Koski v. Erie Mining Co.

223 N.W.2d 470, 300 Minn. 1, 1974 Minn. LEXIS 1532
CourtSupreme Court of Minnesota
DecidedNovember 22, 1974
Docket43598
StatusPublished
Cited by16 cases

This text of 223 N.W.2d 470 (Koski v. Erie Mining Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koski v. Erie Mining Co., 223 N.W.2d 470, 300 Minn. 1, 1974 Minn. LEXIS 1532 (Mich. 1974).

Opinions

Rogosheske, Justice.

Certiorari to review a decision of the Workmen’s Compensation Commission which modified a determination of the compensation judge by limiting reimbursement to the employer-relator, Erie Mining Company, from the special compensation fund to 50 percent of compensation benefits to be paid to Stanley Koski, employee, who, because of a preexisting work-related physical impairment to his back, now suffers total permanent disability resulting from two subsequent work-related back injuries which aggravated the employee’s preexisting condition.

The issue presented is whether, upon the undisputed facts, Minn. St. 1969, § 176.131, subd. 1, our “second and successive injury” statute in force at the time of the employee’s final injury, which resulted in total permanent disability, requires full reimbursement to the employer from the special fund of all benefits paid and payable by the employer in excess of 26 weeks and $1,000 in medical expenses. Since the commission apportioned 50 percent of liability for such benefits to the employer and we hold that full reimbursement is required, we reverse.

[3]*3Stanley Koski, now aged 64, was employed as a laborer by Erie Mining Company, a self-insured employer, from 1940 until December 12, 1969. During this period he incurred four separate and distinct work-related injuries.

In 1958, he sustained his first injury when he jumped from a moving truck. He injured his leg, hip, and the lumbar and pelvic regions of his back. As a result he was disabled for 2 4/5 weeks. Compensation for this injury was paid by Erie.

In 1965, he suffered a second injury when a cable broke and caused him to fall down a steep slope. He was treated for injuries to his left shoulder, neck, and arm, and to his lower back and right hip. As a result he was unable to work for approximately 9 months, and compensation was again paid by Erie.

In April 1968, while carrying some heavy equipment, he sustained a third injury to his upper back, neck, and shoulders and also an aggravating injury to his lower back and right hip. As a result he was temporarily totally disabled for a period of 29 2/5 weeks.

The fourth and final injury occurred on December 8, 1969. While walking through deep snow, the employee fell backward, hitting his head and shoulder against some taconite. He was treated for injuries to his right shoulder, right arm, and back. For a period of 3 days following this injury, he was assigned a temporary job doing janitorial work but could no longer work effectively. He left the employ of Erie in December 1969 and has not worked since that time. It is not disputed that because of successive injuries to his back he has been totally and permanently disabled since December 8, 1969, and that his preexisting physical impairments resulting from the 1958 and 1965 injuries were duly registered with the commission.1

[4]*4A great deal of testimony elicited during the hearing related to the question of the employee’s physical impairments prior to the 1968 and 1969 injuries. Respondent custodian of the special fund sought to establish that each of the four injuries contributed in equal degree to employee’s total disability. Over objection, the compensation judge allowed such testimony as evidence necessary to support the custodian’s argument that liability for total permanent disability benefits should be apportioned between the employer and the special fund in proportion to the percentage of disability each injury contributed to total disability.

Respondent custodian’s expert witness, Dr. Robert Wengler, testified that employee’s loss of spinal function, together with his total disability, was due to the combined effects of the 1958, 1965, and 1969 injuries. Another expert, Dr. Dwayne Person, refused to apportion the disability between the injuries but concluded that since 1958 the employee’s condition was “[s] lowly but progressively getting worse.” In addition, Dr. Person stated that the 1968 and 1969 injuries would have caused only temporary or minor discomfort had it not been for the preexisting physical impairment caused by the two earlier injuries.

The compensation judge found that the employee’s disability from the 1958 and 1965 injuries constituted “pre-existing physical impairments” and that by reason thereof his total permanent disability was “substantially greater” than would have resulted alone. In accordance with the provisions of § 176.181, subd. 1, and upon further findings of due registration of the 1958 disability and filing of a notice of intent to claim reimbursement for the 1968 and 1969 injuries, the employer’s payment of past and future compensation benefits, less statutory deductibles, was ordered to be fully reimbursed by the special fund.

On appeal, the commission adopted several of the factual find[5]*5ings of the compensation judge but added a finding that the four injuries were “equally continuing and competent producing causes of the employee’s permanent total disability.” Based upon this factual determination and its interpretation of § 176.131, subd. 1, the commission apportioned liability between the employer and the special fund, modifying the order so as to limit reimbursement to 50 percent of the benefits paid and payable to the employee.

Assuming evidentiary support for the commission’s added finding, we address the question of whether the governing statute requires full reimbursement or a percentage reimbursement based on equitable principles of apportionment.

Although this court has in the past been presented with analogous legal questions, the precise issue presented is one of first impression. Minn. St. 1971, § 176.131, subd. 1, reads as follows:

“If an employee incurs personal injury and suffers disability that is substantially greater, because of a pre-existing physical impairment, than what would have resulted from the personal injury alone, the employer shall pay all compensation provided by chapter 176, but he shall be reimbursed from the special compensation fund for all compensation paid in excess of 52 weeks of monetary benefits and $2,000 in medical expenses * * 2

It is undisputed that the historical purpose of this statute as it has developed since 1913 is to encourage the employment of physically impaired persons by relieving employers of part of their liability for an aggravation of an employee’s preexisting [6]*6disability, due either to a prior industrial injury or otherwise, by establishing a special compensation fund from which the employer, after paying benefits, may be reimbursed. Beson v. Carleton College, 271 Minn. 268, 136 N. W. 2d 82 (1965); Haverland v. Twin City Milk Produers Assn. 273 Minn. 481, 142 N. W. 2d 274 (1966).

Although the basis for the commission’s determination is not at all clear, the commission presumably adopted the argument of respondent custodian that it is inequitable to charge the special fund with all liability for the employee’s total disability where the first injury and, in this case, one of the subsequent injuries contributed to cause 50 percent of such disability.

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Bluebook (online)
223 N.W.2d 470, 300 Minn. 1, 1974 Minn. LEXIS 1532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koski-v-erie-mining-co-minn-1974.