State ex rel. Zarbana Industries, Inc. v. Hayes

2020 Ohio 5200
CourtOhio Court of Appeals
DecidedNovember 5, 2020
Docket19AP-71
StatusPublished
Cited by1 cases

This text of 2020 Ohio 5200 (State ex rel. Zarbana Industries, Inc. v. Hayes) 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. Zarbana Industries, Inc. v. Hayes, 2020 Ohio 5200 (Ohio Ct. App. 2020).

Opinion

[Cite as State ex rel. Zarbana Industries, Inc. v. Hayes, 2020-Ohio-5200.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

The State ex rel. Zarbana Industries, Inc., :

Relator, :

v. : No. 19AP-71

Jeremy M. Hayes et al., : (REGULAR CALENDAR)

Respondents. :

D E C I S I O N

Rendered on November 5, 2020

On brief: Bugbee & Conkley, LLP, Mark S. Barnes, and Gregory B. Denny, for relator.

On brief: Heller, Maas, Moro, & Magill, Co. LPA, and Patrick J. Moro, for respondent Jeremy Hayes.

On brief: Dave Yost, Attorney General, and John Smart, for respondent Industrial Commission of Ohio.

IN MANDAMUS ON OBJECTIONS TO THE MAGISTRATE'S DECISION

NELSON, J. {¶ 1} Jeremy Hayes "suffered severe injury to his right hand" when it was caught in a punch press on June 28, 2013 during his employment with Zarbana Industries, Inc. See May 12, 2016 staff hearing officer award for Violation of a Specific Safety Regulation ("VSSR order") at 2. Within two years, he applied to the industrial commission for a VSSR award, alleging that Zarbana had violated certain safety requirements established through the Ohio Administrative Code. See id. (detailing claims). Some months later, the commission advised the parties that its preliminary, non-binding estimate was that the application could result in an award to Mr. Hayes ranging in value from $20,866 to $69,554. See Stip. at 8. A hearing then conducted on March 17, 2016 convinced a No. 19AP-71 2

commission staff hearing officer that Zarbana had in fact failed to comply with a provision of the Ohio Administrative Code that requires a foot pedal for a punch press of this sort to have a front guard protecting against accidental activation. VSSR order at 10-11. Because the violation, like the injury, was "serious," the staff hearing officer believed that Mr. Hayes was due "an additional award of compensation * * * in the amount of 30 percent of the maximum weekly rate" (which we understand would amount to an award somewhat toward the middle of the estimated money range). Id. at 12. {¶ 2} Before the staff hearing officer had issued his VSSR order, however, Zarbana and Mr. Hayes proposed a settlement. See May 12, 2016 staff hearing officer order regarding settlement at 2 (referencing proposed settlement agreement executed April 5, 2016 and filed with the commission April 8, 2016). The proffered settlement was for a total sum of $2,000. Id.; see also Complaint at ¶ 8. Using language recommended on a form from the commission, the proposed agreement recited in part: The parties now desire to make a full and complete lump sum settlement of the Injured Worker[']s [VSSR] application, subject to the approval of the Industrial Commission. * * * [T]his agreement shall be submitted to the Industrial Commission of Ohio for approval, and Employer shall not pay the agreed amount until this agreement shall have been approved by the [] Industrial Commission and made a matter of record in the Claim * * *.

Magistrate's Decision at 3 (citing Stip. at 119); Complaint at ¶ 10 (noting use of "VSSR IC- 10" settlement form). {¶ 3} That language as adopted by the parties from the commission's suggested form is informed, in turn, by Ohio Adm.Code 4121-3-20 regarding "[a]dditional awards by reason of violations of specific safety requirements." Contemplating potential settlements, the administrative rule provides for a commission staff hearing officer to consider joint applications for settlement, either before or after adjudication of a VSSR application, and specifies: If the staff hearing officer finds that the settlement is appropriate, the staff hearing officer shall issue an order approving it. If the staff hearing officer does not find the settlement to be appropriate in its present form, the staff hearing officer shall schedule a hearing with notices to all parties and their representatives where the matter of the No. 19AP-71 3

proposed settlement is to be considered. Following the hearing, the staff hearing officer shall issue an order either approving or disapproving the settlement, and the order shall be final.

Ohio Adm.Code 4121-3-20(F)(1). {¶ 4} Here, the staff hearing officer did not approve the settlement as "appropriate," and on May 11, 2016 conducted a hearing "for the purpose of adjudicating the propriety of the Settlement of Claimed Violation of a Specific Safety Requirement." May 12, 2016 staff hearing officer order regarding settlement at 1. He noted that upon receiving the transcript of the VSSR hearing, he had "prepared a written decision adjudicating" Mr. Hayes's application, but then received the settlement filing "prior to publication of th[e] Merit Order." Id. at 1-2. Observing that the settlement agreement as filed "seeks to settle the Injured Worker's V.S.S.R. claim for the total sum of $2,000 (two- thousand dollars)," the hearing officer disapproved it as "neither fair nor equitable" in light of what he had seen and determined from the merits hearing. Id. at 2. Having disapproved the settlement proposal, the hearing officer also issued his VSSR award. May 12, 2016 staff hearing officer order regarding settlement; May 12, 2016 VSSR order (mailed that day). {¶ 5} Zarbana requested reconsideration of the settlement disapproval, but the commission found that it lacked authority to exercise continuing jurisdiction over the matter pursuant to R.C. 4123.52. Magistrate's Decision at ¶ 18-19; Complaint at ¶ 19-20. After an unsuccessful attempt for declaratory judgment, see Zarbana Industries, Inc. v. Hayes, 10th Dist. No. 18AP-104, 2018-Ohio-4965, Zarbana filed a mandamus action asking us to issue a writ ordering the commission to vacate its May 12, 2016 disapproval of the proposed settlement, approve the proposed settlement, and consequently vacate Mr. Hayes's VSSR award. Magistrate's Decision at 20-21; Complaint at prayer. {¶ 6} Pursuant to Civ.R. 53 and Loc.R. 13(M) of the Tenth District Court of Appeals, the court referred this matter to a magistrate. The Magistrate's Decision of April 9, 2020 made various findings of fact consistent with the description set forth above. In its "Discussion and Conclusions of Law," the magistrate properly noted that to obtain a writ of mandamus, "a relator must show a clear legal right to the relief sought, a clear legal duty on the part of the respondent to provide such relief, and the lack of an adequate remedy in the ordinary course of the law. State ex rel. Pressley v. Indus. Comm., 11 Ohio St.2d 141 (1967)." No. 19AP-71 4

Magistrate's Decision at 4; see also, e.g., Kinsey v. Bd. of Trustees of the Police & Firemen's Disability & Pension Fund, 49 Ohio St.3d 224, 225 (1990). Concluding that the commission had authority to disapprove the proposed settlement, and that Zarbana therefore does not have a clear legal right to the relief it seeks and that the commission did not have a clear legal duty to approve the settlement, the magistrate recommended that we deny the writ. Id. at 4, 6. {¶ 7} Zarbana has filed objections to the Magistrate's Decision, and we undertake "an independent review as to the objected matters to ascertain [whether] the magistrate has properly determined the factual issues and appropriately applied the law." Civ.R. 53(D)(4)(d). He has. {¶ 8} The gravamen of Zarbana's objections is that"[t]he magistrate suggests that the Commission has reserved the right to overturn the will of the parties because of the Commission's goal to promote safety and its general authority over VSSR claims. The error in the magistrate's reasoning is there is nothing in Ohio Admin.Code 4121-3-20(F)(1) reserving such a right to the Commission." Objections at 8-9.

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