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Anthony Ladd v. Residential Sewage Treatment Company, Inc.

Decision date: May 31, 201176 pages

Summary

The Commission affirmed the Administrative Law Judge's decision denying Anthony Ladd's claim for enhanced permanent partial disability benefits against the Second Injury Fund for a 2006 left knee injury. The employee failed to prove that his preexisting disabilities combined with the 2006 injury to result in enhanced permanent partial disability meeting the statutory thresholds required for Second Injury Fund liability.

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This workers' comp decision may point to a separate injury claim.

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Caption

FINAL AWARD DENYING COMPENSATION

(Affirming Award and Decision of Administrative Law Judge by Supplemental Opinion)

Injury No.: 06-006481

Employee: Anthony Ladd

Employer: Residential Sewage Treatment Company, Inc. (Settled)

Insurer: Secura Insurance Company (Settled)

Additional Party: Treasurer of Missouri as Custodian of Second Injury Fund

This cause has been submitted to the Labor and Industrial Relations Commission (Commission) for review as provided by $\S 287.480 RSMo. { }^{1}$ We have reviewed the evidence and briefs, and we have considered the whole record. Pursuant to § 286.090 RSMo, the Commission affirms the award and decision of the administrative law judge (ALJ), dated August 24, 2010, referable solely to Injury No. 06-006481, as supplemented herein.

Preliminaries

Employee settled his claim against employer and proceeded to final hearing against the Second Injury Fund. The ALJ heard this matter to consider, among other issues, the nature and extent of any Second Injury Fund liability with respect to employee's 2006, accident.

The ALJ found that employee failed to prove any enhanced permanent partial disability as a result of his alleged preexisting disabilities combining with his 2006 injury. Therefore, employee's claim against the Second Injury Fund for the 2006, injury was denied.

Employee appealed to the Commission alleging that the ALJ erred in denying him enhanced permanent partial disability benefits against the Second Injury Fund.

Therefore, the primary issue currently before the Commission is the nature and extent of any Second Injury Fund liability.

Findings of Fact and Conclusions of Law

The findings of fact and stipulations of the parties were accurately recounted in the award of the ALJ and, to the extent they are not inconsistent with the findings listed below, they are incorporated and adopted by the Commission, herein.

On January 25, 2006, employee injured his left knee when he stepped into a hole at work and his left leg sank into the ground up to his waist. On March 14, 2006, Dr. Rhoades performed arthroscopic surgery on employee's left knee. Dr. Rhoades released employee on May 17, 2006, to return to work full duty. Employee filed a Claim for Compensation with regard to this injury and later settled with employer. As part of the settlement, employer agreed to pay for employee's medical expenses of $\ 11,168.12 and $\ 367.80 in

[^0]

[^0]: ${ }^{1}$ Statutory references are to the Revised Statutes of Missouri 2005 unless otherwise indicated.

Employee: Anthony Ladd

- 2 -

temporary total disability benefits. All other issues were settled for the lump sum of $500.00.

We find, as did the ALJ, that employee failed to prove any enhanced permanent partial disability resulting from a combination of the 2006, injury with any alleged preexisting disabilities.

Section 287.220 RSMo creates the Second Injury Fund and provides when and what compensation shall be paid from the fund in "all cases of permanent disability where there has been previous disability." The employer's liability must first be considered in isolation before determining Second Injury Fund liability. *Kizior v. Trans World Airlines*, 5 S.W.3d 195 (Mo. App. W.D. 1999), overruled on other grounds, *Hampton v. Big Boy Steel Erection*, 121 S.W.3d 220 (Mo. banc 2003).

Section 287.220.1 provides certain thresholds that both the primary injury and the preexisting disabilities must meet before the Second Injury Fund is found liable. Before analyzing any synergistic effect of the primary injury and preexisting disabilities, it must be determined that both the primary injury, by itself, and the preexisting disabilities, by themselves, result in a minimum of 12.5% permanent partial disability of the body as a whole, or if the injury is to a major extremity, 15% permanent partial disability to said extremity. If the primary injury and preexisting disabilities do not both satisfy either of these disability minimums, the analysis stops there and the claim against the Second Injury Fund is denied.

In this case, employee was treated by Dr. Rhoades for approximately four months and then released to full duty work. Employee returned to his same job and duties. Employee testified that when he returned to his job he would use a bucket to sit on instead of getting down on his knees. Dr. Poppa evaluated employee on July 24, 2009, and opined that as a result of employee's 2006, injury he sustained 20% permanent partial disability of the lower left extremity rated at the knee. Dr. Poppa also opined that employee's 1998, head injury resulted in 15% permanent partial disability of the body as a whole and his 2001, right elbow injury resulted in 20% permanent partial disability of the right upper extremity rated at the elbow.

Employee settled his 2006, injury claim against employer for $500.00 at the 160 week level.

We find, as did the ALJ, that Dr. Poppa's opinions are not credible. Regardless of the fact that Dr. Poppa issued two separate reports with different conclusions both dated July 24, 2009, his opinions do not accurately reflect employee's conditions with regard to the 2006, injury or his alleged preexisting disabilities.

We find that the weight of the evidence shows that employee's 2006, injury did not come close to resulting in 15% permanent partial disability to employee's lower left extremity. Employee treated with Dr. Rhoades for four months and returned to full duty work. In addition, he settled his claim against employer for a mere $500.00. For the foregoing reasons, we find that employee's claim against the Second Injury fund for his

2006, injury is denied because the primary injury did not meet the 15\% permanent partial disability threshold required for Second Injury Fund liability in § 287.220.1.

Award

We affirm, as supplemented herein, the ALJ's denial of Second Injury Fund liability with respect to employee's 2006, injury.

The award and decision of Administrative Law Judge Carl Mueller, issued August 24, 2010, is attached and incorporated to the extent it is not inconsistent with this final award.

Given at Jefferson City, State of Missouri, this $31^{\text {st }}$ day of May 2011.

LABOR AND INDUSTRIAL RELATIONS COMMISSION

William F. Ringer, Chairman

Alice A. Bartlett, Member

DISSENTING OPINION FILED

John J. Hickey, Member

Attest:

Secretary

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 ALJ should be reversed and employee should be awarded enhanced permanent partial disability benefits against the Second Injury Fund.

Dr. Poppa, the only doctor to perform an independent medical evaluation of employee, concluded that as a result of the 2006, injury employee sustained 20\% permanent partial disability of his lower left extremity rated at the knee. Dr. Poppa also opined that employee's 1998, head injury resulted in 15\% permanent partial disability of the body as a whole and his 2001, right elbow injury resulted in 20\% permanent partial disability of the right upper extremity rated at the elbow.

Despite Dr. Poppa's ratings and no contradictory ratings presented by the Second Injury Fund, the ALJ and the majority found that employee's resulting permanent partial disability from the 2006, injury did not meet the threshold provided in § 287.220.1. I find this in error.

Although employee settled his claim against employer for the lump sum of $\ 500.00, this settlement is not binding with regard to his claim against the Second Injury Fund. See Totten v. Treasurer of the State of Missouri, 116 S.W.3d 624, 628 (Mo. App. 2003).

I find that the ALJ and the majority erroneously disregarded the opinions of Dr. Poppa in finding that employee's 2006, injury did not meet the 15\% permanent partial disability threshold. I further find that employee's 2006, injury combined with his preexisting disabilities to result in enhanced permanent partial disability and that the Second Injury Fund is liable for this enhanced amount.

I find that the ALJ and the majority arbitrarily disregarded employee's undisputed evidence and, therefore, the ALJ's award should be reversed. For the foregoing reasons, I respectfully dissent from the decision of the majority of the Commission.

John J. Hickey, Member

FINAL AWARD

Employee: Anthony Ladd

Injury Nos: 06-006481

07-029181

08-079188

Dependents: N/A

Employer: Residential Sewage Treatment Company, Inc. (settled)

Additional Party: State Treasurer as Custodian of the Second Injury Fund

Insurer: Secura Insurance Company

Hearing Date: July 19, 2010

Checked by: RCM/rm

FINDINGS OF FACT AND RULINGS OF LAW

  1. Are any benefits awarded herein?

06-006481: No

07-029181: No

08-079188: No

  1. Was the injury or occupational disease compensable under Chapter 287?

06-006481: Yes

07-029181: Yes

08-079188: Yes

  1. Was there an accident or incident of occupational disease under the Law?

06-006481: Yes

07-029181: Yes

08-079188: Yes

  1. Date of accident or onset of occupational disease:

06-006481: January 25, 2006

07-029181: March 27, 2007

08-079188: August 11, 2008

  1. State location where accident occurred or occupational disease was contracted:

06-006481: Holden, Johnson County, Missouri

07-029181: Leavenworth, Kansas

08-079188: Smithville, Missouri

  1. Was above employee in employ of above employer at time of alleged accident or occupational disease?

06-006481: Yes

07-029181: Yes

08-079188: Yes

  1. Did employer receive proper notice?

06-006481: Yes

07-029181: Yes

08-079188: Yes

Issued by DIVISION OF WORKERS' COMPENSATION Employee: Anthony Ladd

Injury Nos: 06-006481, 07-029181 and 08-079188

  1. Did accident or occupational disease arise out of and in the course of the employment?

06-006481: Yes

07-029181: Yes

08-079188: Yes

  1. Was claim for compensation filed within time required by Law?

06-006481: Yes

07-029181: Yes

08-079188: Yes

  1. Was employer insured by above insurer?

06-006481: Yes

07-029181: Yes

08-079188: Yes

  1. Describe work employee was doing and how accident occurred or occupational disease contracted:

06-006481: employee stepped in a hole and injured his left knee.

07-029181: employee injured his back when lifting a 125 pound pump out of a septic system lift station.

08-079188: employee injured his back when lifting a 25 pound aeration motor out of a septic tank.

  1. Did accident or occupational disease cause death? Date of death? N/A

06-006481: No

07-029181: No

08-079188: No

  1. Part(s) of body injured by accident or occupational disease:

06-006481: left knee (settled with employer for $\ 500.00 )

07-029181: neck, body as a whole (settled with employer for 20\% PPD)

08-079188: low back, body as a whole (settled with employer for 22.5 % PPD)

  1. Nature and extent of any permanent disability: See Award
  2. Compensation paid to-date for temporary disability:

06-006481: $\ 367.80

07-029181: $\ 1,035.31

08-079188: $\ 9,126.38

  1. Value necessary medical aid paid to date by employer/insurer? $\ 5,169.21

06-006481: $\ 11,168.12

07-029181: $\ 75,297.56

08-079188: $\ 42,606.64

  1. Value necessary medical aid not furnished by employer/insurer?

06-006481: none

07-029181: none

08-079188: none

  1. Employee's average weekly wages:

06-006481: $\ 538.00

07-029181: $\ 566.00

08-079188: $\ 617.20

Issued by DIVISION OF WORKERS' COMPENSATION Employee: Anthony Ladd

  1. Weekly compensation rate:

$06-006481: \$ 358.67 / \ 358.67

$07-029181: \$ 376.55 / \ 376.55

$08-079188: \$ 411.47 / \ 404.66

  1. Method wages computation: Mo.Rev.Stat. $\S 287.250$
  2. Amount of compensation payable from Employer: Not applicable; claimant settled with the employer.
  3. Second Injury Fund liability: None.
  4. Future requirements awarded: None

FINDINGS OF FACT and RULINGS OF LAW:

Employee: Anthony Ladd

Injury Nos: 06-006481

07-029181

08-079188

Dependents: N/A

Employer: Residential Sewage Treatment Company, Inc. (settled)

Additional Party: State Tr

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

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