Phoenixville Hospital v. Workers' Compensation Appeal Board

81 A.3d 830, 623 Pa. 25, 2013 WL 6132096, 2013 Pa. LEXIS 2810
CourtSupreme Court of Pennsylvania
DecidedNovember 21, 2013
StatusPublished
Cited by122 cases

This text of 81 A.3d 830 (Phoenixville Hospital v. Workers' Compensation Appeal Board) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phoenixville Hospital v. Workers' Compensation Appeal Board, 81 A.3d 830, 623 Pa. 25, 2013 WL 6132096, 2013 Pa. LEXIS 2810 (Pa. 2013).

Opinions

OPINION

Justice McCAFFERY.

We accepted review of this case to determine whether the Commonwealth Court erred in its interpretation of Section 306(b) of the Workers’ Compensation Act (“Act”),1 77 P.S. § 512. Appellant, Annette Shoap, asserts that the Commonwealth Court erred by concluding that “substantial gainful employment exists” for purposes of granting a modification of her compensation benefits pursuant to Section 306(b), despite the fact that her application for the specific jobs involved failed to result in any offers of employment. Secondarily, Appellant argues that the Commonwealth Court, even if correct in its interpretation of Section 306(b), erred by not remanding the case for further evidentiary development based on its interpretation of Section 306(b), which Appellant contends represented a change in the standard for evaluating cases under that statute. After careful review, we reverse and remand.

Appellant sustained a work-related injury in the nature of a left shoulder injury while working as an employee of Phoenix-ville Hospital (“Employer”). She began receiving temporary total disability benefits pursuant to a Notice of Compensation Payable dated September 25, 2003. The treatment for Appellant’s injury included three surgeries and physical therapy.

On August 9, 2007, Employer filed a modification petition alleging both that Appellant’s physical condition had improved and that work was generally available to her within her physical restrictions in the relevant geographical area, as demonstrated by two labor market surveys. Appellant denied the material allegations of Employer’s petition, and a hearing was held before a Workers’ Compensation Judge (“WCJ”).

At the hearing, Employer presented the testimony of Andrew Sattel, M.D., a board-certified orthopedic surgeon, who examined Appellant on May 9, 2007. Dr. Sattel opined that although Appellant has residual loss of function in her left shoulder, she was capable of performing sedentary work. Dr. Sattel also opined that Appellant was capable of performing the jobs described in the labor market surveys taken by Employer’s vocational expert witness, Jeffrey Kimmich.

Mr. Kimmich, a certified rehabilitation counselor and vocational case manager, testified that he had met with Appellant and conducted a vocational interview. He also testified that, in two labor market surveys,2 he had identified five jobs within Appellant’s physical restrictions that were “open and available” in Appellant’s usual employment area, and had forwarded this information to Appellant. These jobs were: (1) telephone sales representative, at $9.00 per hour, available on May 23, 2007; (2) telephone sales/appointment setter, at $8.00 to $10.00 per hour, available on June 18, 2007; (3) hotel night auditor, at $11.00 per hour, available on June 18, [834]*8342007; (4) hotel front desk clerk, at $9.00 to $10.00 per hour, available on July 9, 2007; and (5) telephone customer representative, at $7.15 per hour, available on July 31, 2007. Mr. Kimmich then testified that he calculated Appellant’s earning power as corresponding to an average weekly wage of $347.41, based on an average of the wages of the five identified positions.

Appellant testified that in July 2007, she received Mr. Kimmich’s labor market survey as to the first three of the positions, and had applied for each of them on July 30, 2007, entering copies of her respective written applications into evidence.3 She further testified that she had never been contacted by any of these prospective employers, but also admitted on cross-examination that she had never inquired further about the positions after submitting her employment applications. Appellant additionally testified that in August 2007, she received Mr. Kimmich’s labor market survey as to the remaining two positions and had immediately applied for each of them. She testified that she had telephone interviews with both of these prospective employers, and testified, without objection, that she was informed by the latter employer that she was not qualified for the position.4 Appellant was not offered a position with either employer. Appellant further testified that although she had searched for other jobs advertised in the newspaper, the only jobs that she had applied for were the five identified by Mr. Kimmich. Finally, Appellant presented her own expert medical and vocational witnesses who testified that she was incapable of working at the positions Mr. Kimmich had identified in his labor market survey.

The WCJ issued a decision in which he credited the testimony of Dr. Sattel that Appellant was physically capable of performing any of the five jobs identified by Mr. Kimmich, further finding that Mr. Kimmich had indeed identified five jobs that were both compatible with Appellant’s working restrictions and in the relevant geographical area. The WCJ rejected as less credible Appellant’s expert medical and vocational witnesses. However, the WCJ also found credible Appellant’s testimony that she had made a genuine effort to secure any one of the five of the jobs identified in the labor market survey, but had not received any offers of employment. The WCJ specifically determined that Appellant “has established that in good-faith [sic], she followed through on all of the jobs referred to her by Employer and that none of the referrals resulted in an offer of employment.” WCJ Decision, dated 8/27/08, at 5, Conclusion of Law No. 3. For this reason, the WCJ determined that Employer had failed to establish its right to a modification of benefits under Section 306(b) of the Act and, accordingly, denied its modification petition.

On appeal to the Workers’ Compensation Appeals Board (“WCAB”), Employer argued that, by concluding that Appellant had made a “good faith” but unsuccessful effort to secure any one of the five jobs listed in Employer’s labor market survey, the WCJ had improperly incorporated into his legal analysis one of the requirements of Kachinski v. Workmen’s Compensation Appeal Board (Vepco Const. Co.), 516 Pa. 240, 532 A.2d 374 (1987). Employer asserted that the Kachinski requirements [835]*835were no longer relevant in light of the subsequently enacted provisions of Section 306(b), which provide an approach toward a modification of benefits for claimants with partial disability differing from the approach laid out in Kaehinski In order to place Employer’s argument, and the WCAB’s and Commonwealth Court’s respective dispositions of it, in proper perspective, some background is required.

Prior to 1996, the Act was relatively silent regarding the manner of approaching an employer’s claim that it is entitled to a modification of disability benefits where the claimant has regained some functional abilities and is capable of returning to some measure of gainful employment. In our 1987 Kaehinski decision, this Court established guidelines for evaluating such cases as follows:

1. The employer who seeks to modify a claimant’s benefits on the basis that he has recovered some or all of his ability must first produce medical evidence of a change in condition.
2. The employer must then produce evidence of a referral (or referrals) to a then open job (or jobs), which fits in the occupational category for which the claimant has been given medical clearance, e.g., light work, sedentary work, etc.

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Cite This Page — Counsel Stack

Bluebook (online)
81 A.3d 830, 623 Pa. 25, 2013 WL 6132096, 2013 Pa. LEXIS 2810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenixville-hospital-v-workers-compensation-appeal-board-pa-2013.