Lambert v. Baldor Electric

868 S.W.2d 513, 44 Ark. App. 117, 1993 Ark. App. LEXIS 704
CourtCourt of Appeals of Arkansas
DecidedDecember 15, 1993
DocketCA 93-76
StatusPublished
Cited by6 cases

This text of 868 S.W.2d 513 (Lambert v. Baldor Electric) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lambert v. Baldor Electric, 868 S.W.2d 513, 44 Ark. App. 117, 1993 Ark. App. LEXIS 704 (Ark. Ct. App. 1993).

Opinion

John B. Robbins, Judge.

Appellant Johnnie Lambert was awarded permanent and total disability benefits against appellees Baldor Electric Company and the Second Injury Fund by the Workers’ Compensation Commission on October 23, 1992. Ruling that appellees did not controvert Mr. Lambert’s entitlement to permanent and total disability benefits, the Commission denied appellant’s request for attorney’s fees from Baldor Electric Company and the Second Injury Fund. Mr. Lambert now appeals, arguing that the Commission erred in refusing to award attorney’s fees. In addition, appellant contends that it is a violation of due process for the Commission to decide cases involving the Second Injury Trust Fund because the Administrator of the fund is an employee of the Workers’ Compensation Commission and because the Commission has a financial stake in the outcome of litigation involving the fund. We find no error and affirm.

The facts of the case are not in dispute. Mr. Lambert had been diagnosed with athetoid cerebral palsy with a severe scoliosis prior to beginning work for Baldor Electric in 1968. In 1981, Mr. Lambert suffered a compensable injury to his right shoulder and neck. He sustained subsequent injuries in 1986, and in 1989 he again experienced medical problems and sought temporary disability benefits and medical expenses. Baldor Electric controverted Mr. Lambert’s 1989 claim, but on January 4, 1990, the Administrative Law Judge found that the 1989 claim involved a recurrence of the compensable injury. As a result, Mr. Lambert was awarded temporary disability benefits and attorney’s fees.

Mr. Lambert later became unable to work, and on August 8, 1990, he submitted his resignation. On October 10, 1990, he informed appellees that he was permanently and totally disabled and requested that the Second Injury Fund state its position regarding its responsibility for the permanent disability benefits. On October 19, 1990, Lambert submitted a settlement offer of $60,000 plus attorney’s fees. On October 23, 1990, the Second Injury Fund counter-offered to pay $30,000. On October 30, 1990, Lambert stated that the case could be settled for $50,000. On the same day, Lambert requested a hearing. The Second Injury Fund immediately acknowledged permanent and total disability. Accepting the claim as uncontroverted, the Administrative Law Judge awarded permanent and total disability against the Second Injury Fund.

Mr. Lambert’s constitutional argument is essentially that it is a violation of due process for the Commission to decide cases involving the Second Injury Trust Fund. He claims that he was denied due process rights guaranteed him by the Arkansas Constitution, Article 2, Section 8, and the United States Constitution, Amendments 5 and 14. Specifically, he asserts that the Commission is not an impartial decision maker in that Ark. Code Ann. § 11-9-301 (1987) gives the Commission authority to administer, disburse, and invest funds within the Second Injury Trust Fund. In addition, he argues that the Commission is prejudiced because Judy Jolley, administrator of the fund, is an employee of the Workers’ Compensation Commission.

In support of his argument, Lambert relies on Tumey v. Ohio, 273 U.S. 510 (1927). In that case, the United States Supreme Court held that a mayor who received a portion of fines levied on convicted persons could not constitutionally preside over their trials. The Court stated that “it certainly violates the Fourteenth Amendment, and deprives a defendant in a criminal case of due process of law, to subject his liberty or property to the judgment of a court the judge of which has a direct, personal, substantial, pecuniary interest in reaching a conclusion against him in his case.” Id. at 523. Appellant also cites Ward v. Village of Monroeville, 409 U.S. 57 (1972), a case in which the Court held that it is a violation of due process for a mayor to sit as a judge when a major part of the village income is derived from fines, forfeitures, costs, and fees. In that case, the mayor was required to account annually for village finances and the revenue produced by the mayor’s court was of such importance that when legislation threatened its less, the village retained a management consultant for advice regarding the problem. The court in Turney stated that the test as to whether due process is violated is whether the situation is one “which would offer a possible temptation to the average man as a judge to forget the burden of proof required to convict the defendant, or which might lead him not to hold the balance nice, clear and tme between the state and the accused.” 273 U.S. at 532. Applying this standard, the court in Ward ruled that, due to the mayor’s interest in maintaining village finances and the high level of revenue from the mayor’s court, the “possible temptation” to rale improperly constitutionally prevented the mayor from acting as judge. Appellant also cites Gibson v. Berryhill, 411 U.S. 564 (1973), a case in which a state board composed solely of optometrists was constitutionally unable to bring a disciplinary action against other optometrists due to the possible pecuniary interest involved in excluding competitors.

Relying on the above authority, Lambert asserts that the Commission is not impartial when ruling on cases that involve possible Second Injury Fund liability. He correctly states that he is constitutionally entitled to the benefit of an impartial decision maker. However, we do not agree that the Commission is not impartial with regard to Second Injury Fund cases.

We look, to decisions from courts of sister states because neither we nor our supreme court has had occasion to address this issue. Ison v. Western Vegetable Distrib., 59 P.2d 649 (Ariz. 1936), is a case in which a claimant argued that the Arizona Workmens’ Compensation Act was unconstitutional. The constitutional attack in that case was similar to the one in the case at bar in that the appellant argued that the Industrial Commission was not impartial when deciding cases involving compensation to be paid out of the state compensation fund. The Arizona Supreme Court rejected appellant’s due process argument, stating that the Commissioners had no “direct, personal, substantial, pecuniary interest” in the outcome of claims. Id. at 656. The court noted that the state compensation fund was not raised by taxation upon citizens in general, but rather came from employers protected by the fund. This is the case with the Arkansas Second Injury Fund. In addition, the Arizona Supreme Court noted that, the Commissioners’ salaries are neither increased nor decreased by any conclusion they reach regarding compensation. This is also true with regard to the Arkansas Workers’ Compensation Commission. In short, the court held that the Arizona Industrial Commission was not biased even though it was charged with the care and custody of the state compensation fund.

Ison was later cited by the Oklahoma Supreme Court in Duff v. Osage County, 70 P.2d 80 (Okla. 1937). That case involved a constitutional challenge to the State Industrial Commission’s control and management over the State Insurance Fund.

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Bluebook (online)
868 S.W.2d 513, 44 Ark. App. 117, 1993 Ark. App. LEXIS 704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lambert-v-baldor-electric-arkctapp-1993.