Bernard v. Cives Corp.

395 A.2d 1141, 1978 Me. LEXIS 1047
CourtSupreme Judicial Court of Maine
DecidedDecember 28, 1978
StatusPublished
Cited by17 cases

This text of 395 A.2d 1141 (Bernard v. Cives Corp.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bernard v. Cives Corp., 395 A.2d 1141, 1978 Me. LEXIS 1047 (Me. 1978).

Opinion

WERNICK, Justice.

This is an appeal by an employer, Cives Corporation (hereinafter Cives) from a judgment of the Superior Court (Franklin County) affirming pro forma a decree of the Industrial Accident Commission. 1 The decree, dated December 6, 1977, was the culmination of Commission action upon Cives’ petition for review of the incapacity of its employee, Roger Bernard, who was being paid compensation for total incapacity in consequence of a work-related injury sustained on May 24, 1976. At the time of the injury Bernard’s average weekly wage was $299.00. The compensation paid him, $165.70 per week, reflected a rate of compensation for total incapacity based on the statutory ceiling applicable to Bernard at the time of his injury, 100% of the statewide average weekly wage, as adjusted under the so-called “inflation-deflation” provision in 39 M.R.S.A. § 54 (Supp.1978).

In deciding the petition for review, the Commission found that the extent of Bernard’s incapacity had changed from total to partial. It ordered that

“[t]he rate of compensation should be $199.33 from July 1, 1977 to the present date . . . ”

and, to reflect the change in the extent of incapacity, that

“from the date of this decree the rate of compensation will be 40% of $199.33

Thereafter Cives, claiming that the Commission had inadvertently erred in computing the rate of compensation, asked that it be reduced. By a second order denying Cives’ request, the Commission explained that the higher rate of compensation resulted from its determination that under the ceiling escalation amendments to 39 M.R.S.A. §§ 54, 55 (Supp.1978) Bernard was entitled to have his compensation benefits for total and partial incapacity computed on the basis of a higher ceiling of “133V3% of [the statewide] average weekly wage as of July 1, 1977.”

Cives’ appeal attacks the Commission’s determination on alternative grounds. Cives says, first, that the Commission lacked power in the kind of proceeding before it to alter the rate of compensation as it purported to do. Alternatively, Cives contends that even if possessed of such power, the Commission here wrongly exercised it: Bernard’s injury, sustained on May 24, 1976, did not qualify him for the ceiling escalation to 133V3% of the statewide average weekly wage because the statute, correctly interpreted, had limited the operation of each ceiling increase through the use of separate effective dates and was thus applicable only as to injuries thereafter sustained.

We find each of Cives’ contentions unacceptable and deny the appeal.

1.

It is clear to us that in acting upon Cives’ petition for review of incapacity, the *1144 Commission, once it decided that the extent of Bernard’s incapacity had changed, had not only the power but also the responsibility to fix the applicable rate of compensation in accordance with all the provisions of law bearing on that determination. That this is so is the plain thrust of the express language of 39 M.R.S.A. § 100 (Supp.1973):

“Upon such review the commissioner may increase, diminish or discontinue such compensation ... in accordance with the facts, as the justice of the case may require.” (emphasis supplied)

Further buttressing this conclusion is the provision in 39 M.R.S.A. § 104 (Supp.1978) authorizing modification of Superior Court pro forma decrees to conform to subsequent orders of the Commission

“increasing, diminishing, terminating or commuting to a lump sum any payments of compensation

Lastly, prior decisions of this Court indicate that the Commission had power to act as it did in the present instance. See, e. g., Dufault v. Midland-Ross of Canada, Ltd., Me., 380 A.2d 200, 207 (1977); Mullen v. Brown Homes, Inc., Me., 358 A.2d 557, 561 (1976).

2.

The Commission stated that in fixing the rate of compensation to be paid, it applied the “current provisions of Section 55.” These have two basic components. First, they embody the amendments, effective October 1, 1975, which raised the prior ceiling limiting compensation payments to an amount not in excess of the statewide average weekly wage and which prescribed new ceiling levels at two-year intervals through July 1,1981. Second, they require what has been referred to as an “inflation-deflation” adjustment to be made each year.

We address separately the Commission’s application of these two basic facets of the statutory provisions.

2-a. — The Ceiling Escalations.

We reject Cives’ contention that Bernard cannot have the benefit of a higher ceiling stated in the statutes because his work-related injury was sustained prior to July 1, 1977.

We decide that persons continuing to receive compensation in consequence of work-related injuries suffered on or after October 1,1975, the amounts of which are subject to a ceiling related to the statewide average weekly wage, are entitled to the benefit of each periodic escalation of the ceiling stated in the statute until their rates of compensation reach 200% of the statewide average weekly wage as computed July 1, 1981 or two-thirds of their lost earning capacity, 2 whichever is the lesser.

As amended, the statutory provisions here pertinent read as follows:

“§ 54. Compensation for total incapacity “While the incapacity for work resulting from the injury is total, the employer shall pay the injured employee a weekly compensation equal to % his average gross weekly wages, earnings or salary, but not more than the average weekly wage in the State of Maine as computed by the Employment Security Commission; 13SVa% of such average weekly wage as of July 1, 1977; 166%% of such average weekly wage as of July 1,1979; and 200% of such average weekly wage as of July 1, 1981; nor less than $25 weekly; and such weekly compensation shall be adjusted annually on July 1st so that it continues to bear the same percentage relationship to the average weekly wage in the State of Maine as computed by the Employment Security Commission, as it did at the time of the injury.”
“§ 55. Compensation for partial incapacity
“While the incapacity for work resulting from the injury is partial, the employer shall pay the injured employee a weekly compensation equal to % the differ *1145 ence, due to said injury, between his average gross weekly wages, earnings or salary before the injury and the weekly wages, earnings or salary which he is able to earn thereafter, but not more than the average weekly wage in the State of Maine as computed by the Employment Security Commission;

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395 A.2d 1141, 1978 Me. LEXIS 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernard-v-cives-corp-me-1978.