Karen Holmberg v. State Alaska

Karen Holmberg asks us to reverse the Alaska Workers Compensation Board ("AWCB") decision denying her permanent total disability benefits on the ground that a later decision of the Public Employees Retirement Board ("PERB") conclusively determined that she was not physically able to perform her duties as an employee of the State of Alaska. While we find no substantial reason to refuse to give preclusive effect to PERB determinations in AWCB proceedings in general, we refuse to give such effect to the PERB determination in this case for two independently sufficient reasons. First, the state is not bound by the PERB decision because the state is not in privity with the real party in interest in the PERB proceeding, the Public Employees Retirement System ("PERS"). Second, the later PERB decision cannot preclude any issues raised in the earlier AWCB decision because the PERB decision was not the first final judgment. The AWCB judgment was final for res judicata purposes even while this appeal was pending. Since the AWCB determination that Holmberg was physically able to perform her job requirements is supported by substantial evidence, we affirm.