Kentucky Harlan Coal Co. v. Holmes

872 S.W.2d 446, 1994 Ky. LEXIS 6, 1994 WL 23750
CourtKentucky Supreme Court
DecidedJanuary 31, 1994
Docket92-SC-1073-WC, 93-SC-027-WC
StatusPublished
Cited by64 cases

This text of 872 S.W.2d 446 (Kentucky Harlan Coal Co. v. Holmes) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Harlan Coal Co. v. Holmes, 872 S.W.2d 446, 1994 Ky. LEXIS 6, 1994 WL 23750 (Ky. 1994).

Opinions

REYNOLDS, Justice.

In two consolidated cases we address the issue of the constitutionality of KRS 342.-732(l)(d) which declares:

If the administrative law judge finds that an employee has occupational pneumoconi-osis with a radiographic classification of category 2/1, 2/2, 2/3, 3/2, 3/3, or progressive massive fibrosis, based on the latest 1LO International Classification of Radio-graphics, there shall be an irrebuttable presumption that the employee is totally [449]*449disabled resulting from exposure to coal dust and the administrative law judge shall award income benefits equal to sixty-six and two-thirds percent (66¾%) of the employee’s average weekly wage but not more than one hundred percent (100%) of the state average weekly wage and not less than twenty percent (20%) of the average weekly wage of the state as determined by KRS 342.740. Income benefits awarded under this paragraph shall be payable to the employee during such disability.

The statute essentially provides income benefits for occupational pneumoconiosis resulting from coal dust exposure, upon a finding that an employee has fixed/defined radio-graphic evidence of simple coal workers’ pneumoconiosis. There shall be an irrebuttable presumption that the employee is totally disabled therefrom.

Kentucky Harlan Coal Company, Department of Mines and Minerals, and the Special Fund are arrayed against the constitutionality of the statute.

In the case of Commonwealth of Kentucky, Department of Mines and Minerals v. Arthur Moore, and Special Fund, et al., the basic facts are that Arthur Moore, an employee of the Department of Mines and Minerals, was determined by the Administrative Law Judge to have pneumoconiosis of 2/2 or above. The irrebuttable presumption provided by the statute was applied. No argument as to a determination of Moore’s ability to perform some work was considered because of the irrebuttable presumption mandating total, permanent disability. Appellant’s argument centers upon the statute.

In the case of Kentucky Harlan Coal Company v. Frank Holmes, and Special Fund, et al., the basic facts are not at issue. The employer raises issues additional to that of the constitutionality of the statute which are later addressed in this opinion.

It is contended that the statute is unconstitutional on four counts: (1) that it is special legislation contrary to Section 59(24) of the Kentucky Constitution; (2) that there is no rational basis/connection between the fact proved and the ultimate fact presumed; (3) that it is violative of due process rights; and (4) that the statute violates equal protection.

The constitutionality of KRS 342.732(l)(d) was upheld, in both cases, by the Court of Appeals. We affirm.

BACKGROUND

The social, economic and legislative history of the Act provides a basis for the statute’s enactment in 1987 at an extraordinary session of the Kentucky legislature. In view of a rising concern that the cost of workmen’s compensation and the increasing liability of the Special Fund would deter industrial development and encourage existing industries to depart the state, a task force of highly representative members conducted multiple meetings in 1986 and 1987. Studies by medical, economic, labor, management, actuarial and financial consultants culminated in a special legislative session.

Factors, including the following were determined:

1. Approximately 78% of the Special Fund’s liability in the five years preceding July 1987, was attributable to the coal industry. More than 95% of the Special Fund’s liability for occupational disease is attributable to coal workers’ pneumoconiosis (black lung). Approximately 30% of the Special Fund’s liability for traumatic injury is attributable to the coal industry. Finally, the failure to pre-fund and invest the sums necessary to meet Special Fund liabilities had produced an unpredictability and undue burden on all employers, as it was their annual assessments that were used to meet the Special Fund’s liabilities.

2. Other facts before the legislature:

a. For the five years prior to 6/30/87, an average of over 700 occupational disease claims per year involved Special Fund liability due to coal workers’ pneumoconiosis. During that period, the annual addition to the Special Fund’s liability represented by new claims increased from $157,298,000 to $235,840,000. Edward H. O’Daniel, Jr., 1987 Kentucky Workers’ Compensation Law, Foreward.

b. Before the 1987 Act, functional impairment played virtually no part in determining [450]*450eligibility for pneumoconiosis benefits. Black lung benefits tended to be awarded on an all-or-nothing basis. Of 5,372 black lung awards made between 1/1/73 and 11/1/87, 90.5% were for total, occupational disability and only 9.5% were for permanent, partial, occupational disability. O’Daniel, supra, at 21.

c. Pursuant to x-ray examination, pneu-moconiosis is classified as simple or complicated depending on the size of the opacities present in the patient’s lungs. The presence of opacities smaller than one centimeter in diameter indicates the presence of simple pneumoconiosis; whereas, the presence of opacities larger than one centimeter in diameter indicates the presence of complicated pneumoconiosis. Simple pneumoconiosis is subclassified by the number of opacities present as category 1, 2, or 3, with category 2 representing x-rays with a moderate number of opacities and category 3 representing x-rays with more opacities than are typical of simple pneumoconiosis. Simple pneumoconi-osis, even if category 3, is not usually associated with any significant decrease in lung function; whereas, complicated pneumoconio-sis, particularly in its more advanced forms, is often associated with severe clinical disease and moderate to severe pulmonary dysfunction. O’Daniel, supra, at 13-15.

d. It was recommended by medical experts that pulmonary dysfunction be measured by spirometric testing, using the test which represented the best efforts of the patient. Medical testimony recommended that both x-rays (to determine the presence of the disease) and pulmonary function tests (to determine the severity of any respiratory impairment) be used to determine the level of benefits to be awarded. O’Daniel, supra, at 16.

e. X-ray studies by Drs. Anderson and Lane revealed that of Kentucky workers who filed for federal black lung benefits between 43-61% had the disease. From 42-59% of the cases were simple coal workers’ pneumo-coniosis, and from 1-2% were complicated coal workers’ pneumoconiosis. A study conducted by the National Institute for Occupational Safety and Health (NIOSH) reported that 89% of coal miners with pneumoconiosis fall in 1LO category 1, the lowest category of simple pneumoconiosis. O’Daniel, supra, at 23.

f.It was projected that under KRS 342.-732, the proposed legislation for black lung claims, awards would be distributed as follows:

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Bluebook (online)
872 S.W.2d 446, 1994 Ky. LEXIS 6, 1994 WL 23750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-harlan-coal-co-v-holmes-ky-1994.