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Shirley Smith v. Dannie Gilder, Inc.

Decision date: August 26, 201424 pages

Summary

The Commission modified the administrative law judge's award, affirming the denial of permanent total disability benefits from the Second Injury Fund while clarifying that employee's permanent partial disability from the last injury does not combine with prior conditions to create total disability. The decision also addresses enhanced permanent partial disability calculations in accordance with Missouri Supreme Court precedent regarding Second Injury Fund liability.

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Third-Party Injury Check

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

  • A driver, contractor, property owner, or equipment company may share fault.
  • The injury involved a vehicle, unsafe premises, defective equipment, or a non-employer vendor.
  • A serious injury or death may need both benefits review and civil-claim analysis.

Caption

FINAL AWARD ALLOWING COMPENSATION (Modifying Award and Decision of Administrative Law Judge)
Employee:Shirley (Bowen) Smith
Employer:Dannie Gilder, Inc. (Settled)
Insurer:Commerce & Industry Insurance Company (Settled)
Additional Party:Treasurer of Missouri as Custodian of Second Injury Fund
This 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, and considered the whole record. Pursuant to § 286.090 RSMo, we modify the award and decision of the administrative law judge. We adopt the findings, conclusions, decision, and award of the administrative law judge to the extent that they are not inconsistent with the findings, conclusions, decision, and modification set forth below.
Discussion Permanent total disabilityThe administrative law judge considered the issue whether the Second Injury Fund is liable for permanent total disability benefits. That inquiry required the administrative law judge to apply § 287.220.1 RSMo and determine (1) whether employee suffered a permanent partial disability as a result of the last compensable injury, and (2) whether that disability combined with employee’s prior permanent partial disability to result in total and permanent disability.The administrative law judge found employee’s expert opinion evidence from Dr. David Volarich and Susan Shea to be lacking persuasive force, and found that employee’s disability from the last injury does not combine with her prior permanent partially disabling conditions to result in total and permanent disability. The administrative law judge then went a step further, however, and found that employee is permanently and totally disabled due to “the subsequent substantial deterioration of her physical and psychiatric condition after [the primary injury] due to the diagnosis of and treatment for breast cancer.” Award, page 20. In rendering this affirmative factual finding, the administrative law judge expressly relied, in part, upon his own lay opinion that employee’s breast cancer caused her to suffer the medical condition of depression.We defer to the administrative law judge’s assessment of the weight to be given to the expert opinions; for this reason we will not disturb his conclusion that the Second Injury Fund is not liable for permanent total disability benefits. But we must disclaim his additional findings regarding alternative reasons why employee may be unable to compete in the

Injury No.: 06-134271

Employee: Shirley (Bowen) Smith

- 2 -

open labor market.¹ We simply find that employee's permanent partial disability resulting

from the last injury does not combine with employee's prior disability to result in total and

permanent disability, and conclude therefore that the Second Injury Fund is not liable for

permanent total disability benefits.

Enhanced permanent partial disability

The parties agree, in their briefs, that if the Commission approves the administrative law

judge's award of permanent partial disability benefits against the Second Injury Fund, the

award must be modified in order to conform to the decision in *Treasurer of Missouri-

Custodian of the Second Injury Fund v. Witte*, 414 S.W.3d 455 (Mo. 2013), wherein the

Supreme Court of Missouri held that, to trigger Second Injury Fund liability for permanent

partial disability benefits, only one of an employee's preexisting permanent partially disabling

conditions must meet the applicable threshold under § 287.220.1, and that thereafter all of an

employee's permanent partially disabling conditions (including those below threshold) are to

be included when calculating Second Injury Fund liability. *Id.* at 466-67.

Here, the administrative law judge left out of his calculations employee's permanent partial

disability resulting from the primary injury referable to the left elbow, as well as employee's

preexisting permanent partial disability referable to the left elbow. We defer to (and hereby

adopt) the administrative law judge's ratings as to these and employee's other permanent

partially disabling conditions, as well as his finding that a 20% load factor is appropriate to

account for the synergistic combination of these conditions.

Accordingly, we recalculate Second Injury Fund liability for permanent partial disability

benefits as follows: 47.25 weeks (27% permanent partial disability of the right wrist/hand at

the 175-week level) + 10.5 weeks (5% of the left elbow at the 210-week level) + 21 weeks

(10% of the left elbow) + 160 weeks (40% of the body as a whole referable to the spine) =

238.75 x the 20% load factor = 47.75 weeks of enhanced permanent partial disability. At

the stipulated permanent partial disability rate of 376.55, the Second Injury Fund is liable

for 17,980.26 in permanent partial disability benefits.

Conclusion

We modify the award of the administrative law judge as to the issue of Second Injury

Fund liability. Employee is entitled to, and the Second Injury Fund is hereby ordered to

pay, $17,980.26 in permanent partial disability benefits.

The award and decision of Administrative Law Judge Lawrence C. Kasten, issued

November 13, 2013, is attached hereto and incorporated herein to the extent not

inconsistent with this decision and award.

¹ See, e.g., *Abt v. Miss. Lime Co.*, 388 S.W.3d 571 (Mo. App. 2012), where the Commission affirmed and adopted an

award rejecting expert opinion evidence regarding the cause of an employee's permanent total disability in favor of a

theory that the employee was permanently and totally disabled owing to subsequent deterioration. In reversing the

Commission, the *Abt* court noted that "[r]ather than choosing one of the medical opinions, the Commission made a

finding that is not consistent with any medical opinion in the record." *Id.* at 581.

The Commission approves and affirms the administrative law judge's allowance of an 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 $26^{\text {th }}$ day of August 2014.

LABOR AND INDUSTRIAL RELATIONS COMMISSION

John J. Larsen, Jr., Chairman

James G. Avery, Jr., Member

Curtis E. Chick, Jr., Member

Attest:

Secretary

Employee:Shirley Bowen SmithInjury No. 06-
134271
Dependents:N/A
Employer:Dannie Gilder, Inc. (settled)
Additional Party:Second Injury Fund
Insurer:Commerce & Industry Insurance Company (settled)
Appearances:Joe Rice, attorney for the employee. <br> Jon Lintner, attorney for the Second Injury Fund.
Hearing Date:August 7, 2013Checked by: LCK/rm

SUMMARY OF FINDINGS

  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? November 30, 2006.
  5. State location where accident occurred or occupational disease contracted: Jackson, Mississippi.
  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 the employment? Yes.
  9. Was claim for compensation filed within time required by law? Yes.
Employee: Shirley Bowen SmithInjury No. 06-134271
  1. Was employer insured by above insurer? Yes.
  2. Describe work employee was doing and how accident happened or occupational disease contracted: The employee was involved in a motor vehicle accident.
  3. Did accident or occupational disease cause death? No.
  4. Parts of body injured by accident or occupational disease: Right wrist, right long finger and left elbow.
  5. Nature and extent of any permanent disability: 27% permanent partial disability of the right wrist and hand and 5% permanent partial disability of the left elbow.
  6. Compensation paid to date for temporary total disability: 12,361.72
  7. Value necessary medical aid paid to date by employer-insurer: 15,243.33.
  8. Value necessary medical aid not furnished by employer-insurer: N/A.
  9. Employee’s average weekly wage: 709.28.
  10. Weekly compensation rate: 472.85 for temporary total disability and permanent total disability and $376.55 for permanent partial disability.
  11. Method wages computation: By agreement.
  12. Amount of compensation payable: 15,608.00 against the Second Injury Fund.
  13. Second Injury Fund liability: 15,608.00.
  14. Future requirements awarded: None.

Said payments shall be payable as provided in the findings of fact and rulings of law, and shall be subject to modification and review as provided by law.

The Compensation awarded to the employee shall be subject to a lien in the amount of 25% of all payments hereunder in favor of the following attorney for necessary legal services rendered to the employee: Joe Rice.

STATEMENT OF THE FINDINGS OF FACT AND RULINGS OF LAW

On August 7, 2013, the employee, Shirley Bowen Smith, appeared in person and with her attorney, Joe Rice for a hearing for a final award. The Second Injury Fund was represented at the hearing by Assistant Attorney General Jon Lintner. The parties agreed on certain undisputed facts and identified the issues that were in dispute. These undisputed facts and issues, together with a statement of the findings of fact and rulings of law, are set forth below as follows:

UNDISPUTED FACTS:

  1. Dannie Gilder, Inc. was operating under and subject to the provisions of the Missouri Workers' Compensation Act, and its liability was fully insured by Commerce \& Industry Insurance Company.
  2. On November 30, 2006, Shirley Bowen Smith was an employee of Dannie Gilder, Inc. and was working under the Workers' Compensation Act.
  3. On November 30, 2006, the employee sustained an accident arising out of and in the course of her employment.
  4. The employer had notice of the employee's accident.
  5. The employee's claim was filed within the time allowed by law.
  6. The employee's average weekly wage was $\ 709.28. Her rate of compensation for temporary total disability and permanent total disability is $\ 472.85 and her rate of compensation for permanent partial disability is $\ 376.55.
  7. The employee's injury was medically causally related to the accident.
  8. The employer-insurer paid $\ 15,243.33 in medical aid.
  9. The employer-insurer paid $\ 12,361.72 in temporary disability benefits for $261 / 7$ weeks of compensation with the last date of payment being September 24, 2010.

ISSUES:

  1. Liability of the Second Injury Fund for permanent total disability or permanent partial disability.
  2. Dependency under Schomehl v. Treasurer of the State of Missouri. (This issue was withdrawn by the employee in her proposed Award).

Employee Exhibits:

A. Medical records of Heartland Family Physicians (Dr. Icaza)

B. Medical records St. Francis Medical Center.

C. Medical records of Dr. Chabot.

D. Medical records of Dr. Oliveri Ph.D.

E. Medical records of Dr. Doll.

F. Medical records of Dr. Peeples.

G. Medical records of Dr. Gibbs.

H. Report of Dr. Zoffuto.

I. Medical records of Immediate Healthcare.

J. Medical records of Orthopaedic Associates.

K. Medical records of The Hand Center.

L. Certificate of Marriage of Gary Wayne Smith and Shirley Mae Bowen.

M Not offered.

N. Demand letter for medical treatment.

O. Report of Dr. Schlafly.

O-1. Medical records of Dr. Schlafly.

O-2. Report of Dr. Schlafly.

O-3. Medical records of Dr. Schlafly.

O-4. Deposition of Dr. Schlafly.

S. Medical records of Dr. Robles.

T. Stipulation for Compromise Settlement in Injury Number 04-105039.

U. Stipulation for Compromise Settlement in Injury Number 06-134271.

V. Report of Dr. Volarich.

V-1. Curriculum Vitae of Dr. Volarich.

V-2. Deposition of Dr. Volarich.

W

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