Arizona Court of Appeals Division Two Holds That Res Judicata Precludes Reduction of Worker’s Compensation Benefits Absent Petition for Rearrangement by Insurer.

n the context of a hearing requested by the employee to determine whether the employee’s physical condition or earning capacity has changed after a benefit award has become final, an Administrative Law Judge may not find the employee’s earning capacity has increased absent a petition for rearrangement filed by the employer or carrier pursuant to A.R.S. § 23-1044(F). Absent such a petition, res judicata principles preclude an Administrative Law Judge from reducing a petitioner employee’s workers’ compensation benefits.
Judge Brammer authored the opinion; Judges Eckerstrom and Espinosa concurred.