Nucor Yamato Steel Co. v. Joshua Shelton

2025 Ark. App. 249
Court of Appeals of Arkansas·Decided April 23, 2025·Published

Opinion

Cite as 2025 Ark. App. 249 ARKANSAS COURT OF APPEALS DIVISION III

No. CV-24-310

Opinion Delivered April 23, 2025

NUCOR YAMATO STEEL CO. AND APPEAL FROM THE ARKANSAS

ARCH INSURANCE CO.

WORKERS’ COMPENSATION

APPELLANTS/CROSS-APPELLEES COMMISSION

V. [NO. H004171]

AFFIRMED ON DIRECT APPEAL;

JOSHUA SHELTON AFFIRMED ON CROSS-APPEAL APPELLEE/CROSS-APPELLANT

CASEY R. TUCKER, Judge

Appellants/cross-appellees Nucor Yamato Steel Co. and Arch Insurance Co.

(collectively, “Nucor”) appeal the decision of the Arkansas Workers’ Compensation Commission finding that appellee/cross-appellant, Joshua Shelton (“Shelton”), suffered a compensable back injury on June 25, 2020, and is entitled to medical treatment. We affirm the Commission’s decision on direct appeal.

Appellee/cross-appellant Shelton filed a cross-appeal asking this court to reverse the Commission’s decision (a) finding that Shelton was not entitled to temporary total-disability (TTD) benefits; and (b) finding that Shelton was entitled to only $500 in attorney’s fees. We affirm the Commission’s decision on cross-appeal.

I. The Incident

On June 25, 2020, Shelton, during the course and scope of his employment with Nucor as a caster inspector, tripped and fell while stepping over a roll line and injured his back (“the Incident”). Shelton had previously sustained a non-work-related injury and had undergone back surgery in 2018. Shelton testified that at the time of the Incident, he was symptom-free from his previous injury. Shelton was initially seen by Dr. Riley Jones of OrthoSouth, who evaluated him and based upon Shelton’s complaints and history, had him undergo x-rays, prescribed a Medrol pack,1 and scheduled an MRI. Dr. Jones recommended Shelton remain off work. Shelton’s MRI report contained findings of mild degenerative change at L5-S1 but no disc herniation, dural sac compression, or nerve root impingement. Shelton began physical therapy on June 29, 2020, and was placed on restricted duty. Dr. Jones diagnosed Shelton with a lumbar sprain and prescribed Flexeril.

On July 20, 2020, Shelton returned to OrthoSouth with complaints of back pain and was treated by Dr. Christopher Ferguson, who took him back off work and changed his medicine. Shelton saw Dr. Jones on July 31 and August 14, 2020, and was kept off work, prescribed Robaxin for muscle spasms, and referred to physical therapy four times a week.

Shelton saw Dr. Todd Fountain on September 24, 2020. Dr. Fountain kept Shelton off work and recommended he see a pain specialist for a facet test and a radiofrequency

1 Dr. Jones noted that Shelton was already taking the prescription drug Flexeril, which was later mentioned in the records as being prescribed for plantar fasciitis, not for low back pain.

ablation for facet arthropathy at L4-5 and L5-S1. Shelton returned to Dr. Jones during this time and was released from his care on November 10, 2020, to return to work with no restrictions.

Shelton reported that he followed up with Dr. Jay McDonald, a pain-management doctor, who performed medial branch nerve blocks of his L4-5 and L5-S1. Dr. McDonald released Shelton on September 13, 2021, with work restrictions. Then, on September 30, 2021, Shelton returned to the clinic complaining of back pain, which resulted in Dr. McDonald’s placing him on sedentary duty. Shelton received a lumbar epidural steroid injection on November 11, 2021.

On December 7, 2021, Dr. McDonald recommended a psychological evaluation and spinal-cord stimulator. Nucor denied coverage of medical payments for the recommended psychological evaluation and spinal cord stimulator. On December 24, Dr. Jones signed a Form AR-3 Physician’s Report setting forth his diagnosis as “[s]pondylosis without myelopathy or radiculopathy, lumbar region” and that, as of December 22, 2021, Shelton was at maximum medical improvement (MMI), having reached the end of his healing period. Despite being released from treatment, Shelton continued to follow up with his doctors. He saw Dr. Jones again on January 11, 2022. The medical records from that visit reflect a diagnosis of lumbar sprain but stated no work restrictions. Again, Shelton was discharged from his care as having reached MMI.

Until January 10, 2022, Nucor had accepted Shelton’s indemnity claim and had paid Shelton TTD benefits. Shelton continued to see Dr. McDonald, who opined in February

2022 that Shelton remained a candidate for a spinal-cord stimulator. Shelton had a psychological evaluation, which confirmed that he was a candidate for the spinal-cord stimulator.

On June 27, 2023, Dr. McDonald, in response to a questionnaire, stated that he was treating Shelton for muscle spasms and an aggravation of epidural fibrosis because of a work injury.

II. Workers’-Compensation Proceedings A. The Administrative Law Judge Opinion Prior to the hearing before the administrative law judge (“ALJ”), the parties stipulated that an employee/employer relationship existed on June 25, 2020, when Shelton sustained an injury to his back and that he had earned an average weekly wage that entitled him to benefits of $711 and $533 for temporary and permanent partial-disability benefits. The parties agreed that the ALJ was to decide the following issues: “(1) Whether [Shelton] is entitled to additional reasonably necessary medical treatment previously denied by [Nucor]; (2) Whether [Shelton] sustained a compensable back injury on June 25, 2020 and is entitled to appropriate benefits associated therewith; (3) Whether [Shelton] is entitled to temporary total disability benefits from June 25, 2020, through a date to be determined; and (4) Attorney’s fees with respect to controverted indemnity benefits.”

The hearing was held on July 28, 2023. In a written opinion filed on August 22, the ALJ found that Shelton proved by a preponderance of the evidence that he had sustained a

compensable injury on June 25, 2020 and that his injury was established by medical evidence supported by objective findings.

The ALJ found that Shelton was entitled to reasonably necessary medical care in relation to his compensable back injury, which included the recommended psychological evaluation and the spine stimulator that Nucor declined to cover. The ALJ ruled that Shelton was entitled to TTD benefits from June 25, 2020, until a date to be determined. Given this ruling concerning the TTD benefits, the ALJ awarded Shelton attorney’s fees for all indemnity benefits that should have been paid.

B. The Commission Opinion Nucor timely appealed the ALJ opinion to the Commission. It argued that the ALJ erred in finding (1) that Shelton’s claim was a compensable injury; (2) that Nucor was responsible for the unpaid medical treatment; (3) that Shelton was entitled to the controverted TTD benefits; and (4) that Nucor owed attorney’s fees with respect to the controverted TTD benefits. On March 7, 2024, the Commission, in a 2–1 decision with a written dissent, affirmed the ALJ opinion on all issues except the TTD award. The Commission reversed the ALJ’s finding that Shelton was entitled to TTD benefits, but it did not address the attorney’s fees—other than awarding Shelton attorney’s fees of $500 because he was partially successful.

Shelton filed a motion to modify on March 12, 2024, with respect to the issue of attorney’s fees. On April 2, Nucor filed a notice of appeal of all the Commission’s decisions against Nucor. On April 4, Shelton filed a notice of cross-appeal with respect to the

Commission’s decision on TTD benefits and also addressed its motion to modify filed with the Commission. On April 11, the Commission entered an order denying the motion to modify, and Shelton amended his notice of appeal to include the denial of attorney’s fees with respect to the controverted TTD.

III. Standard of Review

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Nucor Yamato Steel Co. v. Joshua Shelton, 2025 Ark. App. 249 (Ark. Ct. App. 2025).

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