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Michael Deters v. Boeing Company

Decision date: December 8, 2017Injury #14-09148615 pages

Summary

The Missouri LIRC modified the administrative law judge's award regarding the commencement date of permanent total disability benefits from the Second Injury Fund, changing it from January 13, 2015 to May 29, 2015 per agreement of the parties. The Commission affirmed that an employee's entitlement to permanent disability benefits accrues upon reaching maximum medical improvement, consistent with controlling case law.

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Caption

FINAL AWARD ALLOWING COMPENSATION (Modifying Award and Decision of Administrative Law Judge)
Employee:Michael Deters
Employer:Boeing Company (Settled)
Insurer:Sedgwick CMS (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 modifications set forth below.
Preliminaries
The parties asked the administrative law judge to resolve the sole issue of the liability of the Second Injury Fund.The administrative law judge concluded the Second Injury Fund is liable for permanent total disability benefits beginning January 13, 2015.The Second Injury Fund filed a timely application for review with the Commission alleging the administrative law judge erred: (1) in concluding § 287.220.3(1) RSMo, as amended effective January 1, 2014, was not applicable to employee’s claim for permanent total disability benefits; and (2) in concluding that the payment of permanent total disability benefits from the Second Injury Fund should commence on January 13, 2015.On August 2, 2017, the Commission received correspondence from the Second Injury Fund withdrawing the first allegation of error set forth in its application for review, in light of the result inGattenby v. Treasurer of Mo. - Custodian of the Second Injury Fund, 516 S.W.3d 859 (Mo. App. 2017). The Second Injury Fund requested the Commission consider only the second allegation of error: whether the payment of permanent total disability benefits should commence on January 13, 2015.On September 22, 2017, the Commission received from the parties a document entitled “Memorandum.” Therein, the parties agree that permanent total disability benefits should commence from the Second Injury Fund on May 29, 2015.To give effect to the parties’ agreement, we modify the award of the administrative law judge on the issue of the appropriate commencement date of permanent total disability benefits from the Second Injury Fund.
Discussion
Commencement of permanent total disability benefits from the Second Injury Fund At the hearing before the administrative law judge, the parties stipulated that employee reached maximum medical improvement on January 12, 2015. In his award, the administrative law judge concluded that employee’s entitlement to permanent disability benefits—including both permanent partial disability benefits from the employer/insurer and permanent total disabilitybenefits.

Injury No.: 14-091486

Employee: Michael Deters

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benefits from the Second Injury Fund—accrued on the date that employee reached maximum medical improvement. This conclusion by the administrative law judge was correct under the relevant and controlling case law.

Specifically, in the case of Jim Plunkett, Inc. v. Ard, 499 S.W.3d 333, 339 (Mo. App. 2016), the court considered the question when an injured worker's right to permanent disability benefits must be deemed to have "accrued." Id. at 338-39. Consulting prior case law, and observing that the degree of permanent disability associated with an injury cannot be determined until the injury reaches the point where it will no longer improve with medical treatment, the court confirmed that an employee's right to payment of weekly benefits for permanent disability "accrues at the time [the employee] reaches maximum medical improvement," and not at any other time. Id. There are a number of other appellate decisions reaching the same result. See, e.g., Cardwell v. Treasurer of Mo., 249 S.W.3d 902, 910 (Mo. App. 2008) and Cantrell v. Baldwin Transp., Inc., 296 S.W.3d 17, 20 (Mo. App. 2009).

Our courts have also consistently declared the fact an employee receives some earnings during a particular time period is not preclusive of an award of permanent total disability benefits during the same time period. See, e.g., Brashers v. Treasurer of the State As Custodian of the Second Injury Fund, 442 S.W.3d 152 (Mo. App. 2014); Abt v. Miss. Lime Co., 388 S.W.3d 571 (Mo. App. 2012); Molder v. Mo. State Treasurer, 342 S.W.3d 406 (Mo. App. 2011); and Brown v. Treasurer of Missouri, 795 S.W.2d 479 (Mo. App. 1990).

Turning to the parties' Memorandum of September 22, 2017, we note that they do not, therein, specifically address the date of maximum medical improvement. The parties now agree, however, that permanent total disability benefits should commence from the Second Injury Fund on May 29, 2015, "when Claimant was found to be PTD[.]" Memorandum, page 1. The question presently before us is whether we are able to give effect to the parties' agreement, or whether it constitutes an attempt to fix a legal conclusion for which there is no support in the law.

[S]tipulations of fact are generally binding in Missouri. Although stipulations are controlling and conclusive and courts are bound to enforce them, they are to be viewed with an eye toward what they were designed to accomplish. Also, a stipulation may not be invoked to fix a conclusion of law. ... [T]he Commission [is] not bound by any stipulation which [is] clearly contrary to the actual facts and which would result in a manifest injustice.

Bull v. Excel Corp., 985 S.W.2d 411, 415-19 (Mo. App. 1999).

On the other hand, we are mindful of the public policy favoring resolution of disputed claims via compromise, and we are generally inclined to give effect to parties' voluntary settlement of legitimately justiciable disputes, wherever possible.

In accordance with the principle that the law favors a compromise, the Legislature intended to and did preserve to the parties in compensation cases their right to make voluntary agreements of settlement with the approval of the commission, and such a contract once made is just as inviolable as any other valid agreement. The integrity of valid contracts should not be impaired, and there is nothing in the compensation law or elsewhere to justify any action inimical to contractual rights.

Brown v. Corn Prods. Ref. Co., 55 S.W.2d 706, 710 (1932).

Injury No.: 14-091486
Employee: Michael Deters
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After careful consideration, we resolve the issue presently before us as follows. We will consider the parties’ Memorandum of September 22, 2017, as an implicit request to rescind their earlier stipulation, at the hearing, that employee reached maximum medical improvement on January 12, 2015. We grant the parties’ implicit request in this regard. We further find, based on the parties’ apparent agreement that employee became permanently and totally disabled on May 29, 2015, that employee reached maximum medical improvement on that date. Applying the relevant and controlling case law in this area, we conclude that permanent total disability benefits shall commence from the Second Injury Fund on that date.
Award
We modify the award of the administrative law judge as to the appropriate date for commencement of permanent total disability benefits from the Second Injury Fund.
Employee is entitled to permanent total disability benefits from the Second Injury Fund beginning May 29, 2015, at the differential rate of $410.02 for 31.5 weeks, and thereafter at the full permanent total disability rate of $861.04. The weekly payments shall continue for employee’s lifetime, or until modified by law.
The award and decision of Administrative Law Judge Lorne J. Baker, issued March 21, 2017, is attached hereto and incorporated herein to the extent not inconsistent with this decision and award.
The Commission further 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.
Given at Jefferson City, State of Missouri, this ___ 7th__ day of December 2017.
LABOR AND INDUSTRIAL RELATIONS COMMISSION
John J. Larsen, Jr., Chairman
VACANT
Member
Curtis E. Chick, Jr., Member
Attest:
Secretary

AWARD

Employee:Michael DetersInjury No.: 14-091486
Dependents:N/ABefore the <br> Division of Workers' <br> Compensation <br> Department of Labor and Industrial <br> Relations of Missouri <br> Jefferson City, Missouri
Employer:Boeing Company
Additional Party:Second Injury Fund
Insurer:Sedgwick CMS
Hearing Date:December 14, 2016Checked by: LJB

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: November 19, 2014
  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 the employment? 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 disease contracted: Employee was employed as a SMAR for Employer and injured his left elbow while using a vice.
  12. Did accident or occupational disease cause death? No.
  13. Part(s) of body injured by accident or occupational disease: Left elbow.
  14. Nature and extent of any permanent disability: 15 % permanent partial disability to the left elbow.
  15. Compensation paid to-date for temporary disability: $\ 0
  16. Value necessary medical aid paid to date by employer/insurer? \$4,229.49
  1. Value necessary medical aid not furnished by employer/insurer? N/A.
  2. Employee's average weekly wages: $\ 1,520.80
  3. Weekly compensation rate: $\$ 861.04 / \ 451.02
  4. Method wages computation: By agreement of the parties.

COMPENSATION PAYABLE

  1. Amount of compensation payable: Against Employer previously settled.
  2. Second Injury Fund liability: Yes

Permanent total disability benefits from Second Injury Fund:

Weekly differential (\410.02) payable by SIF for 31.5 weeks beginning January 13, 2015 and thereafter \ 861.04 per week for Claimant's lifetime or until modified by law.

TOTAL: TO BE DETERMINED

  1. Future requirements awarded:

Said payments to begin and to be payable and be subject to modification and review as provided by law.

The compensation awarded to the claimant shall be subject to a lien in the amount of 25 % of all payments hereunder in favor of the attorney, James S. Haupt, for necessary legal services rendered to the claimant.

FINDINGS OF FACT and RULINGS OF LAW:

Employee: Michael Deters

Injury No.: 14-091486

Dependents: N/A

Employer: Boeing Company

Additional Party: Second Injury Fund

Insurer: Sedgwick CMS

Before the

Division of Workers'

Compensation

Department of Labor and Industrial

Relations of Missouri

Jefferson City, Missouri

Checked by: LJB

The matter of Michael Deters ("Claimant") proceeded to hearing to determine the liability of the Second Injury Fund ("SIF"). Attorney James S. Haupt represented Claimant. Assistant Attorney General Da-Niel Cunningham represented the Second Injury Fund. Boeing Company ("Employer") previously settled its risk of liability and

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