McIntosh v. Chrysler Corp.

538 N.W.2d 428, 212 Mich. App. 461
CourtMichigan Court of Appeals
DecidedAugust 1, 1995
DocketDocket 159776, 161829
StatusPublished
Cited by2 cases

This text of 538 N.W.2d 428 (McIntosh v. Chrysler Corp.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McIntosh v. Chrysler Corp., 538 N.W.2d 428, 212 Mich. App. 461 (Mich. Ct. App. 1995).

Opinion

Per Curiam.

These companion cases concern the proper application of the "vexatious appeal” provisions of MCL 418.861b; MSA 17.237(861b). We conclude that the Worker’s Compensation Appellate Commission (wcac) applied an erroneous standard and reverse.

i

A

In Docket No. 159776, Antoinette McIntosh appeals by leave granted an opinion and order of the wcac finding her appeal to be vexatious.

The parties stipulated that McIntosh injured her lower back, right arm and leg, and left wrist *464 during a slip and fall accident while working for Chrysler Corporation on February 19, 1990. The only question at the hearing was whether McIntosh suffered a continuing disability after December 6, 1990, when Dr. Lele, Chrysler’s examining physician, reported no objective clinical findings and indicated that McIntosh was capable of returning to work. Following the hearing, the magistrate concluded that McIntosh had not proven that her "compensable disability continued beyond the date of Dr. Lele’s examination of December 6, 1990.” The magistrate found of equal probative value the testimony of Dr. Lele and the testimony of McIntosh’s treating chiropractor, Dr. Eisman. What tipped the scale in the magistrate’s opinion was McIntosh’s inconsistent and contradictory testimony and her suspicious refusal to cooperate when examined by Dr. Lele. McIntosh refused to attempt to bend forward, stating that it would hurt her, but she did forward flexion movements for Dr. Eisman and for another of her examiners, Dr. Goldman. Further, McIntosh refused to let Dr. Lele take x-rays, insisting that she would send x-rays that had been taken earlier; the x-rays were never sent. Finally, the magistrate gave little probative value to the testimony of Dr. Goldman, finding it to be too compliant.

On appeal, the wcac affirmed the limited award of benefits to December 6, 1990, but found McIntosh’s appeal to the wcac to be vexatious because it "is in fact merely an attempt to reargue the evidence.” The wcac noted further:

In this case, the decision of the magistrate is clearly and unequivocally supported by the requisite evidence for our affirmance. MCL 418.861a(3). This includes, in particular, the magistrate’s explicit difficulties with plaintiffs credibility and the testimony of defense expert Dr. Shrirang Lele. We *465 will not displace the magistrate’s choice of reasonable medical testimony. Although the magistrate often places greater weight on the testimony of treating physicians, he is not compelled to do so. Jones v General Motors Corp, 1992 WCACO 151. The magistrate went to the heart of his problems with plaintiffs claim by stating as follows in his opinion:
"Even though the plaintiff is not required to prove her claim beyond the shadow of a doubt, she must prove that claim by a preponderance of the evidence. A preponderance of the evidence does not simply mean making an allegation but rather, providing substantive evidence in support of that allegation unless that testimony is so clear and convincing so as to make the production of substantive evidence unnecessary.”
This Commission has rarely assessed costs because an appeal is vexatious. Section 861b should only be employed in those circumstances where it is clear that the incurring of additional legal costs and the use of valuable counsel and administrative time has no legally reasonable chance of producing a change in the result. An appeal claiming lack of competent, material and substantial evidence on a record obviously replete with such evidence meets the stringent test of Section 861b. Section 861b was passed by the Legislature precisely to inhibit such abuse of the legal system.

B

In Docket No. 161829, General Motors Corporation appeals by leave granted opinions and orders of the wcac that found its appeal to the wcac to be vexatious and awarded attorney fees to Joanna Drakos as costs for that vexatious appeal pursuant to the statute.

A magistrate awarded Drakos continuing worker’s disability compensation benefits for work-related injuries to her right knee and wrist and for *466 total disability beginning on her last day of work, July 27, 1989. In its brief on appeal before the wcac, General Motors argued that Drakos’ disabilities were attributable to an injury in 1984, stating:

[T]here is no indication that the Magistrate considered all of the evidence for and all of the evidence against his determination that defendant should be liable for an earlier injury date. In fact, he said nothing at all about the possibility that the injury date was the same one that defendant had already paid plaintiff for.

Accordingly, General Motors contended that the magistrate’s findings of fact were not supported by competent, material, and substantial evidence on the whole record and that the wcac should make its own findings of fact and award benefits based on the earlier disability date and lower rate. Unfortunately, General Motors’ brief referred to MCL 418.861a(4), (13); MSA 17.237(861a)(4), (13) as setting forth the magistrate’s obligation to evaluate the evidence. However, on the same page, General Motors correctly cited that statute as setting forth the wcac’s scope of review of a magistrate’s findings of fact.

A majority of the wcac concluded that "defendant fails to address our standard of review, preferring to argue instead its version of the trial testimony.” Without addressing the issue General Motors raised regarding the injury date, the wcac majority affirmed the magistrate’s decision, concluding:

Upon review of the record in this matter, we conclude that the findings of fact made [by] the magistrate are supported by competent, material and substantial evidence and are therefore conclusive upon us.

*467 The wcac majority then found that General Motors’ appeal was vexatious under § 861b:

We believe that the appellate brief filed by defendant-appellant in this case did not present meritorious issues for our review. Parties must be put on notice that this Commission will no longer turn a blind eye towards vexatious appeals. When faced with appeals that ignore our standard of review and merely argue an alternative reading of the evidence presented below, we will not hesitate to assess costs.

The wcac invited Drakos to move for assessment of reasonable costs. Drakos’ bill of costs claimed no costs, but did claim a statutory attorney fee under MCL 600.2441; MSA 27A.2441 and "actual attorney fees” in the amount of $8,902.86. The wcac awarded the latter amount as costs pursuant to § 861b.

ii

We reverse in both cases, concluding that the wcac applied an incorrect standard in finding that the appeals were vexatious.

In Docket No. 159776, although McIntosh may have sought to reargue the evidence, subsections 3, 4, and 13 of § 861a call on the wcac to conduct a quantitative and qualitative analysis on the whole record and give a full, thorough review of it. Moreover, McIntosh’s brief did more them rehash the evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
538 N.W.2d 428, 212 Mich. App. 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcintosh-v-chrysler-corp-michctapp-1995.