Liberty Northwest Insurance v. Champion International Corp.

945 P.2d 433, 285 Mont. 76, 54 State Rptr. 1051, 1997 Mont. LEXIS 208
CourtMontana Supreme Court
DecidedOctober 10, 1997
Docket96-368
StatusPublished
Cited by4 cases

This text of 945 P.2d 433 (Liberty Northwest Insurance v. Champion International Corp.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Northwest Insurance v. Champion International Corp., 945 P.2d 433, 285 Mont. 76, 54 State Rptr. 1051, 1997 Mont. LEXIS 208 (Mo. 1997).

Opinion

JUSTICE TRIEWEILER

delivered the Opinion of the Court.

The petitioner, Liberty Northwest Insurance Corporation, which insures the Stimson Lumber Company against workers’ compensation claims, filed a petition in the Workers’ Compensation Court of the State of Montana in which it sought a decision from that court that the disability of Stimson’s employee, Ronald Deschamps, was the result of an injury he sustained while employed by Champion International Corporation and, therefore, that Liberty was entitled to indemnification for benefits it paid to Deschamps. The Workers’ Compensation Court held that Deschamps’ disability was related to activities he performed while employed by Stimson and, therefore, that Liberty is not entitled to indemnification. Liberty appeals from that decision. We affirm the judgment of the Workers’ Compensation Court.

The dispositive issue on appeal is whether the Workers’ Compensation Court’s finding that Deschamps’ disability was caused by *78 work-related activities performed during the course of his employment with Stimson Lumber Company is supported by substantial evidence.

FACTUAL BACKGROUND

The parties agree that Ronald Deschamps injured his lower back on March 30, 1992, while working for Champion International in Missoula. His treating physician, Michael A. Sousa, M.D., diagnosed degenerative disc disease with a slight bulge in the disc between his fifth lumbar vertebra and his first sacral vertebra. Champion accepted liability for Deschamps’ injury and paid his medical and disability benefits.

By June 25,1992, Dr. Sousa’s records indicate that Deschamps had regained full range of motion and that most of his pain was gone. On July 6, 1992, he released Deschamps to return to work at Champion as a millwright with no restrictions.

By November 17,1992, Dr. Sousa described Deschamps’problems as “minimal.” On January 28, 1993, Dr. Sousa verified, in a letter to Champion, that Deschamps had reached maximum medical improvement and that his condition was stable. At that time, he had pain at the extreme extensions of his range of motion, but otherwise appeared to be doing well.

Although Deschamps was employed by Champion as a millwright, which was classified as a heavy duty job and involved machinery repair, he had been limited to lighter duty carpentry work since undergoing an angioplasty in 1990. When he returned to work following his back injury in July 1992, it was as a light duty carpenter.

During early November 1993, Champion’s Missoula mill was purchased by Stimson Lumber Company. Shortly before that purchase, or shortly thereafter, Deschamps was given a pre-employment medical examination to assure that he was physically capable of performing a millwright’s duties. As a result of that examination, he was found to be qualified to work as a millwright without restrictions.

Deschamps continued working at the mill following Stimson’s takeover. For the first several months, he continued to work as a light duty carpenter; however, eventually he was assigned to heavier duty millwright work. Following the change in his work activities, his back became progressively worse. On June 8, 1995, Deschamps was told by Dr. Sousa that he could no longer continue working as a millwright due to his low back pain. He has not returned to work since that time.

*79 During 1994, Deschamps sought additional benefits from Champion due to the physical problems he was experiencing; however, Champion denied liability. In 1995, Liberty accepted liability for Deschamps’ claim as an occupational disease. However, on July 20, 1995, Liberty requested that Champion accept liability for Deschamps’ disability. Champion declined to do so.

After a hearing at which Deschamps and Dana M. Hedapohl, M.D., testified, and after consideration of the testimony of Dr. Sousa by deposition, the Workers’ Compensation Court found that Deschamps’ work for Stimson accelerated and significantly aggravated his preexisting degenerative disc disease, and that his disability was not a mere result of the natural progression of his underlying condition and, therefore, concluded that Stimson was not entitled to indemnification from Champion.

DISCUSSION

Was there substantial evidence to support the Workers’ Compensation Court’s finding that Deschamps’ work for Stimson Lumber Company accelerated and significantly aggravated his preexisting degenerative disc disease, and that his disability is not the result of a natural progression of his underlying condition?

We review the Workers’ Compensation Court’s findings of fact for substantial credible evidence. See Buckentin v. State Comp. Ins. Fund (1994), 265 Mont. 518, 520, 878 P.2d 262, 263. If there is conflicting evidence, we consider whether substantial evidence supports the court’s findings, not whether other evidence supports contrary findings. See Buckentin, 265 Mont. at 520, 878 P.2d at 263. Where medical testimony is offered by deposition, this Court is in as good a position as the trial court to determine the weight of the medical testimony. However, deposition testimony must be reviewed in the context of testimony from other witnesses who gave testimony that the trial court did, in fact, have an opportunity to observe. See McIntyre v. Glen Lake Irrigation Dist. (1991), 249 Mont. 63, 67, 813 P.2d 451, 454.

In Caekaert v. State Compensation Mutual Insurance Fund (1994), 268 Mont. 105, 111, 885 P.2d 495, 499, we noted that:

Montana statutorily recognizes a version of the last injurious exposure rule in occupational disease cases. Section 39-72-303(1), MCA, provides that “[w]here compensation is payable for an occupational disease, the only employer liable is the employer in whose *80 employment the employee was last injuriously exposed to the hazard of the disease.”

In Caekaert, we quoted, with approval, from § 95.27 of Larson’s Workmen’s Compensation Law, which provides that:

[Wlhen disability has once resulted from occupational disease, a second disability occurring under a different carrier will be chargeable to the first carrier if it is a recurrence of the first disability. The persistence of symptoms in the meantime, and the failure to demonstrate an incident that can independently explain the second onset, are strong grounds for finding a mere recurrence ....
However, if the later exposure should increase the degree of disability caused by the initial exposure, the second carrier might become responsible; but in such a case it would be necessary to distinguish carefully between the increased disability from natural progress of the disease and that resulting from the added exposure.

Caekaert, 268 Mont. at 111, 885 P.2d at 499

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Bluebook (online)
945 P.2d 433, 285 Mont. 76, 54 State Rptr. 1051, 1997 Mont. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-northwest-insurance-v-champion-international-corp-mont-1997.