Lucas Peterson, Respondent, vs. City of Minneapolis, Self-Insured, Relator

Supreme Court of Minnesota·Decided July 16, 2025·No. A241205·Published

Opinion

STATE OF MINNESOTA

IN SUPREME COURT

A24-1205

Workers’ Compensation Court of Appeals Gaïtas, J.

Concurring in part, dissenting in part, Moore, III, Thissen, JJ.

Lucas Peterson,

Respondent,

vs. Filed: July 16, 2025 Office of Appellate Courts City of Minneapolis, Self-Insured,

Relator.

Ashley N. Biermann, Alexa R. Hottle, Meshbesher & Spence, Minneapolis, Minnesota, for respondent.

Jeffrey J. Lindquist, Anthony Gabor, Justine K. Wagner, Gries Lenhardt Allen, P.L.L.P., Saint Michael, Minnesota, for relator.

Paul A. Merwin, Patricia Y. Beety, General Counsel, League of Minnesota Cities, Saint Paul, Minnesota, for amicus curiae League of Minnesota Cities.

Timothy P. Jung, Lind Jensen Sullivan & Peterson, Minneapolis, Minnesota, for amicus curiae Minnesota Counties Intergovernmental Trust.

Joshua W. Laabs, Minnetonka, Minnesota; and

Lindsey M. Rowland, Meuser, Yackley & Rowland, Eden Prairie, Minnesota, for amicus curiae Minnesota Association for Justice.

SYLLABUS

1. The Workers’ Compensation Court of Appeals did not err in affirming the compensation judge’s finding that the employee has a compensable mental injury because that finding is not manifestly contrary to the evidence, which included testimony by a licensed professional psychologist that, based on the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders, the employee has a present diagnosis of post-traumatic stress disorder (PTSD).

2. The Workers’ Compensation Court of Appeals erred in addressing the employee’s argument that he was entitled to compensation benefits for a diagnosis of other specified trauma and stressor-related disorder (OSTD) as a consequential mental injury of PTSD because that issue was moot given the record here, where the employee’s expert psychologist opined that the employee’s OSTD diagnosis was “subthreshold PTSD” and the Workers’ Compensation Court of Appeals decided that the employee is entitled to compensation benefits for a present diagnosis of PTSD.

3. The Workers’ Compensation Court of Appeals did not err in affirming the compensation judge’s award of a penalty for frivolous denial of primary liability.

Affirmed in part and reversed in part.

OPINION

GAÏTAS, Justice.

In this case, we are asked to decide whether the Workers’ Compensation Court of Appeals (WCCA) erred in affirming the compensation judge’s determination that the employee, Lucas Peterson, is entitled to workers’ compensation benefits under Minnesota

Statutes section 176.66 (2024) for a mental impairment. We are further asked to decide whether the WCCA erred in affirming the compensation judge’s award of penalties against the employer, City of Minneapolis. The City argues that the WCCA committed errors of law by (1) affirming the compensation judge’s determination that Peterson is entitled to workers’ compensation benefits for a present diagnosis of post-traumatic stress disorder (PTSD); (2) sua sponte referring the case back to the compensation judge for a finding regarding Peterson’s claim for benefits based on a diagnosis of other specified trauma and stressor-related disorder (OSTD) as a consequential mental injury of PTSD; (3) affirming the compensation judge’s determination following the referral that Peterson is entitled to workers’ compensation benefits for OSTD as a consequential mental injury of PTSD; and (4) affirming the compensation judge’s award of penalties against the City for frivolous denial of liability. We conclude that the WCCA did not err by affirming the compensation judge’s determination that Peterson is entitled to workers’ compensation benefits for a present diagnosis of PTSD or by affirming the award of penalties, and thus, we affirm its decision in part. But because the WCCA erred when it decided that Peterson is also entitled to workers’ compensation benefits for OSTD, even though that issue was moot, we reverse in part.

FACTS

Respondent Lucas Peterson worked as a police officer for relator City of Minneapolis for 22 years. In 2021, Peterson informed the City that he could no longer

serve as a police officer due to PTSD,1 and he sought workers’ compensation benefits. The City denied liability, and Peterson filed a claim petition. Following a hearing, a workers’ compensation judge ruled that Peterson was entitled to benefits and awarded penalties against the City for frivolously denying benefits. The WCCA affirmed. In this appeal, the City challenges the decision of the WCCA.

Based on the record before us, the relevant facts are as follows. The City of Minneapolis hired Peterson in 1999 as a community service officer. Before beginning his employment, Peterson underwent a pre-employment mental health exam by a licensed psychologist. The psychologist reported that Peterson “[did] not appear to have any significant personality or emotional problems.” After serving as a community service officer for approximately one year, the City hired Peterson to be a patrol officer. He underwent another pre-employment mental health exam. Again, the evaluating psychologist reported that Peterson “[did] not appear to have any significant personality or emotional problems.”

In 2003, Peterson joined the Minneapolis Police Department’s special weapons and tactics (SWAT) team. He later served as a sergeant and supervisor with the SWAT team.

During Peterson’s 22 years with the police department, he experienced numerous traumatic events. Peterson estimated that he responded to 30 to 50 homicide calls—five or six involving the death of a child. He responded to a mass shooting with an active

1 PTSD is a mental health disorder that can develop after an individual is exposed to traumatic events. Am. Psychiatric Ass’n, Diagnostic and Statistical Manual of Mental Disorders, Text Revision 301–03 (5th ed. 2022) (DSM-5-TR). Symptom presentation and severity vary widely depending on the individual. See id.

shooter. And he was present for 10 to 15 officer-involved shootings. According to Peterson, he feared for his life and the lives of others on multiple occasions while performing his job.

In March 2021, Peterson began twice-weekly therapy with a counselor. At the therapist’s recommendation, Peterson visited a physician, who diagnosed him with anxiety related to his work. Following that diagnosis, Peterson hired a lawyer to pursue workers’ compensation benefits.

A licensed psychologist, Dr. John Cronin, performed an extensive evaluation of Peterson in May and June 2021. In a report dated June 21, 2021, Dr. Cronin diagnosed Peterson with PTSD and recommended that Peterson stop working as a police officer. Peterson notified the City that he was unable to work as of May 2021, due to PTSD, and he sought workers’ compensation benefits.

In September 2021, the City denied primary liability for Peterson’s PTSD claim, maintaining that Peterson did not meet the criteria for a PTSD diagnosis and that any presumption of compensability did not apply. See Minn. Stat. § 176.011, subd. 15(e) (2024)2 (establishing a presumption—for certain active-duty employees, including police officers—that PTSD is “an occupational disease and shall be presumed to have been due to the nature of employment” so long as the employee “had not been diagnosed with

2 Throughout this opinion, we apply the statutes in effect on Peterson’s date of injury, May 26, 2021, which is the date Peterson stopped working as a police officer. See Joyce v. Lewis Bolt & Nut Co., 412 N.W.2d 304, 307 (Minn. 1987) (explaining that workers’ compensation cases are governed by “the law in effect on the date of the controlling event,” which is the date of “the most recent occurrence of a compensable personal injury”). The parties do not dispute the date of injury.

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

Lucas Peterson, Respondent, vs. City of Minneapolis, Self-Insured, Relator, (Mich. 2025).

Lucas Peterson, Respondent, vs. City of Minneapolis, Self-Insured, Relator (Lucas Peterson, Respondent, vs. City of Minneapolis, Self-Insured, Relator) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Joyce v. Lewis Bolt & Nut Co.
412 N.W.2d 304 (Supreme Court of Minnesota, 1987)
State v. Rud
359 N.W.2d 573 (Supreme Court of Minnesota, 1984)
Ethan Dean v. City of Winona
868 N.W.2d 1 (Supreme Court of Minnesota, 2015)
State v. Carson
902 N.W.2d 441 (Supreme Court of Minnesota, 2017)
Smith v. Carver Cnty.
931 N.W.2d 390 (Supreme Court of Minnesota, 2019)