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David McGhee v. W. R. Grace & Co.

Decision date: August 12, 200911 pages

Summary

The Commission affirmed the administrative law judge's award of workers' compensation to David McGhee for asbestosis, an occupational disease resulting from workplace exposure to asbestos between 1964 and 1977. The decision involved determining the appropriate permanent total disability compensation rate applicable when disease diagnosis occurred years after the harmful exposure ended.

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Caption

FINAL AWARD ALLOWING COMPENSATION

(Affirming Award and Decision of Administrative Law Judge)

Employee:David McGhee
Employer:W. R. Grace \& Co.
Insurers:Self-Insured c/o Continental Casualty Company <br> Excess Insurer: American Home Assurance Co.

The above-entitled workers' compensation case is submitted to the Labor and Industrial Relations Commission (Commission) for review as provided by section 287.480 RSMo. Having reviewed the evidence and considered the whole record, the Commission finds that the award of the administrative law judge is supported by competent and substantial evidence and was made in accordance with the Missouri Workers' Compensation Law. Pursuant to section 286.090 RSMo, the Commission affirms the award and decision of the administrative law judge dated October 14, 2008. The award and decision of Chief Administrative Law Judge Victorine R. Mahon, issued October 14, 2008, is attached and incorporated by this reference.

The Commission further approves and affirms the administrative law judge's allowance of attorney's fee herein as being fair and reasonable.

Any past due compensation shall bear interest as provided by law.

Given at Jefferson City, State of Missouri, this 12th day of August 2009.

LABOR AND INDUSTRIAL RELATIONS COMMISSION

William F. Ringer, Chairman

Alice A. Bartlett, Member

SEPARATE OPINION FILED

John J. Hickey, Member

Attest:

Secretary

SEPARATE OPINION

CONCURRING IN PART AND DISSENTING IN PART

I have reviewed and considered all of the competent and substantial evidence on the whole record. Based on my review of the evidence as well as my consideration of the relevant provisions of the Missouri Workers' Compensation Law, I believe the decision of the administrative law judge should be reversed on the issue of compensation rate and affirmed in all other respects.

Introduction

Because of their gradual development, occupational diseases present many issues not presented in the context of injuries by accident. It is often the case with an occupational disease that the harmful exposure giving rise to the disease occurs long before the physiological damage occurs.

Such is the case here. Employee worked for employer from 1964 to 1977. Employee was exposed to asbestos during his employment but the damage caused by the exposure to asbestos wreaked its physiological havoc gradually; so gradually, in fact, that the damage did not manifest itself through symptoms until 2000. Finally, in April 2001, employee was diagnosed with asbestosis.

Employee argues that his permanent total disability rate is calculated with reference solely to the permanent total disability statute in effect on the date employee received his asbestosis diagnosis. Employer argues that the employee's permanent total disability rate is subject to a permanent total disability cap that existed in the 1977 permanent total disability statute. The parties stipulate that employee's average weekly earnings were $\ 242.87 when he last worked for employer.

Law

I reprint the relevant portions of the statutes implicated by the parties' arguments below.

Section 287.200 RSMo (1977)

  1. Compensation for permanent total disability shall be paid during the continuance of such disability for the lifetime of the employee on the basis of sixty-six and two-thirds per cent of the average earnings of the employee, or as provided in section 287.160, computed in accordance with the rules given in section 287.250 but in no case shall the compensation exceed ninety-five dollars per week.

Section 287.200 RSMo (2000)

  1. Compensation for permanent total disability shall be paid during the continuance of such disability for the lifetime of the employee at the weekly rate of compensation in effect under this subsection on the date of the injury for which compensation is being made.

(4) For all injuries occurring on or after August 28, 1991, the weekly compensation shall be an amount equal to sixty-six and two-thirds percent of the injured employee's average weekly earnings as of the date of the injury; provided that the weekly compensation paid under this subdivision shall not exceed an amount equal to one hundred five percent of the state average weekly wage;

Discussion

The administrative law judge found that employee is permanently and totally disabled. The administrative law judge concluded that Enyard v. Consolidated Underwriters, 390 S.W.2d 417 (Mo. App. 1965), stands for the proposition that for the purpose of determining the compensation rate in occupational disease cases, the "date of injury" is the date of employee's last injurious exposure. The administrative law judge then concluded the $\ 95 weekly benefit cap that appears in the 1977 statute applies to this case. The administrative law judge's reliance on the holding in Enyard is misplaced.

First, the Enyard decision was based upon a faulty reading of Renfro v. Pittsburgh Plate Glass Co., 130

S.W.2d 165, 171 (Mo. App. 1939). The Enyard court distinguished Renfro on the ground that,"[i]n that case we were dealing primarily with the question of when the statute of limitations began to run." In fact, a primary issue in Renfro was whether employee's average annual wage should be computed based upon the wages in the year next preceding Mr. Renfro's last exposure to the hazard of silicosis or upon the wages in the year next preceding his disability. The Renfro court concluded the latter wages are to be used reasoning that "the purpose of a Workman's Compensation Act is not indemnity for any physical ailment, but for loss of earning power, disability to work. Id., at 71. "We are unable to perceive how it can logically or justly be held that there is a compensable injury in an occupational disease case until there is disability on the part of the employee which affects his earning power." Id., at 170.

Further, the main premise of the Enyard holding - that "the last injurious exposure marks the time of injury in an occupational disease case" - was recently explicitly rejected in Copeland v. Associated Wholesale Grocers, 207 S.W.3d 189 (Mo. App. 2006). Mr. Copeland developed carpal tunnel syndrome while working for Associated Wholesale Grocers (AWG). Mr. Copeland was treated for the condition and medically released before beginning work for Elite Logistics (Elite). Employee's work for Elite also exposed him to the hazards of developing carpal tunnel syndrome. A year later, Mr. Copeland filed a claim for compensation. The Commission concluded that liability was fixed with AWG because AWG was the last employer to injuriously expose Mr. Copeland to the hazard of carpal tunnel syndrome. The Copeland court reversed concluding the Commission erred in reading the word "injurious" into the statute. Even though it was undisputed that employment with Elite did not expose Mr. Copeland to the activities that actually caused Mr. Copeland's occupational disease (the injurious exposure), the Court found Elite liable for compensation.

Finally, the administrative law judge's ruling applies two versions of the Workers' Compensation Law to one claim. Employee's claim arose in April 2001. The 2000 version of the Workers' Compensation Law governs the determination of employer's liability for the claim. Even if the administrative law judge was correct that the "date of injury" for purposes of determining the permanent total disability rate was in 1977 - and she is not - that conclusion alone would not justify pulling out the 1977 Workers' Compensation Law to determine the permanent total disability rate. We would still look to the 2000 law to determine the rate. The administrative law judge condones the application of the 2000 Law for purposes of considering statute of limitations issues and the 1977 law for determining disability rates. It is error to do so.

The simple truth is this: Employee did not sustain injury to his body in 1977. Employee was exposed to a substance that had the potential to cause injury to him. Unfortunately for employee, the potential for injury was realized.

The majority rule regarding the proper benefit level - and the rule that should be applied under the Missouri statutes - is described below:

The question of which benefit level applies is encountered in its most acute form in long-latency occupational disease cases. If a worker's last injurious exposure was in 1965 and his disability appeared in 1995, the choice between date of exposure and date of disability might well mean the difference between $\ 50 and $\ 350 a week.

The majority rule, as a result of either judicial decision or statutory provision, is that the level at the time of exposure does not control; rather, the time of disability, knowledge, or manifestation is decisive.

Arthur L. Larson \& Lex Larson, Larson's Workers' Compensation Law, § 53.05 (2009).

The majority rule is consistent with the legal principles enunciated in Renfro and Copeland. I would rule that the date of injury for purposes of determining employee's permanent total disability rate was in April 2001.

Employer argues that if we were to award compensation under the rates in effect in 2001, it would seem an "unfair and unjust result." What of it? Employee contracted a serious illness because of his service to employer. That probably seems unfair to employee. It probably also seems unjust to the employee that the administrative law judge determined $\ 95 per week is what Missouri law provides for his loss of earning capacity in 2001. It must have seemed awfully unfair and unjust to Elite Logistics when it learned it was liable for a disability that was diagnosed and treated before Mr. Copeland worked for Elite. See discussion of Copeland, supra. It is the insidious nature of occupational diseases that gives rise to any perceived or real inequities. It is the job of the legislature to address the inequities if it sees fit.

Conclusion

Applying § 287.200.1 RSMo (2000), I would award a weekly benefit of $\ 161.91 (66-2/3\% of the stipulated average weekly earnings of $\ 242.87 ). For the foregoing reasons, I dissent from that portion of the administrative law judge's award capping employee's permanent total disability benefit at $\ 95.

John J. Hickey, Member

AWARD

Employee: David McGhee

Injury No. 01-166433

Before the

DIVISION OF WORKERS'

COMPENSATION

Department of Labor and Industrial Relations of Missouri

Jefferson City, Missouri

Dependents: N/A

Employer: W.R. Grace \& Co.

Additional Party: (Not Applicable)

Insurer: Self Insured/ Excess Insurer: American Home Assurance Co.

Hearing Date: August 8, 2008

Checked by: VRM/meb

FINDINGS OF FACT AND RULINGS OF LAW

  1. Are any benefits awarded herein? Yes.
  2. Was the injury or occupational disease compensable under Chapter 287? Yes.
  3. Was there an accident or incident of occupational disease under the Law? Yes.
  4. Date of accident or onset of occupational disease: 2001.
  5. State location where accident occurred or occupational disease was contracted:
St. Louis, Missouri.
6.Was above employee in employ of above employer at time of alleged accident or occupational disease?Yes.
7.Did employer receive proper notice?Yes.
8.Did accident or occupational disease arise out of and in the course of theemployment?
Yes.
9.Was claim for compensation filed within time required by Law?Yes.
10.Was employer insured by above insurer?Yes.
11.Describe work employee was doing and how accident occurred or occupational diseasecontracted: Loaded vermiculite based substances.
12.Did accident or occupational disease cause death?No. Date of death?N/A
13.Part(s) of body injured by accident or occupational disease:Lungs/ Body as a Whole.
14.Nature and extent of any permanent disability:Permanent Total Disability.
15.Compensation paid to-date for temporary disability:None.
16.Value of necessary medical aid paid to date by employer/insurer?None.

Full decision text continues in the plain-text archive copy.

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