Lawson v. Wal-Mart Stores, Inc.

56 S.W.3d 417, 2001 Ky. App. LEXIS 697, 2001 WL 1021014
CourtCourt of Appeals of Kentucky
DecidedSeptember 7, 2001
DocketNos. 2000-CA-002322-WC, 2000-CA-002598-WC
StatusPublished

This text of 56 S.W.3d 417 (Lawson v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lawson v. Wal-Mart Stores, Inc., 56 S.W.3d 417, 2001 Ky. App. LEXIS 697, 2001 WL 1021014 (Ky. Ct. App. 2001).

Opinion

OPINION

HUDDLESTON, Judge.

These workers’ compensation appeals present a common issue of law: whether the payment of temporary disability benefits, subsequent to the running of the original two-year period to file a claim after the date of an injury, serves to revive a claim and give a claimant two years from the date of the last payment of temporary benefits to file a claim, pursuant to Kentucky Revised Statute (KRS) 342.185(1).

[418]*418 APPEAL NO. 2000-CA-002822-MR

Janice Lawson began her employment at Wal-Mart in 1980. While working in the position of layaway manager, Lawson injured her back on August 3, 1994, lifting a CD player. In addition to her back pain, Lawson eventually developed pain in her legs as a result of her injury. After taking a few days off, Lawson returned to her regular job duties until July 1997, when she began to experience pain in her right arm. Again Lawson was off work until September 24, 1997. She returned to Wal-Mart and worked until July 2, 1998, when she had to quit due to pain in her low back and right leg. Wal-Mart paid Lawson temporary total disability (TTD) benefits for her right arm ailment from July 22, 1997, through December 24, 1997. Lawson was also paid TTD benefits during the time she was treated surgically for her low back symptoms and thereafter from July 8, 1998, through December 28, 1998. Lawson filed an Application for Resolution of Injury Claim on March 18,1999.

The Administrative Law Judge determined that Lawson was totally and permanently occupationally disabled, a condition that resulted from the combined effects of her 1994 low back injury and her right arm condition from 1997. The ALJ attributed 70% of the permanent impairment to Lawson’s 1994 injury and 30% to her 1997 injury. Although Wal-Mart argued that Lawson did not timely file her claim, the ALJ determined that the voluntary payments of TTD by Wal-Mart in 1998 revived her claim and gave Lawson two years from the date of the last payment to file her claim.

The Board reversed, holding that the voluntary payment of benefits outside of the two-year period for prosecution of a workers’ compensation claim could never revive a claimant’s right to file a claim once the right to bring a claim has been “legally extinguished.” Because Lawson did not file her claim within two years of her original injury, the Board held that her claim was time barred.

APPEAL NO. 2000-CA-002598-WC

In Bryan Keith Potter’s claim, the Workers’ Compensation Board reversed an Administrative Law Judge’s award and held that Potter failed to timely apply for benefits within two years of his work-related injury pursuant to KRS 342.185(1).

Potter, while employed by Toyota Motor Manufacturing as an assembly worker, sustained a low back injury on September 1, 1992. Potter, however, continued to work until May 1995, when he was forced to cease working because of the worsening of his injury. Toyota paid TTD payments to Potter from May 1995 to October 1997. Potter returned to work in June 1997. He suffered a second injury on July 15, 1997. Potter continued to work until mid 1998. On June 14, 1999, Potter filed a claim for workers’ compensation benefits.

The ALJ determined that Potter was 30% occupationally disabled and awarded him benefits payable for a period not to exceed 425 weeks. Benefits for the first 212.5 weeks were to be paid by Toyota with the remaining benefits to be paid by the Special Fund.

The Board agreed with Toyota and the Special Fund that the voluntary payment of temporary/total benefits which began more than two years following Potter’s 1992 injury did not extend the time for filing a claim resulting from that injury.

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The time period within which a claimant must file a claim for workers’ compensation benefits is found in KRS 342.185(1). The statute provides that:

[419]*419[N]o proceeding under this chapter for compensation for an injury or death shall be maintained unless a notice of the accident shall have been given to the employer as soon as practicable after the happening thereof and unless an application for adjustment of claim for compensation with respect to the injury shall have been made with the department within two (2) years after the date of the accident, or in case of death, within two (2) years after the death, whether or not a claim has been made by the employee himself for compensation .... If payments of income benefits have been made, the filing of an application for adjustment of claim with the department within the period shall not be required, but shall become requisite within two (2) years following the suspension of payments or within two (2) years of the date of the accident, whichever is later.

The ALJ found in both cases that the claimants timely filed their injury claims because the claims were made within two years of the termination of their TTD benefits, the payment of which had effectively revived Potter’s and Lawson’s claims.

In each case the Board reversed holding that Potter and Lawson were required to file their claims within two years of their initial injuries, which both failed to do. Further, in Potter’s case, the Board reiterated the ALJ’s finding that Potter’s 1997 injury was a mere exacerbation of his 1992 injury. Because the latter injury merely aggravated the former injury, the Board held that the latter injury could not extend the limitations period for the 1992 injury claim. Finally, the Board held that once the limitations period expired on the former injury, the injured employee’s claim was forever barred and could not be revived by subsequent TTD payments.

The common issue presented in these appeals is whether after the limitations period has run for a claim the payment of TTD benefits revives the claim as to allow an extension of the period for filing the claim. In other words, does a claimant have two years after the last voluntary payment of TTD benefits by an employer to file a claim if the limitations period has run on the original injury?

Although there are no Kentucky cases directly on point, we have been directed to a number of sources that lend support to the proposition that the voluntary payment of benefits subsequent to the running of the filing period for an original injury does not extend the filing period for a claimant. As the Supreme Court said in Newberg v. Hudson:1 “While statutes of limitation protect employers from the problems associated with litigating stale claims, the statutory exception recognizes that a worker may be lulled into a false sense of security by voluntary payments and might fail to actively pursue a claim.”2 Therefore, the rationale behind KRS 342.185(1), which provides that if TTD payments have been made the claimant has two years from the last payment to file the claim, is to prevent an employer from paying TTD for two years and lulling the claimant into believing that the claimant need not file a claim. As the Board has pointed out, this rationale no longer exists if the original time period for filing a claim has passed.

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Cite This Page — Counsel Stack

Bluebook (online)
56 S.W.3d 417, 2001 Ky. App. LEXIS 697, 2001 WL 1021014, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawson-v-wal-mart-stores-inc-kyctapp-2001.