislature intended to exempt impairment claims from the two-year limitations period.  



                                                                                                                                                                                                                                                     

                                             2.	                   Legislative  history  suggests  an  intent  to  subject  impairment  

                                                                                                                                                   

                                                                   claims to a limitations period.  



                                                                                                                                                                                                                                                                                      

                                             "When statutory language is ambiguous, we look to the purpose of the  



                                                                                                                                                                                                                                                  51  

                                                                                                                                                                                                                                                                         

legislation and the legislative history for indications of legislative intent."                                                                                                                                                                           The version  



                                                                                                                                                                                                                                                                          52  

                                                                                                                                                                                                                                                                                 

of AS 23.30.105(a) in effect at the time of Murphy's injury was adopted in 1988.                                                                                                                                                                                                  That  



                                                                                                                                                                                                                                                                                      

year, the legislature revised both AS 23.30.105(a) and AS 23.30.190.  In revising the  



                                                                                                                                                                                                                                                                                       

latter statute, the legislature redefined permanent partial disability, which was tied to the  



                                                                                                                                                                                                                                                                                       

employee's ability to earn a living, as permanent partial impairment, which is tied to the  



                      50                     Thesameambiguitysometimesexistswiththeterm"compensation,"which                                                                                                                                                                  



like "disability" has a statutory definition.                                                                                                   "Compensation" is "the money allowance                                                                         

payable to                             an employee or the dependents of the employee as provided for in this                                                                                                                                                                        

chapter." AS 23.30.395(12). However, we have noted that "compensation" has at times                                                                                                                                                                                             

been used in the Act "so that the only reasonable reading of the word would include                                                                                                                                                                                     

medical benefits," not just money.                                                                                 Williams v. Safeway Stores                                                                , 525 P.2d 1087, 1089 n.6                                                 

(Alaska   1974)   (citing   AS   23.30.045(a)   and   former   AS   23.30.010).     For   example,  

AS 23.30.045, both at the time of Murphy's injury and today, describes in subsection (a)                                                                                                                                                                                                

the employer's general duty to pay compensation of various types, including medical                                                                                                                                                                                   

benefits, and then in subsection (b) states that "[c]ompensation is payable irrespective                                                                                                                                     

of fault as a cause for the injury" without reference to specific types of benefits.                                                                                                                                                                                   Former  

AS 23.30.045 (1996); AS 23.30.045.                                                                                            It seems doubtful that the legislature intended to                                                                                                          

exclude medical benefits from the Act's no-fault rule.                                                                                                              



                      51                    Municipality of Anchorage v. Adamson, 301 P.3d 569, 576-77 (Alaska  

                                                                                                                                                                                                                                                                      

2013) (citing Alyeska Pipeline Serv. Co. v. DeShong , 77 P.3d1227, 1234 (Alaska2003)).  

                                                                                                                                                                                                                                                                                                    



                      52                     Compare former AS 23.30.105(a) (1996), with ch. 79, § 19, SLA 1988.  

                                                                                                                                                                                                                                                                         



                                                                                                                                      -18-	                                                                                                                                      7555
  


----------------------- Page 19-----------------------

                                                                                                            53  

employee's "absolute physical capacity."                                                                          Claims for permanent partial disability had                                                             



been subject to the two-year limitations period in AS 23.30.105(a) because permanent                                                          



partial   disability   is   a   type   of   "compensation   for   disability."     The   question   for   our  



purposes is whether the legislature intended to                                                                         remove  this benefit, now defined in terms                                                   



of impairment, from the limitations statute.                                                                       



                                   There is no                       hint of such intent in the legislative history.                                                                              Instead,   the  



legislature's intent for the limitations statute was entirely different: to clarify what types                                                                                                                        



of compensation                             toll  the limitations period.                                         The legislature amended the tolling portion                                                    



of AS 23.30.105(a) to add a list of statutory sections that correspond to certain workers'                                                                                                                  



compensation benefits:                                         "a claim may be filed within two years after the date of the last                                                                                           



payment    of    benefits    under    AS    23.30.180,    23.30.185,    23.30.190,    23.30.200,    or  

                               54     The statutory sections in the list correspond to money benefits available  

23.30.215."                                                                                                                                                                                                 



to  claimants:                          permanent  total  disability  (AS  23.30.180);  temporary  total  disability  

                                                                                                                                                                                                          

                                                                                                                               55   (AS  23.30.190);  temporary  partial  

(AS  23.30.185);  permanent  partial  impairment                                                                                                                                                                 

                                                                                                



disability (AS 23.30.200); and death benefits (AS 23.30.215).  

                                                                                                                                     



                                   The legislature's express purpose in adding this list was to answer in part  

                                                                                                                                                                                                                         

                                                                                                                                                       56       whether  "compensation"  

the  question  we  posed  in  Williams  v.  Safeway  Stores: 

                                                                                                                                                                                       



                  53               Alaska  Airlines,  Inc.  v.  Darrow,  403  P.3d   1116,   1128-30  (Alaska  2017).   



                  54               Ch.  79,  §   19,  SLA   1988  (revised  portion  italicized).  



                  55               The  amendment  to  AS  23.30.105(a)  applied  "only  to  injuries  sustained  on  



or  after  July   1,   1988,"  so  it  could  apply  only  to  claims  for  impairment  benefits.   Ch.  79,  

 §§   19,  34,  48,  SLA   1988.    



                  56               525 P.2d 1087, 1089 n.6 (Alaska 1974).  

                                                                                                                            



                                                                                                         -19-                                                                                                         7555
  


----------------------- Page 20-----------------------

                                             57  

included   medical   benefits.                     The   legislature   sought   to   "codif[y]   the   [B]oard's  



interpretation of the meaning of compensation for statute of limitation purposes under                            

                         58  According to theHouse Judiciary Committee's Sectional Analysis, the  

AS23.30.105."                                                                                                                         



Board had "consistently concluded that when compensation payments have been made  

                                                                                                                                  



without an award, the claim must be filed within two years after the last payment of  

                                                                                                                                       

disability or death benefits and cannot be extended by medical benefits only."59                                                   The  

                                                                                                                                    



most obvious way to interpret this comment is that the legislature's statutory list was  

                                                                                                                                    



meant to distinguish indemnity benefits from medical benefits.   Even if impairment  

                                                                                                                        

benefits  are  not  "disability  compensation,"  as  "disability"  is  defined  in  the  Act,60  

                                                                                                                                 



impairment benefits are a form of indemnity compensation. The list of inserted sections  

                                                                                                                              



contained all of the statutory sections then corresponding to indemnity compensation,  

                                                                                                                   

                                                                                           61    This history suggests the  

including AS 23.30.215, which governs death benefits.                                                                                

                                                                              



           57        H.  Judiciary Comm., Sectional Analysis of House Committee Substitute for  



Committee   Substitute  For   Senate  Bill  322  (L&C), 15th  Legis.,  2d   Sess.,  at   8  (Apr.  6,  

1988),   in   PAT   WILSON,   ALASKA   LEGISLATIVE   HISTORY:   WORKERS '   COMP.   S.B.   322  

(1988)  (compiled   1993).  



           58        Id.   



           59        Id.  



           60        AS  23.30.395(16)  (defining  "disability"  as  "incapacity  because  of  injury  



to  earn  the  wages  which  the  employee  was  receiving  at  the  time  of  injury  in  the  same  or  

any  other  employment").  



           61        The list does not include reemployment stipend benefits, which were added  

                                                                                                                                 

to the reemployment benefits statute, AS 23.30.041, in 1988.  Ch. 79, § 10, SLA 1988.  

                                                                                                                                  

Yet the legislature defined the stipend benefits  as "wages," not "compensation."  Id.  

                                                                                                                                            

That  distinction  explains why  the  1988 amendments  did not  include reemployment  

                                                                                                                   

stipend  benefits  among  the  types  of  compensation  in  AS  23.30.105(a)  that  toll  the  

                                                                                                                                     

limitations period.  In 2000, the legislature both changed the nature of reemployment  

                                                                                                                   

                                                                                                                     (continued...)  



                                                                -20-                                                              7555
  


----------------------- Page 21-----------------------

legislature's intent was toclarifythatvoluntary                                              paymentofindemnitybenefits(including                          



impairment benefits) tolls the limitations statute.                                                  We have found no indication in the                                  



legislative history that the legislature intended to simultaneously exempt impairment                                                                   



benefits from the statute of limitations, and Murphy cites no express intent to do so.                                                                               



                           A subsequent amendment and its legislative history plainly show that the                                                                       



legislature interpreted AS 23.30.105(a) to subject all kinds of compensation expressly   

                                                                                62        In  2000  the  legislature  amended  both  

mentioned   to   the   limitations   period.                                                                                                                         



AS 23.30.041 and AS 23.30.105(a) by designating subsection .041(k) stipend benefits  

                                                                                                                                                                



"compensation" and by inserting AS 23.30.041 into the list of statutory sections in  

                                                                                                                                                                           

AS 23.30.105(a)'s tolling provision.63                                         The amendment to AS 23.30.041(k) was meant  

                                                                                                                                                                   



"tochangereemployment 'wages' into aformof'compensation,' allowing certain offsets  

                                                                                                                                                                   

                                  64     The Department of Labor and Workforce Development told the  

and reductions."                                                                                                                                                         

         



              61           (...continued)  



stipend  benefits  from  "wages"  to  "compensation"  and  added  these  benefits  to  the  list  of  

statutes   in   AS   23.30.105(a).   Ch.   105,   §§   4,   10, SLA   2000.   The  reason   for   the   2000  

amendments  is  explained  more  fully  below.  



              62           We  have  noted  that  post-enactment  legislative  history  is  disfavored,  

                                                                                                                                                                                 

because, according to the U.S.  Supreme Court, "the views of a subsequent Congress  

                                                                                                                                                            

form a hazardous basis for inferring the intent of an earlier one." Girdwood Mining Co.  

                                                                                                                                                                         

v. Comsult LLC, 329 P.3d 194, 199 n.21 (Alaska 2014) (quoting Consumer Prod. Safety  

                                                                                                                                                                    

Comm'n v. GTE Sylvania, Inc., 447 U.S.  102, 117 (1980)). But the intent of the 2000  

                                                                                                                                                                     

legislature is instructive here because it merely inserted an additional type of benefit in  

                                                                                                                                                                            

the  statutory  framework  the   1988  legislature  created,  so  the  latter  legislature's  

                                                                                                                                                     

understanding of how that framework operates confirms the earlier legislature's intent.  

                                                                                                                                                                   

See id. (observing that subsequent legislative history "can provide confirmation of past  

                                                                                                                                                                        

or current legislative preferences").  

                                            



              63           Ch. 105, §§ 4, 10, SLA 2000.  

                                                                            



              64           Dep't of Labor & Workforce Dev., Sectional Analysis of H.B. 419, 21st  

                                                                                                                                                                       

                                                                                                                                                    (continued...)  



                                                                                 -21-                                                                                7555
  


----------------------- Page 22-----------------------

legislature that adding AS 23.30.041 to the list in AS 23.30.105(a) would "place a two-                                                       



                                                                                                                                65  

year time limit on the employee's right to request reemployment benefits."                                                                   

                                                                                                                                    The 2000  



                                                                                                                                        

legislative history supports the Commission's interpretation of AS 23.30.105(a) because  



                                                                                                                                              

it  shows  that  the  2000  legislature  thought  that  inserting  a  statutory  section  into  



                                                                                                                                          

AS23.30.105(a)'stolling provision would makethecorresponding compensationsubject  



                                               

to the two-year limitations period.  



                                                                                                                                                

                       3.	        Policy,  practicality,  and  common  sense  weigh  in  favor  of  

                                                                                                                               

                                   applying the same two-year limitations period to impairment  

                                                                                                                             

                                  claims that applies to other claims for indemnity benefits.  



                                                                                                                                  

                       Policy considerations, practicality, and common sense support interpreting  



                                                                                                                                           

AS 23.30.105(a)'s limitation period to include claims for impairment benefits.  When  



                                                                                                                                  

asked at oral argument before us why the legislature would have exempted impairment  



                                                                                                                                                

benefits from a statute of limitations, Murphy postulated that impairment benefits are  



                                                                                                                             

"easy to prove" and "can be proven from the written record," making it unlikely that a  



                                                                                                                                               

long-delayed impairment claim would prejudice an employer.  He also suggested that  



                                                                                                                                    

because a permanent impairment will last for the rest of the claimant's life, the legislature  



                                                                                                                                                  

was  not  as  concerned  with  a  time  limit  on  filing.                                   Neither  of  these  suggestions  is  



persuasive.  



                                                                                                                                              

                       Although Murphy's own claim for additional compensation might be easy  



                                                                                                                                             

to prove from a written record, that is certainly not true of all impairment claims.  With  



            64         (...continued)  



                                                                                                                                           

Leg., 2d Sess. (Mar. 7, 2000), in H. Labor & Commerce Comm. file on House Bill (H.B.)  

                                 

419, 21st Leg., 2d Sess.  



            65         Id. ; see also Dep't of Labor & Workforce Dev., Side-by-Side Analysis of  

                                                                                                                                                       

H.B.  419,  21st  Leg.,  2d  Sess.  (Mar.  7,  2000)  (indicating  that  proposed  legislation  

                                                                                                                                   

"[p]laces  a  two-year  time  limit  on  the  employee's  right  to  request  reeemployment  

                                                                                                                          

benefits"), in H. Labor & Commerce Comm. file on H.B. 419, 21st Leg., 2d Sess.  

                                                                                                                                     



                                                                     -22-	                                                                  7555
  


----------------------- Page 23-----------------------

no limitations period a claimant could wait for years before undergoing an impairment                                                                                                                                                                 



evaluation and filing a claim.                                                                   The resulting delay in rating the impairment could create                                                                                                              



significant proof problems in determining causation for a specific degree of impairment                                                                                                                                                               



or in apportioning responsibility if multiple factors contributed to the impairment. Even                                                                                                                                                                                  



in Murphy's case, where two ratings were done in the course of a year, a factual issue                                                                                                                                                       



about medical stability remained, with Murphy himself telling the Board that the crucial                                                                                                                                                                              



issue was the date of medical stability.                                                          



                                            Andalthough permanent impairmentis, bydefinition,                                                                                                                            permanent, that does  



not mean it is immutable. The AMA Guides recognizes that a condition may deteriorate                                                                                                                                                                     

                                                                                                                            66       Subsequent events can also affect a permanent  

over time even after medical stability.                                                                                                                                                                                                                

impairment,67 againresulting in potentially difficult issues of causation or apportionment  

                                                                                                                                                                                                                                             



if the impairment need not be rated soon after medical stability.  These are precisely the  

                                                                                                                                                                                                                                                                                  



types of problem that a limitations period protects against by encouraging claimants to  

                                                                                                                                                                                                                                                                                      



file promptly.  

                                               



                                            When considering the Act as a whole, which we must do when we interpret  

                                                                                                                                                                                                                                                                 



AS 23.30.105(a), we see no policy reason to treat impairment differently from any other  

                                                                                                                                                                                                                                                                            



indemnity benefit for purposes of the statute of limitations.  Murphy's argument would  

                                                                                                                                                                                                                                                                       



exempt                          more                    than                  impairment                                   from                   AS                23.30.105(a)'s                                         limitations                               period.  

                                                                                                                                                                                                                                                                                               



Reemployment benefits, including stipend benefits, are not clearly "compensation for  

                                                                                                                                                                                                                                                                                  



disability," yet the 2000 legislative history clearly manifests an intent to impose a two- 

                                                                                                                                                                                                                                                                          



                      66                    AM.M                 ED.A              SS'N,G                 UIDESTOTHE                                 EVALUATIONOF                                        PERMANENT  IMPAIRMENT  



26 (6th ed. 2008) (stating that maximum medical improvement is "date from which                                                                                                                                                                                        

further recovery or deterioration is not anticipated, although                                                                                                                                                  over  time (beyond 12                                             

months) there may be some expected changes").                                                                                                                    



                      67                    See, e.g., Darrow v. Alaska Airlines, Inc., AWCAC Dec. No. 218 at 3 & n.9  

                                                                                                                                                                                                                                                                                  

(Oct.13,2015),https://labor.alaska.gov/WCcomm/memos-finals/D_218.pdf(settingout  

                                                                                                                                                                                                                                                                                   

increased impairment benefits payments based on surgeries over course of claim).  

                                                                                                                                                                                                                                                       



                                                                                                                                    -23-                                                                                                                                    7555
  


----------------------- Page 24-----------------------

year   limitations   period   on   them.     Construing   AS   23.30.105(a)   as   applying   only   to  



disability compensation or death benefits, with no limitations period on other non-                                                                                                                



medical benefits, would create difficulties for both the Board and employers. Litigation                                                                                                

costs, which the legislature sought to diminish with the 1988 amendments to the Act,                                                                                                                       68  



would likely increase. Thesepolicy reasons support interpreting AS 23.30.105(a)'s two- 

                                                                                                                                                                                                    



year limitations period to apply to impairment (and reemployment benefit) claims.  

                                                                                                                                                                                    



                                Although  we  distinguished  between  "impairment"  and  "disability"  for  

                                                                                                                                                                                                       



purposes of AS 23.30.180 in Alaska Airlines, Inc. v. Darrow, we did not conclude - nor  

                                                                                                                                                                                                       



are we required to - that the legislature intended these terms to be mutually exclusive  

                                                                                                                                                                                        



throughout the Act.  In fact we specifically contemplated in Darrow that the legislature  

                                                                                                                                                                                      

might have used the terms interchangeably.69                                                                      The question in Darrow  was whether  

                                                                                                                                                                                           



AS 23.30.180 permitted an employer to offset an award of permanent total disability  

                                                                                                                                                                                        



benefits by theamount ofpermanentpartial impairmentbenefits theemployeepreviously  

                                                                                                                                                                                      

                      70  Although AS 23.30.180 permitted an offset of permanent partial disability  

received.                                                                                                                              



benefits,  this  plain  language,  paired  with  the  statute's  effective  date,  "  'effectively  

                                                                                                                                                                                  



applie[d] to no cases whatsoever' and raise[d] the possibility that a drafting error of some  

                                                                                                                                                                                                   

type was made."71                             But it was not clear what the error was.72                                                          The legislature may have  

                                                                                                                                                                                                    



actually  intended  to  allow  an  offset  of  permanent  partial  impairment  benefits  and  

                                                                                                                                                                                                     



                68              Alaska Airlines, Inc. v. Darrow                                            , 403 P.3d 1116, 1130 (Alaska 2017).                                       



                69              Cf. id.         at 1128.             



                70              Id.  at 1127-28.   



                71              Id.  at 1129 (quoting party's argument).                            



                72              Id.   ("Two distinct drafting errors are possible.").                                                                   



                                                                                                -24-                                                                                               7555
  


----------------------- Page 25-----------------------

                                                                                73  

mistakenly used the term "disability" instead.                                       Or the legislature may have intended to                           



permit an offset of permanent partial disability awards made in the past but used an                                                        

                                                                             74   The legislative history yielded "few clues  

erroneous effective date for the amendment.                                                                                                      

                                                   75  And the policy implications supported either conclusion.  

as to the legislature's intent."                                                                                                                            

                                       



On the one hand, impairment benefits compensate for a different loss than disability  

                                                                                                                                         



benefits, so it would have been reasonable not to offset previously paid impairment  

                                                                                                                                     

benefits from a later disability award.76  On the other hand, the legislature chose to award  

                                                                                                                                                

impairment benefits only to those employees who are not permanently disabled,77  so it  

                                                                                                                                                        



would also have been reasonable to permit an offset of impairment benefits if permanent  

                                                                                                                                        



total disability benefits were later awarded. With no clear indication of legislative intent,  

                                                                                                                                               



we declined to correct the apparent error in AS 23.30.180 because "[t]he separation of  

                                                                                                                                   



powers doctrine 'prohibits this court from enacting legislation or redrafting defective  

                                                                                                                                          

statutes.' "78  

                        



                        Butwith AS23.30.105(a), thelegislature's intentis clear. Notwithstanding  

                                                                                                                             



the ambiguity in the statute's text, the legislative history and policy considerations point  

                                                                                                                                                 



            73         Id.  



            74         Id.  



            75         Id.  



            76         Id.  at  1130  ("The  compensation  for  impairment  is  awarded  independent  of  



earning   capacity   and   for   a   different   type   of   loss   than   the   later   permanent disability  

compensation,  which  depends  on  a  worker's  inability  to  earn  wages.").   



            77          See  AS  23.30.190(a)  (permitting  award  of  impairment  "[i]n  case  of  

                                                                                                                                                     

impairment partial in character but permanent in quality, and not resulting in permanent  

                                                                                                                                        

total disability").  

                                



            78         Darrow, 403 P.3d at 1131 (quoting State v. Campbell, 536 P.2d 105, 111  

                                                                                                                                                    

(Alaska 1975)).  

                              



                                                                       -25-                                                                      7555
  


----------------------- Page 26-----------------------

in only one direction:                         The legislature intended impairment claims to be subject to the                                                              



                                                                                                                                                                               79  

same two-year                     limitations period as all other claims for indemnity compensation.                                                                                



Interpreting the statute to give effect to legislative intent is entirely consistent with -  

                                                                                                                                                                             



indeed required by - the separation of powers doctrine.  We therefore hold that the  

                                                                                                                                                                   

Commission did not err in deciding that AS 23.30.105(a) applies to impairment claims.80  

                                                                                                                                                                 



              79            As noted above, there is no persuasive explanation for why the legislature                                                       



would have intended to exempt impairment claims from the limitations period that                                                                                          

applies to all other claims for monetary compensation.                                                                 The conceptual distinctions        

between impairment compensation and disability compensation are not relevant to the   

policies behind the limitations period.                                         



              80            Separately  but  relatedly  Murphy  takes  issue  with  the  Commission's  

                                                                                                                                                    

statement  that  AS  23.30.105(a)'s  tolling  provision  "expressly  limits"  a  claim  for  

                                                                                                                                                                           

impairment benefits "to the necessity of being filed within two years of the last payment  

                                                                                                                                                                 

of [impairment] benefits."  Murphy contends that because the statute provides that "a  

                                                                                                                                                                              

claim may  be  filed"  within  two  years  of  the  last  voluntary  payment,  the  statute  is  

                                                                                                                                                                              

intended to allow but not require filing of a claim within two years of the last voluntary  

                                                                                                                                                               

payment.  This argument is based on the use of the word "may":  He argues that "[t]he  

                                                                                                                                                                       

language does not prohibit other claims, because its language is permissive (as opposed  

                                                                                                                                                                  

to restrictive)."  We reject this argument.  "May" is generally permissive, see Gerber v.  

                                                                                                                                                                               

Juneau Bartlett Mem'l Hosp., 2 P.3d 74, 76 (Alaska 2000) ("[T]he term 'may' generally  

                                                                                                                                                                

denotes permissive or discretionary authority and not a mandatory duty."), but this  

                                                                                                                                                                          

confirms  our  analysis  of  the  statute  because  "may"  serves  this  exact  function  in  

                                                                                                                                                                             

AS 23.30.105(a).   The penultimate sentence permits  an employee whose limitations  

                                                                                                                                                            

period has already expired to file a timely claim; an employee can choose not to file one.  

                                                                                                                                                                                    

If "may" made the two-year limitation period optional, employers would be reluctant to  

                                                                                                                                                                               

voluntarily pay compensation because doing so would vitiate protection against long- 

                                                                                                                                                                        

stale  claims.                   That  construction  is  plainly  contrary  to  the  Act's  purpose.                                                                       See  

                                                                                                                                                                         

AS 23.30.001 (requiring that Act be construed "to ensure quick, efficient, fair, and  

                                                                                                                                                                          

predictable delivery" of compensation); see also Harris v. M-K Rivers, 325 P.3d 510,  

                                                                                                                                                                         

518 (Alaska 2014) ("The Alaska Workers' Compensation Act sets up a system in which  

                                                                                                                                                                      

payments are made without need of Board intervention unless a dispute arises.").  

                                                                                                                                                     



                                                                                   -26-                                                                                 7555
  


----------------------- Page 27-----------------------

                   B.	                The   Commission   Did   Not   Err   By   Deciding   That   The   Statute   Of  

                                      Limitations Barred Murphy's 2017 Claim For Increased Impairment.                                                                                                            



                                      TheCommission                                     decidedthat the limitations periodfor Murphy's claimfor                                                                                                 



increased   impairment   expired   in   June   2003   because   that   was   two   years   after   the  



Borough's last voluntary payment of impairment benefits. We see no error in this ruling.                                                                                                                                                                   



The compensation report filed with the Board on June 11, 2001, although somewhat                                                                                                                                          



                              81  

confusing,                                                                                                                                                                                                                                

                                     suggests that Murphy received his final impairment payment in May 2001  



                                                                                                                                                                                                                                                           

because the report shows reemployment stipend payments beginning on May 22, 2001.  



                                                                                                                                                                                             

Murphy had two years from that date to file a claim for increased impairment.  



                                                                                                                                                                                                                                     

                                      Murphy argues that the Borough's failure to controvert one of the ratings  



                                                                                                                                                                                                                                             

in  2001  deprived  him  of  notice  that  would  have  permitted  him  to  discover  the  



                                                                                                                                                                                                                                          

discrepancy in payments and allowed him the "opportunity, at that time, to retain legal  



                                                                                                                                                                                                                                     

counsel."   But when voluntary payment of compensation tolls the limitations period  



                                                                                                                                                                                                                                                 

under AS 23.30.105(a), the two-year period begins to run from the "last payment of  



                                                                                                                                                                                                                                           

benefits." The statute does not require controversion to start the clock ticking. Nor does  



                                                                                                                                                                                                                           

it contain a "discovery rule" for claims that have already been tolled by voluntary  



                           82  

payment.                          



                   81                 The compensation report is confusing for a number of reasons.                                                                                                                                As we   



previously noted, the original June report left blank the information about the percentage                                                                                                                               

of impairment and the method of payment.                                                                                   The corrected June 2001 report inserted the                                                                          

impairment percentage but still did not answer whether the impairment benefits had been                                                                                                                                                    

paid in installments or as a lump sum, even though the form required that information.                                                                                                                                                                     

The impairment benefits amount was presented as a lump sum in both the June and                                                                                                                                                              

December 2001 compensation reports, with no information about a weekly rate or the                                                                                                                                                             

number of weeks and days the benefit was paid.                                                                              



                   82                 This is in contrast to the limitations period for claims generally, which  

                                                                                                                                                                                                                                      

begins when "the employee has knowledge of the nature of the employee's disability and  

                                                                                                                                                                                                                                              

its relation to the employment and after disablement." AS 23.30.105(a).  

                                                                                                                                                                                                                



                                                                                                                   -27-	                                                                                                                  7555
  


----------------------- Page 28-----------------------

                                   The compensation reports - incomplete as they were - should have                                                                                                                   



prompted Murphy to inquire about his impairment payments.                                                                                                        Both the December 2001                               



and the original June 2001 compensation forms showed that the Borough had paid                                                                                                                                         



$20,993.38   in   impairment   benefits.     The   forms   also   showed   that   an   employee's  



impairment rating was at that time multiplied by $135,000 to calculate total impairment                                                                                                              



benefits.   Murphy apparently believed that he had received a 30% impairment rating.                                                                                                                                                  

                                                                                                                                           83  of $135,000. The compensation  

But $20,993.38 is clearly less than either 30% or 20%                                                                                                                                          



reports contained adequate information to put Murphy on notice of a claimfor additional  

                                                                                                                                                                                                          



impairment benefits.  

                                



                                   Because Murphy had two years fromthe date of the last impairment benefit  

                                                                                                                                                                                                                  



payment in 2001 to file a claim for increased payment, his 2017 workers' compensation  

                                                                                                                                                                                               



claim was untimely. The Commission correctly affirmed the Board's decision rejecting  

                                                                                                                                                                                                             



his 2017 claim for increased impairment.  

                                                                             



                  C.	              The Commission Did Not Err In Upholding The Board's Regulation  

                                                                                                            

                                   About Paralegal Affidavits.  

                                                                                   



                                   The Board denied Murphy's request for $993.75 in paralegal costs because  

                                                                                                                                                                                                               



he did not comply with a regulation establishing procedures for claiming these costs.  

                                                                                                                                                                                                                                      



This regulation, 8 AAC 45.180(f)(14), requires a paralegal to sign and file an affidavit  

                                                                                                                                                                                                             



listing the time spent on a claim and the task performed.  Murphy argues the regulation  

                                                                                                                                                                                                         



is invalid because it is contrary to statutory authority and unconstitutional.  We reject  

                                                                                                                                                                                                                    



these arguments and uphold the Commission's decision affirming the Board's denial of  

                                                                                                                                                                                                                              



costs.  

                 



                  83               The rating percentage used to calculate his impairment benefit amount was                                                                                                              



reduced by 10% on account of his previous back injury, so a 30% overall impairment                                                                                                                   

rating   would   have   yielded   a   20%   multiplier   for   his   impairment  benefit.     See  

AS 23.30.190(c).   



                                                                                                         -28-	                                                                                                        7555
  


----------------------- Page 29-----------------------

                            An   award   of   costs   and   fees   in   Board   proceedings   is   governed   by  



AS 23.30.145.                    When seeking fees and costs from the Board, Murphy did not specify                                                                      



whether he sought attorney's fees under AS 23.30.145(a) or (b), and the Board awarded                                                                                  



fees under AS 23.30.145(b).  This subsection permits the Board to award a successful                                        



claimant "costs in the proceedings, including reasonable attorney fees."                                                                     



                            Relying on               Muller v. BP Exploration (Alaska), Inc.                                            , Murphy contends that                   



the regulation is invalid because it "differs substantively from the clear language of the                                                                                        

                  84  But there is no apparent contradiction because the statute does not mention  

statute."                                                                                                                           



paralegal services or how to recover this expense. The Act authorizes the Board to adopt  

                                                                                                                                                                             

procedural rules.85  The Board's regulation about attorney's fees and costs is a procedural  

                                                                                                                                                                 



rule to implement AS 23.30.145 and treats paralegal work as a cost rather than as a  

                                                                                                                                                                                     

                                                               86    Reimbursing an attorney for paralegal time as a cost is  

component of attorney's fees.                                                                                                                                                        

                                                      



not inconsistent with the statute and in fact mirrors our practice at the time the Board's  

                                                                                                                                                                        

                                                      87         There  is  nothing  improper  in  interpreting  "costs"  in  

regulation  was  adopted.                                                                                                                                                          

                        



AS 23.30.145(b) to include paralegal services, nor is a requirement that a paralegal  

                                                                                                                                                                    



              84             923  P.2d  783,  792  n.9  (Alaska   1996).  



              85            AS  23.30.005(h).  



              86             In contrast, Alaska Civil Rule 82(b)(2) authorizes an award of  attorney's  



fees for "legal  work  customarily performed  by  an  attorney  but  which  was  delegated  to  

and  performed  by  a[]  .  .  .  paralegal."  



              87             The Board promulgated the provision allowing an award for paralegal work  

                                                                                                                                                                              

in  1990.              Alaska  Administrative  Code,  Register  113 (Mar.  16,  1990).   In Atlantic  

                                                                                                                                                                       

Richfield  Co. v. State we held that "paralegal expenses are correctly characterized as  

                                                                                                                                                                                    

costs and, if recoverable, should be requested under  [Alaska] Civil Rule 79(b)."  723  

                                                                                                                                                                                

P.2d  1249,  1253  (Alaska  1986).                                             We  amended  Civil  Rules  79  and  82  in  1993,  

                                                                                                                                                                           

disallowing paralegal expenses as costs and bringing them within attorney's fees awards.  

                                                                                                                                                                                          

Alaska Supreme Court Order No.  1118 (Jan. 7, 1993).  

                                                                                                                      



                                                                                     -29-                                                                                    7555
  


----------------------- Page 30-----------------------

submit a separate affidavit inconsistent with AS 23.30.145's statutory language.                                                                                                                                 We  



therefore reject Murphy's argument that the regulation is contrary to statute.                                                                                                                     



                                  Murphy's constitutional argument is equally unavailing.                                                                                            He appears to                   



argue   that   the   regulation   violates   the   constitutional   right   against   self-incrimination  



because it requires a paralegal to attest to unauthorized practice of law, which is a                                                                                                                                  

                88  Murphy does not say whether his constitutional challenge is facial or as-applied,  

crime.                                                                                                                                                                                          

but neither would have merit.89                                                    As the Borough correctly points out, engaging in the  

                                                                                                                                                                                                                   



unauthorized practice of law entails "representing oneself by words or conduct to be an  

                                                                                                                                                                                                                     

attorney."90                    The Board's costs regulation merely requires paralegals to file an affidavit  

                                                                                                                                                                                                      



itemizing the services they provided; it does not require them to say that they held  

                                                                                                                                                                                                 

themselves out as attorneys.91                                                   To the contrary:   the regulation permits the award of  

                                                                                                                                                                                                                     



paralegal  costs  only  when  the  paralegal  is  employed  by  a  licensed  attorney  and  

                                                                                                                                                                                        

"performed thework under the supervision of a licensed attorney."92  Theregulation does  

                                                                                                                                                                                                                



not require paralegals to incriminate themselves in seeking recovery of paralegal costs,  

                                                                                                                                                                                                            



so we reject Murphy's constitutional challenge.  

                                                                                               



                 88               See  AS08.08.230(providing                                               that person                 who is not licensed to practice law                                        



and engages in the practice of law as defined in the Alaska Bar Rules is guilty of class                                                                                               

A misdemeanor).                                 Alaska Bar Rule 63 defines the unauthorized practice of law for                                                                                                   

purposes of AS 08.08.230 as including "representing oneself by words or conduct to be                                                                                                                                

an attorney" as well as providing certain law-related services.                                                                       



                 89               See State v. Am. Civil Liberties Union of Alaska, 204 P.3d 364, 372 (Alaska  

                                                                                                                                                                                                       

2009) (distinguishing facial constitutional challenge from as-applied challenge).  

                                                                                                                                                                               



                 90               Alaska   Bar   R.   63   (defining   "practice   of   law"   for   purposes   of  

                                                                                                                                                                                                                  

AS 08.08.230).  

          



                 91               8 AAC 45.180(f)(14).  

                                                      



                 92               8 AAC 45.180(f)(14)(A)-(B).  

                                                      



                                                                                                     -30-                                                                                                     7555
  


----------------------- Page 31-----------------------

V.                     CONCLUSION  



                                             We AFFIRM the Commission's decision.                                                                           



                                                                                                                                                 -31-                                                                                                                             7555
  

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