State ex rel. Johnson v. Industrial Commission

533 N.E.2d 775, 40 Ohio St. 3d 384, 1988 Ohio LEXIS 489
Ohio Supreme Court·Decided December 30, 1988·No. No. 88-158·Published·Cited by 38 cases

Opinions

Holmes, J.

The determinative question before this court is whether a claimant has an absolute right to receive benefits under R.C. 4123.57(A) based upon a prior determination of the percentage of a claimant’s partial disability. For the reasons that follow, we hold that a claimant does not have such an absolute right to receive compensation under Section (A), and therefore we reverse the court of appeals.

The version of R.C. 4123.57 in effect on the date of appellee’s injury,1 provided in relevant part:

[386] “Partial disability compensation shall be paid as follows, provided, that an employee may elect as between divisions (A) and (B) of this section as to the manner of receiving the compensation set forth in this section:

“(A) In case of injury or occupational disease resulting in partial disability other than those exclusively provided for under division (C) of this section, the employee shall receive per week sixty-six and two-thirds per cent of the impairment of his earning capacity which results from the injury or occupational disease during the continuance thereof, not to exceed a maximum amount of weekly compensation which is equal to the statewide average weekly wage as defined in division (C) of section 4123.62 of the Revised Code, but not in a greater sum in the aggregate than seventeen thousand five hundred dollars.

a* * *

“(B) The district hearing officer, upon such application, shall determine the percentage of the employee’s permanent disability, except such as is subject to division (C) of this section, based upon that condition of the employee resulting from the injury or occupational disease and causing permanent impairment evidenced by medical or clinical findings reasonably demonstrable. * * *” (Emphasis added.)

In opposing the unqualified right to receive benefits under R.C. 4123.57(A), appellants contend that such an unqualified right destroys the distinction between permanent partial disability and impairment of earning capacity. Appellee, on the other hand, essentially argues that this court’s recent decisions in State, ex rel. Bouchonville, v. Indus. Comm. (1988), 36 Ohio St. 3d 50, 521 N.E. 2d 773; State, ex rel. Stephenson, v. Indus. Comm. (1987), 31 Ohio St. 3d 167, 31 OBR 369, 509 N.E. 2d 946; and Meeks v. Ohio Brass Co. (1984), 10 Ohio St. 3d 147, 10 OBR 482, 462 N.E. 2d 389, have eliminated any distinction between R.C. 4123.57(A) and (B) as regards the proof necessary to establish an award under each, thus making the right to receive benefits unqualified. Although the language used in Bouchonville is somewhat misleading, appellee’s arguments are not supported by a clear reading of the statute and the cases on which he relies.

As a predicate to election between Sections (A) and (B) of the statute, R.C. 4123.57 requires that the claimant demonstrate that he or she suffered an injury in the course of employment and that such injury left the claimant partially disabled.2 Accord State, ex rel. Morris, v. Indus. Comm. (Dec. 23, 1980), Franklin App. No. 80AP-212, unreported. The determination of partial disability must take into account both medical and relevant nonmedical considerations such as age, education, work history, etc. Stephenson, supra. “Disability” is thus a legal term, which has been defined as “the effect that the physical impairment [a medical determination] has on the claimant’s ability to work.” Stephenson, supra, at 171, 31 OBR at 373, 509 N.E. 2d at 950. Once the claimant obtains this predicate determination of partial disability, made in terms of a percentage, an election of compensation under Section (B) [387] is a fait accompli — claimant receives a permanent (lump-sum) award based on the percentage of partial disability. An award under Section (B) is in the nature of general damages, and “is an exception to the general rule that sections of the Ohio Workmen’s Compensation Law ‘are aimed exclusively at compensating for impairment of earning capacity.’ ” Fleischman v. Flowers (1971), 25 Ohio St. 2d 131, 134, 54 O.O. 2d 265, 266, 267 N.E. 2d 318, 320, quoting State, ex rel. Latino, v. Indus. Comm. (1968), 13 Ohio St. 2d 103, 106, 42 O.O. 2d 324, 325, 234 N.E. 2d 912, 914; see, also, Young, Workmen’s Compensation Law of Ohio (2 Ed. 1971) 144, Section 7.22; State, ex rel. Hammond, v. Indus. Comm. (1980), 64 Ohio St. 2d 237, 18 O.O. 3d 438, 416 N.E. 2d 601. While impairment of earning capacity may be considered in this determination of general damages, “it is nevertheless not the only criterion, and it may not even be a major one.” Latino, supra, at 107, 42 O.O. 2d at 326, 234 N.E. 2d at 915.

In contrast, when election is made under R.C. 4123.57(A), compensation “is clearly based on the theory of providing compensation for the actual impairment of earning capacity.” Latino, supra, at 106, 42 O.O. 2d at 326, 234 N.E. 2d at 914. Thus, when a claimant has demonstrated to the Industrial Commission that he or she has suffered an injury in the course of employment and the commission has determined the percentage to which such injury left the claimant partially disabled, and the claimant elects to receive compensation under R.C. 4123.57(A), proof of actual impairment of earning capacity must be presented to support an award of weekly compensation thereunder. To the extent that the language of Bouchonville, supra, is inconsistent with this holding, it is hereby overruled.

Appellants also contend that an unqualified election right contravenes sound public policy. It is appellants’ argument that the solvency of the State Insurance Fund would be tested if every claimant with a permanent disability was allowed to elect under R.C. 4123.57(A), and thus draw the $17,500 statutory maximum.

Given our holding above that election under (A) must be supported by specific proof, we find this contention to be unmeritorious. Appellants’ argument is based, in part, on the erroneous premise that an election under R.C. 4123.57(A) automatically entitles the claimant to the statutory maximum. There is no automatic entitlement to the statutory maximum. As this court reasoned in State, ex rel. Nolasco, v. Borg-Warner Corp. (1983), 6 Ohio St. 3d 23, 25, 6 OBR 20, 21, 450 N.E. 2d 1178, 1180, continued payment of earning impairment benefits is contingent upon proof of continued impairment.

The next question we need to consider in this vein is whether a claimant must establish that he is not able to earn at the same rate as he earned prior to his injury. The district hearing officer’s order in the cause sub judice denied appellee’s right to elect under R.C. 4123.57(A) based on the finding that no “impairment in earnings” was present because appellee was unable to demonstrate a decrease in earnings.

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State ex rel. Johnson v. Industrial Commission, 533 N.E.2d 775, 40 Ohio St. 3d 384, 1988 Ohio LEXIS 489 (Ohio 1988).

533 N.E.2d 775 (State ex rel. Johnson v. Industrial Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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