| AMENDED TEMPORARY AWARD ALLOWING COMPENSATION (Affirming the Award and Decision of Administrative Law Judge but Reversing With Respect to Costs) |
| Employee: | Raymond Smuzeski |
| Employer: | Altec Industries |
| Insurer: | Self-Insured c/o Avizent |
| Additional Party: | Treasurer of Missouri as Custodian of Second Injury Fund |
| On June 19, 2012, we issued a Temporary Award Allowing Compensation that affirmed Administrative Law Judge Boresi’s January 27, 2012, award in all respects (including deferring the award of attorneys’ fees until the final award) other than her assessment of costs under § 287.560 RSMo. Our award reversed such assessment of costs. Due to an oversight, however, our award contained inconsistent language regarding attorneys’ fees. We issue this Amended Temporary Award to delete the inconsistent language.The above-entitled workers’ compensation case is submitted to the Labor and Industrial Relations Commission (Commission) for review as provided by § 287.480 RSMo. Having reviewed the evidence, read the briefs, and considered the entire record, the Commission issues this decision affirming in part and reversing in part the award of Administrative Law Judge Karla Ogrodnik Boresi dated January 27, 2012. We find 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, except with respect to the application of costs under § 287.560. Pursuant to § 286.090 RSMo, we issue this award and decision affirming the January 27, 2012, award and decision of the administrative law judge, except that part discussing “Unreasonable Defense” and assessing costs against employer. We reverse that part of the award and decision and deny such costs, as further described below.Section 287.560 RSMo states, in relevant part: “[I]f the division or the commission determines that any proceedings have been brought, prosecuted or defended without reasonable ground, it may assess the whole cost of the proceedings upon the party who so brought, prosecuted or defended them.”The state treasury generally bears the costs of workers’ compensation proceedings. Only a party who brings, prosecutes, or defends a case “without reasonable grounds” may have costs assessed against it. Even then, the Commission “may” assess such costs, but neither the statutory language nor case law compels such an award. Indeed, our appellate courts have cautioned the Commission to exercise this discretionary |
Employee: Raymond Smuzeski
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statutory power "with great caution and only when the case for costs is clear and the offense egregious."
Nolan v. Degussa Admixtures, Inc., 276 S.W.3d 332, 335 (Mo. App. S.D. 2009) (internal citations omitted).
In the case at hand, the best evidence suggests that employee had consistently reported to employer, Dr. Rutz, and then Dr. Mabe that he had gradually become stiff and sore during the July 2, 2009, work day and that it was his work on that day which had caused his new injury. He had consistently reported to each of these sources that he could recall no specific event that occurred. We have no evidence that employee ever reported to employer that a specific event where employee was working on a hydraulic pump had occurred on a job in Ellisville, Missouri, in mid-July 2009.
It was not until employer received Dr. Bailey's report dated September 20, 2010, that employer learned about the alleged second event in Ellisville (that employee told Dr. Bailey he had reported to employer) that occurred in mid-July 2009 after seeing Dr. Rutz and before seeing Dr. Mabe. And it was in that same report that Dr. Bailey stated his reliance on this event of which employer had no knowledge in establishing causation. And it was in this same report that Dr. Bailey made his treatment recommendations. Since Dr. Bailey based his causation finding on this event about which employer had no knowledge and since employer had not previously received a report of any such incident, employer reasonably wanted to investigate this information further.
Its investigation of this matter led to the letter from its attorney to Dr. Bailey. In response, Dr. Bailey's November 19, 2010, report acknowledged a potential inconsistency in what employee had told him and the importance of the inconsistency. Dr. Bailey emphasized the need for credible information. Dr. Bailey's November 19, 2010, report led employer to schedule depositions with employee.
Consequently, we are persuaded that these circumstances gave employer a reasonable basis for further investigation and withholding authorization for the treatment that Dr. Bailey had recommended. Therefore, we hereby reverse that part of the award and decision that assessed costs under § 287.560.
In all other respects, we affirm and adopt the award and decision of the administrative law judge.
Any past due compensation shall bear interest as provided by law.
The award and decision of Administrative Law Judge Karla Ogrodnik Boresi, issued January 27, 2012, is attached and incorporated by this reference, except to the extent it is inconsistent with this award and decision.
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Injury No.: 09-110930
This award and decision is only temporary or partial, is subject to further order, and the proceedings are hereby continued and kept open until a final award can be made. All parties should be aware of the provisions of § 287.510 RSMo.
Given at Jefferson City, State of Missouri, this **2nd** day of July 2012.
LABOR AND INDUSTRIAL RELATIONS COMMISSION
VACANT Chairman
James Avery, Member
Curtis E. Chick, Jr., Member
Attest:
Secretary