Bituminous Casualty Co. v. Department of Industry, Labor & Human Relations

295 N.W.2d 183, 97 Wis. 2d 730, 1980 Wisc. App. LEXIS 3170
CourtCourt of Appeals of Wisconsin
DecidedJune 2, 1980
Docket79-401
StatusPublished
Cited by15 cases

This text of 295 N.W.2d 183 (Bituminous Casualty Co. v. Department of Industry, Labor & Human Relations) 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
Bituminous Casualty Co. v. Department of Industry, Labor & Human Relations, 295 N.W.2d 183, 97 Wis. 2d 730, 1980 Wisc. App. LEXIS 3170 (Wis. Ct. App. 1980).

Opinions

[732]*732DONLIN, J.

John Gibson, the claimant employee, began working for N.M. Isabella, Inc., the employer construction company, on September 13, 1971. After working one and one-half hours, his back gave out while he was lifting some forms. His doctor found he sustained total temporary disability and a permanent partial disability of two percent. His employer conceded both disabilities and paid Gibson accordingly.

In November, 1976, Gibson applied for additional disability compensation. Isabella denied additional liability, stating that it had no information to justify further compensation. After repeated, unsuccessful requests for information from Gibson, Isabella requested that the Department of Industry, Labor and Human Relations invoke rule Ind 80.21, Wis. Adm. Code,1 which requires the parties to submit all medical reports on the matter. The Department denied this request and stated that Isabella could obtain medical authorizations from Gibson and thus procure any necessary medical information in that manner.

In June, 1977, Isabella suggested that a prehearing conference be held to evaluate the evidence. Isabella wished to learn of any additional medical findings that would indicate it had a possibility of additional liability in this case. A prehearing conference was never held, however. A DILHR hearing examiner responded that if evidence was presented at the hearing that constituted a claim substantially beyond what Isabella could have reasonably anticipated, a further hearing presumably would be permitted.

[733]*733At the September, 1977, hearing, Gibson submitted medical reports indicating that his disability is two to three percent. He then called a qualified employment expert, who testified that Gibson is limited to unskilled work. The expert concluded on the basis of medical reports, Gibson’s work history, and tests he had conducted that Gibson’s permanent disability exceeds fifty percent for industrial purposes. Gibson submitted no other evidence except his own brief testimony and a medical bill.

Isabella requested a continuance to determine whether it wished to produce rebuttal evidence. The hearing examiner denied Isabella’s request, noting that Isabella had sufficient opportunity to conduct its own investigations and prepare its own experts, and that he believed further delay would be useless. The examiner found that as a result of his injury, Gibson sustained fifty percent total permanent disability.

Isabella sought judicial review pursuant to sec. 102.23, Stats., alleging that DILHR had denied it due process of law by refusing to grant a continuance. Isabella further asserted that the testimony of the employment expert was incredible.

The circuit court concluded that the elements of a fair hearing had not been complied with in that Isabella had not been seasonably notified that Gibson claimed a fifty percent disability or that an employment expert would testify. The court further concluded that DILHR systematically deprived Isabella of due process. The court found that medical evidence was not exchanged because of the pending prehearing conference. The prehearing conference was never held, but Isabella was promised a further hearing if unanticipated evidence was introduced. Finally, Isabella’s request for a continuance was denied. The court set aside DILHR’s order and remanded the matter for an additional hearing to permit Isabella to present evidence on the question of Gibson’s reduced [734]*734earning capacity. The court did not rule on the credibility of the employment expert.

The ultimate test to determine whether due process of law has been accorded a party to an administrative proceeding is the presence or absence of fair play.2 The three elements of fair play in an administrative proceeding are: “(1) the right to seasonably know the charges or claims preferred; (2) the right to meet such charges or claims by competent evidence; and (3) the right to be heard by counsel upon the probative force of the evidence adduced by both sides and upon the law applicable thereto.”3 The three elements of fair play have been used to test the propriety of the Department’s refusal to grant an adjournment, which is within its discretion under sec. 102.17(1) (a), Stats.4

Under the circumstances of this case, we conclude that the Department systematically deprived Isabella of due process by failing to hold a prehearing conference on the evidence, assuring Isabella a further hearing on new evidence, and then refusing to grant the promised continuance.

Gibson’s injury occurred six years before the hearing, in this matter. At that time, Gibson’s two percent per[735]*735manent partial disability was assessed, and ten months elapsed between the filing for a hearing and the hearing on the nature and extent of Gibson’s permanent disability. During that time, Isabella unsuccessfully sought current information regarding Gibson’s claim, to assist in the evaluation of its potential further liability. Isabella was not advised of the identity of Gibson’s witnesses nor the true nature of his claim until the hearing. At the hearing, Gibson claimed a fifty percent permanent partial disability. We believe this is substantially different than his original two percent permanent disability claim, and in light of DILHR’s assurances that further hearings would be allowed under such circumstances, failure to grant a continuance deprived Isabella of the right to seasonably know the claim against it and the right to meet thexdaim with competent evidence.

The principle of fair play is an important factor in a consideration of due process of law. Parties in a legal proceeding have a right to be apprised of the issues involved and to be heard on such issues. A finding or order made in a proceeding in which there has not been a full hearing is a denial of due process.5 The procedure followed by DILHR in this matter offends the traditional notions of fair play and due process by thwarting the usual discovery process to subsequently denying a party the opportunity to offer rebuttal evidence. Under the peculiar circumstances presented here, namely DILHR’s assurances to Isabella that an opportunity for rebuttal would be afforded, we conclude that the circuit court’s determination that Isabella was not afforded a fair hearing and was denied due process was correct.

Gibson contends that Isabella should have known that Wisconsin case law requires the testimony of an employment expert to establish permanent partial disability [736]*736resulting from nonschedule industrial injury.6 Therefore, Gibson asserts, Isabella should have anticipated such an expert witness and prepared accordingly. This is an incorrect characterization of the pertinent case law, especially as it evolved at the time of Gibson’s hearing.

Any award for permanent partial disability resulting from an industrial accident must be based upon some kind of prediction as to the impairment of earning capacity.7

“Thus it appears that the injuries of an applicant (non-schedule but permanent total or partial) are to be compared medically with injuries that would render a person permanently totally disabled for industrial purposes as provided in sec. 102.44(2), Stats., and not

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Bituminous Casualty Co. v. Department of Industry, Labor & Human Relations
295 N.W.2d 183 (Court of Appeals of Wisconsin, 1980)

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Bluebook (online)
295 N.W.2d 183, 97 Wis. 2d 730, 1980 Wisc. App. LEXIS 3170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bituminous-casualty-co-v-department-of-industry-labor-human-relations-wisctapp-1980.