Southwest Desert Images, LLC v. Industrial Commission

337 P.3d 554, 236 Ariz. 189, 698 Ariz. Adv. Rep. 14, 2014 Ariz. App. LEXIS 210
CourtCourt of Appeals of Arizona
DecidedOctober 28, 2014
Docket2 CA-IC 2014-0007
StatusPublished
Cited by1 cases

This text of 337 P.3d 554 (Southwest Desert Images, LLC v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwest Desert Images, LLC v. Industrial Commission, 337 P.3d 554, 236 Ariz. 189, 698 Ariz. Adv. Rep. 14, 2014 Ariz. App. LEXIS 210 (Ark. Ct. App. 2014).

Opinion

OPINION

MILLER, Presiding Judge.

¶ 1 In this statutory special action, petitioner insurer Colorado Casualty Insurance challenges the administrative law judge’s (ALJ) application of the successive-injury doctrine in awarding disability compensation and medical benefits to be provided by Colorado Casualty, rather than State Compensation Fund of Arizona (SCF Arizona), the employer’s former insurance carrier. For the following reasons, we affirm the award.

Factual and Procedural Background

¶ 2 In 2008, petitioner employee Dan Sla-ven sustained an industrial injury to his lower back while he was employed by Southwest Desert Images (SDI). SDI’s then-insurance carrier, SCF Arizona, accepted the claim. An independent medical examiner diagnosed Slaven with a lumbar sprain/strain. The examiner also noted that Slaven suffered from a disc protrusion on his left side but because there were no left-side symptoms, he determined the protrusion was unrelated to the industrial injury. SCF closed the claim by notice in February 2010 with two percent impairment and no reduced earning capacity. Slaven continued to feel some pain in his back after the closure.

¶ 3 In April 2012, while working for SDI again, Slaven injured his back while moving rocks to clear a drainage canal. He did not feel pain until the next day, when the pain was so intense he could not walk. Later, the pain began to radiate down his left side and his left leg.

¶4 Slaven filed a petition to reopen the 2008 claim, which SCF rejected. Slaven also filed a claim for a new injury, which was rejected by SDI’s 2012 insurance carrier, Colorado Casualty. He filed requests for hearing, and the ALJ consolidated the matters. During the three-day hearing, a physician testifying on behalf of Slaven opined that moving the rocks had caused a new injury and exacerbated the 2008 injury. Colorado Casualty’s examiner concluded she could not characterize Slaven’s increased pain as either an aggravation of a preexisting *191 condition or a new injury. The ALJ issued a decision denying the 2008 petition to reopen and concluding the April 2012 claim was a new compensable injury pursuant to Arizona’s successive-injury doctrine. SDI and Colorado Casualty sought review, and the ALJ affirmed the award. This special action followed.

Application of Successive-Injury Doctrine

¶ 5 Colorado Casualty contends the ALJ erred in applying the successive-injury doctrine based on the finding Slaven had suffered a new injury without any evidence of an “organic change.” SCF argues a finding of a new injury does not require an organic change. We defer to the ALJ’s factual findings, but review questions of law de novo. Munoz v. Indus. Comm’n, 234 Ariz. 145, ¶ 9, 318 P.3d 439, 442 (App.2014).

¶ 6 Under the successive-injury doctrine, if a claimant elects to file both reopening and new injury claims, and satisfies the burden of proof as to both, then the earner that is last in time is wholly responsible for workers’ compensation benefits. Vishinskas v. Indus. Comm’n, 147 Ariz. 574, 577-78, 711 P.2d 1247, 1250-51 (App.1985). In Industrial Indemnity Company v. Industrial Commission, this court detailed the elements required to shift liability. 162 Ariz. 503, 508, 784 P.2d 709, 714 (App.1989) (Industrial Indemnity II). The latter carrier may be responsible for symptomatic aggravation if additional treatment is required or the industrial injury causes additional disability. Id. at 508-09, 784 P.2d at 714-15. The second carrier also may be responsible for the underlying condition if there is an “organic change” to that condition. Id.

¶ 7 Liability for the aggravation and the underlying condition are separate considerations. Id. at 509, 784 P.2d at 715; see also Indus. Indem. Co. v. Indus. Comm’n, 152 Ariz. 195, 199, 731 P.2d 90, 94 (App.1986) (Industrial Indemnity I) (finding anatomical change not necessary to prove new injury when dispute concerns only com-pensable consequences of aggravation, and not attempt to shift liability for underlying condition). An incident results in a new injury where it is a true aggravation, that is, it worsens or accelerates a prior condition. New Pueblo Constr. v. Indus. Comm’n, 115 Ariz. 236, 237, 564 P.2d 925, 926 (App.1977). There is no new injury if the employment “merely provide[d] the situs for a manifestation of symptoms related to the prior condition.” Id.

¶8 Colorado Casualty contends the requirements in Industrial Indemnity II have been rejected by this court in a newer case, Kaibab Industries v. Industrial Commission, 196 Ariz. 601, 2 P.3d 691 (App.2000). It relies on the Kaibab court’s explanation of the requirements of the successive-injury doctrine:

[A]n employee’s underlying condition may become the responsibility of an employer if the new work activity causes organic change in the underlying condition. A new employer also may be responsible for symptomatic aggravation but only if it amounts to an additional disability. Therefore, when the aggravation is caused by circumstances that would constitute the new injury, the employer is liable for all disabilities flowing from that aggravation. Alternatively, when a change in condition is but an aggravation of the first injury, there is no new injury.

Kaibab Indus., 196 Ariz. 601, ¶¶ 12-13, 2 P.3d at 696 (internal citations omitted). 1 Colorado Casualty argues that Kaibab requires an “organic change” for a new injury, as anything else would be a mere aggravation of the earlier injury.

¶ 9 Colorado Casualty’s reading of Kaibab is unavailing. First, there is no indication in Kaibab that the court intended to narrow the application of the successive-injury doctrine. See id. ¶¶ 12-13. Second, Kaibab explicitly states, as noted above, “A new employer also may be responsible for symptomatic aggravation but only if it amounts to an additional disability.” Id. ¶ 12. As stated *192 in Industrial Indemnity II, on which Kaibab relied, aggravation of an old injury resulting in additional disability is compensable by the new employer without an organic change. Id.; see also Indus. Indem. II, 162 Ariz. at 508-09, 784 P.2d at 714-15; Indus. Indem. I, 152 Ariz. at 199, 731 P.2d at 94.

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Bluebook (online)
337 P.3d 554, 236 Ariz. 189, 698 Ariz. Adv. Rep. 14, 2014 Ariz. App. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwest-desert-images-llc-v-industrial-commission-arizctapp-2014.