McPeak v. Industrial Commission

741 P.2d 699, 154 Ariz. 232, 1987 Ariz. App. LEXIS 420
CourtCourt of Appeals of Arizona
DecidedJune 16, 1987
Docket1 CA-IC 3540
StatusPublished
Cited by8 cases

This text of 741 P.2d 699 (McPeak v. Industrial Commission) 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
McPeak v. Industrial Commission, 741 P.2d 699, 154 Ariz. 232, 1987 Ariz. App. LEXIS 420 (Ark. Ct. App. 1987).

Opinion

OPINION

FIDEL, Judge.

We review an Industrial Commission award setting the average monthly wage of the petitioner employee, Warren McPeak (claimant), at the statutory maximum of $1,325.00. The claimant asserts that A.R.S. § 23-1041, which dictates the maximum average monthly wage, violates Art. 18, § 8 of the Arizona Constitution unless interpreted to cap “real," not “nominal” wages, a distinction we define below. We disagree and affirm the award.

On October 18, 1984, the claimant fractured an ankle while working as an iron-worker for the respondent employer, M.M. Sundt Construction Company. His earnings exceeded $2,500 per month at the time. The respondent insurance carrier, Employer’s Insurance of Wausau, accepted his claim for benefits. The Industrial Commission established his average monthly wage at $1,325.00 per month. By timely request for hearing the employee protested that this monthly wage setting, although the statutory maximum, was unconstitutionally low. At the conclusion of hearing the administrative law judge set claimant’s average monthly wage at $1,325. The administrative law judge declined to rule upon claimant’s constitutional challege, believing he lacked jurisdiction to do so. After the award was affirmed upon administrative review, claimant brought a timely special action to this court.

In 1925 Arizona enacted a workers’ compensation system. Laws 1925, ch. 83. Partial disability, total disability, and death benefits were established as percentages of average monthly wage. In the original workers’ compensation act the average monthly wage was left uncapped, and it remained so for 23 years.

*234 Art. 18, § 8 of the Arizona Constitution provides:

The percentages and amounts of compensation provided in House Bill No. 227 [Laws 1925, Ch. 83] enacted by the Seventh Legislature of the State of Arizona, shall never be reduced nor any industry included within the provision of said House Bill No. 227 eliminated except by initiated or referred measure as provided by this Constitution.

In 1948, in accordance with Art. 18, § 8, the Arizona voters passed an initiative establishing a ceiling of $1,000 on the workers’ compensation average monthly wage. Laws 1949, Initiative and Referendum Measure, p. 325. The legislature raised this ceiling to $1,250 in 1977, Laws 1977, ch. 151, § 9, and to $1,325 in 1980, at which level it now stands. Laws 1980, ch. 246, § 30. A.R.S. § 23-1041(E) now reads,

Notwithstanding any other provision of this chapter, in computing the average monthly wage there shall be excluded from such computation all wages or other compensation for services in excess of one thousand three hundred twenty-five dollars per month.

Claimant introduced evidence that inflation has substantially reduced the purchasing power of the dollar since 1948 to the degree that the current statutory maximum of $1,325 per month will buy far less than the $1,000 monthly figure approved by the voters of that bygone era. His expert economist, Dr. John Buehler, defining “real wages” as the purchasing power of money and “nominal wages” as actual dollars received, testified that a 1985 nominal wage of $1,325 was equivalent in purchasing power to only $296 in 1948 dollars. The result, claimant argues, has been to reduce amounts of compensation without approval by the people through initiative or referendum in violation of Article 18, § 8, unless the statutory ceiling of § 23-1041(E) is construed in “real,” not “nominal” dollars.

This inventive argument requires us to determine both legislative and constitutional intent. We first consider the statute: When the language of a statute is plain and unambiguous and conveys a clear and definite meaning, courts must accept that meaning and enforce it. Ross v. Industrial Comm., 112 Ariz. 253, 256, 540 P.2d 1234, 1237 (1975). Judges should not alter the meaning of simple English words to bend statutes to their sociological or economic views. Kilpatrick v. Superior Court, 105 Ariz. 413, 421, 466 P.2d 18, 26 (1970), cited in Padilla v. Industrial Comm., 113 Ariz. 104, 106, 546 P.2d 1135, 1137 (1976). A.R.S. § 23-1041(E) is clear. A dollar is commonly defined as a basic monetary unit, the equivalent of 100 cents. Webster’s Ninth New Collegiate Dictionary 373, 765 (1985). We will not twist the meaning of the word.

This is not the first time this court has been asked to construe A.R.S. § 23-1041(E) to allow an average monthly wage beyond the statutory maximum. In Schmitz v. Industrial Comm., 26 Ariz. App. 404, 406, 549 P.2d 184, 186 (1976), we stated:

The statutes in question are clear and unambiguous, and reflect an obvious intent to limit recovery of compensation. Although the $1000 ceiling on the average monthly wage may have better reflected earning capacities and wages when the statute was originally adoped in 1948, it is not the function of this Court to usurp the powers and duties of the legislative branch. Therefore, we will not manipulate the statutory scheme in order to alleviate alleged inequities where the statutory meaning is clear.

The claimant urges that we abandon the majority’s holding in Schmitz and adopt the dissenting view that Whyte v. Industrial Comm., 71 Ariz. 338, 227 P.2d 230 (1951), and Altamirano v. Industrial Comm., 22 Ariz.App. 379, 527 P.2d 1096 (1974), govern. Schmitz, 26 Ariz.App. at 407, 549 P.2d at 187. This we decline to do. Rather we reiterate the majority holding in Schmitz that Whyte and Altamirano do not apply.

Whyte concerned comparison of pre-injury and post-injury earnings for the purpose of computing permanent partial disability benefits. Altamirano concerned compari *235 son of pre-injury and post-injury earnings for the purpose of computing temporary partial disability benefits. To comply with the requirements of Whyte and Altamira-no,

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741 P.2d 699, 154 Ariz. 232, 1987 Ariz. App. LEXIS 420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcpeak-v-industrial-commission-arizctapp-1987.