Scales v. City of Oak Ridge

53 S.W.3d 649, 2001 Tenn. LEXIS 618, 2001 WL 957455
CourtTennessee Supreme Court
DecidedAugust 23, 2001
DocketE2000-00499-WCM-CV
StatusPublished
Cited by8 cases

This text of 53 S.W.3d 649 (Scales v. City of Oak Ridge) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scales v. City of Oak Ridge, 53 S.W.3d 649, 2001 Tenn. LEXIS 618, 2001 WL 957455 (Tenn. 2001).

Opinion

OPINION

FRANK F. DROWOTA, III, J„

delivered the opinion of the court,

in which ADOLPHO A. BIRCH, JR., JANICE M. HOLDER, and WILLIAM M. BARKER, JJ., joined. E. RILEY ANDERSON, C.J., not participating.

This workers’ compensation case presents several questions involving the calculation of an employee’s benefits award and its apportionment between her employer and the Second Injury Fund, including a question involving the social security offset provision of Tennessee Code Annotated 50-6-207(4)(A)(i). The judgments of the trial court and the Special Workers’ Compensation Appeals Panel involve numerous findings and holdings, discussed in detail below. After considering both judgments, and the applicable statutes and case law, we hold that: the employee sustained two separate injuries, each of which is separately compensable; the first injury, to her arms, is not subject to the 260 week cap in section 207(4)(A)(i) because it is an injury to a scheduled member; neither of the two awards is subject to the social security offset provision; the Second Injury Fund is responsible for 65% of 260 weeks of benefits for the permanent total disability award after the employer fully satisfies its obligation of 35% of that award; and the employer is responsible for the full amount of benefits relating to the employee’s first injury. The effect of these holdings is to affirm in part and reverse in part the decision of the Panel.

I. Background

The employee, Mattie L. Scales (“Scales”), who was seventy-two years old *651 at the time of trial, had worked in the food service department of the City of Oak Ridge school system (“Oak Ridge”) for forty-seven years. In early 1997, Scales developed pain and numbness in her hands and arms. She sought medical treatment and was diagnosed with carpal tunnel syndrome in both her hands, for which she required surgery. In January 1998, she returned to work. On April 14, while on the job, she tripped and fell, causing injury to her back. She sought treatment for this injury but was not able to return to work again. She received retirement benefits from the Tennessee Consolidated Retirement System in the amount of $962 per month. She did not apply for Social Security benefits, but instead drew such benefits from her deceased husband’s account in the amount of $832 per month, which she believed was greater than what she would be eligible to receive in her own right.

Because of these injuries, Scales brought an action for workers’ compensation benefits in the trial court. She filed two separate suits, one for the injury to her arms, the other for the injury to her back. The court consolidated these cases for one trial. After hearing medical evidence about Scales’s injuries, the court awarded her 75% permanent partial disability to each arm; this equals 150 weeks of benefits per arm, i.e., 300 weeks. 1 Regarding Scales’s back injury, the court awarded her an additional permanent partial disability of 35% to the body as a whole. The court also determined that the combination of these two injuries rendered her totally and permanently disabled. Thus, the court found that Scales was entitled to “permanent total disability” benefits, and since she was over 60 years old when injured, these benefits were capped at 260 weeks. See Tenn.Code Ann. § 50-6 — 207(4)(A)(i). The total weeks of benefits awarded, therefore, was 560 (300 permanent partial for the first injury, plus 260 permanent total for the second injury). Finally, the court apportioned 25% of the permanent total disability award to Oak Ridge and 75% to the Second Injury Fund.

Oak Ridge (along with the Oak Ridge Board of Education and the Board’s insurance carrier, TML Risk Management Pool) appealed the trial court’s ruling to the Supreme Court. The case was referred to the Special Workers’ Compensation Appeals Panel. See Tenn.Code Ann. § 50-6-225(e)(3). The Panel considered and decided several issues. First, it rejected Oak Ridge’s argument that Scales only sustained one injury; rather, the Panel affirmed the trial court’s finding that she had sustained two separate injuries, each of which is separately compensable. Second, the Panel rejected Oak Ridge’s argument that the permanent partial disability award (75% to each arm; 300 weeks) is subject to the 260 week cap; rather, it held that the cap does not apply to “scheduled members” such as arms, based on McIlvain v. Russell Stover Candies, Inc., 996 S.W.2d 179 (Tenn.1999). Third, the Panel accepted part of Oak Ridge’s argument that the trial court should have reduced Scales’s award by the amount of social security benefits she drew from her deceased husband’s account; it agreed *652 with Oak Ridge that an offset was required, but held that the offset only applied to the permanent total disability award (for Scales’s second injury, to her back). Finally, the Panel found that it could not determine the exact apportionment of Scales’s award between Oak Ridge and the Second Injury Fund, since there was no evidence in the record as to how the award of 75% disability to each arm would convert into a percentage of disability to the body as a whole. Without such evidence, the Panel concluded it could not determine which subsection of Tennessee Code Annotated 50-6-208 — subsection (a) or subsection (b) — applied, and so it could not apportion liability correctly under Bomely v. Mid-America Corp., 970 S.W.2d 929 (Tenn.1998). On this last issue, the Panel remanded the case to the trial court.

II. Our Findings of Fact and Conclusions of Law

Both Scales and Oak Ridge sought further review in this Court and we granted their motions. As discussed later in this opinion, we affirm the Panel’s first two findings: Scales did suffer two separate injuries, each of which is separately com-pensable; further, the injury to her arms, which are scheduled members, is not subject to the 260 week cap. As to the third, we reverse the Panel’s holding that a social security offset is required against the permanent total disability award; the trial court correctly determined that no offset is required for either the permanent partial or permanent total award. We also conclude — and all the parties in this case agree — that a remand is unnecessary. Under the “number of weeks” conversion method, explained below, we find that 300 weeks of benefits for Scales’s injury to her arms is equivalent to 75% permanent partial disability to the body as a whole. Added to the subsequent injury with a 35% disability, relating to her back injury, Scales’s award exceeds 100% permanent and total disability, thereby implicating both subsection (a) and subsection (b). Under Bomely, we find that subsection (a) controls. Therefore, the Second Injury Fund is liable for 65% of benefits for Scales’s second injury (which, under the statutory cap, is 260 weeks) after Oak Ridge satisfies its obligation of 35%.

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Cite This Page — Counsel Stack

Bluebook (online)
53 S.W.3d 649, 2001 Tenn. LEXIS 618, 2001 WL 957455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scales-v-city-of-oak-ridge-tenn-2001.