Meade v. Spud Mining

949 S.W.2d 584, 1997 Ky. LEXIS 65
Kentucky Supreme Court·Decided May 22, 1997·No. Nos. 96-CA-768-WC, 96-SC-770-WC, 96-SC-774-WC to 96-SC-776-WC·Published·Cited by 4 cases

Opinion

OPINION OF THE COURT

The claim for retraining incentive benefits (RIB) which is the subject of each of these workers’ compensation appeals was filed on or before April 4, 1994, the effective date of the 1994 amendment to KRS 342.732(l)(a). Therefore, each claim was pending on that date. None of the workers was engaged in retraining at the time of his award, and all [585] continued to be employed in the coal mining industry.

In each of these claims, the Administrative Law Judge (ALJ) determined that the worker had contracted category 1 coal workers’ pneumoconiosis and that he remained employed in the mining industry at the time of the award. The ALJ noted that, effective April 4, 1994, KRS 342.732(1)(a) was amended to provide that a RIB was not payable directly to a working miner. Furthermore, the provision did not provide direction concerning the proper procedure in instances where a working miner was not presently engaged in retraining. Hence, the ALJ determined that an award of RIB to a working miner was “much like a drawing account,” the total amount of which was equal to the worker’s maximum statutory RIB benefit, less the attorney fee. The ALJ also determined that the claimant could draw on the amount throughout his lifetime so long as the withdrawal was consistent with the restrictions imposed by KRS 342.732(1)(a).

In each instance, the employer appealed to the Workers’ Compensation Board (Board), arguing that the ALJ had erred in providing that the award was payable at any time during claimant’s lifetime. The Board noted that KRS 342.732(1)(a) provides for a RIB to be paid “for a period not to exceed 208 weeks.” Therefore, the central issue was whether the legislature had intended the 208-week period to be a limitation on the duration of the award or an indication of the total amount of the award.

Relying on Chisholm Coal Co. v. Downey, Ky., 865 S.W.2d 315 (1993), and the fact that KRS 342.732(1)(a) contains no provision for extending the 208-week period, such as the extension for periods of temporary total disability which is contained in KRS 342.730(1)(b), the Board concluded that a RIB award is payable only during the 208 weeks consecutive to the date upon which the award becomes final. See KRS 342.040(3). Therefore, the awards were reversed to the extent that they would permit the payment of benefits more than 208 weeks after the date upon which they became final. Each of the claims was remanded to an ALJ for further consistent proceedings.

The workers appealed to the Court of Appeals, arguing that the Board had erred in determining that a RIB award must run for the 208 consecutive weeks following finality of the ALJ’s decision. The Court of Appeals analogized the award of RIB to a working miner to the award of future medical benefits. In either instance, the court explained, the worker’s entitlement is established when the award becomes final. However, since the actual payment of benefits is not authorized until one of the specified conditions is met, the exact amount of the benefit is indeterminate at that time. In addressing the argument that this group of workers was unfairly penalized by the Board’s construction of the amendment, the court noted that working miners who filed RIB claims in anticipation of the 1994 amendments to the Act had done so with the expectation that the benefit might be eliminated. Hence, they had taken a risk that the amendment would not be found remedial and had lost. The court emphasized that the purpose of the benefit was to encourage affected miners to seek retraining and to become employed outside the coal industry before they became occupationally disabled. As was recognized in Thornsbury v. Aero Energy, Ky., 908 S.W.2d 109 (1995), the purpose of the 1994 amendment was to increase the effectiveness of the benefit. The court concluded that if the 208-week period could be tolled as long as a worker desired, the purpose of the benefit would be undermined or entirely circumvented. Therefore, the decision of the Board was affirmed.

The workers now appeal to this Court. They argue that, contrary to the construction adopted by the Board and the Court of Appeals, KRS 342.732 does not require that a RIB be awarded for the 208 consecutive weeks following the date of the award. They argue that since the amended version of KRS 342.732(1)(a) places conditions on the payment of a RIB to a working miner, additional findings will be required at the time one of the conditions is met, and an order authorizing payment will also be required. Hence, they assert, an award to a working miner pursuant to the statute is not sufficiently final to trigger commencement of the 208-[586] week payment period. Furthermore, the workers seek to distinguish RIB awards to working miners from awards of future medical expenses, arguing that generally it is not necessary to prove entitlement to medical expenses each time they are incurred. Finally, they argue that the class composed of workers whose claims were pending on the effective date of the amendment are unfairly penalized by the decisions of the Board and the Court of Appeals.

The employers argue that, in view of the purpose of the benefit, an award of RIB should run for the 208 weeks following the date the award becomes final. Therefore, they urge that the decision of the Court of Appeals be affirmed.

No fewer than three statutes address the payment of a RIB. KRS 342.732(l)(a) provides that where an ALJ determines that a worker exhibits the requisite evidence of category 1 coal workers’ pneumoconiosis:

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Meade v. Spud Mining, 949 S.W.2d 584, 1997 Ky. LEXIS 65 (Ky. 1997).

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