Johnson v. Harnischfeger Corp.

323 N.W.2d 912, 414 Mich. 102
CourtMichigan Supreme Court
DecidedSeptember 13, 1982
DocketDocket Nos. 64682, 64689. (Calendar No. 14)
StatusPublished
Cited by37 cases

This text of 323 N.W.2d 912 (Johnson v. Harnischfeger Corp.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Harnischfeger Corp., 323 N.W.2d 912, 414 Mich. 102 (Mich. 1982).

Opinions

[107]*107Williams, J.

We granted leave to appeal especially to consider "whether the statute of limitations contained in MCL 418.361(2)(g); MSA 17.237(361)(2)(g) is constitutionally infirm on equal protection and due process grounds.”1 Subdivision (2)(g) reads:

"(2) Total and permanent disability, compensation for which is provided in section 351 means:
"(g) Permanent and total loss of industrial use of both legs or both hands or both arms or 1 leg and 1 arm; for the purpose of this subdivision such permanency shall be determined not less than 30 days before the expiration of 500 weeks from the date of injury.” (Emphasis added.)

We hold that § 361(2)(g) does not violate equal protection or due process. The Legislature could legitimately create a separate category of persons suffering from permanent and total loss of industrial use in subsection (g), from those suffering anatomical or mental losses outlined in the other six categories of total and permanent disability, since that category is medically, factually, and legally distinguishable. Further, the Legislature could reasonably assume that permanent and total loss of industrial use would manifest itself within the statutory period of almost ten years. The decision of the Court of Appeals on this point is reversed. We, however, agree, but for different reasons, with the decision of the Court of Appeals to remand the matter to the Workers’ Compensation Appeal Board to determine in the light of all the pertinent testimony whether the Burke2 legal standard was met.

[108]*108I. Facts

The facts in this case are undisputed. Plaintiff Carlton P. Johnson received 500 weeks of workers’ compensation benefits at a final rate of $45 per week for total incapacity3 arising from a 1959 injury to the right knee sustained while working for defendant Harnischfeger Corporation. Payments ceased on July 1, 1974.4

On August 14, 1974, plaintiff filed a petition for hearing with the Bureau of Workers’ Compensation, alleging total and permanent disability resulting from the loss of industrial use of both his legs under MCL 418.361(2)(g); MSA 17.237(361)(2)(g).

Following a hearing and receipt of the deposition taken from plaintiff’s orthopedic surgeon, the hearing referee found plaintiff totally and permanently disabled as of September 17, 1974, the date on which plaintiff had visited his physician following the expiration of the limitational period, which [109]*109was on July 1, 1974. Payments were ordered retroactive to July 2, 1974.

This determination was unanimously reversed on January 18, 1977, by the WCAB. The pertinent part of the order read:

"[P]laintiff has failed to sustain his burden of proof to show permanent and total disability.”

The concurrent WCAB opinion, however, reversed, stating pertinently:

"From our review of the record, we make a finding of fact that plaintiff did not sustain his burden of proof of industrial loss of use of both legs prior to the expiration of 500 weeks from the date of his December 1, 1964 injury.”

The Court of Appeals, in its opinion of January 4, 1979, affirmed the WCAB.5 The opinion excerpted a sentence from the WCAB opinion as follows:

"Plaintiffs testimony above, taken at face value, does not meet the test of Burke, supra, in establishing permanent and total disability.”

Although "plaintiff’s testimony above” referred only to the plaintiff’s own testimony, disregarding that of his physician, Dr. Lyons, who also testified and whose testimony was considered by the WCAB after the above quotation, the Court of Appeals reached its conclusion on the basis of the plaintiff’s testimony alone as follows:

"We hold, therefore, that the appeal board did not err [110]*110in concluding that plaintiff had failed to meet his burden of proof under the Burke test.”

In passing, we note that after considering Dr. Lyons’ testimony, the WCAB opinion concluded:

"Plaintiff simply has failed to sustain his burden of proof * * * within the period provided by subsection (2)(g).”6

This negative disposition of the threshold issue precluded the necessity of consideration of the plaintiffs constitutional arguments by the Court of Appeals.

This Court vacated the Court of Appeals judgment and remanded to the Court of Appeals, stating,

"The Workmen’s Compensation Appeal Board’s finding that plaintiff had not sustained his burden of proof of loss of use of both legs within the period provided by MCL 418.361(2)(g); MSA 17.237(361)(2)(g) requires consideration of the constructional and constitutional issues raised by plaintiff.” (Emphasis in order.)7

The Court of Appeals, in its February 6, 1980, opinion on remand, concluded that § 361(2)(g) violated both due process and equal protection guarantees.8 The constructional issue was not addressed. Further, the Court stated that:

"We assume that our affirmance of the factual determination of the appeal board [i.e., failure to satisfy Burke] is overruled sub silentio. * * * The [111]*111Supreme Court must have * * * intended to overrule [our affirmance], else why would it issue its order requiring consideration of the constitutional issue if the disability issue already foreclosed the plaintiff from any possibility of prevailing?” 95 Mich App 384-385.

We then granted leave to appeal, requesting the parties to address the constitutionality of the limitational provision in § 361(2)(g).9

II. Constitutionality of § 361(2)(g)

Plaintiff’s principal contention is that § 361(2)(g) violates the constitutional guarantees of equal protection and due process. He asserts (A) that such discrimination against a class of claimants constitutes a denial of equal protection under any standard of review. He also argues (B) that due process is offended by denying the right to make a claim when the claim arises.

The Court of Appeals was unpersuaded by defendants’ arguments that avoidance of stale claims is a reasonable basis for justifying the contested provision. Using the minimum rationality standard of review, the panel concluded that the potential for stale claims in other categories of total and permanent disability, with attendant problems of proof, eliminated any justification for the different treatment accorded claimants under § 361(2)(g). The Court of Appeals also held that subsection (g) denied due process largely on the ground that it could deny a worker the right to suit before his cause of action arose.

We disagree.

[112]

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Bluebook (online)
323 N.W.2d 912, 414 Mich. 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-harnischfeger-corp-mich-1982.