National Automobile & Casualty Insurance v. Industrial Accident Commission

216 Cal. App. 2d 204, 30 Cal. Rptr. 685, 1963 Cal. App. LEXIS 2006
CourtCalifornia Court of Appeal
DecidedMay 15, 1963
DocketCiv. 26908
StatusPublished
Cited by12 cases

This text of 216 Cal. App. 2d 204 (National Automobile & Casualty Insurance v. Industrial Accident Commission) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Automobile & Casualty Insurance v. Industrial Accident Commission, 216 Cal. App. 2d 204, 30 Cal. Rptr. 685, 1963 Cal. App. LEXIS 2006 (Cal. Ct. App. 1963).

Opinion

FORD, J.

By this petition, National Automobile & Casualty Insurance Company seeks the annulment of a workmen’s compensation award made to Charles R. Gardner by the Industrial Accident Commission. In our opinion the award was proper under the governing law.

On August 17, 1957, Gardner was employed as a truck driver and swamper by the Ogier Hay and Grain Company. He sustained an injury to his back while working within the course and scope of his employment. In the course of proceedings before the Industrial Accident Commission with respect to that injury, a recommended permanent disability rating of 52 per cent was made after apportionment of 20 per cent of permanent disability of 65 per cent to preexisting pathology. On March 20,1959, the commission made an order approving a compromise and release with respect to the claim; thereunder Pacific Employers Insurance Company, the compensation insurance carrier for the employer, paid the sum of $8,100, in addition to all sums theretofore paid.

On August 16, 1960, Gardner was an employee of J. P. Lamaison. He sustained a second injury to the same general area of his back while working within the course and scope of his employment. The petitioner herein, National Automobile & Casualty Insurance Company, was the compensation insurance carrier for the employer. The findings and award made by the Industrial Accident Commission were based upon a permanent disability rating with respect to the back of 78 per cent, half of which was apportioned to preexisting causes and the remaining 39 per cent to the injury of August 16,1960.

The compensation insurance carrier, petitioner herein, filed with the commission a petition for a rehearing and contended that the amount of the disability found to exist in 1959, which was 65 per cent, should be deducted from the amount of the current disability, which had been determined to be 78 per cent. The petition was denied. In the course of its opinion the commission stated in part as follows: “The *207 point would be valid except for the fact that applicant testified, without contradiction, that he stopped wearing a back brace in 1959; that by the time he went to work for the defendant employer in 1959, all of his symptoms had disappeared; and that he had no back pain of any kind and was able to lift 150 pounds of hay without hurting himself. Although we are unable to accept the thesis that applicant had recovered from his 1957 injury, we can not ignore the fact that applicant quit wearing his back brace in 1959, and that prior to the present injury, he was able to lift 150 pound bales of hay. The implication is inescapable that there was a material improvement in applicant’s condition.”

The petitioner reasserts its contention here and argues that the basis of the award should not exceed the difference between the extent of the disability as found on the first occasion (65 per cent) and as found on the second occasion (78 per cent), namely, 13 per cent. It is further argued that “the total disability could not in any case exceed 26%, or the difference between 52% for which the applicant was fully compensated on the first injury in March 1959 and the total disability, or 78%, found to exist in 1962,” and that, if the opinion of the independent medical examiner was to be followed, only half of the 26 per cent should be charged to the second injury.

Guidance as to the proper application of section 4750 of the Labor Code 1 in the solution of the problem presented in this ease is found in the reasoning of State Compensation Ins. Fund v. Industrial Acc. Com., 59 Cal.2d 45 [27 Cal.Rptr. 702, 377 P.2d 902], After making reference to Gardner v. Industrial Acc. Com, 28 Cal.App.2d 682 [83 P.2d 295], and Pacific Gas & Elec. Co. v. Industrial Acc. Com., 126 Cal.App.2d 554 [272 P.2d 818], the Supreme Court stated (59 Cal.2d at p. 51): “It is not the location of the injury which is important but rather the nature of the disability resulting from the injury.” It was fur *208 ther stated (59 Cal.2d at pp. 52-53): “Attention should be directed to the elements involved in a compensable permanent disability. A permanent disability is one £. . . which causes impairment of earning capacity, impairment of the normal use of a member, or a competitive handicap in the open labor market. ’ (2 Hanna, Employee Injuries and Workmen’s Compensation (1954) p. 255. See Lab. Code, § 4660, subd. (a).) . . .

“When there has been no loss of a member of the body or loss of its function, it is necessary as a prerequisite to compensation that the injury result in a decrease in earning capacity or the ability to compete in the open labor market. If a subsequent injury does not have such an effect it should not be compensable, Stated another way, the disability resulting from a subsequent injury should be compensable only to the extent that it can be said that the employee’s earning capacity or ability to compete has been decreased from what it was immediately prior to the second injury. The computation of this figure cannot be determined by a mechanical application of a method of apportionment based upon whether the injury occurs to the same anatomical part of the body. It must come from a consideration of the nature of the disability caused by the injury.” In applying the governing law to the facts of the case before it, the Supreme Court said (59 Cal.2d at pp. 53-54): “To the extent that the factors of disability due to both injuries overlapped, that is, to the extent that the second injury did not further reduce his earning capacity nor his ability to compete in the open labor market, he should not be compensated twice. ... If the prior condition be disregarded the result will be that the employer, or his carrier, will be held liable for a disability greater than was actually produced by the injury.”

In Gardner v. Industrial Acc. Com., supra, 28 Cal.App.2d 682, the petitioner had sustained a permanent disability of the left foot, consisting of partial stiffness of the ankle joint, amounting to 12 per cent. Thereafter he sustained a second injury which made necessary the amputation of the left leg between the knee and hip joint. The commission determined that the total permanent disability thereafter existent amounted to 58% per cent but that, inasmuch as petitioner had sustained a prior permanent disability amounting to 12 per cent, the amount of 12 per cent was to be deducted *209 from the total of 58% per cent. The amount of permanent disability attributable to the second injury was determined to be 46% per cent. In affirming the award the court said (28 Cal.App.2d, at p. 684): “. . .

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216 Cal. App. 2d 204, 30 Cal. Rptr. 685, 1963 Cal. App. LEXIS 2006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-automobile-casualty-insurance-v-industrial-accident-commission-calctapp-1963.