Rison v. Air Filter Systems, Inc.

707 A.2d 675, 1998 R.I. LEXIS 21, 1998 WL 52340
CourtSupreme Court of Rhode Island
DecidedFebruary 2, 1998
Docket95-510-M.P.
StatusPublished
Cited by15 cases

This text of 707 A.2d 675 (Rison v. Air Filter Systems, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rison v. Air Filter Systems, Inc., 707 A.2d 675, 1998 R.I. LEXIS 21, 1998 WL 52340 (R.I. 1998).

Opinion

OPINION

FLANDERS, Justice.

This is a worker’s compensation case in which we confront the following issue: How does an employee’s settlement of a third-party tort claim arising out of his work-related injuries affect the employee’s ability to obtain a workers’ compensation award for his disfigurement and bodily loss of use?

This question comes before us on a petition for certiorari seeking review of a decision by a panel of the Workers’ Compensation Court’s (WCC) Appellate Division (the panel) construing G.L.1956 § 28-35-58 of the Rhode Island Workers’ Compensation Act (WCA). 1 To conduct this review, we must consider the workers’ compensation ramifications of an injured employee’s recovery of a settlement from an alleged third-party tortfeasor that is putatively responsible for causing the employee’s work-related injuries. The panel’s decision holds that the employer need not pay any specific-compensation award to the employee if the amount of the settlement (after reimbursing the employer for any worker’s compensation benefits already paid to the employee) exceeds the amount of any specific-compensation award that would otherwise be payable. However, under the panel’s view, the employee is entitled to a credit in the amount of such award that reduces the § 28-35-58 suspension period during which the employer’s insurer is relieved from paying any compensation benefits to the employee.

*677 Because we conclude that this result comports with the applicable statutory provisions and with the underlying policies of workers’ compensation, we affirm.

Facts and Travel

The material facts of this case are not in dispute. On March 3, 1987 the employee, James Rison III (Rison), sustained employment-related injuries while laboring for his employer, Air Filter Systems, Inc. (Air Filter), as a sheet-metal worker. Rison suffered devastating third-degree bums over half his body when a cataclysmic flash fire of glue scorched him severely. The bums, combined with necessary surgical skin grafts, left Rison with permanent scarring and disfiguration over 78 percent of his body. As a result, patches of shriveled, discolored skin blanket Rison’s elbows, back, and legs and severe scars mar his right jaw, ears, nose, and fingers. Largely because of his reduced manual dexterity, Rison also suffers from a permanent loss of use in his upper extremities of between 11 and 16 percent.

Beginning on March 24, 1987, and pursuant to a memorandum of agreement with Air Filter, Rison began to receive workers’ compensation benefits in the form of weekly indemnity payments at a “weekly comp rate” of $244 per week. Pursuant to G.L.1956 § 28-33-17 of the WCA, these weekly benefits compensated Rison for lost wages due to his incapacity. Thereafter, on November 7, 1991, approximately four-and-a-half years after he began to receive weekly benefits, Ri-son filed an original WCC petition to obtain an additional specific-compensation award under § 28-33-19 of the WCA for his disfigurement and the loss of the use of his hands.

However, before that petition could be heard, Rison entered into a settlement on December 1, 1991, with Stanley Bostitch Company, an alleged third-party tortfeasor, in satisfaction of Rison’s tort claims against Stanley Bostitch for the personal injuries he had sustained in the accident. Although the record does not reveal the precise amount of the settlement, it was apparently in excess of $2.5 million. On December 11, 1991 Rison reimbursed Air Filter $225,312 for the weekly benefits it had paid out to Rison up to the date of Rison’s settlement with Stanley Bos-titch (less the pro rata attorneys’ fees and expenses attributable to Rison’s recovery of this sum from Stanley Bostitch). The parties stipulated that this reimbursement reflected Air Filter’s presettlement workers’ compensation weekly indemnity payments to Rison and liquidated Air Filter’s WCA subrogation rights for having made such payments.

Thereafter, a WCC judge heard Rison’s § 28-33-19 petition for specific compensation on stipulated facts and evidence. After considering medical reports and observing Ri-son’s injuries, the judge determined that the evidence warranted.the maximum statutory award. Consequently, she ordered Air Filter to pay $52,582 to Rison, compensating him for loss of use in his extremities and for his disfigurement. 2 At the parties’ request, the court also ruled on whether this specific-compensation award should be offset against Rison’s recently obtained settlement proceeds. Describing the issue as “apparently a case of first impression,” the WCC trial judge ruled that a specific award under § 28-33-19 would not be subject to the payment-suspension mechanism detailed in § 28-35-58. However, the WCC judge also held that Air Filter properly had been reim *678 bursed for the weekly indemnity benefits it had paid to Rison before the Stanley Bostitch settlement and that Air Filter’s duty to pay future weekly indemnity benefits to Rison would be suspended in accordance with § 28-35-58. As stated by the WCC judge, “Consequently, any award of specific compensation after a third-party settlement would be paid in full to the employee without any offset or consideration of the monies which have been paid to him by the third-party settlement.”

Air Filter appealed to the WCC’s Appellate Division, 'alleging that it should be entitled to set off the amount of the specific-compensation award against the settlement proceeds Rison had received from Stanley Bostitch without having to pay this sum to Rison. The panel agreed and reversed the trial judge, holding that any specific compensation awarded under § 28-33-19 would be subject to the suspension mechanism of § 28-35-58. The panel further determined that although Air Filter would not be required to pay any specific-compensation monies to Rison, the amount of the specific award would reduce “on a dollar for dollar basis” the period of time during which Air Filter’s duty to pay future workers’ compensation benefits to Rison would be suspended.

Rison petitioned this court for a writ of certiorari, which we granted, to resolve this important workers’ compensation question.

I

Standard of Review

This petition presents questions of statutory construction. We review the Appellate Division’s decision de novo, pursuant to § 28-35-30, for any error of law or equity. See also Pion v. Bess Eaton Donuts Flour Co., 637 A.2d 367, 370 (R.I.1994); Wright v. Superior Court, 535 A.2d 318, 320 (R.I.1988).

II

Discussion

Before we ton to the questions of statutory interpretation raised by this petition, it is helpful to consider what is not at issue here.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Patrizia Prew v. Employee Retirement System of the City of Providence
139 A.3d 556 (Supreme Court of Rhode Island, 2016)
Vellucci v. Miller
989 F. Supp. 2d 211 (D. Rhode Island, 2013)
Casale v. City of Cranston
40 A.3d 765 (Supreme Court of Rhode Island, 2012)
Benson v. City of Cranston
Superior Court of Rhode Island, 2009
Bliss v. Wal-Mart Real Estate Business Trust
Superior Court of Rhode Island, 2009
State v. Germane
971 A.2d 555 (Supreme Court of Rhode Island, 2009)
Mumma v. Cumberland Farms, Inc.
965 A.2d 437 (Supreme Court of Rhode Island, 2009)
City of Pawtucket v. Pimental
960 A.2d 981 (Supreme Court of Rhode Island, 2008)
City of Philadelphia v. Tax Review Board of the City of Philadelphia Ex Rel. Aboyan
901 A.2d 1113 (Commonwealth Court of Pennsylvania, 2006)
Trant v. Lucent Technologies
896 A.2d 710 (Supreme Court of Rhode Island, 2006)
McCarthy v. Environmental Transportation Services, Inc.
865 A.2d 1056 (Supreme Court of Rhode Island, 2005)
Thomas v. Rhode Island Insurers' Insolvency Fund
814 A.2d 335 (Supreme Court of Rhode Island, 2003)
Star Enterprises v. DelBarone
746 A.2d 692 (Supreme Court of Rhode Island, 2000)
Huguenin v. Ponte
29 F. Supp. 2d 57 (D. Rhode Island, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
707 A.2d 675, 1998 R.I. LEXIS 21, 1998 WL 52340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rison-v-air-filter-systems-inc-ri-1998.