Madison Gas & Electric v. Labor & Industry Review Commission

2011 WI App 110, 802 N.W.2d 502, 336 Wis. 2d 197, 2011 Wisc. App. LEXIS 484
CourtCourt of Appeals of Wisconsin
DecidedJune 16, 2011
DocketNo. 2010AP1849
StatusPublished
Cited by1 cases

This text of 2011 WI App 110 (Madison Gas & Electric v. Labor & Industry Review Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madison Gas & Electric v. Labor & Industry Review Commission, 2011 WI App 110, 802 N.W.2d 502, 336 Wis. 2d 197, 2011 Wisc. App. LEXIS 484 (Wis. Ct. App. 2011).

Opinion

VERGERONT, PJ.

¶ 1. The Wisconsin Labor and Industry Review Commission (LIRC) appeals the circuit court order reversing its decision that Dave Parent was entitled to a permanent partial disability (PPD) [200]*200award for his left knee based on a total PPD rating of 55%. LIRC decided that, pursuant to Wis. Admin. Code § DWD 80.32(4) (October 2007),1 Parent was entitled to "stack" the PPD percentages for the two surgical procedures necessitated by the injury: the first was a repair of the medial meniscus, or cartilage, in the knee and the second was a total knee replacement. We conclude that, under DaimlerChrysler v. LIRC, 2007 WI 15, ¶ 13, 299 Wis. 2d 1, 727 N.W.2d 311, LIRC's interpretation of § DWD 80.32(4) is reasonable and is therefore entitled to controlling weight. Accordingly, we reverse the circuit court's order.

BACKGROUND

¶ 2. The following facts are undisputed. Parent was employed by Madison Gas and Electric (MG&E). In 1997 he sustained a left knee injury arising out of this employment. The injury was a tear to the medial meniscus, which is cartilage in the knee joint.2 The injury was surgically repaired by a meniscectomy performed by Dr. Richard Lemon in 1998. At that time, Dr. Lemon assessed a PPD rating of 5%, which MG&E paid. In 2007 Parent underwent a total left knee arthroplasty (knee replacement),3 also performed by Dr. Lemon. This procedure was a consequence of the original injury. Dr. Lemon assessed a PPD rating of 50%. MG&E paid an amount equivalent to a PPD rating of 45%, taking a credit for the 5% award it had already paid based on the meniscectomy.

[201]*201¶ 3. Parent requested a hearing before an administrative law judge (ALJ), contending that the prior 5% PPD must be added to, rather than subtracted from, the post-knee-replacement 50% PPD. The parties stipulated that the only issue in dispute was whether MG&E was liable to Parent for a left knee PPD totaling 55%, as Parent contended, or was liable for only 50%, as MG&E contended.

¶ 4. The ALJ concluded that "each surgical procedure that results from a given injury must receive the minimum PPD rating listed in" Wis. Admin. Code § DWD 80.32. Accordingly, the ALJ concluded that Parent was entitled to an additional 5% PPD. On MG&E's petition for review, LIRC affirmed the ALJ's findings and conclusion.

¶ 5. MG&E appealed LIRC's decision to the circuit court and the circuit court reversed. The court concluded that LIRC's interpretation of Wis. Admin. Code § DWD 80.32 was entitled to no deference because LIRC had interpreted this rule inconsistently. The court also concluded that adding the percentage of disability of the two surgeries was unreasonable where the second surgery was not another repair to the knee but was a total knee replacement.

DISCUSSION

¶ 6. LIRC contends that its interpretation of Wis. Admin. Code § DWD 80.32 is entitled to controlling weight and therefore the circuit court erred by reversing LIRC's decision. MG&E responds that the circuit court correctly concluded that LIRC's interpretation is not entitled to controlling weight because it is inconsistent with prior decisions LIRC has issued and is unreasonable.

[202]*202¶ 7. On appeal from the circuit court's order, we review the decision of LIRC, not the circuit court's decision. Brauneis v. LIRC, 2000 WI 69, ¶ 14, 236 Wis. 2d 27, 612 N.W.2d 635 (citations omitted).

¶ 8. Resolution of this appeal requires that we interpret Wis. Admin. Code § DWD 80.32 and apply it to the undisputed facts. This presents a question of law, and we ordinarily review questions of law de novo. DaimlerChrysler, 299 Wis. 2d 1, ¶ 10. However, an administrative agency's interpretation of its own rules is entitled to controlling weight unless it is "plainly erroneous or inconsistent with the regulations." Id., ¶ 11 (citation omitted). The inquiry whether the agency's interpretation is plainly erroneous or inconsistent with the rule essentially asks whether the agency's interpretation is reasonable. See id., ¶ 15 (citation omitted). If the agency's interpretation is reasonable, it is entitled to controlling weight even if an alternative interpretation is just as reasonable or even more reasonable. DOR v. Menasha Corp., 2008 WI 88, ¶ 54, 311 Wis. 2d 579, 754 N.W.2d 95 (citation omitted). If the agency's interpretation is not reasonable, we review it de novo, without giving any deference to the agency. Id., ¶ 42 n.13.

¶ 9. In this case, the rule at issue, Wis. Admin. Code § DWD 80.32, was promulgated by the Department of Workforce Development (DWD) rather than LIRC. However, we review LIRC's interpretation of this rule in the same way we would review an interpretation of a rule LIRC promulgated itself because LIRC is charged by the legislature with reviewing DWD's decisions and does so frequently. DaimlerChrysler, 299 [203]*203Wis. 2d 1, ¶¶ 11-14. Therefore, we must uphold LIRC's interpretation if it is reasonable. As the party seeking to overturn LIRC's decision, MG&E has the burden of showing LIRC's interpretation is unreasonable. See Painter v. Dentistry Examining Bd., 2003 WI App 123, ¶ 9, 265 Wis. 2d 248, 665 N.W.2d 397.

¶ 10. In the following paragraphs we first provide background on the statutory and regulatory scheme and on DaimlerChrysler, which addresses Wis. Admin. Code § DWD 80.32 in the context of different knee surgeries. We then discuss each of the two grounds on which MG&E contends that we should not accord controlling weight to LIRC's interpretation of § DWD 80.32 in this case: prior inconsistency in interpreting the rule and unreasonableness of LIRC's interpretation. For the reasons we explain below, we conclude LIRC's interpretation of § DWD 80.32 has not been inconsistent and is not unreasonable.

I. Statutory and Regulatory Background

¶ 11. A worker who has suffered a permanent disability from a work-related injury may recover for the disability at the end of the healing period. Wis. Stat. § 102.44(2)-(4) (2009-10).4 Each type of permanent disability is classified as either a scheduled or an unscheduled disability. Langhus v. LIRC, 206 Wis. 2d 494, 498-99, 557 N.W.2d 450 (Ct. App. 1996). Scheduled injuries under § 102.52 include injuries to the extremities and impairment of sight and hearing. Section 102.52 establishes the number of benefit weeks for the [204]*204listed injuries and impairments, with each week based on two-thirds of the average weekly earnings of the employee. Under § 102.52(11), "the loss of a leg at the knee" is compensated at a rate of 425 weeks.

¶ 12. When, as here, there is an injury to a body part listed in Wis. Stat. § 102.52 but "the member [is] not actually severed . . ., compensation shall bear such relation to that named in this schedule as disabilities bear to the disabilities named in this schedule." § 102.55(3). In these cases, indemnity is "determined by . . . the percentage of permanent disability resulting ... as found by the [DWD]."

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Bluebook (online)
2011 WI App 110, 802 N.W.2d 502, 336 Wis. 2d 197, 2011 Wisc. App. LEXIS 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madison-gas-electric-v-labor-industry-review-commission-wisctapp-2011.