Allen v. IBP, Inc.

363 N.W.2d 520, 219 Neb. 424, 1985 Neb. LEXIS 946
CourtNebraska Supreme Court
DecidedMarch 8, 1985
Docket83-771
StatusPublished
Cited by13 cases

This text of 363 N.W.2d 520 (Allen v. IBP, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. IBP, Inc., 363 N.W.2d 520, 219 Neb. 424, 1985 Neb. LEXIS 946 (Neb. 1985).

Opinions

Colwell, D.J., Retired.

This action was brought by appellee, Lewis Allen (hereinafter Allen), to recover workmen’s compensation benefits from the appellant, IBP, Inc. (hereinafter IBP). A single judge of the Workmen’s Compensation Court dismissed Allen’s petition. On rehearing before the three-judge panel, he was awarded benefits for temporary total disability, [425]*425rehabilitation services, and medical expenses.

IBP appeals, discussing two assignments of error: (1) Allen’s petition was barred by the statute of limitations; and (2) Allen did not sustain an accidental injury arising out of and in the course of his employment, causing the complained-of injuries.

Allen injured his back on January 16,1979, while carrying a pan of meat in performance of his employment duties. He was paid temporary total disability for 12 weeks by IBP, and on October 25,1979, IBP paid him a $2,223.26 lump sum payment representing 288 weeks of 5 percent permanent partial disability. No final settlement or release was ever executed, and the lump sum payment was not approved by any court. On February 19, April 19, and May 28, 1982, Allen suffered further injuries while in the employ of IBP. He has been unable to work since the May 28 accident. He filed his petition in the Workmen’s Compensation Court on October 25,1982.

Evidence in the rehearing showed that Allen had been diagnosed as having Paget’s disease, severe arthritis, and a degenerative disk disease. There was also evidence that Allen’s employment had contributed to the degenerative disk condition and had aggravated the disk condition and the arthritis.

The three-judge panel of the Workmen’s Compensation Court found that Allen had suffered compensable injuries on January 16, 1979, and on February 19, April 19, and May 28, 1982. It also found that he was temporarily totally disabled from May 29,1982, and will remain so for an indefinite period.

[T]he findings of fact made by the Nebraska Workmen’s Compensation Court after rehearing will not be set aside on appeal unless clearly wrong.
In testing the sufficiency of evidence to support findings of fact made by the Workmen’s Compensation Court after rehearing, the evidence must be considered in the light most favorable to the successful party. Every controverted fact must be resolved in his favor, and he should have the benefit of every inference that can reasonably be drawn therefrom.

Hyatt v. Kay Windsor, Inc., 198 Neb. 580, 584, 254 N.W.2d 92, 95 (1977).

The first assignment concerns Neb. Rev. Stat. § 48-137 [426]*426(Reissue 1984), which reads:

In case of personal injury, all claims for compensation shall be forever barred unless, within two years after the accident, the parties shall have agreed upon the compensation payable under this act, or unless, within two years after the accident, one of the parties shall have filed a petition as provided in section 48-173. . . . When payments of compensation have been made in any case, such limitation shall not take effect until the expiration of two years from the time of the making of the last payment.

(Emphasis supplied.)

Under the facts here, when did the statute of limitations begin to run? IBP claims that the time was October 25, 1979, when the lump sum payment was made. Allen argues that, absent court approval, the time begins to run when the last of the 288 weekly payments would have been paid had they been paid periodically; that being the statutory time “from the time of the making of the last payment.” We agree with Allen.

Neb. Rev. Stat. § 48-139 (Reissue 1984) provides in part:

Whenever an injured employee or his dependents and the employer agree that the amounts of compensation due as periodic payments for death, permanent disability or claimed permanent disability, under this act, shall be commuted to one or more lump-sum payments, such settlement or agreement therefor shall be submitted to the Nebraska Workmen’s Compensation Court....

Neb. Rev. Stat. § 48-140 (Reissue 1984) provides:

All settlements by agreement of the parties with the approval of the compensation court and all awards of compensation made by the court, except those amounts payable periodically for six months or more, shall be final and not subject to readjustment; Provided, no settlement shall be final unless it be in conformity with the provisions of this act and approval by and a finding by the compensation court and the district court or any appellate court.

“A commuted award extends over the full period originally [427]*427covered by the same.” (Syllabus of the court.) Peterson v. Borden’s Produce Co., 125 Neb. 404, 250 N.W. 240 (1933).

In Dufrene v. Aetna Casualty & Surety Company, 298 So. 2d 724 (La. 1974), the Louisiana court held that a $3,500 lump sum payment for 100 weeks of $35 periodic payments was only an advance payment, since it was not first approved by the court as required by law.

In Southern Cotton Oil Co. v. Friar, 247 Ark. 98, 444 S.W.2d 556 (1969), the employee had received two lump sum payments covering a 150-week period. Three years after the second payment, but less than 2 years after the 150-week period had expired, the employee filed a claim for additional compensation. The Arkansas court held that “the statute only commences at the date the last payment would have been due if the compensation had been paid in installments . . . .” Id. at 101, 444 S.W.2d at 558. See, also, University v. Ind. Comm., 138 Colo. 505, 335 P.2d 292 (1959).

Although the authorities are not in complete agreement, most of the courts which have passed on this question have held that where compensation is commutated and paid in a lump sum, payment so made at the time of commutation does not constitute a “last” payment so as to start the running of the statutory period within which review may be sought; the statutory period, in such a case, does not run against a review application until the time when the payments on the original award or agreement would have run out had they continued to have been paid in instalments. As a reason for such rule, it has been pointed out that commutation does not in and of itself affect the merits as to whether in a particular case further compensation may or may not be attempted to be secured, but constitutes nothing more nor less than an advance payment.

(Emphasis supplied.) Annot., 165 A.L.R. 9, 59-60 (1946).

While the A.L.R. citation referred to reopening or review of awards, the same rationale applies to original applications for compensation.

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Allen v. IBP, Inc.
363 N.W.2d 520 (Nebraska Supreme Court, 1985)

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Bluebook (online)
363 N.W.2d 520, 219 Neb. 424, 1985 Neb. LEXIS 946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-ibp-inc-neb-1985.