American Standard, Inc. v. Stephen

565 S.W.2d 158, 1978 Ky. App. LEXIS 505
CourtCourt of Appeals of Kentucky
DecidedJanuary 6, 1978
StatusPublished
Cited by11 cases

This text of 565 S.W.2d 158 (American Standard, Inc. v. Stephen) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Standard, Inc. v. Stephen, 565 S.W.2d 158, 1978 Ky. App. LEXIS 505 (Ky. Ct. App. 1978).

Opinion

HOGGE, Judge:

This is an appeal from a judgment of the Jefferson Circuit Court in a workmen’s compensation case wherein, the circuit court affirmed an award of total disability to the claimant but declared that portion of the order of the board a nullity, which apportioned the award of fifty percent to the employer and fifty percent to the Special Fund. The court held that the Special Fund was not properly joined as a party and could therefore not be held liable.

The claimant, Will Stephen Jr., was disabled as a result of a work related injury suffered on May 29, 1973, while employed by the appellant, American Standard Inc. Thereafter, on March 18,1974, claimant entered into an agreement with the appellant and the claim was settled for twenty-eight weeks of temporary total disability benefits. The Special Fund was not a party to this agreement. This agreement was approved by the board.

On December 2, 1974, Stephens filed a motion to reopen his claim. This motion was overruled by the board on December 16, 1974. He filed a second motion to reopen his claim on January 3, 1975, which motion was sustained by the board on March 3, 1975. Subsequently, appellant filed two motions to join the Special Fund as a party, copies of which were served on the Special Fund. The board overruled the first of such motions on January 12, 1976, but sustained the second motion on March 22, 1976.

[160]*160After the motion to reopen was sustained, considerable medical proof was taken, some of which was to the effect that the claimant had a pre-existing emotional condition that was brought into a disabling reality by the injury. The board appointed doctor reported similarly. The Special Fund was furnished a copy of this report. The Fund filed its brief prior to the award on the reopening.

In its opinion and award of August 16, 1976, the board found as follows:

(a) Claimant suffered no active occupational disability prior to May 29, 1973.
(b) Solely as a result of the work-related injury of May 29, 1973, claimant is occupationally disabled to the extent of 50%.
(c) Prior to May 29, 1973, claimant had a dormant non-disabling disease or condition which was aroused into disabling reality to the extent of 50% occupational disability.

The Special Fund then appealed this award to the Jefferson Circuit Court. That court affirmed the total disability award, but held that since the Fund was not made a party to the original action and had no opportunity to defend itself, the award against the Special Fund was nullified. The entire award was thus assessed against the appellant.

The sole question raised on this appeal is whether or not the circuit court erred when it held the order of the board, as to apportionment of the award, to be a nullity for the reason the Special Fund was not properly joined as a party defendant.

The Special Fund says this holding of the circuit court is correct because KRS 342.265 is controlling, which provides that when the compensation agreement was finalized by board approval, the award was then final; pursuant to KRS 342.120, the Fund could then no longer be made a party to that award or any future proceedings based on the same injury; and, KRS 342.125 is not controlling on the issue of apportionment but is governed by KRS 342.120, and if its requirements are not met the board is precluded from making the Fund a party.

Because of factual and procedural differences in the eases cited and the instant case, we do not find that the two cases cited by appellee, Yocom v. Jordan Auto Parts, Ky., 521 S.W.2d 519 (1975) and Yocom v. Milish, Ky., 497 S.W.2d 702 (1973) support this position.

In Yocom v. Jordan Auto Parts, supra, the employer had filed an “Application for Adjustment of Claim” against the Special Fund seeking reimbursement for an award of disability benefits it had agreed to pay the employee. This agreement had become a final award by approval of the board. KRS 342.265. The board and the appellate court correctly held that there was no case pending before the board on behalf of the employee; therefore, the employer was without authority to make the Special Fund a party. Here, there was a case pending before the board on behalf of the injured employee.

In Yocom v. Milish, supra, the board had made an award of one hundred percent (100%) disability, eighty percent (80%) against the Special Fund and twenty percent (20%) against the employer. Three months later the board discovered that the Special Fund had never been made a party, and on its own motion set aside the opinion and award on the grounds of mistake. The board then made the Special Fund a party, appointed a physician, and proceeded to re-litigate the case, and made another award assessing all liability against the employer. The court held in this case that “mistake” within the meaning of the statute precluded the board from retrying the case. There was nothing relative to this claim pending before the board at the time of the order making the Special Fund a party. Here, the amount of disability and award was pending before the board as the case had been reopened.

In Milish, supra, the case had been tried on its merits, an award had been entered, and there had been no appeal; therefore, the board had no authority to set aside its award and bring in the Special Fund. Yo-[161]*161com v. Milish, supra, was not a case involving KRS 342.125(2), but instead was a case involving an award made on a litigated record.

When considered together and separately as well, we find the statutes involved here, KRS 342.120 and KRS 342.125, are disposi-tive of the issues in this case. These statutes provide as follows:

KRS 342.120

(1)A claimant may in the original application for benefits, or either party may by motion while the case is pending, accompanied by proper allegations, and the board shall upon its own motion at any time before the rendition of the final award, cause the special fund to be made a party to the proceeding if either or both of the following appears:
(a) The employe is disabled, whether from a compensable injury, occupational disease, pre-existing disease, or otherwise, and has received a subsequent compensable injury by accident, or has developed an occupational disease;

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Cite This Page — Counsel Stack

Bluebook (online)
565 S.W.2d 158, 1978 Ky. App. LEXIS 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-standard-inc-v-stephen-kyctapp-1978.