Justice v. RMH Aero Logging, Inc.

42 P.3d 549, 2002 Alas. LEXIS 22, 2002 WL 227312
CourtAlaska Supreme Court
DecidedFebruary 15, 2002
DocketS-9513, S-9544
StatusPublished
Cited by4 cases

This text of 42 P.3d 549 (Justice v. RMH Aero Logging, Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Justice v. RMH Aero Logging, Inc., 42 P.3d 549, 2002 Alas. LEXIS 22, 2002 WL 227312 (Ala. 2002).

Opinion

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Did the Alaska Workers' Compensation Board erroncously adjust an injured employee's compensation rate by departing from the statutory formula for determining gross weekly earnings set out in former AS 23.30.220(a)(1)? Because we conclude that our holding in Gilmore v. Alaska Workers' Comp. Bd. 1 applies with limited retroactivity to the employee's claim for a compensation rate adjustment, and because substantial evidence supports the finding that the employee's past employment history is not an accurate predictor of his future wage losses resulting from the injury, we affirm the board's decision adjusting the employee's compensation rate.

II FACTS AND PROCEEDINGS

RMH Aero Logging, Inc. hired Dan Justice in February 1993 to work as a knot bumper. On June 8, 1998 Justice was injured while working for RMH at a logging camp near Ketchikan, when a helicopter's rotor wash caused the log on which he was standing to roll, pinning his right foot against another log.

Justice received medical treatment and was cleared to work without any restrictions, wearing heavy lace-up leather boots to prevent further injury. Despite being placed on light duty, Justice continued to experience significant pain in his right foot. Further medical examination revealed a fracture in his right forefoot. 2 Justice's last day of employment with RMH was June 30, 1998.

Because conservative medical treatment of Justice's injury-such as immobilization of the foot in a cast-did not entirely relieve the pain in his right foot, Justice underwent surgery in February 1994. After Justice reecu-perated from the surgery, Dr. Todd Kile rated Justice's permanent partial impairment (PPI) at four percent. Dr. Kile later increased Justice's PPI rating to eight percent.

After RMH filed a report of occupational injury or illness with the board in June 1993, Wausau Insurance Companies, RMH's workers' compensation insurer, voluntarily adjusted Justice's claim. Between July 10, 1998 and August 9, 1994, Justice received temporary total disability (TTD) benefits of $154 per week, based on his gross income (as indicated in his federal income tax returns) of $16,589 and $4,305 for 1991 and 1992 respectively 3 Upon reaching medical stability in August 1994, Justice received PPI benefits based on Dr. Kile's rating of eight percent. On July 10, 1995-when his PPI benefits expired-Justice received a lump sum payment of $9,971 under former AS 23.80.041(k). 4

Justice continued to experience pain after the February 1994 arthrodesis procedure be *552 cause of degenerative arthritic changes in his right foot. On October 18, 1997 Justice's right foot spasmed while he was working on the roof of his house. Justice fell from the roof, fracturing his right wrist and sustaining a fracture/dislocation of a joint in the long finger of his right hand. Justice underwent surgery in January 1998 to correct the fracture/dislocation. RMH agreed that Justice's October 1997 injuries were related to his June 1993 injury, and reinstated his TTD benefits effective September 1, 1997.

On December 1, 1997 Justice filed a workers' compensation claim with the board. On May 11, 1998 Justice filed an amended claim seeking, among other things, a retroactive adjustment of his TTD compensation rate. Justice claimed that his gross income in 1992 was aberrationally low and did not accurately predict his future lost wages. Justice explained that he had spent that year administering his mother's estate. Citing Gilmore v. Alaska Workers' Comp. Bd., 5 Justice asked the board to depart from the formula, contained in former AS 28.20.220(a)(1), for determining gross weekly wages. The board agreed and retroactively adjusted Justice's weekly compensation rate to $424.30.

RMH appealed to the superior court, which affirmed the "retroactive application of Gilmore to Mr. Justice's 1997 TTD claim" and reversed "[the Board's order that Gilmore be applied to Mr. Justice's 1998 TTD claim...." 6

Justice appeals and RMH cross-appeals.

III. DISCUSSION

A. Standard of Review

We independently review the merits of an agency determination when a superior court acts as an intermediate court of appeal. 7 "In reviewing an agency's factual findings, we employ the 'substantial evidence' test." 8 Substantial evidence is "such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. 9 ° When an agency decision involves expertise regarding either complex subject matter or fundamental policy formulation, we defer to the decision 10 " 'so long as it is reasonable, supported by the evidence in the record as a whole, and there is no abuse of discretion.' " ** We apply the substitution of judgment test to legal questions where no agency expertise is involved, such as questions of " 'statutory interpretation or other analysis of legal relationships about which courts have specialized knowledge and experience' 11

B. The Board Did Not Err by Applying Gilmore to Justices Claim for a Compensation Rate Adjustment.

On October 14, 1994 we decided Gilmore v. Alaska Workers' Comp. Bd., which held that *553 former AS 283.30.220(a), as applied by the board to Gilmore, violated the equal protection clause of the Alaska Constitution. 12

When Gilmore was injured on September 17, 1989, AS 23.30.220(a) provided in relevant part:

The spendable weekly wage of an injured employee at the time of an injury is the basis for computing compensation. It is the employee's gross weekly earnings minus payroll tax deductions. The gross weekly earnings shall be calculated as follows:

(1) the gross weekly earnings are computed by dividing by 100 the gross earnings of the employee in the two calendar years immediately preceding the injury;
(2) if the employee was absent from the labor market for 18 months or more of the two calendar years preceding the injury, the board shall determine the employee's gross weekly earnings for calculating compensation by considering the nature of the employee's work and work history, but compensation may not exceed the employee's gross weekly earnings at the time of injury .... 13

During the two years preceding his injury, Gilmore had worked for a total of thirty-nine weeks. 14

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Bluebook (online)
42 P.3d 549, 2002 Alas. LEXIS 22, 2002 WL 227312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/justice-v-rmh-aero-logging-inc-alaska-2002.