12.2.5 Determining Jurisdiction

• Jurisdiction: Arizona

. Arizona courts have no jurisdiction to entertain an action for damages if the worker’s exclusive remedy lies with the compensation system.^[94] Many issues can arise in the determination of superior court jurisdiction. These can range from whether there exists an employer-employee relationship and whether the employer has complied with the statutory prerequisites to its immunity, to whether the employee has made a binding election to accept compensation rather than pursue tort litigation. The courts have struggled with the questions of what tribunal makes these decisions and how they are to be made. Some recent decisions have clarified much of the confusion surrounding these decisions.

To begin with, whether an “election’’ has been made to proceed with a civil action as opposed to accepting compensation benefits can be decided by either the Industrial Commission or the superior courts.^[95] The commission and the courts also have concurrent jurisdiction to determine employment status.^[96] The first tribunal to take jurisdiction of the matter is usually entitled to retain it.^[97] Currently, the Industrial Commission has exclusive jurisdiction over questions of a person’s entitlement to benefits under the Workers’ Compensation Act, including bad faith claims against insurance carriers and self-insureds.^[98]

The major area of uncertainty has been whether, in determining the...