Richard A. Kananen v. David Matthews, Secretary of Health, Education, and Welfare

555 F.2d 667, 1977 U.S. App. LEXIS 13252
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 25, 1977
Docket77-1118
StatusPublished
Cited by19 cases

This text of 555 F.2d 667 (Richard A. Kananen v. David Matthews, Secretary of Health, Education, and Welfare) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard A. Kananen v. David Matthews, Secretary of Health, Education, and Welfare, 555 F.2d 667, 1977 U.S. App. LEXIS 13252 (8th Cir. 1977).

Opinion

PER CURIAM.

Richard A. Kananen brought this action under 42 U.S.C. § 405(g) to review a final decision of the Secretary of Health, Education and Welfare reducing the amount of his disability insurance benefits through the application of the statutory workmen’s compensation offset, 42 U.S.C. § 424a. The district court found that the reduction was proper and entered summary judgment for the Secretary. We affirm.

Kananen was awarded workmen’s compensation for a period beginning October 28, 1967, due to a disability caused by back injuries sustained in 1966 and 1967. In 1974, Kananen was awarded disability insurance benefits under §§ 216(i) and 223 of the Social Security Act, 42 U.S.C. §§ 416(i) and 423, for a period of disability commencing April 2, 1968. The cause of the disability was mental illness. However, Kananen was notified that pursuant to § 224 of the Social Security Act, 42 U.S.C. § 424a, his *669 disability benefits for the period of time he was also receiving workmen’s compensation benefits would be withheld.

Kananen requested a hearing on that determination. At the hearing, held on October 15, 1975, the Department of Health, Education and Welfare introduced evidence that on June 28,1968, the Workmen’s Compensation Appeals Board of the State of California awarded Kananen temporary disability indemnity of $61.75 per week beginning October 28,1967 through May 23,1968, and thereafter for the duration of the temporary disability. It also awarded payment for such further medical care and treatment as Kananen required as a result of his back injuries. Pursuant to this award, Ka-nanen received $61.75 per week for the period from October 28, 1967 to July 26, 1968, an amount equal to $2,408.25, and $1,445.20 for medical expenses. On or about July 30,1968, he entered into a settlement with the compensation insurance carrier, Liberty Mutual Insurance Company, for $15,000. Of the $15,000 settlement, $1,000 was paid to his attorney and the remainder was paid to him. Upon inquiry by the administrative law judge, Liberty Mutual Insurance Company represented that, although the details of the settlement were not made a matter of record, 29.4 percent, or $4,116, of the $14,000 paid to Kananen represented settlement of its liability for future medical expenses; the balance of $9,884 represented settlement of its liability for weekly compensation at the rate of $61.75 for 26 weeks and $52.50 for 157.6857 weeks for the period beginning July 27, 1968.

Kananen contested Liberty Mutual’s representations. He stated that he received only $1,358.50 in weekly indemnity payments prior to the settlement, rather than $2,408.25. He further alleged that the lump sum settlement was not a substitute for periodic payments, and therefore his social security benefits should not be offset against that amount. Finally, he contended that § 424a only provides for an offset where the workmen’s compensation payments are made for the same disability as the Social Security benefits.

The administrative law judge found that:

1) $9,884 of the $14,000 lump sum payment was a substitute for future periodic payments and an offset was therefore proper under the provisions of § 424a(b); 1
2) Kananen’s contention that he did not receive $1,175 of the $2,408.25 allegedly paid by Liberty Mutual for the period from October 28, 1967 to July 26, 1968, even if true, was irrelevant to his claim for Social Security benefits because the offset in question, imposed beginning February 1969, was not imposed against those payments; and
3) Section 424a does not require that the workmen’s compensation and disability insurance benefits be based on the same impairment in order for the offset to apply.

The district court found that substantial evidence existed in the record to support the findings of the administrative law judge and that the applicable law had been accurately interpreted. We agree.

Kananen’s major contention on appeal is that the offset provision does not apply where disability benefits under the Social Security Act and workmen’s compensation benefits are paid for different disabilities. We find no merit to this contention.

Section 424a provides in pertinent part as follows:

(a) If for any month prior to the month in which an individual attains the age of 62—
(1) such individual is entitled to benefits under section 423 of this title, and
(2) such individual is entitled for such month, under a workmen’s compensation law or plan of the United States or a State, to periodic benefits for a total or partial disability (whether or not permanent), and the Secretary has, in a *670 prior month, received notice of such entitlement for such month,
the total of his benefits under section 423 of this title for such month * * * based on his wages and self-employment income shall be reduced * * *.

In construing § 424a, we are governed by the principles we set forth in United States v. Kelly, 519 F.2d 251, 256 (8th Cir. 1975):

In the early decision of United States v. Standard Brewery, 251 U.S. 210, 40 S.Ct. 139, 64 L.Ed. 229 (1920), the Court observed:

Nothing is better settled than that in the construction of a law its meaning must first be sought in the language employed. If that be plain, it is the duty of the courts to enforce the law as written, provided it be within the constitutional authority of the legislative body which passed it.

Id. at 217, 40 S.Ct. at 140.

If that wording is plain and simple and straightforward, the words employed must be accorded their normal meaning. As the Court said in Helvering v. Ham-mel, 311 U.S. 504, 61 S.Ct. 368, 85 L.Ed. 303 (1941):

True, courts in the interpretation of a statute have some scope for adopting a restricted rather than a literal or usual meaning of its words where acceptance of that meaning would lead to absurd results, United States v. Katz, 271 U.S. 354, 362 [46 S.Ct. 513, 516, 70 L.Ed. 986], or would thwart the obvious purpose of the statute, Haggar Co. v. Helvering, 308 U.S. 389 [60 S.Ct. 337, 84 L.Ed.

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Bluebook (online)
555 F.2d 667, 1977 U.S. App. LEXIS 13252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-a-kananen-v-david-matthews-secretary-of-health-education-and-ca8-1977.