Kentucky Employers' Mutual Insurance v. Claus Coal Co., Inc.

CourtCourt of Appeals of Kentucky
DecidedNovember 22, 2024
Docket2024-CA-0552
StatusUnpublished

This text of Kentucky Employers' Mutual Insurance v. Claus Coal Co., Inc. (Kentucky Employers' Mutual Insurance v. Claus Coal Co., Inc.) 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. Claus Coal Co., Inc., (Ky. Ct. App. 2024).

Opinion

RENDERED: NOVEMBER 22, 2024; 10:00 A.M. NOT TO BE PUBLISHED

Commonwealth of Kentucky Court of Appeals NO. 2024-CA-0552-WC

KENTUCKY EMPLOYERS’ MUTUAL INSURANCE APPELLANT

PETITION FOR REVIEW OF A DECISION v. OF THE WORKERS’ COMPENSATION BOARD ACTION NO. WC-21-01628 & WC-21-01627

CLAS COAL CO., INC.; HONORABLE TONYA CLEMONS, ADMINISTRATIVE LAW JUDGE; TROY STIDHAM; AND WORKERS’ COMPENSATION BOARD APPELLEES

OPINION AFFIRMING

** ** ** ** **

BEFORE: CALDWELL, COMBS, AND EASTON, JUDGES.

CALDWELL, JUDGE: Kentucky Employers’ Mutual Insurance (“KEMI”)

petitions for review of a Workers’ Compensation Board (“Board”) opinion

affirming an award of benefits to Troy Stidham (“Stidham”) for cumulative

hearing loss. We affirm. FACTS

Stidham, a resident of Virginia, was an underground coal miner for

many years. Starting in 2003, Stidham worked in Clas Coal mines in Kentucky for

about 16 years. He ceased working in Kentucky on January 1, 2020, when Clas

Coal shut down its last Kentucky mine.

After the Kentucky mine closed, Stidham worked at a Clas Coal mine

in Alabama for several months starting in February 2020. He retired on October

31, 2020. Stidham had the same job duties and was exposed to loud noise at the

Clas Coal mines in both Kentucky and Alabama.

Stidham noticed some difficulty hearing people speak for a few years

before his retirement. But he did not have his hearing tested or receive treatment

for hearing loss while he was employed by Clas Coal. After retiring, Stidham saw

audiologist Dr. Robert Manning on August 31, 2021. Dr. Manning took Stidham’s

history and performed audiology testing. Dr. Manning found Stidham had a type

of hearing loss associated with long-term loud noise exposure.

A couple of weeks after being examined by Dr. Manning, Stidham

notified Clas Coal that he may have suffered work-related hearing loss. He filed

-2- an application to resolve a workers’ compensation claim for hearing loss in

November 2021.1

Stidham later underwent further audiology testing, including by

university medical evaluator Dr. Brittany Brose. Dr. Brose found Stidham had

suffered hearing loss due to his long-term work in the mines, resulting in a nine

percent (9%) whole person impairment. In her deposition testimony, Dr. Brose

stated that the degree of hearing loss sustained by Stidham would not result from

working several months in a mine. Instead, she opined that a much longer period

of exposure to loud noise was required to produce that degree of hearing loss.

KEMI, the insurance carrier for Clas Coal in Kentucky from 2003

through early February 2020, intervened in Stidham’s workers’ compensation

proceeding. It raised issues about extraterritorial coverage and jurisdiction. KEMI

argued that Stidham’s hearing loss injury became manifest on either October 31,

2020, when he retired after working in the Alabama mine, or on August 31, 2021,

when he was diagnosed with a work-related hearing loss.

The case proceeded to a final evidentiary hearing before an ALJ. The

ALJ rendered an Opinion, Award and Order (“ALJ decision”) in October 2023.

1 In addition to alleging occupational hearing loss, Stidham also alleged that he suffered coal workers’ pneumoconiosis (“CWP”). The administrative law judge (“ALJ”) found Stidham failed to meet his burden of proving work-related CWP and dismissed his CWP claim. Stidham did not appeal from the dismissal of his CWP claim.

-3- The ALJ noted the parties stipulated Stidham had provided timely notice of his

alleged injuries. The ALJ also noted Stidham consistently asserted the date of the

injury was January 1, 2020, and Stidham never amended the injury date to October

31, 2020.

The ALJ also noted KEMI’s argument that Kentucky lacked

jurisdiction over Stidham’s claim because Stidham was last exposed to hazardous

workplace noise in Alabama. But after quoting and construing Kentucky workers’

compensation statutes about extraterritorial coverage and hearing loss

compensability, the ALJ concluded that Kentucky had jurisdiction over Stidham’s

workers’ compensation claim.

Next, the ALJ found Stidham had work-related cumulative hearing

loss resulting in a nine percent (9%) whole person impairment based on the

opinion of university evaluator Dr. Brose. The ALJ determined Stidham was

entitled to income benefits for permanent partial disability and reasonable medical

expenses related to the hearing loss.

KEMI filed a petition for reconsideration, which the ALJ denied. The

ALJ rejected KEMI’s argument that a recent Board opinion (Holland v. Clas Coal

Co., Inc., 012723 KYWC, 2021-00424), indicated the ALJ erred in finding a

January 1, 2020, injury manifestation date and determining Kentucky had

jurisdiction over Stidham’s claim. The ALJ noted the claimant in Holland

-4- amended his alleged injury date to include time spent working in another state after

his last date of employment in Kentucky. In contrast, the ALJ noted Stidham

consistently alleged an injury manifestation date of January 1, 2020, and never

amended this alleged injury date to include time spent working in Alabama.

The ALJ also noted, in the order denying reconsideration, the parties’

stipulations that Stidham worked for Clas Coal for about 16 years in Kentucky but

only for about nine months in Alabama. And the ALJ found persuasive Dr.

Brose’s testimony, which the ALJ construed as indicating that Stidham’s exposure

to noise in the workplace for several months after January 1, 2020, was

“inconsequential to the finding of his pattern of hearing loss and his level of

impairment.” The ALJ also noted a lack of evidence to contradict her finding that

Clas Coal in Kentucky was the last employer with whom Stidham had been

injuriously exposed to hazardous noise for at least a year.

KEMI filed an appeal with the Board. The Board noted KEMI’s

arguments that Stidham was last injuriously exposed to loud noise while working

in Alabama and that Kentucky therefore lacked jurisdiction over Stidham’s hearing

loss claim. The Board also recognized that KEMI again argued that the finding of

a January 1, 2020, injury manifestation date was incorrect and should be corrected

to October 31, 2020, or August 31, 2021 – outside the dates of KEMI’s coverage.

-5- But after explaining why it disagreed with KEMI’s arguments, the Board affirmed

the ALJ’s decision in its Opinion dated April 12, 2024 (“Board opinion”).

KEMI filed a petition for review with this Court, raising the same sort

of issues it raised to the Board. We discuss further facts as needed in our analysis.

ANALYSIS

Standard of Review

When the Court of Appeals reviews a Workers’ Compensation Board

opinion resolving an appeal of an ALJ decision, this Court should not “correct the

Board” unless “the Court perceives the Board has overlooked or misconstrued

controlling statutes or precedent, or committed an error in assessing the evidence

so flagrant as to cause gross injustice.” Western Baptist Hosp. v. Kelly, 827

S.W.2d 685, 687-88 (Ky. 1992).

No Reversible Error in Board Affirming ALJ’s Conclusions that Extraterritorial Coverage Was Not at Issue and that Kentucky had Jurisdiction

KEMI asserts that issues of jurisdiction should have been resolved

before considering issues of compensability. See Letcher Cnty. Board of Education

v. Hall, 671 S.W.3d 374, 379 (Ky.

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