State ex rel. Price v. Central Services, Inc.

97 Ohio St. 3d 245
CourtOhio Supreme Court
DecidedDecember 4, 2002
DocketNo. 2001-0190
StatusPublished
Cited by17 cases

This text of 97 Ohio St. 3d 245 (State ex rel. Price v. Central Services, Inc.) 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. Price v. Central Services, Inc., 97 Ohio St. 3d 245 (Ohio 2002).

Opinions

Alice Robie Resnick, J.

{¶ 1} On December 22, 1969, claimant-appellee, Patrick D. Price, received a multitude of severe injuries in the course of and arising from his employment as an appliance repair person for Central Services, Inc. His workers’ compensation claim was allowed by appellant Industrial Commission of Ohio for “[c]ompound fracture right distal radius and ulna; comminuted fracture right olecranon; compound fracture right tibia and fibula; fracture right ankle with trimalleolar; fracture left tarsus with dislocation; fracture left femur mid shaft; multiple lacerations; fracture of right humerus; post traumatic degenerative arthritis in right wrist, right ankle and right foot; arthritis right knee.”

{¶ 2} Due to his industrial injuries, Price was unable to work for over a year. During that time, Price received temporary total disability compensation based on an average weekly wage (“AWW”) of $56. This AWW was calculated on the basis of Price’s earnings for the year preceding his injury (1968), in accordance with the standard method for calculating a claimant’s AWW under R.C. 4123.61. Price eventually returned to his employment and continued working at higher salaries for over 26 additional years, despite numerous hospitalizations and surgeries and continuing degradation of his health. He last worked on March 31, 1997. His AWW, based on his earnings in 1996, is $484.44.

{¶ 3} On December 13, 1997, Price applied for permanent total disability (“PTD”) compensation. In March 1999, a staff hearing officer awarded Price PTD compensation from December 15, 1997, at a rate of $45.50 per week. It appears that this rate was computed by multiplying Price’s 1968 AWW of $56 by 66 and 2/3 percent, and then raising that amount to the statutory minimum rate for PTD awards that was in effect in 1969. See former R.C. 4123.58, 132 Ohio [246]*246Laws, Part I, 1420. Price’s PTD award was then reduced to $36.40 per week after he applied for and was granted a lump-sum payment of $4,358.90 for attorney fees.

{¶ 4} Price then moved for an upward adjustment of his AWW and a recalculation of his weekly PTD payments in order to reflect his earnings in 1996, the last full year that he worked before his industrial injuries forced him from the job market. In support of this request, Price relied upon the “special circumstances” provision in R.C. 4123.61 and this court’s decision in State ex rel. Lemke v. Brush Wellman, Inc. (1998), 84 Ohio St.3d 161, 702 N.E.2d 420. Based on this authority, and finding “extraordinary circumstances,” the staff hearing officer granted Price’s motion, reset his AWW at $484.44, and ordered that Price’s PTD rate “be readjusted in light of claimant’s average weekly wage being set at $484.44.”

{¶ 5} In a split decision, the commission modified the order of its staff hearing officer. The commission increased Price’s AWW from $56 to $484.44, but then limited his PTD award to a maximum rate of $56 per week. In so doing, the commission made three essential findings. First, the commission found that the staff hearing officer’s “decision is based upon the misapplication of [Lemke].” According to the commission’s order, Lemke is limited to the situation where a claimant suffering from an occupational disease incurs no compensable lost time prior to becoming permanently and totally disabled. In contrast, the commission explained, Price’s “claim involves an injury and not an occupational disease” and Price “was disabled and paid temporary total disability compensation in 1969.”

{¶ 6} Second, the commission found that despite the inapplicability of Lemke, Price’s situation constitutes “special circumstances” under R.C. 4123.61, and that in order to do substantial justice in this case, Price’s AWW should nevertheless “be set at $484.44, which represents [his] earnings for the year prior to his last date worked divided by 52 weeks worked.”

{¶ 7} Third, the commission found that regardless of Price’s AWW, his PTD award must “be paid at the statutory maximum rate [of $56 per week] pursuant to the provisions of Section 4123.58 of the Revised Code for a 1969 injury claim.”

{¶ 8} The dissenting commissioner agreed that Price’s AWW should be raised to $484.44, but disagreed with the majority’s decision to limit Price’s permanent total disability compensation to the statutory maximum rate for a 1969 injury. The dissenter believed that “the holding of Lemke applies to this case, regardless of the fact that this is an injury claim and not an occupational disease claim,” and pointed out that “[i]n Lemke, the Court specifically ordered that the AWW and PTD be recomputed.”

{¶ 9} Following this decision, Price filed a complaint in the court of appeals, seeking a writ of mandamus to compel the commission “to set his average weekly [247]*247wage for the calculation of permanent total disability benefits from the year prior to his application for said benefits and not based upon the statutory rate of a 1969 injury.” A magistrate recommended that the requested writ be denied. According to the magistrate, Lemke may fairly be interpreted to mean that under special circumstances, a claimant’s right to PTD compensation for an occupational disease is subject to whatever statutory maximum limit is in effect on the date of the claimant’s disability, but Lemke does not apply in injury claims. In cases involving an industrial injury, as opposed to an occupational disease, the maximum amount of weekly PTD benefits is always determined by the statute in force on the date of injury, even where special circumstances require the claimant’s AWW to reflect his or her earnings at the time of disability.

{¶ 10} On objections to the magistrate’s decision, the court of appeals found the magistrate’s recommendation to be “incorrect as a matter of law” and granted a writ “ordering the commission to recalculate relator’s AWW based upon his earnings from 1996.” While this writ appears to compel the commission to do what it already did, which is to set Price’s AWW at $484.44, it is clear from the appellate court’s decision that the court was also ordering the commission to determine Price’s PTD rate in accordance with his newly established AWW without regard to the $56 per week cap on PTD awards that was in effect in 1969.

{¶ 11} The cause is now before this court upon an appeal as of right.

{¶ 12} This case has been needlessly complicated by the various interpretations and limitations placed upon our decision in State ex rel. Lemke, 84 Ohio St.3d 161, 702 N.E.2d 420. The issue is simply whether Price’s PTD award is subject to the statutory limit in effect on the date of his injury. To determine this issue, we need consider the relationship between only R.C. 4123.58 and 4123.61 as they both existed in 1969, and decide whether the $56 limit in former R.C. 4123.58, like the standard formula for determining AWW in R.C. 4123.61, must also give way in light of the “special circumstances” of this case. However, we are now constrained to dispel certain misconceptions regarding our decision in Lemke.

{¶ 13} R.C. 4123.61 sets forth a standard method or formula for calculating the AWW of injured employees, which serves as the basis upon which to compute disability benefits. R.C. 4123.611

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112 Ohio St. 3d 81 (Ohio Supreme Court, 2006)
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97 Ohio St. 3d 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-price-v-central-services-inc-ohio-2002.