State Accident Insurance Fund Corp. v. Gygi

639 P.2d 655, 55 Or. App. 570, 1982 Ore. App. LEXIS 2253
CourtCourt of Appeals of Oregon
DecidedJanuary 25, 1982
Docket79-9683, CA 19945
StatusPublished
Cited by40 cases

This text of 639 P.2d 655 (State Accident Insurance Fund Corp. v. Gygi) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Accident Insurance Fund Corp. v. Gygi, 639 P.2d 655, 55 Or. App. 570, 1982 Ore. App. LEXIS 2253 (Or. Ct. App. 1982).

Opinions

[572]*572RICHARDSON, P. J.

The State Accident Insurance Fund appeals from the order of the Workers’ Compensation Board which affirmed the hearing referee’s decision that claimant’s mental illness is a compensable occupational disease. SAIF contends the Board erred in determining that claimant’s psychiatric disability was caused or aggravated by on-the-job stress. ORS 656.802(1)(a). We review de novo, ORS 656.298(6), and affirm.

Claimant has been a self-employed1 attorney since his graduation from law school in 1960. He specialized in business and corporation law, and in the late 1960’s he became involved in arranging public stock offerings for corporations. Following the decline of the stock market in 1969, several of the corporations claimant represented began to founder. In 1970 he was named defendant in a class action brought on behalf of shareholders of one of those corporations. The complaint sought several million dollars in damages, far in excess of claimant’s malpractice insurance coverage. In 1972, after a partial trial, claimant was found to be liable.2 The case was finally settled late in 1974. Claimant was named defendant in at least three other similar shareholder suits in the period from 1970 to 1976. After claimant’s liability was established in the first class action, the Oregon State Bar brought a disciplinary proceeding against him early in 1974. In November, 1975, the Supreme Court dismissed the proceeding.3 During the time of these actions against him, claimant suffered a considerable loss of professional respect. This, plus adverse media publicity and the large amount of time spent working on his own defense and on attempts to salvage the corporations, led to loss of income and a decrease in new clients.

In November or December of 1973, claimant began to drink alcohol excessively and to abuse over-the-counter and prescription tranquilizers and anti-depressants. As claimant explained:

[573]*573“* * * I began to feel guilty about what had happened to these corporations and to the shareholders’ losses. I felt since I had a particular gift for getting those companies public, I bore a large responsibility for saving them. In most cases, I wasn’t able to do it; and the stress of the lawsuits and the affect on my reputation, they just all combined and made me feel very guilty about myself and the way to avoid feeling guilty was to drink.”

From January, 1975, through March, 1979, claimant was hospitalized on a number of occasions and treated for acute depression, alcohol abuse and attempted suicide.

Claimant filed a claim for compensation for depression and alcoholism. The referee concluded that claimant’s condition was the cumulative result of employment-related stress and therefore was compensable under ORS 656.802(1)(a). The Board affirmed, and SAIF appeals.

SAIF contends that claimant abuses alcohol in reaction to stress from any source and reacts the same way to employment-related stress and stress from off-the-job conditions. Thus, SAIF argues, claimant failed to prove that his condition arose from circumstances “to which an employe is not ordinarily subjected or exposed other than during a period of regular actual employment.” ORS 656.802(l)(a).

In James v. SAIF, 290 Or 343, 624 P2d 565 (1981), the court held that a claimant seeking compensation for an occupational disease must show not only that the condition arose within the scope of employment, but must also establish that the condition “was caused by circumstances ‘to which an employe is not ordinarily subjected or exposed other than during a period of regular actual employment.’ ORS 656.802 (l)(a).” 290 Or at 348. The court noted that the condition need not be caused by on-the-job factors, but rather that “the cause of the disease, aggravation or exacerbation of the disease must be one which is ordinarily encountered only on the job.” 290 Or at 350. (Emphasis added.) See Weller v. Union Carbide, 288 Or 27, 602 P2d 259 (1979); Beaudry v. Winchester Plywood Co., 255 Or 503, 469 P2d 25 (1970). The court laid out a test for making this determination:

“* * * If this off-the-job condition or exposure is a condition substantially the same as that on the job when [574]*574viewed-as a cause of the particular kind of disease claimed as an ‘occupational disease,’ it precludes the claim under ORS 656.802(l)(a). ***” 290 Or at 350 (emphasis original).

We do not interpret the Supreme Court’s test to require that the at-work conditions be the sole cause of disability. In Beaudry v. Winchester Plywood Co., supra, the court held that aggravation of the claimant’s preexisting bursitis condition was compensable as an occupational disease. The claimant’s work activities required him to stand for eight hours on a vibrating platform which the medical evidence described as the “most traumatizing activity” relating to his disability. Compensation was allowed, even though the evidence indicated the claimant’s bursitis was aggravated by nonwork activities of standing, walking and climbing stairs. Beaudry was cited with approval in James v. SAIF, supra.

We conclude that ORS 656.802(1)(a) does not require that the occupational disease be caused or aggravated solely by the work conditions. If the at-work conditions, when compared to the nonemployment exposure, are the major contributing cause of the disability, then compensation is warranted.

The psychiatrists who examined claimant essentially agree in their diagnoses: chronic, severe or psychotic depression or depressive neurosis, complicated by chronic alcoholism. They were not unanimous, however, in their identification of the source of claimant’s problems.

Dr. McCulloch, claimant’s treating psychiatrist from the first hospitalization in 1975 until September, 1978, reported: “Mr. Gygi has suffered chronic and severe depression and alcoholism which was aggravated by the nature of his work and the extensive disciplinary proceedings against him.” A second physician, Dr. Atkinson, treated claimant during his five-month hospitalization in 1978-79. He stated: “I agree that both illnesses diagnosed above [i.e., psychotic depression and chronic alcoholism] are in part the result of employment-related stress. Work severely aggravated patient’s proneness to mental illness.” Dr. Atkinson also stated: “Given the long, complicated history, it is nearly impossible to accurately determine the [575]*575proportion of illness caused by job-related stress. It was a substantial factor.”

At SAIF’s request, claimant was examined by three psychiatrists. Dr.

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

Related

Smothers v. Gresham Transfer, Inc.
23 P.3d 333 (Oregon Supreme Court, 2001)
Liberty Northwest Ins. Corp. v. Spurgeon
820 P.2d 851 (Court of Appeals of Oregon, 1991)
Benson v. Multnomah County School District 1
789 P.2d 694 (Court of Appeals of Oregon, 1990)
Darnell v. North Dakota Workers Compensation Bureau
450 N.W.2d 721 (North Dakota Supreme Court, 1990)
State v. Parks
751 P.2d 1115 (Court of Appeals of Oregon, 1988)
Staack v. Santiam Memorial Hospital
739 P.2d 59 (Court of Appeals of Oregon, 1987)
State Accident Insurance Fund Corp. v. Noffsinger
723 P.2d 358 (Court of Appeals of Oregon, 1986)
Globe MacHine v. Yock
717 P.2d 1235 (Court of Appeals of Oregon, 1986)
Adsitt v. Clairmont Water District
717 P.2d 1231 (Court of Appeals of Oregon, 1986)
Robinson v. SAIF Corp.
717 P.2d 1202 (Court of Appeals of Oregon, 1986)
Kepford v. Weyerhaeuser Co.
713 P.2d 625 (Court of Appeals of Oregon, 1986)
McClendon v. Nabisco Brands, Inc.
713 P.2d 647 (Court of Appeals of Oregon, 1986)
Paige v. SAIF Corp.
706 P.2d 575 (Court of Appeals of Oregon, 1985)
Devereaux v. North Pacific Insurance
703 P.2d 1024 (Court of Appeals of Oregon, 1985)
State Accident Insurance Fund Corp. v. McCabe
702 P.2d 436 (Court of Appeals of Oregon, 1985)
Roseburg Lumber Co. v. Killmer
696 P.2d 1145 (Court of Appeals of Oregon, 1985)
Wheeler v. Boise Cascade Corp.
693 P.2d 632 (Oregon Supreme Court, 1985)
Johannesen v. N.W. Natural Gas Co.
689 P.2d 1018 (Court of Appeals of Oregon, 1984)
Bush v. SAIF Corp.
688 P.2d 415 (Court of Appeals of Oregon, 1984)
Leary v. Pacific Northwest Bell
680 P.2d 5 (Court of Appeals of Oregon, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
639 P.2d 655, 55 Or. App. 570, 1982 Ore. App. LEXIS 2253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-accident-insurance-fund-corp-v-gygi-orctapp-1982.