Kluttz-Ellison v. Noah's Playloft Preschool

CourtSupreme Court of North Carolina
DecidedMarch 22, 2024
Docket173PA22
StatusPublished

This text of Kluttz-Ellison v. Noah's Playloft Preschool (Kluttz-Ellison v. Noah's Playloft Preschool) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kluttz-Ellison v. Noah's Playloft Preschool, (N.C. 2024).

Opinion

IN THE SUPREME COURT OF NORTH CAROLINA

No. 173PA22

Filed 22 March 2024

ROBIN KLUTTZ-ELLISON, Employee

v. NOAH’S PLAYLOFT PRESCHOOL, Employer, and ERIE INSURANCE GROUP, Carrier

On discretionary review pursuant to N.C.G.S. § 7A-31 of a unanimous decision

of the Court of Appeals, 283 N.C. App. 198 (2022), affirming an opinion and award

entered on 11 March 2021 by the North Carolina Industrial Commission. Heard in

the Supreme Court on 20 September 2023.

Shelby, Pethel and Hudson, P.A., by David A. Shelby, for plaintiff-appellee.

Hedrick Gardner Kincheloe & Garofalo LLP, by M. Duane Jones and Lindsay N. Wikle, for defendant-appellants.

DIETZ, Justice.

Under our workers’ compensation statutes, an employee who suffers a

compensable injury in a workplace accident may receive compensation for any

medical treatment that “may reasonably be required to effect a cure or give relief.”

N.C.G.S. § 97-2(19) (2023); see also id. § 97-25(c).

Despite this broad language, the Court of Appeals has long held (quite

understandably) that this provision does not apply to every medical treatment; it

applies only to those treatments that are “directly related” to the workplace injury. KLUTTZ-ELLISON V. NOAH’S PLAYLOFT PRESCHOOL

Opinion of the Court

Were it otherwise, workers’ compensation would too easily transform into general

health insurance, forcing employers to cover treatments for medical conditions with

no connection to the workplace injury.

To assess whether a treatment is directly related, the Court of Appeals

examines the strength of the “causal relationship” between the condition that

requires treatment and the workplace injury. See, e.g., Perez v. Am. Airlines/AMR

Corp., 174 N.C. App. 128, 133 (2005). This approach, which this Court has favorably

recognized but never formally endorsed, protects the need for causality in assessing

workers’ compensation—a need that is “the very sheet anchor” of the system. Duncan

v. City of Charlotte, 234 N.C. 86, 91 (1951).

As explained in more detail below, we endorse the test as it has developed in

the Court of Appeals. Under the “directly related” test, treatment for a medical

condition is directly related to a workplace injury, and therefore compensable, if there

is a sufficiently strong causal relationship between the condition that requires

treatment and the workplace injury. Perez, 174 N.C. App. at 133. This requires a

showing that the condition for which treatment is sought (1) was caused by the

workplace injury; (2) was aggravated by the workplace injury; or (3) did not require

medical treatment or intervention of any kind before the workplace injury but now

requires treatment solely to remedy the workplace injury.

If any of these criteria are met, the treatment is directly related to the

workplace injury and is compensable. If not, the treatment is, at most, indirectly

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related to the workplace injury and is not compensable under the workers’

compensation system.

Our holding today is largely a restatement of longstanding Court of Appeals

precedent. Nevertheless, we find it necessary to reverse the Court of Appeals’ decision

and remand with instructions to further remand this case to the Industrial

Commission. As explained in more detail below, neither the Commission nor the

Court of Appeals properly applied the test set out in this existing line of Court of

Appeals cases, which we have now formally endorsed. We therefore reverse and

remand this matter so that the Commission can apply the test set out in this opinion.

Facts and Procedural History

Plaintiff Robin Kluttz-Ellison worked at Noah’s Playloft Preschool. Plaintiff

brought two workers’ compensation claims against defendants (her employer and

workers’ compensation carrier) for injuries sustained in two different workplace

accidents. The first accident occurred when plaintiff fell several feet off a ladder while

changing a lightbulb. The second incident occurred when plaintiff tripped on a child’s

sleeping cot and fell.

Defendants denied a number of plaintiff’s claims, asserting that the alleged

injuries were unrelated to the workplace accidents. The Commission ultimately

consolidated plaintiff’s claims for a single hearing.

Before these accidents, plaintiff had a medical procedure known as knee

arthroplasty, which required a prosthetic secured with hardware to be placed in her

-3- KLUTTZ-ELLISON V. NOAH’S PLAYLOFT PRESCHOOL

right knee. In addition, plaintiff had struggled with body weight issues for many

years. Her medical care providers previously diagnosed her with obesity and

recommended treatments ranging from changes to her diet to prescription weight-

loss medications.

After the workplace accidents, plaintiff’s care providers determined that she

needed additional knee surgery to address a loosening of the hardware in her right

knee. They also recommended that plaintiff undergo a form of bariatric weight loss

surgery known as gastric bypass. Plaintiff’s care providers believed this weight loss

surgery was necessary because they could not safely perform the required knee

surgery until plaintiff’s body mass index was lowered significantly. These care

providers concluded that bariatric surgery was the only available treatment that

would lead to a sufficiently rapid loss of body weight.

Following a hearing, the deputy commissioner denied plaintiff’s claim with

respect to the loosened hardware in her right knee. As a result, the deputy

commissioner also denied the claim for bariatric weight loss surgery, which was based

on the compensability of plaintiff’s knee surgery. Plaintiff then appealed the deputy

commissioner’s decision to the Full Commission.

In the interim, plaintiff successfully underwent bariatric surgery and lost a

substantial amount of weight. Plaintiff then underwent the corrective surgery on her

right knee. After the surgeries, plaintiff moved to submit additional evidence to the

Full Commission to support her claim that her knee hardware loosened because of

-4- KLUTTZ-ELLISON V. NOAH’S PLAYLOFT PRESCHOOL

the workplace accidents. She also moved for permission to take additional depositions

from her care providers. The Commission granted her motions.

The Commission later entered an opinion and award concluding that plaintiff’s

right knee surgery was related to her workplace injuries and was compensable. But

the Commission concluded that plaintiff “failed to establish that weight loss

treatment is medically necessary as a result of her compensable injuries” and denied

compensation for plaintiff’s bariatric surgery.

Two weeks later, plaintiff moved to reconsider the Commission’s opinion and

award and requested permission to introduce new evidence. The Commission denied

plaintiff’s request to introduce new evidence but entered an amended opinion and

award that changed its decision with respect to the bariatric surgery.

The amended opinion and award found that the bariatric surgery “was

medically necessary to achieve a BMI of less than 40, a prerequisite to allowing

Plaintiff to undergo the revision right total knee arthroplasty.” Based on this finding,

the Commission concluded that the bariatric weight loss surgery was compensable.

Defendants appealed the Commission’s opinion and award to the Court of

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