Masterbrand Cabinets, Inc., d/b/a Omega Cabinetry and Ace American Insurance Company v. Chad Simons

CourtCourt of Appeals of Iowa
DecidedSeptember 22, 2021
Docket20-1635
StatusPublished

This text of Masterbrand Cabinets, Inc., d/b/a Omega Cabinetry and Ace American Insurance Company v. Chad Simons (Masterbrand Cabinets, Inc., d/b/a Omega Cabinetry and Ace American Insurance Company v. Chad Simons) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Masterbrand Cabinets, Inc., d/b/a Omega Cabinetry and Ace American Insurance Company v. Chad Simons, (iowactapp 2021).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 20-1635 Filed September 22, 2021

MASTERBRAND CABINETS, INC., d/b/a OMEGA CABINETRY and ACE AMERICAN INSURANCE COMPANY, Plaintiffs-Appellants,

vs.

CHAD SIMONS, Defendant-Appellee. ________________________________________________________________

Appeal from the Iowa District Court for Polk County, Coleman McAllister,

Judge.

An employer and its insurer appeal the district court’s ruling on judicial

review upholding the award of workers’ compensation benefits and penalty

benefits to Chad Simons. AFFIRMED.

Patrick J. O’Connell of Lynch Dallas, P.C., Cedar Rapids, for appellants.

Benjamin R. Roth of Fulton, Martin & Andres, P.C., Waterloo, for appellee.

Considered by Bower, C.J., and Tabor and Ahlers, JJ. 2

BOWER, Chief Judge.

Masterbrand Cabinets, doing business as Omega Cabinetry, and its

insurer, Ace American Insurance Company (collectively Omega), appeal the

district court’s ruling upholding the award of workers’ compensation benefits and

penalty benefits to its employee, Chad Simons. Finding no legal error and

concluding substantial evidence supports the commissioner’s final decision, we

affirm.

Simons has worked at Omega since 1997. Omega admits Simons

sustained a work-related injury, a ruptured right quadriceps tendon, in November

2015. Simons underwent surgery performed by Dr. Jason Stanford, a physician

selected by Omega, on February 5, 2016, and participated in post-surgery physical

therapy between February and August 2016. Dr. Stanford discharged Simons

from his care on August 22, finding he reached maximum medical improvement

(MMI). Simons was awarded permanent partial disability benefits following an

arbitration hearing. On intra-agency appeal, the award was affirmed by the

workers’ compensation commissioner. The district court rejected Omega’s claims

on judicial review, upholding the commissioner’s rulings. Omega appeals.

“When reviewing the decision of the district court’s judicial review ruling, we

determine if we would reach the same result as the district court in our application

of the Iowa Administrative Procedure Act.” Sladek v. Emp. Appeal Bd., 939

N.W.2d 632, 637 (Iowa 2020) (citation omitted). When the claimed error is the

commissioner’s interpretation of law, we review for errors of law. See Neal v.

Annett Holdings, Inc., 814 N.W.2d 512, 518–19 (Iowa 2012) (“If, however, the

agency has not been clearly vested with the discretionary authority to interpret the 3

provision in question, we will substitute our judgment for that of the agency if we

conclude the agency made an error of law.”).

Omega admits Simons sustained a work-related injury in November 2015.

But it contends the tear of the right quadriceps tendon involves only Simons’s knee

and thigh, entitling him to benefits for a scheduled loss, not an unscheduled

disability.1 Omega’s miserly reading of the statute and case law contradicts the

principle of the workers’ compensation statute, which “was adopted ‘for the benefit

of the working [person] and should be, within reason, liberally construed.’”

Waldinger Corp. v. Mettler, 817 N.W.2d 1, 9 (Iowa 2012) (quoting Barton v Nevada

Poultry Co., 110 N.W.2d 660, 662 (Iowa 1961)).

“Our statutory ‘schedule’ of [workers’ compensation] benefits sets the

amount of compensation for the loss of certain specified body members. These

include eyes, ears, fingers, toes, hands, arms, feet and legs.” Lauhoff Grain Co.

v. McIntosh, 395 N.W.2d 834, 835 (Iowa 1986). “[S]ection 85.34(2)(u) provides for

benefits in cases of injuries not falling under the schedule.” Id. This so-called

“conceptual tidiness,” see id. at 840, is less than tidy in practice.

1 Compare Iowa Code § 85.34(2)(o) (2015) (“The loss of two-thirds of that part of a leg between the hip joint and the knee joint shall equal the loss of a leg, and the compensation therefor shall be weekly compensation during two hundred twenty weeks.”), with id. § 85.34(2)(u) (“In all cases of permanent partial disability other than those hereinabove described or referred to in paragraphs “a” through “t” hereof, the compensation shall be paid during the number of weeks in relation to five hundred weeks as the reduction in the employee’s earning capacity caused by the disability bears in relation to the earning capacity that the employee possessed when the injury occurred.”). Section 85.34 has been amended and renumbered since Simons’s injury, and the relevant sections are now numbered as section 85.34(p) (leg) and (v) (unscheduled injury) (2021). 4

Omega argues Simons’s injury is located in his leg and is a scheduled loss

as a matter of law. The commissioner, though, considered Simons’s impairment,2

finding Simon’s experienced an unscheduled disability. Injury and impairment are

not necessarily equivalents. See id.

An injury to a scheduled member may have effects extending beyond that

member, resulting in permanent impairment of the body as a whole, which may be

the basis for a rating of industrial disability. See id. at 837 (“‘[T]he great majority

of modern decisions agree that, if the effects of the loss of the member extend to

other parts of the body and interfere with their efficiency, the scheduled allowance

for the lost member is not exclusive.’” (quoting 2 A. Larson, The Law of Workmens’

Compensation § 58.21, at 10–222 to 10–243 (1979))); see, e.g., Ideen v. Am.

Signature Graphics, 595 N.W.2d 233, 236 (Neb. 1999) (“The test for determining

whether a disability is to a scheduled member or to the body as a whole is the

location of the residual impairment, not the situs of the injury.”).

The ‘injury’ contemplated under the Act, is ‘something . . . that acts extraneously to the natural processes of nature, and thereby impairs the health, overcomes, injures, interrupts, or destroys some function of the body, or otherwise damages or injures a part or all of the body.’ The disability contemplated by the Act, is ‘industrial disability- reduction of earning capacity, and not mere functional disability.’

Barton, 110 N.W.2d at 662–63 (citations omitted). Paragraph (u) “sets no limitation

which concerns the physical location of the injury causing the disability.” Id. at 663.

On our review, we conclude the commissioner did not err in interpreting the law.

See id. at 662 (noting a claim on interpretation of the law is reviewed for error).

2 Impairment is “the state or condition of being impaired: diminishment or loss of function or ability.” Impairment, Merriam-Webster, https://www.merriam- webster.com/dictionary/impairment (last visited Aug. 24, 2021). 5

In the alternative, Omega maintains there is not substantial evidence to

support the commissioner’s finding Simons sustained a whole-body injury. “The

injury is the producing cause. The disability, which generally determines the extent

of compensation payments, is the result of the cause (injury) upon the human body

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Related

Dunlavey v. Economy Fire & Casualty Co.
526 N.W.2d 845 (Supreme Court of Iowa, 1995)
Lauhoff Grain Co. v. McIntosh
395 N.W.2d 834 (Supreme Court of Iowa, 1986)
Larson Manufacturing Co. v. Thorson
763 N.W.2d 842 (Supreme Court of Iowa, 2009)
Ideen v. American Signature Graphics
595 N.W.2d 233 (Nebraska Supreme Court, 1999)
Barton v. Nevada Poultry Company
110 N.W.2d 660 (Supreme Court of Iowa, 1961)
Tim Neal v. Annett Holdings, Inc.
814 N.W.2d 512 (Supreme Court of Iowa, 2012)

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Masterbrand Cabinets, Inc., d/b/a Omega Cabinetry and Ace American Insurance Company v. Chad Simons, Counsel Stack Legal Research, https://law.counselstack.com/opinion/masterbrand-cabinets-inc-dba-omega-cabinetry-and-ace-american-iowactapp-2021.