Hale v. Aluminum

986 S.W.2d 152, 1998 Ky. LEXIS 169, 1999 WL 80182
CourtKentucky Supreme Court
DecidedDecember 17, 1998
DocketNo. 98-SC-548-WC
StatusPublished
Cited by6 cases

This text of 986 S.W.2d 152 (Hale v. Aluminum) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hale v. Aluminum, 986 S.W.2d 152, 1998 Ky. LEXIS 169, 1999 WL 80182 (Ky. 1998).

Opinion

OPINION OF THE COURT

This matter is before the Court as an appeal by claimant from an opinion of the Court of Appeals reversing the decision of the Workers’ Compensation Board (Board). The Board affirmed the Administrative Law Judge’s (ALJ’s) decision that claimant was totally occupationally disabled and entitled to maximum benefits.

The sole issue on appeal concerns the manner in which claimant’s average weekly wage is to be calculated.

Claimant testified that he had begun doing jobs for Bell Aluminum (Bell) in 1990 and that he worked “on and off for 6-7 years” as a subcontractor installing aluminum siding. Further, he related that he usually received $52 for each square foot installed. Moreover, claimant related that Bell contracted with the home owners and provided the materials, and that it then subcontracted with him to provide the labor. Evidence was presented indicating that claimant maintained workers’ compensation insurance for himself through Bell via a 12 percent deduction from his paycheck.

[153]*153In addition, claimant also testified that from 1993 to 1995 he operated his own aluminum siding company, Stephen & Son, and that Bell was aware of such fact. For jobs arising with Stephen & Son, claimant stated that he contracted directly with the property owners, as well as providing the materials and labor. Claimant related that he carried liability coverage for his own company, but that he did not carry workers’ compensation insurance.

On August 25, 1995, claimant incurred work-related feet and ankle injuries, and surgery was necessitated, as a result of falling some 20 feet while working on a job for Bell. Contested issues before the ALJ included: (1) extent and duration, (2) average weekly wage, (3) temporary, total disability, and (4) unpaid medical expenses.

With regard to the issue of average weekly wage, an unsigned federal income tax return was introduced which showed that claimant’s earnings for 1995 amounted to $14,466.45. It appears that claimant would complete his own jobs in between those for which he was hired by Bell. Claimant’s earnings for the 13 week-period preceding his injury were:

Bob Cole — Weller Avenue
5/23/95 - 6/6/95 2,038.76
Domino Partners — Bluegrass
6/30/95 - 7/3/95 167.67
Bell Aluminum — Middleton
6/30/95 - 8/1/95 1,367.14
Gatchell’s — Market Street
7/27/95 - 8/19/95 5,966.28
Bell Aluminum — Wickland
8/23/95 - 8/25/95 766.00
Resultantly, the ALJ found that:
Based upon the record as a whole, including the restrictions assigned Plaintiff by both Drs. Schiller and Shea, Plaintiffs education level, and prior work experience, it is the finding of this ALJ that Plaintiff is 100% occupationally disabled in accordance with Osborne v. Johnson, Ky., 432 S.W.2d 800 (1968).
Additionally, the issue of the medical expenses contested herein is decided in Plaintiffs favor and the Defendant Employer shall pay same, if they have not already done so.
Plaintiffs average weekly wage is hereby found to be sufficient for maximum benefits, based upon his earning[s] with the Defendant Employer for the best 13 weeks preceding his injury, regardless of whether or not his self-employment income is considered. Thus, Plaintiff shall be entitled to maximum benefits for 1995.

In addition, the ALJ overruled the employer’s subsequent petition for reconsideration.

The employer appealed to the Board concerning the issues of: (1) the ALJ’s award of medical expenses for the treatment of claimant’s hernia, and (2) the ALJ’s determination that claimant was entitled to maximum, permanent, total disability benefits.

The Board affirmed the ALJ’s decision in both respects. Regarding calculation of claimant’s average weekly wage, the Board held that:

KRS 342.140 contains various formulae under which average weekly wages are to be determined based upon varying fact situations. It also contains specific provisions for certain types of occupations such as seasonal or in the case of volunteer fire fighters, policemen, and civil defense members. KRS 342.140(l)(a), (b), and (c) are inapplicable to this claim since Hale’s wages were based upon output and not fixed by the week, month, or year. Under KRS 342 ,140(l)(d), Hale would clearly be entitled to the maximum benefit in that the wages he earned during the most favorable 13 week period immediately preceding his injury divided by 13, the wages he earned from May 23, 1995 to August 25, 1995, equal $732.82.
Under KRS 342.140(e), applicable to a claimant who had been in the employ of the employer less than 13 weeks immediately preceding the injury, Hale’s average weekly wage would be computed under paragraph (d), as above, and the same figure would be reached. The same result would be obtained under KRS 342.140(l)(f). No contention was made that Hale’s occupation was exclusively seasonal or that his wages should be calculated based upon subsections 3, 4, 5, 6, or 7 to [154]*154KRS 342.140. Bell refers us to no provision under which one would calculate Hale’s wages based solely upon his earnings while in its employment. We are unable to identify any section or subsection of KRS 342.140 that could be applied to Hale’s fact situation under which an average weekly wage less than that which would qualify him for the maximum benefit could be reached. Therefore, in our opinion, the ALJ has not erred in awarding Hale maximum disability benefits.

The employer appealed to the Court of Appeals which reversed the decisions of the Board and the ALJ. Namely, it held that claimant’s income from his own enterprise known as Stephen & Son was not to be included in computations under KRS 342.140 since it has previously been determined that an independent contractor is not an employee and does not come within the scope of the Workers’ Compensation Act. Further, relying on C & D Bulldozing Co. v. Brock, Ky., 820 S.W.2d 482 (1991), the Court of Appeals concluded that claimant’s average weekly wage should be computed under KRS 342.140

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Cite This Page — Counsel Stack

Bluebook (online)
986 S.W.2d 152, 1998 Ky. LEXIS 169, 1999 WL 80182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hale-v-aluminum-ky-1998.