Julie Ann Reynolds, petitioner-appellee/cross-appellant v. Algona Manor Care Center and Canon Cochran Management Services, Inc., respondents-appellants/cross-appellees.

Court of Appeals of Iowa·Decided July 27, 2016·No. 15-1095·Published

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 15-1095

Filed July 27, 2016

JULIE ANN REYNOLDS, Petitioner-Appellee/Cross-Appellant,

vs.

ALGONA MANOR CARE CENTER and CANON COCHRAN MANAGEMENT SERVICES, INC., Respondents-Appellants/Cross-Appellees.

Appeal from the Iowa District Court for Polk County, Arthur E. Gamble, Judge.

An employer appeals and an employee cross-appeals the district court’s ruling on judicial review of a workers’ compensation award. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED WITH INSTRUCTIONS.

Joni L. Ploeger and Stephen J Brown of Cutler Law Firm, P.C., West Des Moines, for appellants.

Mark S. Soldat of Soldat, Parrish-Sams & Gustafson, PLC, West Des Moines, for appellee.

Heard by Vogel, P.J., and Doyle and Bower, JJ.

DOYLE, Judge.

An employer and its workers’ compensation administrator appeal from the district court’s ruling on judicial review of a workers’ compensation award with respect to the award of certain medical expenses, the interest due on temporary benefits, and the award of penalty benefits and costs. On cross-appeal, the claimant argues her spouse is entitled to reimbursement for wages lost while transporting the claimant to medical appointments. Upon our review, we reverse the portion of the judicial review ruling affirming the commissioner’s denial of reimbursement for wages lost by the employee’s spouse while transporting the employee to medical appointments, and we remand to the workers’ compensation commissioner for a determination of how much interest—if any— should be assessed against the employer for any nonpayment of temporary benefits. We affirm in all other respects.

I. Background Facts and Proceedings.

Julie Reynolds was employed by Algona Manor Care Center (Algona Manor) when she suffered a work injury on September 1, 2011. Reynolds filed a petition with the workers’ compensation commissioner seeking compensation for her injury. Both Reynolds and Algona Manor1 stipulated that Reynolds had not reached maximum medical improvement and that the issue of permanent partial disability was not ripe for hearing.

An arbitration hearing was held to determine Reynolds’s workers’

compensation rate, her entitlement to reimbursement for disputed medical

1 Canon Cochran Management Services, Inc. provided third-party workers’ compensation administration to Algona Manor during the relevant time period and is a party to these proceedings. In the interest of brevity, we will refer only to Algona Manor.

expenses, interest on any past-due benefits, penalty benefits, and costs. The deputy workers’ compensation commissioner determined that Reynolds’s weekly compensation rate was $635.05 and ordered Algona Manor to pay all past-due weekly benefits in a lump sum with interest. Algona Manor was also ordered to compensate Reynolds for certain expenses she incurred to treat her injury, as well as the cost of medical treatment for an allergic reaction Reynolds had to medication prescribed to treat her injury. The deputy commissioner denied Reynolds’s claim to reimburse her husband for wages he lost while driving her to medical appointments. Finally, Algona Manor was assessed a $2500 penalty for delayed payment of benefits and was ordered to reimburse Reynolds costs in the amount of $113.60. The deputy commissioner denied both parties’ applications for rehearing, and the industrial commissioner affirmed the deputy commissioner on appeal.

Both parties sought judicial review of the agency action. After a hearing, the district court entered an order affirming the commissioner’s decision regarding reimbursement for unauthorized medical expenses and travel expenses, as well as his assessment of penalty benefits and costs. The court agreed with Algona Manor that the commissioner had made a mathematical error in calculating Reynolds’s weekly benefit, finding the correct calculation was $633.30. Because Algona Manor had paid Reynolds this amount of weekly benefits, the court determined no interest was due for underpayment and remanded the case back to the agency to determine the credit and interest computation for any late or missing weekly benefit payments.

The district court denied Reynolds’s motion pursuant to Iowa Rule of Civil Procedure 1.904(2), which sought enlarged, amended, modified, or substituted findings. Thereafter, both parties filed a timely notice of appeal.

II. Scope and Standards of Review.

Our review of final agency action is governed by Iowa Code chapter 17A (2013). See Des Moines Area Reg’l Transit Auth. v. Young, 867 N.W.2d 839, 841-42 (Iowa 2015). We apply the standards set forth in section 17A.19(10) to the commissioner’s decision and decide whether the district court correctly applied the law in exercising its judicial review function. See id. at 842. If we reach the same conclusions as the district court, we affirm. See id. If not, we reverse. See id.

We review the commissioner’s interpretation of workers’ compensation statutes for the correction of errors at law. See Iowa Code § 17A.19(10)(c) (stating the court should grant relief where the agency decision is “[b]ased upon an erroneous interpretation of a provision of law whose interpretation has not been clearly vested by a provision of law in the discretion of the agency”); Ramirez-Trujillo v. Quality Egg, L.L.C., 878 N.W.2d 759, 773 (Iowa 2016) (holding the legislature did not expressly vest the workers’ compensation commissioner with authority to interpret the workers’ compensation statutes in chapter 85). In so doing, we will substitute our own judgment for the commissioner’s interpretation of chapter 85 should we conclude the commissioner’s interpretation rests on an error at law. See Ramirez-Trujillo, 878 N.W.2d at 771.

Because factual determinations are clearly vested in the discretion of the workers’ compensation commissioner, we defer to the commissioner’s findings if they are based on “substantial evidence in the record before the court when that record is viewed as a whole.” Larson Mfg. Co. v. Thorson, 763 N.W.2d 842, 850 (Iowa 2009) (quoting Iowa Code § 17A.19(10)(f)). Substantial evidence is “the quantity and quality of evidence that would be deemed sufficient by a neutral, detached, and reasonable person, to establish the fact at issue when the consequences resulting from the establishment of that fact are understood to be serious and of great importance.” Iowa Code § 17A.19(10)(f)(1). Rather than questioning whether the evidence before us may support a different finding than that made by the commissioner, we ask whether the evidence supports the finding actually made. See Larson Mfg. Co., 763 N.W.2d at 850.

III. Discussion.

Algona Care advances four arguments on appeal. It challenges the reimbursement of Reynolds’s medical costs and expenses, the remand to the agency to determine interest on temporary benefits, the award of penalty benefits, and the award of costs. On cross-appeal, Reynolds challenges only the denial of reimbursement of her husband’s wages, which she argues is a transportation expense. We address each argument in turn.

A. Medical Expenses.

Algona Manor contends the district court erred in concluding Reynolds was entitled to reimbursement for certain medical expenses. Specifically, Algona Manor argues Reynolds should not be reimbursed for prescription medication obtained on November 4, 2011, as well as non-prescription items purchased on

February 13, 2012, claiming these purchases were unrelated to her work injury. It also argues Reynolds is not entitled to reimbursement for a November 12, 2012 medical appointment, which Algona Manor claims was unauthorized and unrelated to her work injury.

1. Trazodone prescription.

Free access — add to your briefcase to read the full text and ask questions with AI

Julie Ann Reynolds, petitioner-appellee/cross-appellant v. Algona Manor Care Center and Canon Cochran Management Services, Inc., respondents-appellants/cross-appellees., (iowactapp 2016).

Julie Ann Reynolds, petitioner-appellee/cross-appellant v. Algona Manor Care Center and Canon Cochran Management Services, Inc., respondents-appellants/cross-appellees. (Julie Ann Reynolds, petitioner-appellee/cross-appellant v. Algona Manor Care Center and Canon Cochran Management Services, Inc., respondents-appellants/cross-appellees.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

State v. Hastings
466 N.W.2d 697 (Court of Appeals of Iowa, 1990)
Mycogen Seeds v. Sands
686 N.W.2d 457 (Supreme Court of Iowa, 2004)
Mills v. Walden-Sparkman, Inc.
493 So. 2d 64 (District Court of Appeal of Florida, 1986)
State v. Eichler
83 N.W.2d 576 (Supreme Court of Iowa, 1957)
Robbennolt v. Snap-On Tools Corp.
555 N.W.2d 229 (Supreme Court of Iowa, 1996)
Larson Manufacturing Co. v. Thorson
763 N.W.2d 842 (Supreme Court of Iowa, 2009)
State of Iowa v. David Lee Miller
841 N.W.2d 583 (Supreme Court of Iowa, 2014)
Iowa Mortgage Center, L.L.C. v. Lana Baccam and Phouthone Sylavong
841 N.W.2d 107 (Supreme Court of Iowa, 2013)