McJunkin v. Cellasto Plastic Corp.

608 N.W.2d 57, 461 Mich. 590
CourtMichigan Supreme Court
DecidedMarch 29, 2000
Docket110940, Calendar No. 5
StatusPublished
Cited by20 cases

This text of 608 N.W.2d 57 (McJunkin v. Cellasto Plastic Corp.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McJunkin v. Cellasto Plastic Corp., 608 N.W.2d 57, 461 Mich. 590 (Mich. 2000).

Opinions

Kelly, J.

Does subsection 301(5) of the Worker’s Disability Compensation Act (wdca)1 require automatic renewal of benefits when a disabled employee revokes an unreasonable refusal of reasonable employment and the employer reneges? We find that it does. Hence, we affirm the result reached by the Court of Appeals, but modify its rationale.

We conclude that, where an employee ends a period of unreasonable refusal, subsection 301(5) requires reinstatement of disability benefits. The result does not change where, as here, the employment is no longer available when the period of unreasonable refusal ends.

[593]*593i

Plaintiff suffered a work-related back injury in January 1991. He received worker’s compensation benefits and was advised not to work until August, when he began to perform a light-duty “net-assembly” job four hours a day.

Then, in December 1991, plaintiff had surgery on his back. The surgeon required him not to work until June 22, 1992. At that time, his employer offered plaintiff a version of his former net-assembly job. The offer was reasonable in that the job was structured to accommodate plaintiff’s disability.

Plaintiff made an effort to perform the work, but left after approximately five minutes, complaining of severe back pain. Several days later, he obtained written instructions from his surgeon that he not return to work until further notice.

In July of 1992, defendant referred plaintiff to another doctor who examined him. The doctor found substantiation for plaintiff’s subjective complaints of back pain. However, he concluded that plaintiff could return to work, with numerous restrictions. The employer again offered plaintiff the net-assembly position, but plaintiff refused it, relying on the instruction from his surgeon that he was not to work until further notice.

Plaintiff’s surgeon was deposed on February 12, 1993, and was shown a videotape of the light-duty net-assembly job. The surgeon concluded that plaintiff probably could perform the work, but that he would likely suffer pain and that he needed to be integrated into full-time work gradually.

[594]*594Plaintiff, who had attended his surgeon’s deposition, telephoned defendant the same day and offered to accept the employment. He was informed that the net-assembly job had just been restructured. Two people instead of three now performed it, and there was no longer a position available for him.

Plaintiff sought reinstatement of his disability benefits. The magistrate found that he suffered from a work-related injury that required surgery and restricted his ability to perform certain physical tasks. However, the magistrate terminated plaintiff’s benefits, because he had unreasonably refused to perform work that was within his limitations.

The Worker’s Compensation Appellate Commission affirmed the magistrate’s ruling. Additionally, it found that defendant was not required to keep open the offer of reasonable employment indefinitely, but only for a reasonable period. By implication, the wcac held that the seven months defendant kept the reasonable employment offer available before restructuring it was a reasonable period.

The Court of Appeals agreed with the wcac that plaintiff unreasonably refused reasonable employment. However, it reversed the holding that plaintiff automatically forfeited his benefits when he refused the offer of employment. It held that, if an employer can no longer offer reasonable employment to a disabled employee willing to do it, benefits are reinstated for however long the employee is available to work.

Initially, we denied defendant’s application. 459 Mich 854 (1998). We later granted reconsideration to determine whether the Court of Appeals erred as a matter of law by holding that, under the circum[595]*595stances, the wdca never allows a permanent forfeiture of benefits.2 459 Mich 927 (1998).

n

Defendant points out that there was no clear majority in this Court’s opinion in Derr v Murphy Motor Freight Lines, 452 Mich 375; 550 NW2d 759 (1996). Therefore, it asserts, the Derr decision does not constitute binding authority under the doctrine of stare decisis. See Negri v Slotkin, 397 Mich 105, 109; 244 NW2d 98 (1976).

Defendant claims that the controlling authority is Russell v General Motors Corp, 172 Mich App 627; 432 NW2d 738 (1988). In Russell, the employee unreasonably refused the employer’s offer of favored work. The Court of Appeals held that the employer had to keep open its offer only for a reasonable time.

Defendant notes that plaintiff in this case unreasonably refused its offer of reasonable employment and that, nonetheless, it kept the position available for nearly seven months. Hence, applying the Russell “reasonable time limitation,” plaintiff is not now 'entitled to reinstatement of benefits.

m

In 1981, the Legislature amended the wdca, codifying the judicially created favored work doctrine into its present form. Pulver v Dundee Cement Co, 445 Mich 68, 74-75; 515 NW2d 728 (1994); see also 1981 [596]*596PA 200; 1981 PA 199. Regarding the suspension of disability benefits when an employee unreasonably refuses an offer of reasonable employment, the Legislature provided:

If disability is established pursuant to subsection (4), entitlement to weekly wage loss benefits shall be determined pursuant to this section and as follows:
(a) If an employee receives a bona fide offer of reasonable employment from the previous employer, another employer, or through the Michigan employment security commission and the employee refuses that employment without good and reasonable cause, the employee shall be considered to have voluntarily removed himself or herself from the work force and is no longer entitled to any wage loss benefits under this act during the period of such refusal. [MCL 418.301(5)(a); MSA 17.237(301)(5)(a).]

Issues concerning the interpretation and application of statutes are questions of law that this Court decides de novo. Lincoln v General Motors Corp, 461 Mich 483, 489-490; 607 NW2d 73 (2000).

IV

This Court last addressed the issue of permanent forfeiture of benefits under the wdca’s reasonable employment doctrine four years ago in Derr v Murphy Motor Freight Lines, supra. There was no majority opinion in Derr. Justices Cavanagh and Levin joined Justice Mallett’s lead opinion. They held that disability benefits are temporarily suspended when an employee unreasonably refuses an offer of reasonable employment. However, the benefits are automatically reinstated when the offer is withdrawn, regardless of whether the employee has attempted to end the period of refusal. In determining whether an [597]*597employee obtains reinstatement of benefits, the lead opinion focused first on the actions of the employer, specifically inquiring whether it kept the position open. Only then did it examine the actions of the employee. Derr, supra at 392.

Justice Boyle concurred separately, and Chief Justice Brickley was joined in his dissent by Justice Riley.

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McJunkin v. Cellasto Plastic Corp.
608 N.W.2d 57 (Michigan Supreme Court, 2000)
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Bluebook (online)
608 N.W.2d 57, 461 Mich. 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcjunkin-v-cellasto-plastic-corp-mich-2000.