State ex rel. Am. Cylinders Ents., Inc. v. Logue

2021 Ohio 1661
CourtOhio Court of Appeals
DecidedMay 13, 2021
Docket17AP-831
StatusPublished

This text of 2021 Ohio 1661 (State ex rel. Am. Cylinders Ents., Inc. v. Logue) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Am. Cylinders Ents., Inc. v. Logue, 2021 Ohio 1661 (Ohio Ct. App. 2021).

Opinion

[Cite as State ex rel. Am. Cylinders Ents., Inc. v. Logue, 2021-Ohio-1661.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

State ex rel. : American Cylinder Enterprises, Inc., : Relator, No. 17AP-831 : v. (REGULAR CALENDAR) : [John Logue], Administrator, Ohio Bureau of Workers' Compensation, :

Respondent. :

D E C I S I O N

Rendered on May 13, 2021

On brief: Reminger Co., L.P.A., and Kevin R. Sanislo, for relator.

On brief: Dave Yost, Attorney General, and John Smart, for respondent.

IN MANDAMUS ON OBJECTIONS TO THE MAGISTRATE'S DECISION

BROWN, J. {¶ 1} Relator, American Cylinder Enterprises, Inc., has filed this original action requesting this court issue a writ of mandamus ordering respondent, Ohio Bureau of Workers' Compensation ("BWC"), to vacate its order that changed relator's manual classification code from 8720 to 3620, and ordering the BWC to change the manual classification back to 8720. {¶ 2} This matter was referred to a court-appointed magistrate pursuant to Civ.R. 53 and Loc.R. 13(M) of the Tenth District Court of Appeals. The magistrate issued the No. 17AP-831 2

appended decision, including findings of fact and conclusions of law, and recommended this court deny relator's request for a writ of mandamus. Relator has filed six objections to that decision. {¶ 3} Relator argues in its first objection that the magistrate erred when she omitted several pertinent facts from her findings of fact concerning the procedural history of relator's manual code reclassification by BWC. First, relator asserts the magistrate's statement in the second finding of fact—that the employee with the claim that prompted the audit in this case was "severely" burned by an "exploding" cylinder—was improper because relator has consistently claimed that the burn was not "severe" because the total claim payout was only $1,219.47 and that the cylinder did not "explode." Relator contends the magistrate should have mentioned the multiple documents in the stipulated record contesting these claims. We find this argument without merit. The facts revealed the injured employee received second-degree partial thickness burns to his right forearm. Whether the magistrate termed the injured employee as being burned "severely" rather than "significantly," or some other adjective, is of little relevance to the ultimate determination. Furthermore, in the second finding of fact the magistrate found that it was the employee who described the accident as involving an "exploding cylinder," which is accurate. In addition, whether this particular claim resulted in "only" a $1,200 payout and attempting to juxtapose that with the fact that the premium for the new classification was more than double that of the old classification is not relevant to determining whether the BWC used the correct manual classification. Claim payouts could be higher if similar accidents occur in the future. Relator's attempt to downplay the seriousness of the incident and the injured employee's injuries is also belied by relator's own description of the accident, which it described as putting others at great peril. {¶ 4} Relator next argues the magistrate omitted the fact that the BWC previously assigned it code 8720 in 2004, and then reversed course after 11 years without sufficient explanation. However, the BWC clearly explained that code 8720 did not accurately reflect the description of relator's business activities and the risk involved in conducting such activities after conducting an audit subsequent to an employee injury and claim. The BWC also has the authority to change BWC classification codes regardless of how long the business was assigned the previous code. No. 17AP-831 3

{¶ 5} Relator also raises several issues with regard to the DVD video it submitted to the BWC claiming to show its operations. Despite relator's first complaint that the BWC failed to send an auditor to the business to personally view its operations before assigning the new code, relator fails to cite any authority requiring the BWC to do so. Also, that the BWC found in its June 21, 2016 decision that the video demonstrated "some" but "likely not all" of relator's operations was supported, at a minimum, by the fact that, as pointed out by the BWC, the video did not show the very activity—performing work on acetylene cylinders—that caused the injury that originally prompted the audit. Nevertheless, the magistrate's failure to mention the DVD in her findings of fact does not detract from her analysis and conclusions of law and we cannot find the BWC's skepticism of the comprehensiveness of the video was a factor that significantly impacted its decision to assign relator a new classification code. For these reasons, we find relator's first objection without merit. {¶ 6} Relator argues in its second objection that the magistrate erred when she failed to address the arbitrary and capricious nature of the BWC's decision to change relator's manual code from 8720 to 3620. We disagree. Relator first claims there was no discussion by the magistrate concerning the fact that it was not engaged in the actual business of manufacturing despite the fact that code 3620 applies to manufacturers. To the contrary, the magistrate specifically noted that relator claimed the BWC's decision was arbitrary and capricious because it was not a manufacturer. The magistrate then cited and discussed the application of Ohio Adm.Code 4123-17-08(D)(7), which provides that where it is the business of an employer to repair products but no classification specifically refers to that type of repair work, the BWC must assign the classification that applies to the manufacturer of the product even when the employer does not manufacture any product. Thus, the magistrate did not ignore this issue. Relator's argument is without merit. {¶ 7} Relator next claims the magistrate failed to discuss how the BWC could assign it new code 3620 after 11 years of operating under code 8720. We disagree. The magistrate specifically explained the BWC had auth0rity to change relator's classification code, regardless of how many years it operated under the prior code, based on the following: no NCCI classification specifically applies to relator's business; relator's business exposes workers to greater risks than contemplated by the prior classification code; the description No. 17AP-831 4

in the new classification code encompasses aspects of relator's business that more closely align to it than the description for the old classification code; courts generally defer to the BWC's judgment regarding its assignment of classification codes; and Ohio Adm.Code 4123-17-08(D)(7) applies to these circumstances. Relator also fails to explain why the length of time relator operated under the prior code is relevant and fails to cite any authority for the proposition that BWC's analysis or authority is affected by the length of time the employer operated under a prior code. Thus, this argument is without merit. {¶ 8} Relator next claims the magistrate failed to discuss that it was the BWC and not relator that assigned code 8720 in 2004. However, relator fails to explain the relevance of this fact. Again, the length of time relator operated under the prior code is irrelevant. Furthermore, it is BWC's duty to assign classification codes under R.C. 4123.29(A)(1) and Ohio Adm.Code 4123-17-08; thus, that it was BWC that assigned the prior classification code is consistent with its requirement to do so.

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Bluebook (online)
2021 Ohio 1661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-am-cylinders-ents-inc-v-logue-ohioctapp-2021.