Second Injury Fund v. Stephens

970 S.W.2d 331, 62 Ark. App. 255, 1998 Ark. App. LEXIS 511
CourtCourt of Appeals of Arkansas
DecidedJune 24, 1998
DocketCA 97-1528
StatusPublished
Cited by7 cases

This text of 970 S.W.2d 331 (Second Injury Fund v. Stephens) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Second Injury Fund v. Stephens, 970 S.W.2d 331, 62 Ark. App. 255, 1998 Ark. App. LEXIS 511 (Ark. Ct. App. 1998).

Opinion

John F. Stroud, Jr., Judge.

The Second Injury Fund appeals a decision of the Workers’ Compensation Commission holding it liable for a twenty percent wage-loss disability awarded to Billy Stephens, a thirty-four-year-old welder with an eighth-grade education. We affirm the Commission’s decision.

The parties do not dispute the facts in this case. Mr. Stephens was assigned a ten percent permanent physical impairment rating as a result of a 1987 compensable back injury and two 1988 surgeries related to the injury. In 1993 he began working for Trailmobile, Inc., where he suffered another compensable back injury in April 1995 while pulling a coupler section onto a welding table. This injury resulted in surgery the next month. Trail-mobile and its insurance carrier, Home Indemnity Company, accepted and paid a two percent permanent impairment rating following the 1995 surgery. Mr. Stephens returned to work for Trailmobile in a light-duty capacity and continued working until January 1996, when he sustained a noncompensable back injury that also required surgery.

A hearing before the administrative law judge was held in October 1996 on the issues of wage-loss benefits and Second Injury Fund liability. Mr. Stephens testified that after his 1995 return to work he had difficulty with the physical demands of various job assignments. The law judge awarded him wage-loss benefits in the amount of twenty percent, and apportioned the sum to be paid equally by Trailmobile and the Second Injury Fund. The Workers’ Compensation Commission reversed the decision regarding apportionment, finding that all wage loss should be borne by the Second Injury Fund. In doing so, the Commission rejected the Fund’s argument that Mr. Stephens had failed to prove that the major cause of his wage-loss disability was his last compensable injury. On appeal, the Second Injury Fund does not challenge the finding that Mr. Stephens’s wage-earning capacity has been reduced by twenty percent. It contends, however, that the wage-loss disability award is contrary to our workers’ compensation statutes.

The requirements that must be met in order for the Second Injury Fund to have liability are as follows:

First, the employee must have suffered a compensable injury at his present place of employment. Second, prior to that injury the employee must have had a permanent partial disability or impairment. Third, the disability or impairment must have combined with the recent compensable injury to produce the current disability status.

Mid-State Construction Co. v. Second Injury Fund, 295 Ark. 1, 5, 746 S.W.2d 539, 541 (1988). In Second Injury Fund v. Furman, 60 Ark. App. 237, 242, 961 S.W.2d 787, 790 (1998), we addressed the Fund’s liability under Act 796 of 1993, which has mandated strict construction of our workers’ compensation laws. We stated that the new Workers’ Compensation Act did not change the following guidelines for Second Injury Fund liability, now codified as Ark. Code Ann. § 11-9-525(b)(3) and (4) (Repl. 1996):

(3) If any employee who has a permanent partial disability or impairment, whether from compensable injury or otherwise, receives a subsequent compensable injury resulting in additional permanent partial disability or impairment so that the degree or percentage of disability or impairment caused by the combined disabilities or impairments is greater than that which would have resulted from the last injury, considered alone and of itself, and if the employee is entitled to receive compensation on the basis of combined disabilities or impairments, then the employer at the time of the last injury shall be liable only for the degree or percentage of disability or impairment which would have resulted from the last injury had there been no preexisting disability or impairment.
(4) After the compensation liability of the employer for the last injury, considered alone, which shall be no greater than the actual anatomical impairment resulting from the last injury, has been determined by an administrative law judge or the Workers’ Compensation Commission, the degree or percentage of employee’s disability that is attributable to all injuries or conditions existing at the time the last injury was sustained shall then be determined by the administrative law judge or the commission, and the degree or percentage of disability or impairment which existed prior to the last injury plus the disability or impairment resulting from the combined disability shall be determined, and compensation for that balance, if any, shall be paid out of the fund provided for in § 11-9-301.

The Second Injury Fund raises three points regarding the twenty percent wage-loss disability award. First, it alleges that the Commission erred in finding that Mr. Stephens’s compensable injury and two percent impairment rating was the “major cause” of his disability because it faded to consider his prior and subsequent injuries. Second, it contends that under the proposed “proper analysis” of the first point, the Commission’s finding that the 1995 compensable injury was the major cause of the disability is not supported by substantial evidence. Third, it contends that the Commission erred in awarding permanent disability benefits because Mr. Stephens waived his right to pursue rehabilitation benefits.

When reviewing a decision of the Workers’ Compensation Commission, we must decide whether it is supported by substantial evidence. City of Fouke v. Buttrum, 59 Ark. App. 219, 956 S.W.2d 193 (1997). Substantial evidence is that which a reasonable person might accept as adequate to support a conclusion. Id. The Commission’s decision will be affirmed unless fair-minded persons presented with the same facts could not have arrived at the conclusion reached by the Commission. Id.

I. Whether the Commission erred in not considering appellee’s prior and subsequent injuries in finding that appellee’s compensable injury and two percent impairment rating was the “major cause” of his wage-loss disability.

The Second Injury Fund relies upon Arkansas Code Annotated section 11-9-102 and Farmland Ins. Co. v. DuBois, 54 Ark. App. 141, 923 S.W.2d 883 (1996), where we stated that a claimant seeking permanent disability benefits must prove that the compensable injury is the major cause of his permanent disability. The argument is without merit: section 11-9-102 does not refer to a disability or impairment resulting from the combination of a compensable work injury and a previous permanent disability or impairment, nor was DuBois a second injury case. We will not extend the statute or caselaw to require a claimant to prove that his compensable injury is the major cause of disability or impairment status that resulted from combining his last compensable injury and a prior disability or impairment.

Arkansas Code Annotated section 11-9-102 (Supp. 1997) reads in pertinent part as follows:

(5) (F) Benefits.

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Bluebook (online)
970 S.W.2d 331, 62 Ark. App. 255, 1998 Ark. App. LEXIS 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/second-injury-fund-v-stephens-arkctapp-1998.