Steven Lee Enterprises v. Varney

36 S.W.3d 391, 2000 Ky. LEXIS 153, 2000 WL 1736906
CourtKentucky Supreme Court
DecidedNovember 22, 2000
Docket1999-SC-0129-WC, 1999-SC-0165-WC
StatusPublished
Cited by26 cases

This text of 36 S.W.3d 391 (Steven Lee Enterprises v. Varney) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steven Lee Enterprises v. Varney, 36 S.W.3d 391, 2000 Ky. LEXIS 153, 2000 WL 1736906 (Ky. 2000).

Opinions

COOPER, Justice.

Danny Varney became disabled by pneumoconiosis on March 5, 1988. He filed his verified application for adjustment of claim in May 1988. His application identified his wife as Ardena Varney and his dependent children as Darrell Varney, Danny Varney and Jason Varney, all residing with him at General Delivery, Kimper, Kentucky. Varney was found to be totally disabled under the 1988 version of KRS 342.732(l)(d) and was awarded workers’ compensation benefits, which were apportioned 25% against the employer and 75% against the Special Fund as then required by KRS 342.316(10)(a). The claimant in this case, Samantha Varney, was born of Danny Varney and Tressa Sue Brewster on December 29, 1993. The record does not reflect when Danny divorced Ardena Varney; but he married Brewster in January 1994 and subsequently divorced her in July 1995. Varney died as a result of his pneumoconiosis on December 10, 1996. On January 10, 1997, Tressa Brewster Varney filed this motion to reopen Danny Varney’s workers’ compensation claim for the purpose of obtaining death benefits for Samantha under KRS 342.730(3). (Since it is undisputed that Varney died as a result of his compensable disease, Samantha’s claim for benefits should have been brought under KRS 342 ,750(l)(d).)

By its own language, KRS 342.750 applies only to deaths caused by work-related injuries. Its provisions are made applicable to deaths caused by occupational diseases by KRS 342.316(4), now (5)(e), and KRS 342.316(7), now (8). At all relevant times, KRS 342.316(7) provided:

No compensation for death from occupational disease shall be payable to any person whose relationship to the deceased, which, under the provisions of this chapter would give right to compensation, arose, subsequent to the beginning of the first compensable disability, save only to after-born children of a marriage existing at the beginning of such disability.

Relying on this statute, both the Administrative Law Judge (ALJ) and the Workers’ Compensation Board denied Samantha’s claim for death benefits. The Court of Appeals, however, found that because the statute compensated only after-born children of a marriage existing when the deceased worker’s disability began, it im-permissibly discriminated against after-born illegitimate children such as Samantha. For that reason, the Court of Appeals declared the statute to be in violation of the Equal Protection Clauses of the United States and Kentucky Constitutions and, thus, invalid. U.S. Const., amend. XIV, Ky. Const. § 3.

KRS 342.316(7), now (8), is but a codification of what we have consistently recognized as a basic principle of workers’ compensation law, ie., entitlement to benefits is determined as of the date of the compensable event, which, with respect to an occupational disease, is the date of the last injurious exposure or the date of actual disability, whichever is later. KRS 342.316(l)(b). E.g., Newberg v. Davis, Ky., 867 S.W.2d 193 (1993) (widow’s entitlement to death benefits is governed by the law in effect on the date of the worker’s last injurious exposure rather than on the date [394]*394of his death); Vogt & Conant Co. v. Boelhauf, Ky., 317 S.W.2d 163 (1958) (relationship of dependency must be determined in accordance with the facts existing at the time of the accident); Miller v. Elkhorn Coal Corp., 284 Ky. 737, 145 S.W.2d 822 (1940) (dependency for purposes of workers’ compensation is determined as of the time of the accident); Franklin Fluorspar Co. v. Bell, 247 Ky. 507, 57 S.W.2d 481 (1933) (the object of the Workers’ Compensation Act is to compensate those who were dependent on the employee at the time of the accident). Unlike the Court of Appeals, we do not view KRS 342.316(7), now (8), as discriminating against after-born children of a marriage which did not exist on the date of the compensable event. Rather, we agree with the ALJ’s observation that the statute is, in fact, a saving statute which extends benefits to after-born children of a marriage existing on the date of the compensable event. Otherwise, no after-born children would be entitled to benefits. But even if we agreed with the Court of Appeals on that issue, we would still disagree with the equal protection analysis applied by that Court to this statute.

A statute challenged on equal protection grounds is subject to “strict scrutiny,” i.e., sustainable only if the statute is suitably tailored to serve a “compelling state interest,” if it affects a fundamental right or a suspect classification, such as race, alienage or ancestry. Massachusetts Bd. of Retirement v. Murgia, 427 U.S. 307, 312, 96 S.Ct. 2562, 2566, 49 L.Ed.2d 520 (1976). However, if the statute merely affects social or economic policy, it is subject only to “rational basis” analysis. City of Cleburne v. Cleburne Living Center, Inc., 473 U.S. 432, 440, 105 S.Ct. 3249, 3254, 87 L.Ed.2d 313 (1985). In Wynn v. Ibold, Inc., Ky., 969 S.W.2d 695 (1998), we rejected an equal protection challenge to KRS 342.730(4) (the so-called “tier-down” statute), holding that workers’ compensation statutes affect only economic policy and matters of social welfare, as opposed to fundamental rights or suspect classes; thus, the statute did not violate the Equal Protection Clause since it was “rationally related to a legitimate state objective.” Wynn v. Ibold, Inc., supra, at 696 (emphasis added).

The Court of Appeals correctly identified illegitimacy as a “suspect classification,” which, like gender, is subject to a higher level of scrutiny than mere “rational basis” analysis. Lalli v. Lalli, 439 U.S. 259, 265, 99 S.Ct. 518, 523, 58 L.Ed.2d 503 (1978); Weber v. Aetna Cas. & Sur. Co.,

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Cite This Page — Counsel Stack

Bluebook (online)
36 S.W.3d 391, 2000 Ky. LEXIS 153, 2000 WL 1736906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steven-lee-enterprises-v-varney-ky-2000.