State ex rel. Eaton Corp. v. Lancaster

534 N.E.2d 46, 40 Ohio St. 3d 404, 1988 Ohio LEXIS 490
Ohio Supreme Court·Decided December 30, 1988·No. Nos. 87-622, 87-1887, 88-205 and 88-1312·Published·Cited by 97 cases

Opinions

Per Curiam.

In each of the cases before us, continued payment of temporary total disability compensation was ordered despite a finding that the claimant’s condition had become permanent. The commission concedes that in each case, compensation was continued pursuant to a long-standing commission policy, as contained in a memorandum of October 21, 1987. Specifically, the policy provided that hearing officers, in their discretion, could continue temporary total benefits, despite evidence of permanency, where the claimant had applied for permanent total disability compensation and appeared to meet the permanent total disability criteria.

We are presently asked to determine the validity of this policy. Upon review, we find it to be both substantively and procedurally invalid.

R.C. 4123.56, in addressing temporary total disability, provided in pertinent part:

“* * * [P]ayment shall not be made for such period when any employee has returned to work or when an employee’s treating physician has made a written statement that the employee is [407] capable of returning to his former position of employment.

“After two hundred weeks of temporary total disability benefits, the claimant shall be scheduled for an examination by the industrial commission medical department for an evaluation to determine whether or not the temporary disability has become permanent.”

In State, ex rel. Ramirez, v. Indus. Comm. (1982), 69 Ohio St. 2d 630, 632, 23 O.O. 3d 518, 519, 433 N.E. 2d 586, 588, we interpreted R.C. 4123.56 as follows:

“ ‘An employee is entitled to be paid temporary total disability when injured and unable to work until one of the following three things occur[s]: (1) he has returned to work, (2) his treating physician has made a written statement that he is capable of returning to his former position of employment, or (3) the temporary disability has become permanent.’ ” (Emphasis added.)

Ramirez thus contemplates that compensation paid pursuant to R.C. 4123.56 would, if the other statutory requirements were met, remain payable until the temporary disability became permanent without the statute specifically so stating.

In State, ex rel. Bryant, v. Pinkerton’s, Inc. (1986), 24 Ohio St. 3d 79, 24 OBR 226, 493 N.E. 2d 544, and Vulcan Materials Co. v. Indus. Comm. (1986), 25 Ohio St. 3d 31, 25 OBR 26, 494 N.E. 2d 1125, we held that the permanency question could be entertained at any point during a claimant’s receipt of temporary total compensation. State, ex rel. Dresser Industries, v. Indus. Comm. (Aug. 21, 1986), Franklin App. No. 85AP-212, unreported, and State, ex rel. Lynn, v. Indus. Comm. (July 15, 1986), Franklin App. No. 85AP-351, unreported, specifically stated that a finding of permanency precluded the payment of temporary total compensation. As noted in Lynn, “* * * [temporary total disability means a disability which is not permanent. * * * [T]he purpose of temporary total disability is not to compensate for those injuries which are diagnosed as permanent. * * *” Id. at 4. We agree.

The commission policy attempts to enlarge the class of claimants currently eligible for temporary total compensation. In State, ex rel. Ashcraft, v. Indus. Comm. (1984), 15 Ohio St. 3d 126, 15 OBR 276, 472 N.E. 2d 1077, we struck down a similar attempt to alter this class, invalidating a resolution that declared incarcerated claimants ineligible for temporary total disability compensation. Despite our acknowledgement that “[t]he policy to be served by the resolution is not repugnant to the purposes of the Workers’ Compensation Act * * *” (id. at 129, 15 OBR at 278, 472 N.E. 2d at 1079), we held that “[s]uch a policy decision * * * must emanate from the General Assembly.”

The problem the commission policy seeks to redress is caused by the sometimes lengthy interval between the decision to terminate temporary total compensation due to permanency and the decision to grant or deny permanent total disability. While hearing officers have initial authority to terminate temporary total compensation, a claimant must wait for a commission determination of his permanent total disability application. While such payments are retroactive, there is a potential for hardship. The commission would appear to be in the best position to remedy this situation. One solution would be to have the issue of continued temporary total benefits heard simultaneously with the claimant’s permanent total disability motion. Eligible claimants could then begin to receive permanent total disability compensation immediately upon termination of [408] temporary total benefits, thus eliminating the current delay.

An examination of the Ohio Revised Code reveals no language that confines jurisdiction over permanent total disability matters exclusively to the commission. R.C. 4121.35(B)(1) specifically provides otherwise by permitting staff hearing officers to hear permanent total disability applications. Unfortunately, where determinations as to temporary total benefits are made at the district hearing level, utilization of staff hearing officers in a permanent total disability capacity will merely reduce, not eliminate, the time delay at issue. The problem could be resolved, however, by the commission’s authorization of staff hearing officers to directly consider any application to terminate temporary total compensation when an application for permanent total compensation is pending.

Moreover, R.C. 4121.06(A) permits the commission to internally delegate to a commission deputy “[a]ny investigation, inquiry, or hearing which the commission is authorized to hold or undertake * * “Deputy,” pursuant to R.C. 4121.01(F), may be “any person employed by the industrial commission, * * * who possesses special, technical, scientific, managerial, professional, or personal abilities or qualities in matters within the jurisdiction of the commission, and who may be engaged in the performance of duties under the direction of the commission calling for the exercise of such abilities or qualities.” Thus, R.C. 4121.06(A) appears to afford the commission additional flexibility in implementing a mechanism whereby temporary total and permanent total questions are concurrently decided. Such a solution appears fair and sensible to all concerned: not only does it reduce temporary financial hardship to the claimant, but it also keeps the State Insurance Fund or self-insured employer from, in effect, subsidizing the commission’s seeming inability to process permanent total disability applications more expeditiously.

We anticipate that a fair and workable solution will be implemented immediately. Realistically, however, this will not occur overnight. We also realize that a substantial number of claimants are receiving temporary total compensation pursuant to the commission’s policy. Recognizing this, we decline to apply this policy so as to terminate the temporary total benefits of such claimants before the commission has had an opportunity to resolve the time delay problem, and thus hold our decision to be prospective. In so holding, however, we direct the commission, within ninety days of this decision, or as soon thereafter as is practicable, to hold hearings to determine the eligibility of these claimants for total disability benefits.

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

State ex rel. Eaton Corp. v. Lancaster, 534 N.E.2d 46, 40 Ohio St. 3d 404, 1988 Ohio LEXIS 490 (Ohio 1988).

534 N.E.2d 46 (State ex rel. Eaton Corp. v. Lancaster) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

State ex rel. Garrison v. Hawkins
2025 Ohio 3160 (Ohio Court of Appeals, 2025)
State ex rel. Feathers v. Pittman
2025 Ohio 3014 (Ohio Court of Appeals, 2025)
State ex rel. Surafi v. Oldfield
2025 Ohio 2761 (Ohio Court of Appeals, 2025)
State ex rel. Marbuery-Davis v. Cuyahoga Cty. Common Pleas Court
2025 Ohio 2602 (Ohio Court of Appeals, 2025)
State ex rel. Duncan v. Ohio Adult Parole Auth.
2024 Ohio 5994 (Ohio Court of Appeals, 2024)
State ex rel. Ellis v. Ohio Adult Parole Auth.
2024 Ohio 2345 (Ohio Court of Appeals, 2024)
Villavicencio v. Columbus
2024 Ohio 2276 (Ohio Court of Appeals, 2024)
State ex rel. Gideon v. Page
2024 Ohio 1219 (Ohio Court of Appeals, 2024)
Pamboukis v. Summit Cty. Domestic Relations Court
2023 Ohio 4507 (Ohio Court of Appeals, 2023)
State ex rel. Payne v. Rowlands
2023 Ohio 3957 (Ohio Court of Appeals, 2023)
State ex rel. Sanders v. Summit Cty. Court of Common Pleas
2023 Ohio 3613 (Ohio Court of Appeals, 2023)
State ex rel. Jones v. Paschke
2023 Ohio 1536 (Ohio Court of Appeals, 2023)
State ex rel. Gallagher v. Collier-Williams
2023 Ohio 748 (Ohio Supreme Court, 2023)
Beres v. O'Brien
2022 Ohio 4788 (Ohio Court of Appeals, 2022)
State ex rel. J.R. v. Jones
2022 Ohio 4642 (Ohio Court of Appeals, 2022)
Osmic v. Sutula
2022 Ohio 4216 (Ohio Court of Appeals, 2022)
State ex rel. Heyside v. Calabrese
2022 Ohio 1245 (Ohio Court of Appeals, 2022)
State ex rel. Gray v. Kimbler
2021 Ohio 2868 (Ohio Court of Appeals, 2021)
State ex rel. Hicks v. McBride
2021 Ohio 1855 (Ohio Court of Appeals, 2021)
State ex rel. Nyamusevya v. Hawkins
2020 Ohio 2690 (Ohio Court of Appeals, 2020)