| FINAL AWARD ALLOWING COMPENSATION (Modifying Award and Decision of Administrative Law Judge) |
| Employee: | Donald Mayse |
| Employer: | Jeff Honer Roofing (Settled) |
| Insurer: | Continental Western Insurance (Settled) |
| Additional Party: | Treasurer of Missouri as Custodian of Second Injury Fund |
| The above-entitled workers' compensation case is submitted to the Labor and Industrial Relations Commission (Commission) for review as provided by § 287.480 RSMo. We have reviewed the evidence, read the parties'briefs, heard oral arguments, and considered the whole record. Pursuant to § 286.090 RSMo, the Commission modifies the award and decision of the administrative law judge dated April 12, 2010. This Commission adopts the findings, conclusions, decision, and award of the administrative law judge to the extent that they are not inconsistent with the decision set forth below. |
| Discussion The issues stipulated in dispute at trial were: (1) whether Missouri jurisdiction is proper in this matter; and (2) the nature and extent of Second Injury Fund liability, if any. The administrative law judge determined and concluded that: (1) Missouri has jurisdiction of this case; and (2) that employee is permanently and totally disabled as a result of the work injury in combination with his preexisting disabling conditions. The administrative law judge ordered the Second Injury Fund to pay permanent total disability benefits to employee at a differential rate of $28.37 per week for 176 and 3/7 weeks beginning November 7, 2003, and thereafter $368.49 per week for employee's lifetime. We agree with the administrative law judge that Missouri jurisdiction is proper and that employee is permanently and totally disabled due to a combination of his primary and preexisting injuries. We note, however, that the administrative law judge's conclusion that the Second Injury Fund is liable at the differential rate of $28.37 per week for 176 and 3/7 weeks is contrary to her own findings with regard to the extent of permanent partial disability resulting from the last injury. We must address this discrepancy in order to make an appropriate calculation of permanent total disability benefits from the Second Injury Fund under § 287.220.1 RSMo. That section creates the Second Injury Fund and governs calculation of its liability and provides, in pertinent part: |
| After the compensation liability of the employer for the last injury, considered alone, has been determined by an administrative law judge or the commission, the degree or percentage of employee's disability that is attributable to all injuries or conditions existing at the time the last injury was sustained shall then be determined by that administrative law judge or by the commission and the degree or percentage of disability which existed prior to the last injury plus the disability resulting from the last |
Injury No.: 02-149305
Employee: Donald Mayse
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injury, if any, considered alone, shall be deducted from the combined disability, and compensation for the balance, if any, shall be paid out of a special fund known as the second injury fund, hereinafter provided for. If the previous disability or disabilities, whether from compensable injury or otherwise, and the last injury together result in total and permanent disability, the minimum standards under this subsection for a body as a whole injury or a major extremity injury shall not apply and the employer at the time of the last injury shall be liable only for the disability resulting from the last injury considered alone and of itself; except that if the compensation for which the employer at the time of the last injury is liable is less than the compensation provided in this chapter for permanent total disability, then in addition to the compensation for which the employer is liable and after the completion of payment of the compensation by the employer, the employee shall be paid the remainder of the compensation that would be due for permanent total disability under section 287.200 out of a special fund known as the "Second Injury Fund" ...
Under the foregoing section, the administrative law judge is tasked with determining the extent of compensation for which the employer is liable as a result of the last injury considered alone. In this case, the administrative law judge determined (and we agree) that employee sustained a total of 30% permanent partial disability of the body as a whole, which amounts to 120 weeks of compensation, as a result of the last injury considered alone. In a case such as the one at hand, where the employee is permanently and totally disabled due to a combination of the primary and preexisting injuries, the next step under § 287.220.1 is to subtract the rates for permanent total and permanent partial disability to determine the "differential rate," for which the Second Injury Fund is liable during the time period that employer pays the compensation for which it is liable as a result of the last injury. Here, the differential rate is $28.37. Under § 287.220.1, the Second Injury Fund is liable for the differential rate for each week that employer would theoretically pay permanent partial disability payments (120 weeks in this case), and thereafter for weekly payments at the full permanent total disability rate.
Rather than use the 120 weeks of compensation for which she found employer liable as a result of the last injury, the administrative law judge used the dollar amount of employee's settlement with employer ($60,000) to find that the Second Injury Fund must pay the differential rate for 176 and 3/7 weeks. Where the fact-finder has determined the liability of the employer for the last injury, the amount of employee's settlement with employer is irrelevant for purposes of § 287.220.1.
We conclude that the Second Injury Fund is liable to employee for permanent total disability benefits beginning November 7, 2003, at the rate of 28.37 for 120 weeks, and thereafter at the rate of 368.49 per week for employee's lifetime or until modified by law.
Conclusion
The Commission modifies that portion of the award of the administrative law judge with regard to calculation of Second Injury Fund liability.
The Second Injury Fund is ordered to pay employee permanent total disability benefits beginning November 7, 2003, at the differential rate of $\ 28.37 per week for 120 weeks. Thereafter, the Second Injury Fund is ordered to pay permanent total disability benefits at the rate of $\ 368.49 per week for employee's lifetime, or until modified by law.
All other findings of fact and conclusions of law are affirmed.
The Commission approves and affirms the administrative law judge's allowance of attorney's fees herein as being fair and reasonable.
Any past due compensation shall bear interest as provided by law.
The award and decision of Administrative Law Judge Rebecca S. Magruder, issued April 12, 2010, as modified, is attached and incorporated by this reference to the extent it is not inconsistent with our findings, conclusions, award and decision herein.
Given at Jefferson City, State of Missouri, this $28^{\text {th }}$ day of January 2011.
LABOR AND INDUSTRIAL RELATIONS COMMISSION
William F. Ringer, Chairman
Alice A. Bartlett, Member
John J. Hickey, Member
Attest:
Secretary