Benson's Inc. v. Fields

941 S.W.2d 473, 1997 Ky. LEXIS 32, 1997 WL 141402
CourtKentucky Supreme Court
DecidedMarch 27, 1997
DocketNo. 96-SC-582-WC
StatusPublished
Cited by3 cases

This text of 941 S.W.2d 473 (Benson's Inc. v. Fields) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benson's Inc. v. Fields, 941 S.W.2d 473, 1997 Ky. LEXIS 32, 1997 WL 141402 (Ky. 1997).

Opinion

OPINION OF THE COURT

This appeal by an employer concerns whether KRS 342.1202(2), the 1994 amendment to KRS 342.1202, was remedial in nature and may be applied retroactively to a claim which arose before its effective date.

Claimant injured her back at work in April, 1993. After reviewing the evidence, the Administrative Law Judge (ALJ) determined that claimant was totally, occupationally disabled as a result of the injury. The ALJ found that, absent claimant’s preexisting psychiatric condition, the subject injury would have caused no permanent occupational disability. The entire occupational disability was attributable to the preexisting psychiatric condition. The ALJ further determined that one-third of the disability was active at the time of the back injury and that the remaining two-thirds of the disability was due to the arousal of the preexisting psychiatric condition by the back injury. All liability for the compensable portion of the award was apportioned to the Special Fund pursuant to KRS 342.120 and the decision in Accuride v. Donahoo, Ky., 865 S.W.2d 652 (1993).

In its petition for reconsideration, the Special Fund argued that the dollar amount of the weekly benefit had been miscalculated and requested a correction. The Special Fund also argued that KRS 342.1202, as amended effective April 4, 1994, was remedial legislation which applied to the claim. Therefore, the Special Fund could not be held liable for more than 50% of the award. The weekly amount of the award was corrected, but the petition was otherwise overruled.

The Special Fund appealed, arguing that since the award was based in part on a preexisting condition of the back, it could not be held liable for more than 50% of the award. KRS 342.1202(1). As further evidence that the automatic apportionment provision of KRS 342.1202(1) rather than KRS 342.120 controlled the issue of apportionment, the Special Fund emphasized that the psychiatric condition was superimposed on or [475]*475occurred in combination with the back injury, citing Heartland Health Care Center v. Maupin, Ky., 887 S.W.2d 553 (1994), and Fischer Packing Co. v. Lanham, Ky., 804 S.W.2d 4 (1991). The Special Fund’s second argument was that the 1994 amendment to KRS 342.1202, which became effective while the claim was pending before the ALJ and which provided that the Special Fund’s liability shall not exceed 50% of a permanent disability award, was remedial and applied to the subject claim.

The Workers’ Compensation Board (Board) rejected both arguments and affirmed the ALJ in that regard. The Board emphasized that claimant’s award was not based on a preexisting condition of the back but on a preexisting psychiatric condition. Therefore, the ALJ did not err in failing to apply the automatic apportionment provisions of KRS 342.1202. Furthermore, the Board noted that application of the 1994 amendment, which became effective more than one year after the subject injury, would impair the employer’s vested rights since the amendment placed greater liability on the employer than did the law in effect on the date of injury. See Inland Steel Co. v. Mullins, Ky., 367 S.W.2d 250 (1963).

The Special Fund appealed concerning the applicability of the 1994 amendment to the claim. Whereupon, the Court of Appeals reversed the decision of the Board, relying upon KRS 446.080(1); Thomsbury v. Aero Energy, Ky., 908 S.W.2d 109 (1995); Peabody Coal Co. v. Gossett, Ky., 819 S.W.2d 33 (1991); and Kentucky Insurance Guaranty Association v. Conco, Inc., Ky.App., 882 S.W.2d 129 (1994). The Court of Appeals then stated its opinion that the amendment did not “impair the vested rights of the employer, but merely adjusted] the degree to which liability may be shared by the Special Fund.”

KRS 342.1202(2) provides as follows: The special fund’s liability for income benefits for all other injury claims shall not exceed fifty percent (50%) of the income benefits awarded for permanent disability. In those injury claims where the administrative law judge determines that the apportionment to the special fund under KRS 342.120 exceeds fifty percent (50%) of the award of permanent disability, that portion of the award exceeding fifty percent (50%) shall be paid by the employer.

KRS 446.080(3) provides that “[n]o statute shall be construed to be retroactive, unless expressly so declared.” Nonetheless, legislation has been applied to causes of action which arose before its effective date, in the absence of an express declaration that the provision is to be so applied, in those instances where the courts have determined that the provision was remedial or procedural in nature and that retroactive application of the provision was consistent with the legislative intent. See KRS 446.080(1).

The Special Fund argues that in view of the emergency declaration and the “crisis” in the workers’ compensation program, the 1994 amendment is remedial in nature. However, the significance of an emergency clause is that legislation containing such a clause becomes effective upon approval of the Governor rather than ninety days after adjournment of the session in which it is passed. Ky. Const. § 55. Emergency legislation may or may not be remedial in nature. In the absence of an express statement that a particular piece of legislation is remedial and is to apply to antecedent causes of action, the presence of an emergency clause does not necessarily indicate a legislative intent that it be so applied.

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Cite This Page — Counsel Stack

Bluebook (online)
941 S.W.2d 473, 1997 Ky. LEXIS 32, 1997 WL 141402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bensons-inc-v-fields-ky-1997.