Menard, Incorporated and American Zurich Insurance Co. v. Alen Bahic

Court of Appeals of Iowa·Decided November 26, 2014·No. 14-0239·Published

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 14-0239

Filed November 26, 2014

MENARD, INCORPORATED and AMERICAN ZURICH INSURANCE CO., Petitioners-Appellants,

vs.

ALEN BAHIC, Respondent-Appellee.

Appeal from the Iowa District Court for Polk County, Michael D. Huppert, Judge.

An employer seeks reversal of the district court’s ruling upholding the Iowa Workers’ Compensation Commissioner’s award of benefits to an employee. AFFIRMED.

Charles A. Blades and Cynthia S. Sueppel, of Scheldrup, Blades, Schrock, Smith, Aranza P.C., Cedar Rapids, for appellants.

Nicholas W. Platt of Hopkins & Huebner, P.C., Des Moines, for appellee.

Heard by Mullins, P.J., and Bower and McDonald, JJ.

BOWER, J.

The workers’ compensation commissioner found Alen Bahic suffered a sixty percent loss of earning capacity and also found Bahic achieved maximum healing from his injury in October 2012. The commissioner ordered Bahic’s employer, Menard, Inc.,1 to commence paying permanent partial disability benefits in October 2012. The district court upheld the agency action.

On appeal, Menard claims (1) Bahic’s “healing period terminated in May of 2011” because he was not working in an “accommodated job” or a “light duty” job but had actually acquired a new permanent job and (2) “any award of permanent disability should commence” in May 2011. Menard also claims the district court erred in upholding the commissioner’s industrial disability award. After our review, we agree with the district court. Accordingly, we affirm. I. Background Facts and Proceedings A. Injury and Treatment. Bahic was hired by Menard in February 2008.

He is an immigrant without a high school diploma, and his English-speaking skills are better than his reading/writing skills. Bahic worked as a laborer in shipping and receiving—loading and unloading items, running forklifts, and doing manual lifting, including manually lifting items weighing from 100 to 200 pounds, such as household appliances. Bahic’s pre-injury work history consisted almost entirely of physical labor from which he is now precluded as a result of his permanent work restrictions. On his initial job application Bahic was asked if he had been

1 Zurich Insurance, Inc., the insurance carrier for Menard, joins Menard in this appeal. References herein to Menard include the insurance carrier.

convicted of a felony. Although he had been, he did not so indicate on the application form. Menard did not require a background check for this position.

Over two years into his employment,2 on August 2, 2010, Bahic suffered a stipulated work injury to his low back while unloading a front-load washer from a high forklift. When his injury did not improve, Menard sent Bahic to the doctors at Mercy West, who diagnosed back strain, prescribed medications, and ordered work restrictions—no lifting over ten pounds. According to Menard’s Exhibit Q, it paid Bahic temporary total disability benefits from January 6 to January 28, 2011.3 When Bahic still did not improve, he was referred to an orthopedic surgeon, Dr. Cassim Igram, who determined surgery was not warranted and who referred Bahic to a physiatrist (physical medicine and rehabilitation specialist). Dr. Igram also imposed significant work restrictions—no lifting over twenty

2 Menard Exhibit P details Bahic’s weekly payment record for the thirteen weeks prior to his injury and shows he was a hard worker. On top of his regular forty hours, Bahic worked overtime hours each week from May 8, 2010, to July 31, 2010: six hours on one week, seven hours on one week, eight hours on two weeks, nine hours on one week, ten hours on three weeks, eleven hours on one week, twelve hours on two weeks, and seventeen hours on two weeks—resulting in weekly hours ranging from forty-six hours to fifty-seven hours. 3 Iowa Code section 85.33(1) (2011) states an employer “shall pay” temporary total disability benefits until the earliest of the employee (1) “has returned to work,” or (2) “is medically capable of returning to employment substantially similar to the employment” at the time of the injury.

Temporary and healing-period benefits “refer to the same condition, but have separate purposes depending on whether the injury leads to a permanent condition.” Bell Bros. Heating & Air Conditioning v. Gwinn, 779 N.W.2d 193, 200 (Iowa 2010) (citing Clark v. Vicorp Rests., Inc., 696 N.W.2d 596, 604 (Iowa 2005)). “If the injury results in a permanent partial disability, payments made prior to an award of permanent partial disability benefits are healing-period benefits. If the award does not result in permanent disability, the payments are called total temporary disability benefits.” Id. “Nevertheless, an award for healing-period benefits or total temporary disability benefits [does] not depend on a finding of a permanent impairment.” Id.

pounds and avoidance of repetitive activity. Bahic continued to work in the shipping and receiving department at Menard, although on light duty and within the prescribed work restrictions.

Menard selected physiatrist Dr. Michael Munhall, who started treatment in February 2011 and provided Bahic with physical therapy, continued medications, and work restrictions—no lifting over ten pounds. Store manager Mike Goode transferred Bahic to the sales department. Bahic testified Menard provided him with a chair due to his inability to stand for long periods; he answered phones, helped customers, and helped with the product. Bahic enjoyed talking with the customers and liked the job. He was trying to work forty hours per week, but with his ongoing therapy, he was averaging thirty-five to forty hours per week. Bahic explained he was warned because his hours were not full time: “I was kind of getting in trouble, too, because—from human resource lady, because if you [are] not averaging forty hours, you [are] not full time, see, so I did get warned by her a couple of times.”

Menard’s answers to interrogatories, Menard Exhibit O, stated Bahic “worked light duty commencing February 2011 through the date of his termination July 1, 2011.” Bahic’s light-duty status is also recognized in Menard Exhibit Q, which shows Menard stopped paying temporary total benefits and started paying temporary partial benefits to Bahic on January 30, 2011. “‘Temporary partial benefits’ means benefits payable . . . to an employee because of the employee’s temporary partial reduction in earning ability as a result of the employee’s temporary partial disability.” Iowa Code § 85.33(2).

“Temporary partial disability” is the “condition of an employee for whom it is medically indicated that the employee is not capable of returning to employment substantially similar to the employment . . . engaged [in] at the time of injury, but is able to perform other work consistent with the employee’s disability.” Id. § 85.33(2).

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