Kurtz v. SCI

1998 SD 37, 576 N.W.2d 878, 1998 S.D. LEXIS 34
CourtSouth Dakota Supreme Court
DecidedApril 8, 1998
DocketNone
StatusPublished
Cited by29 cases

This text of 1998 SD 37 (Kurtz v. SCI) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kurtz v. SCI, 1998 SD 37, 576 N.W.2d 878, 1998 S.D. LEXIS 34 (S.D. 1998).

Opinion

SABERS, Justice.

[¶ 1.] Workers’ compensation self-insured employer appeals circuit court’s ruling that claimant is entitled to permanent total disability benefits under the odd-lot doctrine. Employer claims the court erred in adopting the administrative law judge’s findings of fact and conclusions of law because they were rejected by the Director of the Department of Labor. We affirm.

PACTS

[¶ 2.] Joyce Kurtz was employed as a computer board assembler by SCI (Employer) for approximately seven months. She worked in the same capacity for Employer’s predecessor for about four years. On May 2, 1991, Kurtz experienced pain in her right hand after eight hours of consistent use of a torque wrench. She promptly reported her discomfort to her supervisor. Although she worked the following day without using the torque wrench, Kurtz reported continuing and increasing pain. She was referred to Dr. Preston, who diagnosed tenosynovitis of the right thumb. Dr. Preston referred her to a physical therapist, and she was eventually fitted with a wrist splint. On May 31, 1991, Kurtz and other employees were laid off.

[¶ 3.] Kurtz was referred to orthopedic surgeon Dr. Berkebile, who twice performed surgery on her. He first performed a release of the flexor tendon sheath in August of 1991 followed by a carpal tunnel release in early 1992. Kurtz was never re-hired by Employer and has not been employed since May, 1991. She was placed on temporary total disability status until sometime in late 1994.

[¶ 4.] Her efforts at re-employment, as well as her pain and self-reported limitations, were vigorously disputed by Employer when she petitioned for odd-lot disability. There was conflicting testimony, discussed later, regarding her ability to work. Mark Bratt, the administrative law judge (ALJ) granted Kurtz permanent and total disability benefits, ruling that she qualified for odd-lot status.

[¶ 5.] The Secretary (Secretary) of the Department of Labor (Department) granted Employer’s petition for review brought under SDCL 62-7-16. 1 In a one-page order, Secretary reversed the ALJ’s decision, stating that *881 it was “clear error” without elaboration or explanation. He remanded “to the Division for such additional proceedings as it deems necessary to determine the extent of Claimant’s disability.” 2

[ 116.] On remand, the parties stipulated that since ALJ Bratt was no longer with Department, the Director of Department (Director) could determine the ease based on the existing record. Director assessed the “clear error” found by Secretary as follows:

It is thought that the basis for this ruling was in the ALJ’s finding of permanent total disability despite Claimant’s acknowledged mental aptitude for retraining. Under the direction of Shepherd v. Moorman Manufacturing, 467 N.W.2d 916 (S.D.1991), and its progeny, however, Claimant can establish that she is permanently and totally disabled due to pain, and the burden then falls on Employer to show the availability of work. Claimant has done so, and the opinion proffered by [Employer’s expert] that available work existed was rejected. It is therefore concluded that Claimant is indeed “obviously unemployable,” and is entitled to permanent total disability benefits, based on the discussion presented in the Division’s previous decision, findings of fact, and conclusions of law. Those documents are hereby adopted as the Division’s findings, conclusions and order in this matter. [Kurtz] shall submit proposed Findings of Fact and Conclusions of Law, and an Order consistent with this Decision[.]

Despite this decision, Director later issued the following order:

I have reviewed employer’s objections to Claimant’s proposed findings of fact and conclusions of law, and am compelled once more to revisit my determinations. I am persuaded that I have misinterpreted the legal effect of Secretary Johnson’s review order, and must revise my decision. “Clear error” should properly be- taken to mean that the factual determinations made by [ALJ], not just his legal conclusions, were in error, and I am bound by that finding. To me, this means that I . should not merely adopt [ALJ’s] findings as my own, but to reevaluate them in light of all the information in the record.
Having done this, I am convinced that Claimant is not entitled to permanent total disability benefits, but to permanent partial disability benefits as Employer has outlined. Making my own judgment as to her reports of pain, I find that she is not suffering such continuous, intense pain that she cannot work; that work is available within her restrictions that is regular and continuous; and that she is not totally unemployable. I hereby enclose a signed copy of Employer/Self-insurer’s proposed findings of fact, conclusions of law, and order, which will be entered as the Department’s official stance in this matter.

[¶ 7.] Kurtz appealed to the circuit court. Based upon its review of the entire record, the circuit court reversed Director and adopted the ALJ’s decision as its own, thus reinstating the award of odd-lot disability benefits. Employer appeals, claiming that the ALJ’s decision was not the “final agency determination” and therefore the circuit court erred by reviewing the “wrong” decision. Employer also, claims that Director’s decision denying odd-lot benefits is not clearly erroneous.

[¶ 8.] 1. STANDARD OF REVIEW

[¶ 9.] We review administrative appeals according to SDGL 1-26-36:

*882 The court shall give great weight to the findings made and inferences drawn by an agency on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:
(1) In violation of constitutional or statutory provisions;
(2) In excess of the statutory authority of the agency;
(3) Made upon unlawful procedure;
(4) Affected by other error of law;
(5) Clearly erroneous in light of the entire evidence in the record; or
(6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.

We will overrule an agency’s findings of fact only when they are clearly erroneous. “The test is whether after reviewing all the evidence we are left with a definite and firm conviction that a mistake has been made.” Truck Ins. Exch. v. Kubal, 1997 SD 37, ¶ 9, 561 N.W.2d 674, 676 (citation omitted). Conclusions of law are given no deference and are freely reviewable. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Baker v. Rapid City Regional Hospital
978 N.W.2d 368 (South Dakota Supreme Court, 2022)
Billman v. Clarke MacHine, Inc.
956 N.W.2d 812 (South Dakota Supreme Court, 2021)
Armstrong v. Longview Farm, LLP
938 N.W.2d 425 (South Dakota Supreme Court, 2020)
Terveen v. South Dakota Department of Transportation
2015 SD 10 (South Dakota Supreme Court, 2015)
Eite v. RAPID CITY AREA SCHOOL DISTRICT 51-4
2007 SD 95 (South Dakota Supreme Court, 2007)
Orth v. Stoebner & Permann Construction, Inc.
2006 SD 99 (South Dakota Supreme Court, 2006)
Meligan v. Department of Revenue & Regulation
2006 SD 26 (South Dakota Supreme Court, 2006)
Horn v. Dakota Pork
2006 SD 5 (South Dakota Supreme Court, 2006)
City of Frederick v. Schlosser
2003 SD 145 (South Dakota Supreme Court, 2003)
Capital Motors, LLC v. Schied
2003 SD 33 (South Dakota Supreme Court, 2003)
Byrum v. Dakota Wellness Foundation
2002 SD 141 (South Dakota Supreme Court, 2002)
Brown v. Douglas School District
2002 SD 92 (South Dakota Supreme Court, 2002)
Davidson v. Horton Industries, Inc.
2002 SD 27 (South Dakota Supreme Court, 2002)
WATERTOWN COOP. ELEVATOR v. Dept. of Rev.
2001 SD 56 (South Dakota Supreme Court, 2002)
Schneider v. South Dakota Department of Transportation
2001 SD 70 (South Dakota Supreme Court, 2001)
Schneider v. SD DOT
2001 SD 70 (South Dakota Supreme Court, 2001)
Vu v. John Morrell & Co.
2000 SD 105 (South Dakota Supreme Court, 2000)
Belhassen v. John Morrell & Co.
2000 SD 82 (South Dakota Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
1998 SD 37, 576 N.W.2d 878, 1998 S.D. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kurtz-v-sci-sd-1998.