LaCroix v. Syracuse Executive Air Service, Inc.

866 N.E.2d 1004, 8 N.Y.3d 348
CourtNew York Court of Appeals
DecidedMarch 29, 2007
StatusPublished
Cited by26 cases

This text of 866 N.E.2d 1004 (LaCroix v. Syracuse Executive Air Service, Inc.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LaCroix v. Syracuse Executive Air Service, Inc., 866 N.E.2d 1004, 8 N.Y.3d 348 (N.Y. 2007).

Opinion

[351]*351OPINION OF THE COURT

Chief Judge Kaye.

The question before us is whether, as a matter of policy under the Workers’ Compensation Law, compensation for loss of use of a body part due to permanent partial disability — known as a “schedule loss of use” award — is payable as a lump sum, or must be made over time. We conclude that the statute’s directive that payments be made “periodically” precludes a policy of lump-sum payment of schedule loss of use awards.

In November 2002, claimant Marie LaCroix, a Delta baggage handler employed by Syracuse Executive Air Service, slipped and fell on an iced-over ramp while attempting to load a last-minute bag. As a result, she fractured her left wrist and tore her left rotator cuff, and later filed a claim for compensation with the Workers’ Compensation Board. In a February 2003 determination, the Board found the injury to be work related, and claimant’s average weekly wage to be $415.83. While her claim was pending, she was awarded permanent partial disability payments for 72 weeks and three days, and temporary total disability payments for 24 weeks at $277.22 per week, amounting to $26,724.01.

On October 1, 2004, the Workers’ Compensation Board held a hearing on Ms. LaCroix’s claim for a schedule award for permanent partial disability. The parties stipulated to a 75% loss of use of claimant’s left arm. Claimant’s lawyer requested that “the entire schedule be paid, less, of course, prior payments, all at once rather than spreading it all out in the future as the old decisions used to do.” In an October 8, 2004 decision, the Board determined that Ms. LaCroix’s 75% schedule loss of use entitled her to 234 weeks of benefits at $277.22, or $64,869.48, less payments already made, and directed the employer’s insurance carrier “to pay schedule loss of use award in a lump sum.”

Upon review, a panel of the Board affirmed the lump-sum payment. It found that, although Workers’ Compensation Law § 25 (1) (b) specified biweekly payments, it also provided that “the board may determine that any payments may be made monthly or at any other period, as it may deem advisable.” Quoting Matter of Miller v North Syracuse Cent. School Dist. (1 AD3d 691, 692 [3d Dept 2003]), the panel explained that “[w]hen an award is based on a finding of permanent disability, the benefit is intended to recompense a claimant for the loss of all of his or her earning capacity on a permanent basis — i.e., [352]*352without respect to any particular time frame” (Mem of Board Panel Decision of Dec. 28, 2004 [citation omitted]). The panel acknowledged that the assignment of a number of weeks to a specific injury was used to calculate the amount of the compensation award, but pointed out that this number did not otherwise correspond to payment for loss of use, as “even if no time is lost, [the schedule loss of use] is payable in full.” Thus, it held that “the Board may direct payments of a schedule loss of use presently, in full, without regard to a set period of calendar weeks,” and that a lump-sum award did not require compliance with the commutation procedures of Workers’ Compensation Law § 25 (5) (b) as “there are no allocated future payments that could be subject to a commutation.”

The Appellate Division unanimously affirmed. It determined that the contentions of claimant’s employer were

“based upon two erroneous assumptions — namely, that a schedule award is allocable to a particular period of disability and, hence, constitutes compensation in lieu of wages, which must, in turn, be paid periodically, and, further, that the foregoing statutory provisions expressly require a schedule award to be paid out over a particular period of time” (25 AD3d 967, 968 [2006]).

Dismissing the employer’s arguments as to the Board’s past practice, the Appellate Division concluded that “regardless of whether the Board previously may have treated a schedule award as one to be paid out over time, we are satisfied that the case law, as it subsequently has evolved, coupled with the general powers granted to the Board” supported its decision to make such payments payable in one lump sum (id. at 969). We now reverse.

Analysis

Where the interpretation of a statute or its application involves “knowledge and understanding of underlying operational practices or entails an evaluation of factual data and inferences to be drawn therefrom,” we regularly defer to the agency responsible for its administration, unless that determination is irrational or unreasonable (Kurcsics v Merchants Mut. Ins. Co., 49 NY2d 451, 459 [1980]). The issue before us here, however, is primarily one of statutory interpretation for the courts. Indeed, the Board itself notes that its shift in policy rested on the Third Department’s opinion in Miller, signaling [353]*353“little basis to rely on any special competence or expertise of the administrative agency” (id. at 459).

Contrary to the Appellate Division, we conclude that the Board’s interpretation contravenes the plain language of Workers’ Compensation Law § 25.

Enacted in 1913 as the Workmen’s Compensation Law, the statute provides compensation for four different types of injury: permanent total disability, temporary total disability, permanent partial disability and temporary partial disability (Workers’ Compensation Law § 15 [1], [2], [3], [5]). In the case of permanent total disability, an employee is awarded payment of a percentage of wages during the continuance of the disability; the same is true for temporary total disability and temporary partial disability (see Workers’ Compensation Law § 15 [1], [2], [5]). Permanent partial disability, however, is called a schedule loss of use award because the statute assigns — as by a “schedule” — a fixed number of lost weeks’ compensation according to the bodily member injured (see Workers’ Compensation Law § 15 [3]).

While the general purpose of permanent and temporary disability awards pursuant to section 15 (1), (2) and (5) is to “compensat[e] for disability to work made on the basis of average weekly wages,” a schedule loss of use award is to “compensate for loss of earning power” (Matter of Marhoffer v Marhoffer, 220 NY 543, 546, 547 [1917]). Nevertheless, all compensation awards are intended to provide a “limited and certain, not full but uncertain” remedy regardless of the fault of the employer (see id. at 547), and to “continue the wage income as nearly uniform as the provisions of the law would permit” after the employee’s injury (Matter of Lauritzen v Terry & Tench Co., 193 App Div 809, 810 [3d Dept 1920]).

Section 25 directs the method of payment of such compensation. Prior to 1921, section 25 provided that compensation be paid “periodically, in accordance with the method of payment of the wages of the employee at the time of his injury or death” (see L 1913, ch 816). In 1921, the Legislature amended this section to require that it be paid “periodically and promptly in like manner as wages” and on accrual that it be paid “directly to the person entitled thereto without waiting for an award” (see L 1921, ch 540, § 1 [emphasis added]). The additional language was intended to expedite the award process. Whereas injured workers previously were not entitled to any payment of an [354]

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Bluebook (online)
866 N.E.2d 1004, 8 N.Y.3d 348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lacroix-v-syracuse-executive-air-service-inc-ny-2007.