State ex rel. Estate of McKenney v. Industrial Commission

110 Ohio St. 3d 54
CourtOhio Supreme Court
DecidedJuly 26, 2006
DocketNo. 2005-0513
StatusPublished
Cited by8 cases

This text of 110 Ohio St. 3d 54 (State ex rel. Estate of McKenney v. Industrial Commission) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Estate of McKenney v. Industrial Commission, 110 Ohio St. 3d 54 (Ohio 2006).

Opinion

Per Curiam.

{¶ 1} Patrick McKenney died while receiving weekly payments of scheduled loss compensation under R.C. 4123.57(B). His widow died after applying for a lump-sum payment of the remaining compensation. Her estate now seeks that payment. Upon review, we affirm the judgment of the court of appeals denying payment to the estate.

{¶ 2} Patrick McKenney’s workers’ compensation claim was allowed for quadriplegia. He successfully applied for permanent total disability benefits and was also awarded 850 weeks of scheduled loss benefits under R.C. 4123.57(B) for the loss of use of all four limbs.

(¶ 3} After six weeks of payment, Patrick died of an injury-related heart attack on March 15, 2002. On April 26, 2002, his surviving spouse and sole dependent, Nancy, moved appellee Industrial Commission of Ohio for a lump-sum payment of the" remaining 844 weeks of scheduled loss compensation. The next day, Nancy died. Her estate, the appellant herein, was then substituted as a party for the purposes of pursuing her motion.

{¶ 4} On October 3, 2003, the commission awarded the estate scheduled loss benefits only through April 27, 2002, the date of Nancy’s death. It reasoned:

[55]*55{¶ 5} “R.C. 4123.57(B) provides for an award of compensation for loss of use to the surviving spouse of the injured worker of such compensation accrued during the injured worker’s lifetime and that which would have accrued had the injured worker survived. The statute makes no such award for compensation that will not accrue until after the death of the surviving spouse or any eligible dependent. Therefore, when Nancy McKenney died on 04/27/2002, the unaccrued loss of use benefits were no longer payable in the absence of an eligible dependent to whom a further award could be made. The plain language of R.C. 4123.57(B) makes it clear that the surviving spouse’s entitlement to the loss of use benefits abates upon her death and no further benefits are payable. The Industrial Commission declines the invitation to rewrite the statute and pay compensation beyond what the legislature intended.” (Emphasis sic.)

{¶ 6} The estate responded with a mandamus action in the Court of Appeals for Franklin County, seeking a writ ordering the commission to pay the estate the amount it sought. The court of appeals affirmed the commission’s reasoning and denied the writ, prompting the estate’s appeal as of right.

{¶ 7} No one challenges the estate’s entitlement to some portion of the scheduled loss award. At issue is the amount thereof, and, in this regard, prior case law is clear — a dependent’s estate can recover only compensation that had accrued to the dependent before the dependent’s death but that had not been paid. Indus. Comm. v. Dell (1922), 104 Ohio St. 389, 135 N.E. 669; State ex rel. Hoper v. Indus. Comm. (1934), 128 Ohio St. 105, 190 N.E. 222; State ex rel. Nossal v. Terex Div. of I.B.H. (1999), 86 Ohio St.3d 175, 712 N.E.2d 747.

{¶ 8} R.C. Chapter 4123 does not define “accrued,” leaving the ter,m to its “usual, normal, or customary meaning.” State ex rel. Bowman v. Columbiana Cty. Bd. of Commrs. (1997), 77 Ohio St.3d 398, 400, 674 N.E.2d 694. That definition, however, does not advance resolution of the issue, since the term is defined as “to come into existence as an enforceable claim: vest as a right.” Webster’s Third New International Dictionary (1986) 13. Precisely when the interest at issue becomes an enforceable claim or right — the question here — is not answered by the definition.

{¶ 9} The estate claims that the entire amount of the scheduled loss award accrued to Nancy at Patrick’s death. R.C. 4123.57(B) does not support this assertion. The relevant passage provides:

{¶ 10} “When an award under this division has been made prior to the death of an employee all unpaid installments accrued or to accrue under the provisions of the award shall be payable to the surviving spouse, or if there is no surviving spouse, to the dependent children of the employee and if there are no such children, then to such dependents as the administrator determines.”

[56]*56{¶ 11} The estate’s reliance on the mandatory “shall” is misplaced, because the mandate presumes a living dependent, which is not the case here. Moreover, the statute specifically refers to installments “accrued or to accrue.” (Emphasis added). If the entire amount accrued immediately, as the estate claims, there would be no need for this language. The estate’s interpretation of the statute is, therefore, rendered untenable by the statute’s very language.

{¶ 12} The estate’s position is also not advanced to the extent it hoped by the concurring opinion in LaCavera v. Cleveland Elec. Illum. Co. (1984), 14 Ohio App.3d 213, 217-218, 14 OBR 240, 470 N.E.2d 476 (Markus, J., concurring). The estate relies on this passage:

{¶ 13} “No real distinction exists between unpaid compensation for temporary disability and unpaid dismemberment compensation under R.C. 4123.57(C) [now 4123.57(B) ]. Additional compensation accrues for temporary disability when the worker’s temporary disability continues or he incurs additional medical expenses. R.C. 4123.56 and 4123.66. Therefore, no further compensation can accrue for a temporary disability or additional medical expense after the worker dies.

{¶ 14} “By contrast, compensation for dismemberment under R.C. 4123.57(C) is fully determined when the dismemberment occurs. The total compensation payable under R.C. 4123.57(C) is measured as a fixed multiple of the worker’s ‘average weekly wage’ rate, as defined by the Revised Code. However, the ‘accrued’ compensation is payable by a lump sum disbursement or by weekly installments as the Industrial Commission deems appropriate. R.C. 4123.64. Thus, the total compensation for dismemberment under R.C. 4123.57(C) is ‘accrued but unpaid’ immediately after the dismemberment occurs.” (Emphasis sic.)

{¶ 15} According to the estate, the LaCavera concurrence supports the notion that scheduled loss compensation is unique and should be unfettered by the principles governing other forms of compensation upon the death of a relevant party. Larson, however, in his treatise, Workers’ Compensation Law (2001), cautions against undue reliance on the supposed uniqueness of scheduled loss compensation, reminding that those benefits are “not, however, to be interpreted as an erratic deviation from the underlying principle of compensation law — that benefits relate to loss of earning capacity and not to physical injury as such. The basic theory remains the same; the only difference is that the effect on earning capacity is a conclusively conclusively [sic] presumed one * * *.” (Footnote omitted.) 4 Larson, Section 86.02.

{¶ 16} It therefore follows that the loss of earning capacity that scheduled loss compensation was intended to ameliorate ceases upon the death of the injured worker — just as it does with all other forms of disability compensation.

[57]*57{¶ 17} Perhaps a more problematic aspect of the LaCavera concurrence is its offhand equation of lump-sum and installment payments.

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Bluebook (online)
110 Ohio St. 3d 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-estate-of-mckenney-v-industrial-commission-ohio-2006.