North Dakota Supreme Court hears dispute over personal liability for unpaid workers' compensation premiums

At an oral argument before the North Dakota Supreme Court, Jacqueline Anderson, specialist assistant attorney general for Workforce Safety and Insurance (WSI), and David Thompson, counsel for Beckler PC and Jeanette Beckler, debated whether N.D.C.C. §65‑04‑26.1 allows WSI to hold an officer personally liable for unpaid premiums, penalties and interest and whether such a liability determination may apply prospectively.

The dispute arises from WSI’s complaint filed in May 2022 to collect unpaid premiums, penalties and interest on an employer account belonging to Beckler PC. WSI issued a notice of decision to Jeanette Beckler dated March 15, 2021. After a district-court trial, an order dated July 22, 2021 awarded judgment on the personal‑liability count in the amount of $17,463.99; the parties disagree about which categories of charges that personal liability lawfully covers and whether the liability may extend to amounts that accrued after the notice.

WSI’s attorney, Jacqueline Anderson, told the court WSI seeks enforcement of the statute’s plain language and this court’s prior constructions. Anderson said WSI’s notice explained the personal liability “extended to unpaid workers' compensation premium assessment penalties, interests and costs owed by Beckler, PC” and that WSI relied on the payroll-reporting process and the agency’s billing statements to identify responsible officers. Anderson urged the court that those assessments are traceable to the employer’s failure “to file reports or make payments as required” and argued the statute supports personal liability for the premiums, the interest that accrues on them, and penalties tied to those premium obligations.

David Thompson, arguing for Jeanette Beckler, defended the district court’s ruling that limited personal liability. Thompson said the district court concluded that applying liability prospectively—i.e., to amounts that accrued after WSI issued its final notice—would raise due‑process and statutory‑construction problems. He argued the statutory phrase “premiums, including penalties” should be read narrowly so that an officer’s personal liability covers premiums and penalties that are a subset of those premium obligations, not all agency penalties for unrelated infractions. Thompson told the court the district court’s approach avoids “unjust consequences” that could result if a final agency determination could not later be challenged when circumstances (such as removal as an officer) change.

Both counsel cited this court’s earlier cases. Anderson referenced the court’s prior analysis of who qualifies as an officer subject to liability and legislative history she said supported WSI’s construction. Thompson relied on the district court’s reading of the statute and urged deference to the court’s independent statutory analysis, including concerns raised by recent U.S. Supreme Court authority that he argued favors judicial scrutiny of agency interpretations.

The lawyers debated factual mechanics: Anderson described WSI’s process for identifying officers (payroll reports, secretary of state records, and other documents) and noted the account in this case was in default beginning January 1, 2020; Thompson emphasized that an individual who is no longer an officer should have some means to challenge continuing liability for sums that accrue after departure from office, and that the statute does not authorize WSI to impose personal liability simply on the basis of amounts that have been incurred but not yet due.

The court reserved time for rebuttal; Anderson reiterated that penalties at issue were those tied to late filing and nonpayment of premiums and that the agency’s practice and this court’s prior precedent supported entry of the judgment WSI seeks. Thompson maintained the district court properly limited liability and that the record supports its conclusions.

At the close of argument the court took the case under advisement. The court announced it would reconvene at 2:30–2:45 p.m. and then adjourned the session.