Sharon Ann Starks, a Single Woman v. S. E. Rykoff & Company, a Corporation Star Manufacturing Company, Inc., a Corporation

Sharon Ann Starks appeals from the grant of summary judgment by the district court, 504 F.Supp. 1300 , dismissing this action against S. E. Rykoff & Co. and Star Manufacturing Co. [Appellees]. At issue is the validity of the reassignment of Starks’ personal injury claim by the Arizona state compensation fund [Fund]. The questions before this court are (1) the validity of the reassignment under Arizona law, and (2) whether the retroactive statutory authorization of the reassignment violates the due process clause of the fourteenth amendment to the Federal Constitution. Because it is our view that the reassignment is valid under both state and federal law, we reverse the district court.

I.

Starks was injured in the course of employment. Since she did not bring a personal injury suit within one year from the date of injury, her claim was automatically assigned by operation of law to the Fund. Ariz.Rev.Stat.Ann. § 23-1023(B). The Fund later reassigned the claim to Starks. Starks filed suit in an Arizona superior court before the statute of limitations elapsed for bringing a personal injury action. Appellees, the manufacturer and the distributor of the product that allegedly…