Grantham v. Cherry Hospital

389 S.E.2d 822, 98 N.C. App. 34, 1990 N.C. App. LEXIS 319
CourtCourt of Appeals of North Carolina
DecidedApril 3, 1990
Docket8910IC867
StatusPublished
Cited by7 cases

This text of 389 S.E.2d 822 (Grantham v. Cherry Hospital) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grantham v. Cherry Hospital, 389 S.E.2d 822, 98 N.C. App. 34, 1990 N.C. App. LEXIS 319 (N.C. Ct. App. 1990).

Opinion

ARNOLD, Judge.

In this case we must decide if N.C. Gen. Stat. § 97-29 of the Workers’ Compensation Act authorizes the Industrial Commission to order an employer to pay an employee’s common consumer debts as a “rehabilitative service.” N.C. Gen. Stat. § 97-29 requires that “[i]n cases of total and permanent disability, compensation, including reasonable and necessary nursing services, medicines, sick travel, medical, hospital, and other treatment or care or rehabilitative services shall be paid for by the employer during the lifetime of the injured employee” (emphasis added). N.C. Gen. Stat. § 97-29 (Supp. 1989). (In the original statute, the word between care and rehabilitative services is “of.” This is a misprint. It should be “or.” See 1973 N.C. Sess. Laws ch. 1308, § 2. The mistake has been corrected in the statutory supplement that we cited.)

A decision of the Industrial Commission will not be overturned on appeal absent an abuse of discretion. “The test for abuse of discretion is whether a decision ‘is manifestly unsupported by reason,’ or ‘so arbitrary that it could not have been the result of a reasoned decision’ (citations omitted).” Little v. Penn Ventilator Co., 317 N.C. 206, 218, 345 S.E.2d 204, 212 (1986). The purpose of the review *37 ing court is not to substitute its judgment in place of the decision maker, but rather to insure that the decision, in light of the factual context in which it is made, could be the product of reason. Id.

We recognize the general principle that the provisions of the Workers’ Compensation Act should be construed liberally so that benefits are not denied to an employee based on a narrow or strict interpretation of the statute’s provisions. See Petty v. Transport, Inc., 276 N.C. 417, 173 S.E.2d 321 (1970). We also realize that this case arises in an important and dynamic area of workers’ compensation law — defining the parameters of employer responsibility for employee rehabilitation. As one commentator has noted:

It is too obvious for argument that rehabilitation, where possible, is the most satisfactory disposition of industrial injury cases, from the point of view of the insurer, employer and public as well as of the claimant. Apart from the incalculable gain to the worker himself, the cost to insurers and employers of permanent disability claims under a properly adjusted system is reduced; and, so far as the public is concerned, it has been said on good authority that for every dollar spent on rehabilitation by the Federal Government it has received back ten in the form of income taxes on the earnings of the persons rehabilitated, (citation omitted) It is probably no exaggeration to say that in this field lies the greatest single opportunity for significant improvement in the benefits afforded by the workmen’s compensation system.

Larson, 2 Workmen’s Compensation Law § 61.25 (1987). Furthermore, Mr. Grantham’s request falls into one of the most controversial corners of rehabilitation compensation — providing services of a non-medical nature that somehow might be relevant to the employee’s rehabilitation. See id. at § 61.13(a).

It may be true in this case that the most cost-effective decision would be to uphold the Commission’s award. Such a determination might stave off the much more expensive possibility of placing Mr. Grantham in an inpatient rehabilitation program. Nevertheless, cost-effectiveness is not the sole goal of our Workers’ Compensation Act, and as the Act is presently written, we hold that it is not a reasonable interpretation of the statute to classify the payment of consumer debt as a rehabilitative service. We believe that any other decision undermines the integrity of the Act.

*38 We base our conclusion on an analysis of the structure of the Act, case law that develops the relevant provisions, and also on common sense. We simply fail to see how the term “services,” in the context of medical rehabilitative services, can reasonably be read to encompass a monetary payment for basic necessities.

Furthermore, the structure of the Workers’ Compensation Act indicates the decision below is incorrect. The Act provides a dual approach to employee compensation. Derebery v. Pitt County Fire Marshall, 318 N.C. 192, 205-06, 347 S.E.2d 814, 822 (1986) (Billings, J., dissenting in part). First, disability compensation, which is calculated based upon the individual employee’s earning power, is provided as a substitute for the wages lost due to the injury. This compensation is the employer’s contribution for items that wages ordinarily purchase — the basic necessities of life such as food, clothing and shelter. Id. The Act, however, also requires employers to compensate injured employees for medical costs related to their injuries; specifically, employers must pay a permanently disabled employee such as Mr. Grantham for “necessary nursing services, medicines, sick travel, medical, hospital, and other treatment or care or rehabilitative services . . . . ” N.C. Gen. Stat. § 97-29. In the case before us, we believe the Commission erroneously attempted to engraft one prong of the Act onto the other. By ordering a payment to cover the injured employee’s expenses for basic necessities under the guise of “rehabilitative services,” the Commission has turned the statute on its head.

In two limited situations, our Supreme Court has upheld payments under the language of “other treatment or care or rehabilitative services” to claimants for medically related expenses that are not listed in the statute. But neither of these cases attempts to stretch the language of the statute as far as the plaintiff here, and we see no conflict between those holdings and our decision in this case. In all, three North Carolina cases have interpreted the questioned language of N.C. Gen. Stat. § 97-29. In Godwin v. Swift & Co., 270 N.C. 690, 155 S.E.2d 157 (1967), the Supreme Court held that the phrase “other treatment or care” covered compensation to pay in-laws of a claimant who needed around-the-clock attention and care. Id.

In McDonald v. Brunswick Electric Membership Corp., 77 N.C. App. 753, 336 S.E.2d 407 (1985) (Wells, J., dissenting), this Court held that the statute could not be interpreted to include compensa *39 tion for a specially equipped van for a wheelchair-bound claimant. The employee in McDonald sustained an employment-related injury which resulted in amputation of both of his legs and left arm. Although the employee could drive a specially adapted car that could carry a regular wheelchair, he wanted the van to transport himself and his motorized wheelchair. Claimant’s employer agreed to pay for the special adaptive equipment installed in the van, but balked at paying for the van itself.

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Bluebook (online)
389 S.E.2d 822, 98 N.C. App. 34, 1990 N.C. App. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grantham-v-cherry-hospital-ncctapp-1990.