Chavez v. Industrial Commission

575 P.2d 340, 118 Ariz. 141, 1977 Ariz. App. LEXIS 821
Court of Appeals of Arizona·Decided December 20, 1977·No. 1 CA-IC 1667·Published·Cited by 3 cases

Opinions

OPINION

DONOFRIO, Judge.

This case comes to us for a determination of whether or not the hearing officer correctly determined that petitioner, Melisendro Chavez, suffered no permanent disability attributable to his industrial injury of July 9, 1971. This is the second time petitioner has been before this Court regarding his 1971 injury. Our earlier decision, Chavez v. Industrial Commission, 21 Ariz.App. 501, 520 P.2d 1178 (1974), affirmed a finding of no permanent disability and found that petitioner’s failure to timely protest an average monthly wage determination by the Commission had resulted in that determination becoming final and res judicata. On review before the Supreme Court, however, petitioner prevailed and his untimely protest of the average monthly wage determination was excused. Chavez v. Industrial Commission, 111 Ariz. 364, 529 P.2d 1181 (1974). The Supreme Court adopted the Court of Appeals finding as to lack of permanent disability attributable to the 1971 episode, but because of its determination that the untimely protest should have been excused, it set aside the award of the Industrial Commission.

Two hearings de novo were held following the Supreme Court’s decision at which petitioner and two physicians, Mark Frankel, M.D., and Melvyn L. Goldsmith, M.D., testified regarding petitioner’s physical condition and the presence or absence of a permanent disability. Additionally, the deposition testimony of two out-of-state witnesses was received into evidence. This testimony concerned petitioner’s job functions at the time of the hearing. Following these hearings, an award was issued by the hearing officer. Again, there was a finding [143] of no permanent disability, and there was a setting of petitioner’s average monthly wage. After the award was affirmed on review, petitioner brought this special action which is limited to questioning the propriety of the hearing officer’s determination regarding permanent disability.

Petitioner injured his back at the level of L4-5 in the course and scope of his employment with respondent, Christy Construction Company, on July 9, 1971. As a result, a partial laminectomy was performed by John W. McCracken, Jr., D.O., who later discharged petitioner without permanent impairment attributable to this injury. Petitioner had previously injured the same part of his back in an industrial episode in 1966, and he had undergone a laminectomy at that time as well. He was eventually discharged from that injury with a 15% disability, but returned to his regular employment without restrictions.

Dr. McCracken was the only medical witness at the hearing held prior to petitioner’s first appeal and it was on the strength of this testimony alone that we were compelled to conclude the Commission’s finding could not be disturbed on review by this Court as being without foundation.

Respondents have argued in their brief, and have maintained throughout these proceedings, that our earlier decision regarding the absence of a permanent disability constitutes the law of the case. They reason, therefore, that petitioner was not entitled to a new hearing on that issue, but was limited to the average monthly wage issue. We find this argument to be without merit. Respondent’s reliance on Janis v. Industrial Commission, 27 Ariz. App. 76, 551 P.2d 66 (1976), is misplaced. We were there faced with a situation where our Supreme Court had set aside a finding by the Industrial Commission that it was without jurisdiction to consider a late request for review and ordered the Commission to consider whether the facts of that case warranted relief from failing to timely file the request for review. Janis v. Industrial Commission, 111 Ariz. 362, 529 P.2d 1179 (1974). As we stated in our opinion:

“We can find nothing in the Arizona Supreme Court’s prior decision to indicate that it intended to set aside the prior award on the merits of the causation issues, since such issues are not even discussed in the opinion. Petitioner has had his hearing on the merits of the reasons for the delay, and in fact, after a finding by the hearing officer on this issue in his favor, the Commission has now proceeded to consider the petition for review on the causation merits which is what petitioner sought, and all he would have been entitled to, in the first instance.” 27 Ariz. App. at 78, 551 P.2d at 68.

The instant case is one where the Commission’s award was set aside on its merits since the average monthly wage issue had to be litigated in hearings before the Industrial Commission. We are, thus, in a situation common in Industrial Commission eases where the setting aside of an award on whatever basis entitled the petitioner to a complete hearing de novo. The appropriate rule relating to law of the case in such instances has recently been stated by this Court in Employers Mutual Liability Insurance Company of Wisconsin v. Industrial Commission, 115 Ariz. 439, 565 P.2d 1300 (App.1977) [Review Denied June 15, 1977] as follows:

“The effect of setting aside an award of the Commission results in the Commission conducting hearing de novo wherein new evidence bearing on the issues of the case may be presented. King v. Alabam’s Freight Co., 40 Ariz. 363, 12 P.2d 294 (1932). If on the new hearing the facts are not shown to be different, then the conclusion is that the Commission must follow the law already applied to substantially identical facts. Kasprowiz v. Industrial Commission, 20 Ariz.App. 116, 510 P.2d 427 (1973); Neitman v. Industrial Commission, 20 Ariz.App. 53, 510 P.2d 52 (1973). Correspondingly, if different evidence is presented in the hearings de novo, then the factual matter should be evaluated against this new evidence and the law of the case might well not be applicable since its application is condi[144] tioned upon substantial identicality of facts, issues and evidence.” 115 Ariz. at 442, 565 P.2d at 1303.

The Commission would only be bound by the law of the case doctrine here if the facts at the de novo hearing were the same as the facts previously presented.

Petitioner was entitled to present new evidence relating to the existence of a permanent disability. Since the evidence he presented was different in some respects from that at the original hearing in this matter, the hearing officer was not bound by the law of the case.

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Chavez v. Industrial Commission, 575 P.2d 340, 118 Ariz. 141, 1977 Ariz. App. LEXIS 821 (Ark. Ct. App. 1977).

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