SANDRA K. HANDY Employee, v. WAL-MART STORES, INC., and AMERICAN HOME ASSURANCE CORP./AIG/CLAIMS MGMT., INC., Employer-Insurer/Petitioners.
WORKERS’ COMPENSATION COURT OF APPEALS
AUGUST 5, 2011
No. WC11-5280
HEADNOTES
PERMANENT TOTAL DISABILITY - RETIREMENT; PERMANENT TOTAL DISABILITY - DISCONTINUANCE. Given the language of the stipulation for settlement and the employee’s attainment of age 67, the employer and insurer were entitled to discontinue permanent total disability benefits.
Petition to discontinue permanent total disability granted.
Determined by: Wilson, J., Milun, C.J., and Stofferahn, J.
Attorneys: Gerald W. Bosch, Bosch Law Firm, Minneapolis, MN, for the Respondent. Christopher E. Sandquist, Gislason & Hunter, Mankato, MN, for the Petitioners.
MAJORITY OPINION
DEBRA A. WILSON, Judge
The employer and insurer petition this court to discontinue payment of permanent total disability benefits based on the employee’s attainment of age 67 and the resulting statutory presumption of retirement. We grant the petition.
BACKGROUND
The employee sustained a work-related injury on December 3, 2003, while employed by Wal-Mart Stores, Inc. [the employer]. The employer and its workers’ compensation insurer accepted liability for the injury, and, in December of 2006, the parties entered into a stipulation for settlement. The stipulation contains the following agreement regarding the employee’s claim for permanent total disability benefits:
It is agreed that the Employer and Insurer shall pay from November 1, 2006 through the present and continuing permanent total disability benefits at a current rate of $466.70, subject to future adjustments, and subject to future defenses pursuant to the Workers’ Compensation Act. It is therefore stipulated and agreed by the parties in this matter, that the Employee is and has been permanently disabled within the meaning of the Workers’ Compensation Act and entitled to benefits thereon from September 20, 2004 through November 1, 2006, in substantial part because of the admitted work injury in this matter.
An award on stipulation was filed on December 18, 2006.
On May 10, 2011, the employer and insurer filed a petition to discontinue permanent total disability benefits, alleging that by the terms of the stipulation, the employer and insurer were entitled to raise defenses to the employee’s claim for ongoing permanent total disability benefits, including the retirement presumption defense; that the employee would reach age 67 on July 8, 2011; and that “permanent total disability shall cease at age 67 because the employee is presumed retired from the labor market.” See Minn. Stat. § 176.101, subd. 4.
The employee filed an objection to the petition to discontinue permanent total disability benefits, alleging that there is no basis under Minn. Stat. § 176.461 and § 176.521, subd. 3, to modify the award; that the stipulation for settlement did not specifically reserve the retirement defense; and that the employee did not have any intention of retiring at age 67.
DECISION
Minn. Stat. § 176.101, subd. 4, provides in part that “[p]ermanent total disability benefits shall cease at age 67 because the employee is presumed retired from the labor market.” An employer and insurer may file, with this court, a petition to discontinue permanent total disability benefits in any case in which the employer or insurer is uncertain whether the statutory presumption applies. See Olson v. 3M Co., 70 W.C.D. 341 (W.C.C.A. 2010).
In this case, the employer and insurer agreed that the employee had been permanently disabled from September 20, 2004, through November 1, 2006, “in substantial part because of the admitted work injury,” and agreed to continue paying permanent total disability benefits continuing from November 1, 2006, “subject to future defenses pursuant to the Workers’ Compensation Act.” By agreeing that the employee’s right to payment after November 1, 2006, would be subject to future defenses, the parties incorporated into their settlement agreement the employer and insurer’s right to assert the retirement presumption contained in Minn. Stat. § 176.101, subd. 4.
There appears to be no dispute that the employee reached the age of 67 on July 8, 2011. Pursuant to Minn. Stat. § 176.101, subd. 4, the employer and insurer are entitled to discontinue permanent total disability benefits. If the employee claims entitlement to continuing permanent total disability benefits, she may file a petition pursuant to Minn. Stat. § 176.291.
DISSENTING OPINION
PATRICIA J. MILUN, Judge
I respectfully dissent. There is no statutory basis for the Workers’ Compensation Court of Appeals to grant or deny the employer and insurer’s request to discontinue permanent total disability benefits under the circumstances presented in this case. The function of the Workers’ Compensation Court of Appeals is to be the appellate review of the findings of fact and the application of law at the Office of Administrative Hearings. In this case, by operation of law, the injured worker’s permanent total disability payments cease at age 67 because she is presumed retired from the labor market.[1] The birth date is not the disputed fact. The injured worker’s ongoing entitlement to permanent total disability benefits upon reaching the age of 67 is the issue of fact. The extent to which a retirement defense can limit the duration of a permanent total disability benefit is the genuine dispute. The petition to discontinue permanent total disability benefits should therefore be presented to a compensation judge who is the designated finder of fact. In all other discontinuances of ongoing benefits, the process for the initiation of a proceeding involves a filing at the Department of Labor and Industry and a determination by a compensation judge at the Office of Administrative Hearings.
Due process requires a procedure to be established that will allow the injured worker to expeditiously obtain a determination of whether she is entitled to ongoing permanent total disability benefits after reaching the age of the retirement presumption. The procedure to obtain an expedited hearing in this situation is missing.[2] The statute allows the employer and insurer to discontinue permanent total disability benefits without filing a petition at the Workers’ Compensation Court of Appeals. I see no statutory basis for this court to grant or deny the employer and insurer’s relief from payment of permanent total disability benefits.
[1] Minn. Stat. § 176.101, subd. 4.
[2] There is no procedure for the parties to obtain an expedited interim decision in disputes over the discontinuance of the injured worker’s permanent total disability benefits in this case. Compare Minn. Stat. §§ 176.238 and 176.239, subd. 10, with Minn. Stat. § 176.291. Under Minn. Stat. § 176.291, the parties have no opportunity to appear before a compensation judge, make statements, and submit evidence that reasonable grounds exist to discontinue permanent total disability benefits prior to a hearing. An injured worker aggrieved by a discontinuance may proceed to an expedited hearing before a compensation judge under the procedures set forth in Minn. Stat. § 176.291. Those procedures require the filing of the petition with an affidavit of significant hardship at the Department of Labor and Industry, block assignment to a compensation judge at the Office of Administrative Hearings, notice of a pretrial conference on the affidavit of hardship, holding a pretrial conference, scheduling a hearing date, and the hearing. This process will take months and still be well within the statutory time limits under Minn. Stat. § 176.291. Neither this process nor the process developed by the Workers’ Compensation Court of Appeals provides a remedy to award or discontinue permanent total disability benefits prior to a record hearing. If the parties were required to file a notice of intention to discontinue benefits (NOID) under Minn. Stat. §§ 176.238 and 176.239, the matter would be expeditiously decided within 20 to 40 days.