Parson v. Holman Erection Co., Inc.

428 N.W.2d 72, 1988 Minn. LEXIS 175, 1988 WL 80788
CourtSupreme Court of Minnesota
DecidedAugust 5, 1988
DocketC5-87-1037
StatusPublished
Cited by33 cases

This text of 428 N.W.2d 72 (Parson v. Holman Erection Co., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parson v. Holman Erection Co., Inc., 428 N.W.2d 72, 1988 Minn. LEXIS 175, 1988 WL 80788 (Mich. 1988).

Opinions

[74]*74COYNE, Justice.

The primary issue raised by this appeal from a decision of the Workers’ Compensation Court of Appeals is whether an employee whose work-related injury has reached maximum medical improvement, who has been paid economic recovery compensation, but who has no employment is eligible for temporary partial compensation at the temporary total compensation rate. Concluding that temporary partial compensation is not available under these circumstances, we reverse.

On September 11, 1981, the employee suffered an injury to his right knee while employed by Sowles, Inc., as an iron worker on a construction project. Following knee surgery, employee returned to work for Sowles but eventually was laid off. Employee then worked for Holman Erection Company until August 20, 1984, when he sustained a work-related injury to his left knee. Following surgery on the left knee, the surgeon advised employee that, as a result of his injuries, he could not return to construction work. Although he has diligently sought employment, employee has not worked since he was injured in August 1984.

The employee reached maximum medical improvement with respect to his 1984 injury, and Holman served a medical report indicating attainment of MMI on July 17, 1985. Holman continued to pay employee total temporary compensation until October 14, 1985, when it began payment of economic recovery compensation.

The employee filed a claim petition for continuing temporary total compensation. The compensation judge ruled that Holman Erection Company had fulfilled its obligation to the employee by payment of temporary total compensation until 90 days after service of the MMI report followed by payment of economic recovery compensation. The compensation judge also found, however, that each knee injury contributed 50 percent to employee’s disability, and he concluded that L.H. Sowles, Inc., the 1981 employer, was liable for continuing temporary total disability benefits calculated at 50 percent of the temporary total compensation rate.

On appeal, the WCCA, sitting en banc, affirmed the liability of L.H. Sowles, Inc., for temporary total disability benefits based on 50 percent of the appropriate compensation rate and, by majority decision, ruled that although the employee’s right to temporary total compensation from Holman Erection Company had ceased 90 days after attainment of MMI, Holman was nevertheless liable for continuing temporary partial compensation at 50 percent of the temporary total compensation rate for the duration of employee’s total disability. Holman sought review by certiorari, contending that the WCCA decision is contrary to the intent of the so-called “new law.”

Since much has been said and written about the reasons for and the import of the 1983 revision of the Workers’ Compensation Act, an exhaustive review of the 1983 amendments and their legislative history is hardly necessary here. It may, however, be well to recall that for more than ten years before the 1983 revision of the Act, severe criticism had been directed at Minnesota’s system for compensating employees whose work-related permanent partial disability prevented their return to pre-injury jobs, even though they were able to do other work. Several detailed studies preceded the amendments: Minnesota Workers’ Compensation Study Commission, A Report to the Minnesota Legislature and Governor (1979); Citizens League, Workers’ Compensation Reform: Get the Employees Back on the Job (1982); Minnesota Insurance Division, Workers’ Compensation in Minnesota: An Analysis with Recommendations (1982); C. Arthur Williams, Jr., R. Azevedo, M. Gonanno, and P. Schumann, Minnesota Workers’ Compensation Benefits and Costs: An Objective Analysis (1983). The studies confirmed what many had suspected — that the cost of workers’ compensation insurance was higher in Minnesota than in neighboring states and that Minnesota had an unusually high litigation rate. P. Crochiere, The Plight of the Displaced Employee Improves: An Analysis of the 1983 Changes to Minnesota’s Workers’ Compensation System, 12 [75]*75Wm. Mitchell L.Rev. 623, 639 (1986). The adversary nature of the method for determining the extent of permanent partial disability and the open-ended availability of temporary total disability benefits were identified as major problems.

It was in this setting, then, that the Act was revised and the sections germane to the present inquiry were amended. The 1983 amendments to Minn.Stat. § 176.101, subdivisions 1 and 2, appear to be minor. The effect of these changes is, however, of major significance. Subdivision 1 was amended only by the addition of six words, which are underscored below:

Subdivision 1. Temporary total disability. For injury producing temporary total disability, the compensation is 66⅜ percent of the weekly wage at the time of injury
* * * * * sfe
Subject to subdivisions 3a to 3u this compensation shall be paid during the period of disability, payment to be made at the intervals when the wage was payable, as nearly as may be.

1983 Minn.Laws ch. 290, § 42.

Those six words limit compensation payable for temporary total disability by the provisions of subdivisions 3a to 3u of section 176.101, which introduce sweeping changes in the compensation payable on account of work-related injuries that cause no permanent disability or that result in permanent partial disability. Included in these 21 related subdivisions 3a to 3u of section 176.101 are such totally new concepts as the “two-tier” system of compensation for permanent partial disability — economic recovery compensation and impairment compensation (subdivisions 3a and 3b) —and maximum medical improvement (subdivision 3e). Subdivision 3d provides that an “employee who has incurred a personal injury shall receive temporary total compensation * * and subdivision 3e(a) provides that “temporary total compensation shall cease” 90 days after the employee has reached maximum medical improvement or completed an approved retraining program, whichever is later. The import of the six-word amendment of section 176.101, subd. 1, is that entitlement to temporary total compensation is no longer open-ended; the statute now sets a definite date for termination of temporary total compensation.

Subdivision 2 of section 176.101 was, on the other hand, substantively amended only by deleting the last sentence of the then existing subdivision (deleted portions are lined out and insertions underscored):

Subd. 2. TEMPORARY PARTIAL DISABILITY. In all cases of temporary partial disability the compensation shall be 66⅜ percent of the difference between the daily weekly wage of the worker employee at the time of injury and the wage he the employee is able to earn in his the employee's partially disabled condition. This compensation shall be paid during the period of disability except as provided in section 176.101, payment to be made at the intervals when the wage was payable, as nearly as may be, and subject to a maximum compensation equal to the statewide average weekly wage. If-the employer-does not furnish the worker with work which he can do in his temporary partially disabled condition and he is unable to procure such work with another employer, after reasonably diligent effort, the employee shall be paid at the full compensation rate for-his or her temporary total disability.

1983 Minn.Laws c. 290, § 43.

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Cite This Page — Counsel Stack

Bluebook (online)
428 N.W.2d 72, 1988 Minn. LEXIS 175, 1988 WL 80788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parson-v-holman-erection-co-inc-minn-1988.