Second Injury Fund v. Streator Chevrolet

709 P.2d 1176, 1985 Utah LEXIS 957
CourtUtah Supreme Court
DecidedNovember 18, 1985
Docket19595
StatusPublished
Cited by15 cases

This text of 709 P.2d 1176 (Second Injury Fund v. Streator Chevrolet) is published on Counsel Stack Legal Research, covering Utah Supreme Court 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. Streator Chevrolet, 709 P.2d 1176, 1985 Utah LEXIS 957 (Utah 1985).

Opinions

ZIMMERMAN, Justice:

This case raises for the first time the proper interpretation of the 1981 amendments to section 35-1-69(1) of the Code relating to the circumstances under which an injured worker is entitled to recover not only for permanent partial incapacity caused by an industrial injury, but also for permanent partial incapacities incurred pri- or to the industrial injury. The Industrial Commission awarded claimant Webb compensation for permanent partial incapacity resulting from injuries to his back sustained as a result of an on-the-job accident in 1982. It also awarded him compensation for preexisting permanent partial incapacities attributable to (1) an earlier injury to his back, which was aggravated by the 1982 fall and injury, and (2) unrelated congenital or degenerative problems with his hands and eyes. The Second Injury Fund was ordered to pay that portion of the award attributable to the preexisting impairments and challenges that award by writ of review. We hold that the award made by the Industrial Commission was correct and affirm, albeit on slightly different grounds.

In April of 1982, claimant Webb slipped and fell on some stairs at his place of employment, Streator Chevrolet in Salt Lake City. He injured his left elbow and his lower back. At the time of this accident, Webb had three preexisting impairments: a lower back injury sustained in Arizona in 1964 while working for another employer (for which no compensation award was ever paid); a condition of the hands known as Dupuytren’s Contractures, which causes curling of the fingers; and impaired vision in both eyes. The hand and eye conditions were unrelated to any industrial accident or injury. Following the 1982 accident, Webb’s back condition worsened and surgery was required to remove dam[1178]*1178aged discs. He then filed a claim for compensation with the Commission.

A medical panel reviewed his case. It reported no permanent impairment as a result of the injury to the left elbow. However, it did find that Webb had a 10 percent whole-man permanent partial impairment by reason of the back injury suffered as a result of the 1982 fall; an additional 15 percent whole-man permanent partial impairment from his prior low back injury, which was aggravated by the fall; an 11 percent whole-man permanent partial impairment due to the hand problem; and a 20 percent whole-man permanent partial impairment due to vision problems. Using the analysis set forth in Jacobsen Construction v. Hair, Utah, 667 P.2d 25, 27-28 (1983), the medical panel found that the preexisting conditions combined to produce a rating of 39 percent permanent partial impairment.

The administrative law judge adopted the panel’s findings as his own. He concluded that under the Hair rationale the rating of the 10 percent whole-man impairment resulting from the industrial injury must be adjusted on a partial-man basis to account for the preexisting impairments. Since claimant was 61 percent unimpaired before the accident (100% - 39% = 61%), the 10 percent whole-man impairment caused by the accident added 6.1 percent to his disability (10% X 61% = 6.1%), giving a rounded final permanent partial disability figure of 45 percent (39% + 6% = 45%). The defendants — the employer and/or its insurer, the State Insurance Fund — were found entitled to reimbursement from the Second Injury Fund for 8¾5, or 87 percent, of future medical payments to the claimant. The defendants also were held liable for a 6 percent award, or $3,201.12, of the total 45 percent permanent partial disability award. The Second Injury Fund was held responsible for the remaining 39 percent permanent partial disability award, or $20,807.86, to be paid to Webb “for the aggravation of a pre-existing condition by the industrial injury” of April 1982.

The Second Injury Fund did not contest the finding that it was liable for the preexisting back injury that was aggravated by the industrial accident. However, insofar as the award required payment for the other preexisting impairments, the Second Injury Fund did challenge it before the full Commission on the following grounds: (1) that the preexisting impairments were not aggravated by the accident and, therefore, were not compensable under the statute; and (2) that before nonaggravated preexisting conditions can be compensable, the statute requires that the industrial injury must cause at least a 10 percent impairment, while here the impairment caused by the industrial injury was only 6 percent. The Commission, one member dissenting, rejected the Fund’s challenge and affirmed the administrative law judge’s order. It held that, under the statute, recovery for all preexisting conditions was permitted when any one of them was aggravated by the industrial accident. The Second Injury Fund then filed a petition for review with this Court, raising the same arguments rejected by the Commission.

The facts are not disputed, nor are the findings of impairment challenged. This case presents only a question of law: under the 1981 amendments to section 35-1-69, what is the Second Injury Fund’s responsibility for preexisting impairments not aggravated by the subsequent industrial injury? Answering this question requires some descriptive background of the 1981 amendments.

The Second Injury Fund, previously named the Special Fund, see 1979 Utah Laws, ch. 138, § 3, has long been a part of the Utah worker’s compensation scheme. In 1919, the legislature provided that if a worker having a preexisting permanent partial disability was injured and incurred a permanent partial disability that was greater than he would have incurred but for its combination with the preexisting partial disability, then the worker was to receive full compensation for all his disabilities. However, he was to receive from his present employer only compensation for the current injury; compensation for the [1179]*1179preexisting disability was to be paid by a fund established by the legislature. 1919 Utah Laws, ch. 63, § 3140.6. We have long acknowledged the remedial purpose of this law:

The Legislature undoubtedly intended ... to provide protection for men who had already been partially permanently disabled, but yet were able to do work. Without some provision of this kind, employers would be extremely hesitant in employing men partially disabled, since an injury resulting in partial permanent disability of the employee might well impose greater liability on the employer than a similar injury incurred by a person not previously disabled.

Marker v. Industrial Commission, 84 Utah 587, 592, 37 P.2d 785, 787 (1934); see McPhie v. United States Steel Corp., Utah, 551 P.2d 504, 505 (1976); Intermountain Smelting Corp. v. Capitano, Utah, 610 P.2d 334, 337 (1980); Northwest Carriers, Inc. v. Industrial Commission, Utah, 639 P.2d 138, 141 (1981); Jacobsen Construction v. Hair, Utah, 667 P.2d 25, 26 (1983).

The provision added in 1919 is now in section 35-1-69 of the Code.

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Second Injury Fund v. Streator Chevrolet
709 P.2d 1176 (Utah Supreme Court, 1985)

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Bluebook (online)
709 P.2d 1176, 1985 Utah LEXIS 957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/second-injury-fund-v-streator-chevrolet-utah-1985.