Kentucky Employers' Mutual Insurance v. Burnett

432 S.W.3d 733, 2014 Ky. App. LEXIS 82, 2014 WL 2022236
CourtCourt of Appeals of Kentucky
DecidedMay 16, 2014
DocketNos. 2013-CA-001834-WC, 2013-CA-001843-WC
StatusPublished
Cited by1 cases

This text of 432 S.W.3d 733 (Kentucky Employers' Mutual Insurance v. Burnett) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Employers' Mutual Insurance v. Burnett, 432 S.W.3d 733, 2014 Ky. App. LEXIS 82, 2014 WL 2022236 (Ky. Ct. App. 2014).

Opinion

OPINION

THOMPSON, Judge:

Kentucky Employers’ Mutual Insurance (KEMI) and Deck Doktor, Inc. filed separate petitions for review of the opinion of the Workers’ Compensation Board affirming the Administrative Law Judge’s (ALJ) decision awarding Fred Burnett permanent total disability (PTD) benefits. KEMI argues Kentucky does not have jurisdiction to adjudicate Burnett’s claim and Deck Doktor contests the award of PTD benefits. We affirm.

Burnett filed a Form 101 Application for Resolution of Injury Claim seeking benefits as a result of his work injury sustained on September 29, 2011. Deck Doktor, through KEMI under a reservation of rights, denied the claim, and KEMI intervened as a defendant to assert that Kentucky did not have jurisdiction and there was no coverage for Burnett’s claims under the workers’ compensation policy issued to Deck Doktor. KEMI later filed a Certificate of Authority from the Secretary of State’s Office providing Deck Doktor with the authority to transact business in Kentucky as an entity organized in Indiana with a principal place of business in New Albany, Indiana.

Burnett is currently a forty-two-year-old resident of Crandall, Indiana. He is a high school graduate and attended a business college but did not complete his coursework. Burnett served in the Army and completed his last tour in 1995. Burnett had several jobs prior to becoming employed by Deck Doktor in 2009, including work at Tafel Motors in the parts department, in a sales job, building elevators, and he worked as a property manager. He also worked as an apprentice electrician and at his family’s business as a manager.

Burnett began working for Deck Doktor in 2009, where he worked until the date of his work injury. Burnett testified that in February 2009, James David Stillwell, the owner of Deck Doktor, called him while at home in Indiana and asked Burnett to help with a job in Kentucky. Burnett agreed. Burnett testified that the day after completing the Kentucky job, Stillwell and he had dinner at Hometown Pizza, in La-Grange, Kentucky, and, while there, Still-well offered him full-time employment, which he accepted. Burnett earned $15 per hour and was paid by check on a weekly basis through an Indiana branch of Chase Bank. He received a 1099 at the end of the tax year. Burnett worked in both Kentucky and Indiana but testified 90% of his work was performed in Kentucky.

On the date of his injury, Burnett fell from a roof while he was working on a log cabin in New Albany, Indiana. Burnett injured both heels and was taken to Floyd Memorial Hospital where he was treated by Dr. John Conner. Dr. Conner later performed surgery and Burnett last saw Dr. Conner on March 12, 2012.

Burnett testified that because of his physical limitations, he has not worked since the date of his injury. Burnett stated he cannot wear shoes for more than an hour before his feet hurt and walking causes knee pain. He stated he can stand comfortably for an hour and walk comfortably for a distance of about 100 feet. While working at Deck Doktor, Burnett spent the day almost entirely on his feet performing manual labor. Presently, Burnett’s daily activities consist of house [736]*736cleaning, caring for his dogs, cooking, doing laundry and reading.

Stillwell testified he organized Deck Doktor in 2000 in Kentucky. He described Deck Doktor as a mobile business, relying mostly on his cell phone to conduct business and he does not have a formal office. Burnett previously performed contract work for Deck Doktor on two occasions in June 2004 and July 2008. In February 2009, Stillwell requested him to work on a job in LaGrange. He confirmed after the LaGrange job was completed in February 2009, the two met at the Hometown Pizza in Kentucky and negotiated the terms, conditions, pay rate, and hours for Burnett’s full-time employment with Deck Doktor. Stillwell testified Deck Doktor does not have workers’ compensation insurance in Indiana.

Burnett filed the medical records of several providers. Floyd Memorial Hospital records detailed his treatment in the emergency room after the fall and included a CT scan and x-ray reports showing bilateral heel fractures. Burnett was discharged on October 1, 2011, and returned later that month for surgery on his left heel. His right heel was treated non-operatively.

Burnett also filed the medical records and progress notes of Dr. John Conner, his treating physician at Floyd Memorial Hospital. The last progress note was dated March 12, 2012, and indicated Burnett’s fractured heels were improved. Dr. Conner explained that maximum recovery would take eighteen months and Burnett could work in a job where he was mostly sitting.

In addition, Burnett filed the medical report of Dr. Jules Barefoot. Dr. Barefoot performed an independent medical examination (IME) on October 10, 2012, which included a review of Burnett’s medical records. Based upon his examination and review, Dr. Barefoot diagnosed Burnett with bilateral heel fractures and status post-open reduction and internal fixation of a severely comminuted left heel fracture caused by Burnett’s work injury.

He opined Burnett sustained a permanent, partial functional impairment to the whole body of 4% based upon the AMA Guides. Dr. Barefoot described several restrictions, noting Burnett would have marked difficulty with prolonged standing or walking. He would not be able to work on ladders or scaffolding, and would have difficulty going up and down stairs, operating machinery with foot controls, or lifting and carrying heavy loads over an extended distance. Burnett would need ongoing orthopedic care for his injuries and possibly require future surgery. He was at risk for developing premature degenerative osteoarthritis in his feet and ankles due to his work injury. Burnett had reached maximum medical improvement (MMI). Later, Dr. Barefoot had the opportunity to review an IME report by Dr. Thomas Loeb and based upon this new information, Dr. Barefoot changed Burnett’s whole body impairment rating to 21%, attributable to his work-related injury.

Deck Doktor filed the medical report of Dr. Loeb, who performed an IME on October 23, 2012. Dr. Loeb performed an examination and reviewed Burnett’s medical records. He diagnosed post bilateral os caléis fractures with intra-articular components, healed, with persistent heel pain secondary to his work injury. Dr. Loeb assigned a 19% whole body impairment pursuant to the AMA Guides. Dr. Loeb stated a brace would benefit Burnett and may permit his return to some type of work.

The benefit review conference (BRC) was held on October 81, 2012. Contested issues remained regarding benefits per Kentucky Revised Statutes (KRS) 342.730, [737]*737work-relatedness/causation, average weekly wage, unpaid or contested medical expenses, and temporary total disability benefits (TTD). A final hearing was held on January 18, 2013.

Burnett requested TTD benefits from September 29, 2011, through October 10, 2012; permanent partial disability (PPD) benefits based upon Dr. Barefoot’s 21% whole body impairment rating; payment of reasonable medical expenses; and any and all benefits to which he was entitled pursuant to the proof. KEMI argued Burnett’s claim should be dismissed based upon Kentucky’s lack of jurisdiction because the contract for hire was made in Indiana, not Kentucky. Deck Doktor argued that if the ALJ found the claim to be compensable, Burnett should be awarded TTD benefits until March 12, 2012, and PPD benefits based upon Dr. Barefoot’s original 4% impairment rating.

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432 S.W.3d 733, 2014 Ky. App. LEXIS 82, 2014 WL 2022236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-employers-mutual-insurance-v-burnett-kyctapp-2014.