THOMAS L. EAGER, Employee/Appellant, v. HAUGEN TRANSIT and LIBERTY MUT. INS. CO., Employer-Insurer.

WORKERS’ COMPENSATION COURT OF APPEALS
APRIL 1, 2013

No. WC12-5506

 

HEADNOTES:

DISCONTINUANCE; TEMPORARY PARTIAL DISABILITY.  For an injury that occurred prior to the 1983 amendments, the employer and insurer are not entitled to discontinue temporary partial disability benefits where an employee is temporarily disabled from post-injury employment due to an unrelated personal medical condition, but he is later able to return to the same post-injury employment, and the personal medical condition does not alter the employee’s ability to work or earning capacity as related to the work injury.

Reversed.

Determined by:  Hall, J., Milun, C.J., and Stofferahn, J.
Compensation Judge:  Nancy Olson

Attorneys:  Ruth M. Harvey, Chesley, Kroon, Harvey & Carpenter, Mankato, MN, for the Appellant.  Stacey H. Sorenson, Law Offices of Stilp & Grove, Golden Valley, MN, for the Respondents.

 

OPINION

GARY M. HALL, Judge

The employee appeals from the compensation judge’s determination that the employee was not entitled to temporary total disability benefits or temporary partial disability benefits between July 2011 and March 2012, because he was disabled for reasons unrelated to his work injury of July 8, 1981.  We reverse.

BACKGROUND

This case came on for hearing before the compensation judge on August 22, 2012.  By agreement of the parties, the case was submitted through written briefs and stipulated facts.

The employee, Thomas Eager, sustained an admitted low back injury while working for Haugen Transit, the employer herein, on July 8, 1981.  The workers’ compensation insurer, Liberty Mutual Insurance Company, has been paying workers’ compensation benefits ever since the employee’s 1981 injury date.  The employee has been working part time for many years, at a wage loss, for a different employer as a bus driver.  Liberty Mutual does not dispute that the employee’s injury is permanent in nature.  Nor does it dispute that the employee’s wage loss over the years at his post-injury employment has been related to the 1981 injury up to the time period in question.

The parties dispute whether the employee was entitled to temporary total disability benefits, temporary partial disability benefits, or no benefits whatsoever “from July 23, 2011, to March 9, 2012.”  During that time, the employee was unable to work at all because of a personal medical condition that was not related to his employment or his work injury.  The parties agree that the employee’s personal medical condition prevented him from performing his usual post-injury work during the period at issue.  While the employee was off work, he did not conduct a job search because his post-injury employer held his job open during the period he was unable to work because of his personal medical condition.  The employee has returned to work in the same capacity with his post-injury employer since March 9, 2012.

The employer and insurer continued to pay the employee during the period of time at issue, and the employer and insurer sought to recover those payments, which total $25,214.64.  At hearing, the compensation judge was asked to determine whether the employee was entitled to temporary total disability benefits, temporary partial benefits, or no benefits at all “from July 23, 2011, to March 9, 2012.”  In addition, the compensation judge was asked to determine whether the employer and insurer were entitled to an overpayment credit for temporary total benefits paid to the employee “from July 23, 2011, to March 9, 2012,” when the employee was totally disabled from all work because of a non-work medical condition that was unrelated to his injury.

The employee argued that pursuant to the law in effect at the time of the employee’s 1981 injury date, he was entitled to temporary total disability benefits or temporary partial disability benefits paid at the temporary total disability rate because he continued to have a decreased earning capacity caused by the work injury during the period of time at issue between July 2011 and March 2012.  Based on her interpretation of the law as it existed at the time of the employee’s 1981 injury, the compensation judge found that the employee “was not entitled to temporary total disability benefits or temporary partial disability benefits when he was disabled for the period July 23, 2011, to March 9, 2011, for reasons unrelated to the work injury.”  The compensation judge stated, “the petition for discontinuance is granted and the employer and insurer are allowed to take an overpayment credit for benefits paid from July 23, 2011, to March 9, 2012.”  The employee appeals the compensation judge’s determination.

STANDARD OF REVIEW

“[A] decision which rests upon the application of a statute or rule to essentially undisputed facts generally involves a question of law which [the Workers’ Compensation Court of Appeals] may consider de novo.”  Krovchuk v. Koch Refinery, 48 W.C.D. 607, 608 (W.C.C.A. 1993).

DECISION

The law in effect on the date of injury governs a claim for workers’ compensation benefits, and the substantive rights of an employee to compensation become fixed by the law in force at the time the compensable injury or accident occurs.  See, e.g., Yaeger v. Delano Granite Works, 250 Minn. 303, 84 N.W.2d 363, 20 W.C.D. 27 (1957).

The pertinent portion of Minn. Stat. § 176.101, subd. 2, in effect at the time of the employee’s 1981 injury read as follows:

In all cases of temporary partial disability the compensation shall be 66 2/3 percent of the difference between the daily wage of the worker at the time of injury and the wage he is able to earn in his partially disabled condition.  This compensation shall be paid during the period of disability, payment to be made at the intervals when the wage was payable, as nearly as may be, and subject to a maximum compensation equal to the statewide average weekly wage.  If the employer does not furnish the worker with work which he can do in his temporary partially disabled condition and he is unable to procure such work with another employer, after reasonably diligent effort, the employee shall be paid at the full compensation rate for his or her temporary total disability.

The compensation judge stated that she “believed that under this statute some ability to work was necessary to receive temporary partial disability benefits whether at a reduced rate or at the temporary total disability rate.”  Because the employee was unable to work between July 2011 and March 2012 due to his personal medical condition, the compensation judge determined that he was totally disabled and not partially disabled during that period.  The compensation judge felt that the statue made “no provision for a situation when an employee is disabled totally from a non-work-related disability but still has disability due to the work injury.”

We conclude that the compensation judge erred in her application of the law in effect in 1981 to the facts of this case.  Although the law in place in 1981 required an employee to be “able to work,” an employee was not actually required to be employed in order to receive temporary partial disability benefits.  Patrin v. Progressive Rehab Options, 497 N.W.2d 246, 247, 48 W.C.D. 273, 274-75 (discussing the history of the Workers Compensation Act before and after the 1983 amendments); Nybeck v. H.S. Kaplan Scrap Iron, 42 W.C.D. 1169, 1173 (W.C.C.A. 1990) (citing Dorn v. A.J. Chromy Construction Co., 310 Minn. 42, 245 N.W.2d 451, 29 W.C.D. 86 (1976)).  Minn. Stat. § 176.101 was substantially revised in 1983 to limit temporary partial disability benefits so that they were only payable to an employee who was employed.  Patrin, 497 N.W.2d at 247, 48 W.C.D. at 274-75 (citing Morrissey v. Country Club Markets, Inc., 430 N.W.2d 169 (Minn. 1988); Tews v. Geo. A. Hormel & Co., 430 N.W.2d 178 (Minn. 1988); Parson v. Holman Erection Co., 428 N.W.2d 72 (Minn. 1988)).

As the Supreme Court explained in Jasnoch v. Schwab Co.:

In 1983 the legislative restructuring of the Workers’ Compensation Act focused on the reemployment of an injured employee.  In pursuit of this goal, the temporary wage loss provisions were revised to eliminate the availability of temporary partial compensation to employees who were not employed.

495 N.W.2d 204, 205, 48 W.C.D. 139, 140 (Minn. 1993).  Therefore, at the time of the employee’s injury in 1981 an employee was entitled to ongoing temporary partial disability benefits “so long as he has a reduction in earning capacity due to injury or occupational disease.”  Morehouse v. Geo. A. Hormel & Co., 313 N.W.2d 8, 10, 34 W.C.D. at 317-18 (Minn. 1981).  “Without a showing that the employee’s ability to earn or physical condition relating to his injury has changed, there is no reasonable basis upon which the employer and insurer should be allowed to terminate or change the injured worker’s benefits.”  Grams v. Fairfax Coop. Creamery, slip op. (W.C.C.A. Mar. 28, 1984) (citing Morehouse, 34 W.C.D. 314, 313 N.W.2d 8 and DeBenedet v. Hennepin County Med. Ctr., 33 W.C.D. 500 (W.C.C.A. 1981)).  In other words, the applicable question for the employee’s 1981 injury date was whether the employee continued to have a reduction in earning capacity related to that injury date.[1]

In Grams, slip op., the employee sustained a work-related neck injury in 1976 (that injury was covered by the same statutory structure in place at the time of the 1981 injury here).  The employee then obtained part-time employment, and the employer and insurer began paying temporary partial disability benefits.  In 1983, the employee suffered a heart attack that was unrelated to his work or his work injury.  The employer and insurer stopped paying temporary partial disability benefits, arguing that the heart attack totally disabled the employee and terminated the employer and insurer’s payment obligations.  This court noted:

The compensation judge found and determined that the employee’s temporary partial disability status had not changed on January 29, 1983 when he experienced the heart attack; that the employer and insurer’s responsibility for the employee’s temporary partial disability did not end but continued after said date; that an employee is entitled to temporary partial disability benefits so long as he has a reduction in earning capacity as a result of an employment connected injury or illness; and that the employee’s myocardial infarction was not an intervening cause of the employee’s temporary partial disability.

Grams, slip op. (emphasis added).  This court affirmed and held that there was no basis to discontinue or change the employee’s ongoing temporary partial disability benefits.  Id. (citing Morehouse and DeBenedet).

DeBenedet involved a median nerve injury.  33 W.C.D. at 501.  Because of continuing difficulty with her hand, the employee never returned to work.  Id. at 502-03.  Subsequent to her personal injury, the employee was diagnosed with multiple sclerosis.  Id. at 501.  However, the employee had “never recovered from her disability status related to her work injury.”  Id. at 504.  As such, “the subsequent manifestation of her multiple sclerosis condition could not be considered to be an intervening cause of her disability so as to preclude her from entitlement to workers’ compensation benefits.”  Id.

The compensation judge cited the cases of Patrin, 497 N.W.2d 246, 48 W.C.D. 273, Klasen v. American Linen, 52 W.C.D. 284 (W.C.C.A. 1994), and Leegard v. Mid-City Hotel Assocs., 44 W.C.D. 240 (W.C.C.A. 1990), summarily aff’d (Minn. Mar. 7, 1991) in support of her decision.  Those cases are distinguishable, however, because each involved subsequent injuries or conditions that prevented the employee from returning to work in any capacity.  In Klasen, for example, the employee stopped working altogether, and this court affirmed the compensation judge’s determination that the employee had stopped working for reasons unrelated to the work injury.  52 W.C.D. at 286-87, 289-90.  This court also noted that under the law before the 1983 changes, the employee may have been eligible for payment of temporary partial disability benefits at the temporary total disability rate if the employee had been released to work with restrictions related to the work injury and had conducted a reasonably diligent job search.  Id. at 290-91.  However, the employee never returned to work in any capacity after she was taken off work.  Id. at 291.  Therefore, she had “no earning capacity.”  Id.

As the compensation judge noted here, there was no dispute that the employee was able to work prior to the period in question and after the period in question.  The employee was able to return to the same post-injury employment in the same capacity once his personal medical condition was finished.  As such, his personal medical condition did not alter his ability to work or his earning capacity as related to his 1981 injury, and he continued to have that same reduction in earning capacity during the time he was off work for his personal medical condition.

“A disabling, non-work-related medical condition sustained subsequent to a work injury does not automatically constitute an intervening cause where it can be shown that the previous work injury remains a substantial contributing factor in the employee’s disability.”  Kahlstorf v. Potlatch Corp., 64 W.C.D. 407 (W.C.C.A. June 2, 2004) (citing Leegard, 44 W.C.D. at 243 and DeBenedet, 33 W.C.D. 500).  The record only establishes that the employee missed time for a personal medical condition, and this court has held that “it should not be the policy of the workers’ compensation system to penalize workers with ordinary short-term illnesses by depriving them of temporary partial disability benefits to which they would otherwise be entitled.”  Fox v. Minnesota Mining and Mfg. Co., 58 W.C.D. 45, 49 (W.C.C.A. 1998).  The stipulated facts of this case are more consistent with a temporary illness, as in the Fox case, than they are with the permanently disabling subsequent injuries or conditions involved in cases such as Klasen, Patrin, and Leegard.

After his personal medical condition resolved, the employee was able to return to work in the same post-injury employment and at the same reduced earning capacity related to his work injury.  The employee’s temporary partial disability status did not change as a result of the personal medical condition, and he did not recover from his disability status as related to his work injury.  The employee’s personal medical condition did not result in any change to the employee’s ability to earn or his physical condition as relating to his injury, and it was not an intervening cause as related to his temporary partial disability.  Therefore, the employer and insurer’s responsibility for the employee’s temporary partial disability did not end but continued during the time period at issue pursuant to the law in effect in 1981, and the compensation judge’s findings and order are reversed.



[1] The employee also needed to demonstrate that he conducted a diligent job search during the period of time he was off work for the personal medical condition.  See Patrin, 497 N.W.2d at 247, 48 W.C.D. at 274-75.  Job search was not a determining factor for the compensation judge and did not appear to be at issue between the parties.  The stipulated facts show that the post-injury employment was held open for the employee, and he returned to his post-injury employment in March 2012 in the same capacity as he had been before the personal medical condition.  As such, the employee could have demonstrated a diligent job search.  See, e.g., Oihus v. Roadway Express, 61 W.C.D. 118, 124-25 (W.C.C.A. 2000) (citations omitted), summarily aff’d (Minn. Feb. 6, 2001).