Madrid v. Industrial Com'n of Arizona

875 P.2d 839, 178 Ariz. 606, 156 Ariz. Adv. Rep. 71, 1994 Ariz. App. LEXIS 8
CourtCourt of Appeals of Arizona
DecidedJanuary 20, 1994
Docket1 CA-IC 92-0174
StatusPublished
Cited by6 cases

This text of 875 P.2d 839 (Madrid v. Industrial Com'n of Arizona) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madrid v. Industrial Com'n of Arizona, 875 P.2d 839, 178 Ariz. 606, 156 Ariz. Adv. Rep. 71, 1994 Ariz. App. LEXIS 8 (Ark. Ct. App. 1994).

Opinion

OPINION

JACOBSON, Presiding Judge.

In this review of an award of the Industrial Commission (Commission), we must determine whether claimant is entitled to collect total temporary disability from two carriers as the result of two separate and distinct injuries. The Commission apportioned compensation between the two carriers and awarded them a credit for overpayment. Claimant sought review claiming:

(1) the apportionment resulted in taking claimant’s property without due process;
(2) the apportionment constituted an unconstitutional reduction of compensation under art. XVIII, § 8, Ariz. Const.; and
(3) the apportionment was unauthorized under Arizona law and therefore was erroneous.

Because we resolve this case on the third issue raised, we do not reach the first two. Nor do we determine whether the Commission properly apportioned liability between the carriers.

A. FACTUAL AND PROCEDURAL HISTORIES

In 1973, while working for respondent employer (Bashas’), claimant injured his right knee at a time when his average monthly wage was $709.11. Mission Insurance Co. (Mission), the carrier responsible for this claim, accepted compensability and in 1979 closed the claim with a 35% scheduled disability.

Claimant returned to regular work for Bashas’. On March 13, 1980, he injured his right arm at work. His average monthly wage had increased to $1,250.00, the then applicable statutory maximum. See generally A.R.S. § 23-1041(E) (Supp.1971-79). At the time of this second injury, Bashas’ compensation carrier was CIGNA/Aetna Fire Underwriters (Aetna), which accepted compensability.

After being placed on temporary partial disability, claimant returned to work. In January 1981, claimant reinjured his right arm, and Aetna processed the reinjury as part of the still open claim. Claimant has not worked since 1983. Since then, Aetna has paid claimant temporary total compensation of $833.33 per month.

On August 14,1985, Mission, pursuant to a petition, reopened the right knee injury claim and began paying claimant temporary total disability compensation of $472.74 per month. At the same time, claimant also was receiving $833.33 per month from Aetna.

On May 13, 1986, the Commission’s claims manager, Marjorie L. Dight (Dight), 1 wrote the carriers a letter that brought to them attention that they were both paying elaim *608 ant total temporary disability benefits. Dight proposed an apportionment of liability between the carriers based upon the respective average monthly wage at the time of the respective injuries, the total, however, not to exceed 66$% of the highest monthly wage that was applicable. The letter concluded, “I hope this letter explains the apportionment of compensation when multiple claims are being processed simultaneously. If you have any questions concerning this matter, please feel free to contact me.” A copy of the letter was sent to claimant.

In accordance with this letter and without issuing notices of claim status, the carriers apportioned their liability for temporary disability compensation to claimant. Claimant, under the scheme, received $838.33 per month. Mission subsequently failed, and the State Compensation Fund (Fund) became responsible for Mission’s liability. See generally A.R.S. § 23-966(A). Effective January 6, 1988, the Fund reclosed the right knee injury claim with a 55% impairment and a scheduled disability, and ceased paying compensation. Aetna resumed total responsibility for unapportioned temporary disability compensation of $833.33 per month.

Effective April 13, 1990, the Fund reopened the right knee injury claim for a second time. Claimant’s disability status again was temporary total. According to the Fund’s claims representative, she contacted claimant, who informed her that he no longer was receiving compensation from Aetna. The Fund accordingly paid unapportioned temporary total disability compensation until May 22, 1991, when the Fund reclosed the claim.

Actually, Aetna had continued to pay claimant unapportioned temporary disability compensation during this period. Both carriers subsequently discovered the other’s unapportioned compensation payments and demanded repayment from claimant. The Fund thereafter issued a notice of claim status determining that claimant owed the Fund $1,986.48. Aetna, however, did not issue a similar notice.

Claimant then retained his current counsel, who protested the notice of overpayment and requested a Commission investigation of Aetna’s apportionment of claimant’s temporary disability benefits. See generally A.R.S. § 23-1061(J). 2 The Commission referred the matter for hearing, and the two matters eventually were consolidated.

At the hearing, Dight testified that her May 13, 1986 letter reflected longstanding Commission policy. She could not recall when or on what basis the Commission had adopted this policy; the apportionment formula was “simply something with which I have been familiar as long as I can remember in working claims.” She explained that the letter was not a formal order with a protest period, but father “simply a means of assisting the carriers, [which is] one of the primary ... responsibilities of the claims manager____”

The administrative law judge issued an award approving apportionment of temporary disability compensation and awarding the Fund and Aetna credits for their over-payments.

After modifying the award to correct factual findings, the administrative law judge affirmed. Claimant brought this special action.

B. DISCUSSION

In response to claimant’s arguments, set forth above, Aetna and the Fund respond by arguing that claimant cannot recover twice for the same loss of earning capacity.

A recent opinion of this court, Hester v. Industrial Commission, 178 Ariz. 587, 875 P.2d 820 (App.1993), supports the carriers’ argument. In Hester, the claimant, a form setter by trade, injured his back and knee in separate industrial accidents. After reopenings involving both claims, the Commission awarded the claimant $515.00 monthly per *609 manent partial disability compensation with respect to the back injury and $411.00 monthly permanent partial disability compensation with respect to the knee injury. After administrative hearings, however, an administrative law judge accepted the carrier’s argument that it could offset the greater loss of earning capacity against the lesser loss. Id at 590, 875 P.2d at 823.

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Bluebook (online)
875 P.2d 839, 178 Ariz. 606, 156 Ariz. Adv. Rep. 71, 1994 Ariz. App. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madrid-v-industrial-comn-of-arizona-arizctapp-1994.