Joseph Traugott v. ARCTEC Alaska

465 P.3d 499
Alaska Supreme Court·Decided June 12, 2020·No. S17126·Published

Opinion

Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER. Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email corrections@akcourts.us.

THE SUPREME COURT OF THE STATE OF ALASKA

JOSEPH TRAUGOTT, ) ) Supreme Court No. S-17126 Appellant, ) ) Alaska Workers’ Compensation v. ) Appeals Commission No. 17-015 ) ARCTEC ALASKA, ) OPINION ) Appellee. ) No. 7456 – June 12, 2020 )

Appeal from the Alaska Workers’ Compensation Appeals Commission.

Appearances: Eric Croft and James Croft, The Croft Law Office, Anchorage, for Appellant. Matthew T. Findley and Laura C. Dulic, Ashburn & Mason, P.C., Anchorage, for Appellee.

Before: Winfree, Stowers, Maassen, and Carney, Justices. [Bolger, Chief Justice, not participating.]

CARNEY, Justice.

I. INTRODUCTION A worker with diabetes and a related foot condition developed an infection in his foot while working at a remote site. He required extensive medical treatment for his foot and has not worked since developing the infection. The Alaska Workers’ Compensation Board decided the worker’s disability and need for medical treatment were compensable based on an expert opinion that work was the sole cause of the condition’s acceleration even if work was not the most significant cause of the worker’s overall condition. The Alaska Workers’ Compensation Appeals Commission reversed the Board’s decision because in the Commission’s view the Board had asked the expert misleading questions. The Commission then concluded, based on a different opinion by the same expert, that the worker had not provided sufficient evidence to support his claim. The worker appeals, raising issues about the interpretation of the new causation standard adopted in the 2005 amendments to the Alaska Workers’ Compensation Act (Act) and its application to his case. We reverse the Commission’s decision and remand for reinstatement of the Board’s award. II. FACTS AND PROCEEDINGS Joseph Traugott, a long-time Alaska resident who moved to Amarillo, Texas in 2008, began to work for ARCTEC Alaska in March 2013, maintaining heating and ventilation systems at remote sites in Alaska. Before he was hired Traugott was cleared to work in a preemployment physical examination; he disclosed that he had preexisting diabetes. ARCTEC sent Traugott to Tin City, near Nome, where he worked six ten-hour days plus extra hours when needed, with Sundays off. He worked mostly on ladders because the systems needing maintenance were overhead. The underlying legal question in this case requires us to consider two concepts: what the Board called the “eggshell skull doctrine” and the application of the new causation standard — “the substantial cause” — to a preexisting non-work-related medical condition. Traugott is disabled because a bone in his ankle, the talus, essentially disintegrated, requiring extensive treatment and surgery. The question before the Board was whether a work-related injury was “the substantial cause” of Traugott’s disability and need for medical care. Because the medical aspects of this case are complicated, we summarize medical testimony presented to the Board to provide context.

-2- 7456 A. Medical Conditions Traugott had a number of preexisting health problems, but diabetes is the most important to his workers’ compensation case. Traugott was diagnosed with diabetes many years before he began to work for ARCTEC; he also developed peripheral neuropathy, a complication of diabetes. In addition to interfering with feeling or sensation, peripheral neuropathy affects the skin. According to Dr. Jerry Grimes, Traugott’s orthopedic surgeon, patients with peripheral neuropathy do not produce oils on the skin, making them more vulnerable to skin damage, which in turn can allow bacteria to enter the body. Diabetics also have problems with wound healing. Traugott also had Charcot foot, a neuropathy-related condition that causes bone loss and can lead to foot deformities. Only a small percentage of diabetics develop Charcot foot, and the causal factors are not well understood. Dr. Grimes testified that Charcot foot occurs in “episodic flare[s] of inflammation in a joint or bone,” but it is not degenerative. During an episode “the foot gets red, hot, swollen” and looks as though it might be infected, but “there’s no organism present.” The disease can flare more than once. As Dr. Grimes described it, “during this inflammation stage, the bones begin to just crumble” and “fall apart.” If Charcot foot is detected early enough and the area is immobilized, the bones may stabilize. Charcot foot can cause deformities that result in “an abnormal weight-bearing surface, . . . put[ting] part of the foot at risk” because only parts of the feet are designed to be weight-bearing. When a non-weight­ bearing surface must bear weight, the skin can get thicker and form a callus, but a callus “may be aggravating the risk of a[n] ulceration” rather than preventing one. Traugott developed osteomyelitis, a bone infection, which he contended was introduced into his foot via a blister caused by his work on ladders. Charcot foot has

-3- 7456 symptoms that are similar to osteomyelitis; apparently it is nearly impossible to distinguish Charcot foot from osteomyelitis on imaging studies. The doctors who testified agreed about many aspects of the case, but they had different opinions about the role osteomyelitis and Charcot foot had in Traugott’s overall condition and in the destruction of his talus. Dr. Grimes thought the osteomyelitis “led to [the talus’s] destruction and was the ultimate cause” of the need for surgery. Dr. Marilyn Yodlowski, ARCTEC’s orthopedist, thought the osteomyelitis triggered or combined with Charcot foot to cause the talus’s destruction. And Dr. Carol Frey, the Board’s second independent medical evaluation (SIME) doctor, thought the osteomyelitis caused acceleration of Traugott’s Charcot foot, and that this acceleration was the cause of the need for surgery. The doctors testified about diabetic ulcers and blister formation as well because Traugott reported that a blister developed on his affected foot in May and then several weeks later his nearby skin opened and began draining fluid. Doctors involved in the case agreed that even unruptured blisters can become infected. As Dr. Frey explained, bacteria can enter the body when there is “a compromise in the skin,” including not only unopened blisters but also a callus or “even a hot spot on the skin.” Dr. Frey and Dr. Grimes indicated that the liquid in a blister is a good growth medium for bacteria. Skin ulcers can develop in people with peripheral neuropathy even if they do not have Charcot foot, and diabetics who do not have Charcot foot can have problems with infections. Traugott had developed at least one diabetic ulcer in the past on his second toe on the same foot from “a corn that eroded.” Traugott was required to wear steel-toed shoes, and while working for ARCTEC he wore “brand new” steel-toed boots. He described them as “leather lace-up” boots that extended above the ankle. Dr. Frey explained that boots are more likely to cause blisters because they are designed to fit more snugly around the arch. Prior to

-4- 7456 Traugott’s work for ARCTEC, his doctors had not restricted his activities and had not required him to wear a specific type of shoe. In terms of his overall foot care, Traugott testified that while at Tin City he did his best to keep his feet clean and dry, as his doctors had advised. B. Traugott’s Injury And Treatment Through Late 2015 In May 2013, while he was at Tin City, Traugott noticed a blister “[l]ess than the size of a dime . . .

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