Jones v. GST Steel Co.

272 S.W.3d 511, 2009 Mo. App. LEXIS 6, 2009 WL 20997
CourtMissouri Court of Appeals
DecidedJanuary 6, 2009
DocketWD 69299
StatusPublished
Cited by6 cases

This text of 272 S.W.3d 511 (Jones v. GST Steel Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. GST Steel Co., 272 S.W.3d 511, 2009 Mo. App. LEXIS 6, 2009 WL 20997 (Mo. Ct. App. 2009).

Opinion

JAMES M. SMART, JR., Judge.

Richard Jones appeals the judgment of the Labor and Industrial Relations Commission denying him workers’ compensation benefits. On appeal, he argues that the Commission erred in determining that his claim was barred by his failure to file a proof of claim with the bankruptcy court after his employer became insolvent. The judgment of the Commission is reversed, and the case is remanded with instructions to reinstate the award of the administrative law judge.

Facts

Richard Jones began working at GST Steel Company (GST) in 1967 and worked for GST until the plant closed in May of 2001. He was exposed to loud noises during his employment.

Jones was diagnosed with hearing loss on February 1, 2001, six days before GST filed a petition for Chapter 11 bankruptcy in the Bankruptcy Court. Jones had learned in December 2000 that GST was headed for bankruptcy. On May 15, 2001, the plant closed, terminating Jones’s employment. In June 2001, the bankruptcy court sent a notice advising creditors to file a proof of claim by July 27, 2001. Jones, who had consulted a lawyer in March 2001 about his claim, did not file a proof of claim with the bankruptcy court.

Jones filed a formal claim under the Workers’ Compensation Act in early 2008, alleging injury to both ears. He alleged an injury date of May 15, 2001 (his last day of work). On the date of injury, GST was self-insured, but after the company’s bankruptcy, its workers’ compensation obligations became the responsibility of the Missouri Private Sector Self-Insurers Guaranty Corporation (the Guaranty Corporation).

The claim was heard by an administrative law judge in February 2007. Jones claimed both hearing loss and tinnitus. The parties stipulated that Jones sustained an injury by occupational disease on the alleged date of injury, May 15, 2001, while under the employ of GST. Because GST was insolvent, any award would be the responsibility of the Guaranty Corporation.

The Guaranty Corporation defended the matter by arguing that the claim was barred by section 287.865.5, which provides that before a claim may be filed against the insolvency fund of the Guaranty Corporation, it must first be filed in the bankruptcy estate. The Guaranty Corporation presented evidence that a bankruptcy court “proof of claim” notice had been sent to Jones and that no proof of claim had been filed in the bankruptcy case. The Guaranty Corporation argued that, pursuant to the statute, the claim was barred.

The administrative law judge, after listening to Jones’s testimony that he did not believe he received a proof of claim notice, concluded that proper notice of GST’s *514 bankruptcy was not given to Jones because the notice mailed by the bankruptcy court never reached him. Therefore, the administrative law judge found that any requirement under section 287.865.5 that Jones file a timely proof of claim in the bankruptcy court was waived. The administrative law judge entered an award in Jones’s favor, finding a permanent partial disability of approximately 15.77% to the body as a whole.

The Guaranty Corporation filed an application for review with the Labor and Industrial Relations Commission, alleging that the award was erroneous. The Guaranty Corporation argued that the filing requirement is a non-waivable statutory prerequisite that absolutely bars Jones’s claim, whether the notice was received or not. The Commission concluded that Jones did receive a notice and that, in any event, he had actual notice of the bankruptcy and should have known at some point he needed to file a proof of claim in bankruptcy and did not so. Therefore, the Commission reversed the administrative law judge’s award.

The Commission stated that the administrative law judge erred in relying on the case of In re: Wire Rope Corporation of America, Inc., 300 B.R. 1 (Bankr.W.D.Mo.2003), in which the employees in question received no notice of the need to file a proof of claim. The Commission found that the bankruptcy court here sent adequate notice of GST’s bankruptcy, which included notice of the deadline for filing a proof of claim to Jones, and Jones had actual notice of GST’s bankruptcy. The Commission also noted that the bankruptcy case did not come to a close until 2007, some six years after Jones was first sent notice of GST’s bankruptcy and the need for filing a proof of claim. The Commission further noted that at no point did Jones file a proof of claim in the bankruptcy court. With one Commissioner dissenting, the Commission held that Jones’s failure to file a timely claim in the bankruptcy court precluded him from recovering compensation from the Guaranty Corporation.

Jones appeals the Commission’s decision.

Standard of Review

The Missouri Constitution, article V, section 18, provides for judicial review of the Commission’s award to determine whether the award is “supported by competent and substantial evidence upon the whole record.” See also Hampton v. Big Boy Steel Erection, 121 S.W.3d 220, 222 (Mo. banc 2003). Section 287.495.1 of the Missouri statutes further indicates that a court, on appeal, shall:

review only questions of law and may modify, reverse, remand for rehearing, or set aside the award upon any of the following grounds and no other:
(1) That the commission acted without or in excess of its powers;
(2) That the award was procured by fraud;
(3) That the facts found by the commission do not support the award;
(4) That there was not sufficient competent evidence in the record to warrant the making of the award.

The constitutional standard (“supported by competent and substantial evidence upon the whole record”) and the statutory standard (“sufficient competent evidence in the record”) do not conflict. Hampton, 121 S.W.3d at 222. “A court must examine the whole record to determine if it contains sufficient competent and substantial evidence to support the award, ie., whether the award is contrary to the overwhelming weight of the evidence.” Id. at 222-23. “Whether the award is supported by competent and substantial evi *515 dence is judged by examining the evidence in the context of the whole record.” Id. at 223. “An award that is contrary to the overwhelming weight of the evidence is, in context, not supported by competent and substantial evidence.” Id. This court determines “whether, considering the whole record, there is sufficient competent and substantial evidence to support the award.” Id. “This standard would not be met in the rare case when the award is contrary to the overwhelming weight of the evidence.” Id.

A reviewing court is not required to view the evidence and all reasonable inferences drawn therefrom in the light most favorable to the award. Id. “While deference is paid to the Commission’s findings of fact, this court does not defer to the Commission’s conclusions of law or application of law to the facts.” Lindsey v. Univ. of Mo.,

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Cite This Page — Counsel Stack

Bluebook (online)
272 S.W.3d 511, 2009 Mo. App. LEXIS 6, 2009 WL 20997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-gst-steel-co-moctapp-2009.