Employers Liability Assurance Corp. v. Employers Mutual Liability Insurance

334 S.W.2d 701, 232 Ark. 113, 1960 Ark. LEXIS 366
CourtSupreme Court of Arkansas
DecidedApril 25, 1960
Docket5-2106
StatusPublished
Cited by3 cases

This text of 334 S.W.2d 701 (Employers Liability Assurance Corp. v. Employers Mutual Liability Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employers Liability Assurance Corp. v. Employers Mutual Liability Insurance, 334 S.W.2d 701, 232 Ark. 113, 1960 Ark. LEXIS 366 (Ark. 1960).

Opinion

Paul Ward, Associate Justice.

This is a Workmen’s Compensation case which calls for an interpretation of Arkansas Statutes § 81-1314(a) (6), in order to determine which of the two insurance carriers (either appellant or appellee) is legally bound to pay the claimant if and when it is later determined that he has a permanent partial disability caused by an occupational disease. There is very little, if any, dispute over the essential facts.

Monte D. Cotner was employed by the Eastern Metal Products Company (hereafter sometimes referred to as “Eastern”) on July 9, 1956 and worked for the same company continuously, with the exceptions hereinafter noted, until June 27, 1958 when he was discharged for violating a company rule. It is important to note that appellant, Employers Liability Assurance Corporation, Ltd., was the Compensation insurance carrier at the time Cotner began work and continued as the carrier until November 14, 1956 at 12:01 A.M., and also that on the last mentioned date and hour the appellee, Employers Mutual Liability Insurance Company, became the Compensation insurance carrier. It is conceded that Cotner became affected with dermatitis during the time that he worked for Eastern and that dermatitis is classified as an occupational disease.

When Cotner made application for compensation benefits on the ground that he was totally partially disabled it was agreed by all parties that first there would be a determination of which insurance carrier would be liable if permanent partial disability were found to exist. That is, it was agreed by all parties that the question of liability for permanent partial disability would be postponed until it was first determined which carrier would be liabile if liability is finally established. Upon the latter issue a hearing was had before the referee who fixed liability on appellant. This determination was affirmed by the Workmen’s Compensation Commission and also by the Circuit Court. From the judgment of the Circuit Court appellant prosecutes this appeal.

The answer to the question here presented depends upon the interpretation given to the statute heretofore referred to. This statute, in all material parts, reads as follows:

“Where compensation is payable for an occupational disease, the employer in whose employment the employee was last injuriously exposed to the hazards of such disease, and the carrier, if any, on the risk when such employee was last injuriously exposed under such employer, shall be liable therefor . . .” (Emphasis supplied.)

Stated very simply the question is: When was Cotner last injuriously exposed? It is undisputed that Cotner became affected with dermatitis prior to November 14, 1956, but the troublesome question is was he injuriously exposed after that time. In order to determine the question it is necessary to examine carefully the testimony relative to Ms exposures. In substance tbe record shows the following: Cotner became affected with dermatitis by reason of having been exposed to a “ degreaser” wMch contains certain oils which in turn caused a rash to break out on Ms limbs and Ms body. He began working on July 9, 1956 but was not exposed to the “degreaser” until sometime in early October. Something like ten days after Cotner was exposed he noticed a body rash, and on October 11th he was examined by Dr. Lockwood. The doctor in his written reports stated that Cotner had contracted dermatitis but that no permanent defect would result and that there was no disability. Cotner continued to work but he was still bothered with the rash and on November 6, 1956 he was examined by Dr. Glenn who was of the opinion that Cotner was sensitive to the degreasing solution used in the “degreaser”; Dr. Glenn next saw Cotner on November 14, 1956 when he found that Cotner’s condition was considerably improved and that he had no disability. Up until this time Cotner had continued to work steadily. After November 13, 1956 the record shows that on November 14, 1956 Cotner worked in the polishing and buffing department and that on November 15, 1956 he was transferred to the “basket line” where he worked for two or three days and where he was exposed to the degreasing solution, he became worse on November 18, 1956 and was sent to the hospital on November 18, 1956; on November 24, 1956 Cotner was discharged from the hospital and on the 28th day of the same month he went back to work and continued to work until December 14, 1956 when the plant shut down and Cotner was laid off for a while. On January 15, 1957 Dr. Glenn who had examined Cotner several times examined Cotner and found that he was “healed” and was dismissed from the treatment but advised to avoid the degreasing solution. About a week later, January 21, 1957, Cotner returned to work and soon had a recurrence of the rash; on January 31, 1957 Dr. Glenn saw Cotner and referred him to Dr. Shirmer. Cotner continued to work at the same place until June 27, 1958 when he was discharged for violating a company rule.

Keeping in mind that neither of the two insurance carriers involved will be liable unless it is later established that Cotner has been permanently partially disabled, it seems to follow that the judgment of the trial court must be reversed. Although it may be conceded .that Cotner became affected with dermatitis prior to November 14,1956, there is no evidence that he was permanently affected. On the other hand the evidence is all to the effect (as heretofore set out) that he was not permanently affected. Therefore, the only logical conclusion deducible is that, if the claimant is later found to be permanently affected, he became so after November 14th. All authorities appear in agreement that the date of the first recognized appearance of symptoms of an occupational disease does not necessarily coincide with the date of the last “injurious exposure”. In some instances, we can conceive, the dates might coincide but this fact would have to be shown by competent evidence — a thing that was not done in the case before us. Any other view, it seems to us, would have to be based on the assumption that an occupational disease (dermatitis in this instance) is an incurable disease and that the first injurious exposure always results in a permanent disability. If that were the case, however, then Section 81-1314(a) (6) would be unintelligible because it speaks of a last injurious exposure. If there can be a last exposure then there can also be a first exposure. The case of Textileather Corp. v. Great American Indemnity Co., 108 N. J. L. 121, 156 A. 840, recognized that an occupational or industrial disease is not always permanent or incurable by the statement that “Sometimes a patient makes a complete recovery, sometimes it is only an apparent one.”

Most authorities seem to agree that the date which determines liability is not the date when the symptoms of the disease first appear but rather the date when some kind of disablement (such as cessation from work) occurs.

In Underwriters at Lloyd’s, London v. Alaska Industrial Board, (D. C. Alaska), 160 F. Supp. 248, the Court used this language: “In occupational disease cases there is generally a long period of exposure without any disability and the date of contraction of the disease is not ascertainable. Therefore, there has been difficulty in determining the moment when an employer and insurer become liable. The solutions which have been worked out are discussed by Larson in the second volume of his Workmen’s Compensation Law.

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334 S.W.2d 701, 232 Ark. 113, 1960 Ark. LEXIS 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employers-liability-assurance-corp-v-employers-mutual-liability-insurance-ark-1960.