Beloit Corp. v. State Labor & Industry Review Commission

449 N.W.2d 299, 152 Wis. 2d 579, 1989 Wisc. App. LEXIS 968
CourtCourt of Appeals of Wisconsin
DecidedOctober 5, 1989
Docket88-1885
StatusPublished
Cited by7 cases

This text of 449 N.W.2d 299 (Beloit Corp. v. State Labor & Industry Review Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beloit Corp. v. State Labor & Industry Review Commission, 449 N.W.2d 299, 152 Wis. 2d 579, 1989 Wisc. App. LEXIS 968 (Wis. Ct. App. 1989).

Opinions

SUNDBY, J.

This case concerns a Wisconsin employer's liability for educational vocational rehabilitation benefits for a nonresident employee whose eligibility for vocational rehabilitation instruction is determined by another state, in this case Illinois. The Labor and Industry Review Commission determined that the Beloit Corporation was liable to Dennis Anderson under sec. 102.43(5), Stats., for temporary total disability during rehabilitation instruction, and, under sec. 102.61(1), for travel expenses during rehabilitation instruction. Beloit corporation appeals from a judgment and an order affirming LIRCs findings and order. We affirm.

I.

ISSUES

The following issues are presented. First, did LIRC err in accepting the Illinois Department of Rehabilitation Services' (DRS) certification of Anderson for vocational rehabilitation through a university degree program in mechanical engineering. We conclude that it did not. Second, did DRS abuse its administrative power in [583]*583certifying Anderson as eligible for a university degree program in mechanical engineering. We conclude that it did not. Finally, did LIRC err in extending vocational rehabilitation benefits to Anderson under secs. 102.43(5) and 102.61(1), Stats., and Wis. Adm. Code, sec. Ind 80.49, in excess of forty weeks? We conclude that it did not.

II.

BACKGROUND

While employed by Beloit Corporation, Anderson suffered temporary total disability and permanent partial disability in an industrial accident on September 11, 1979. He sustained 100% loss of the use of his left arm at the shoulder. He was nineteen years of age and had worked one month for Beloit Corporation. Anderson was an Illinois resident.

Anderson accepted employment with Beloit Corporation to fund his higher education. He was enrolled part-time at Rock Valley College in Rockford, Illinois. Prior to and during his employment, Anderson did not intend to seek an engineering degree. Following his injury, Anderson decided that his vocational goal was to become a mechanical engineer. In August 1980, he again enrolled at Rock Valley College. In June 1981, Anderson applied to DRS for vocational retraining assistance. In August 1981, DRS certified him as eligible for vocational rehabilitation through college training in mechanical engineering.

In the spring of 1982, Anderson applied to Beloit Corporation for retraining assistance in engineering through the employer's cooperative program with the University of Illinois. Beloit Corporation determined, however, that Anderson was not eligible for the program, [584]*584but offered him a work/study program which would train him as a draftsperson. Anderson refused the offer, because he believed his physical disability would prevent him from satisfactorily performing such work, and because he had completed one and a half years of study at Rock Valley College directed toward his educational goal.

In the fall of 1983, Anderson transferred to the University of Illinois — Champaign. In December 1985, he graduated with a bachelor of science degree in mechanical engineering. In February 1986, he was employed as a safety engineer for an aeronautics company at an annual salary of $27,500.

Beloit Corporation paid Anderson temporary total disability for the period from September 12, 1979 to October 15, 1983. As of December 1985, it had paid Anderson a substantial sum for his permanent partial disability. LIRC awarded Anderson travel expenses for the period he commuted to Rock Valley College and temporary total disability for seventy-two weeks while he attended the University of Illinois — Champaign.

Further facts are set out in our discussion of the issues.

III.

DETERMINATION OF VOCATIONAL REHABILITATION ELIGIBILITY

Beloit Corporation contends that LIRC erred in accepting DRS's certification of Anderson as eligible for vocational rehabilitation through a five-year university degree program in mechanical engineering.1 It argues [585]*585that LIRC was required to apply Wisconsin, not Illinois, criteria to the determination of Anderson's eligibility. In effect, Beloit Corporation claims that LIRC should have redetermined Anderson's eligibility for vocational rehabilitation instruction.

The fallacy in Beloit Corporation's argument is its assumption that Anderson's eligibility for vocational rehabilitation training may be determined under Wisconsin law. Vocational rehabilitation instruction is provided to physically handicapped persons under the federal rehabilitation act of 1973, Public Law 93-112.2 Instructional benefits under the Act Eire administered by the state in which the handicapped person resides or resided at the time of becoming physically handicapped. 29 USCS sec. 721 (a) (14). Because Anderson was a resident of Illinois, DRS was the proper agency to make the determination that Anderson was eligible for vocational rehabilitation instruction under the federal act.3 Under the federal act, DRS also properly determined Anderson's vocational rehabilitation plan. 29 USCS sec. 722.

Beloit Corporation claims that if its liability for vocational rehabilitation benefits is triggered by DRS's determination of Anderson's eligibility for vocational [586]*586rehabilitation instruction, serious equal protection questions are raised. It argues that the liability of two identical Wisconsin employers for such benefits could potentially be governed by different standards, depending on the residence of the employee.

Beloit Corporation does not argue that the Wisconsin vocational rehabilitation benefit statutes are unconstitutional.4 Rather, it argues that we must choose a construction of the statutes which will preserve constitutionality. "Given a choice of possible interpretations, this court must select the construction that results in constitutionality rather than invalidity." State ex rel. Lynch v. Conta, 71 Wis. 2d 662, 689, 239 N.W.2d 313, 332 (1976). We do not have a choice of possible interpretations. As we explain in Part IV, LIRC may reject a vocational rehabilitation instruction eligibility determination only if the applicant misrepresented to or withheld from the responsible agency highly material facts or if the agency unreasonably interpreted the rehabilitation laws or clearly abused its administrative power. Because LIRC did not reject DRS's determination of Anderson's eligibility, it was required to determine his entitlement to temporary disability during rehabilitation instruction under sec. 102.43(5), Stats., and indemnity during rehabilitation instruction under sec. 102.61(1).

IV.

DRS'S ABUSE OF DISCRETION

In Massachusetts Bonding & Ins. Co. v. Industrial Comm., 275 Wis. 505, 512, 82 N.W.2d 191, 194-95 [587]*587(1957), the court held that the industrial commission's [now LIRC's] power to review a vocational rehabilitation eligibility determination by the State Board of Vocational and Adult Education [now State Department of Health and Social Services] was binding on the commission unless it was shown that "highly material facts were misrepresented to or withheld from the state board or that the state board. . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kurtenbach v. Frito-Lay
1997 SD 66 (South Dakota Supreme Court, 1997)
Johnson v. Labor & Industry Review Commission
503 N.W.2d 1 (Court of Appeals of Wisconsin, 1993)
Larsen v. MUNZ CORP.
480 N.W.2d 800 (Court of Appeals of Wisconsin, 1992)
State v. Poly-America, Inc.
474 N.W.2d 770 (Court of Appeals of Wisconsin, 1991)
Beloit Corp. v. State Labor & Industry Review Commission
449 N.W.2d 299 (Court of Appeals of Wisconsin, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
449 N.W.2d 299, 152 Wis. 2d 579, 1989 Wisc. App. LEXIS 968, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beloit-corp-v-state-labor-industry-review-commission-wisctapp-1989.