W.A. Krueger Co. v. Industrial Commission

722 P.2d 337, 150 Ariz. 169, 1985 Ariz. App. LEXIS 854
CourtCourt of Appeals of Arizona
DecidedOctober 8, 1985
DocketNo. 1 CA-IC 3175
StatusPublished

This text of 722 P.2d 337 (W.A. Krueger Co. v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W.A. Krueger Co. v. Industrial Commission, 722 P.2d 337, 150 Ariz. 169, 1985 Ariz. App. LEXIS 854 (Ark. Ct. App. 1985).

Opinion

OPINION

HAIRE, Judge.

In this review of an award entered by the respondent Commission in a workers’ compensation proceeding, two issues are presented. The first issue relates to the extent of a substituted administrative law judge’s authority to modify on timely review an award entered by an administrative law judge who had resigned from office immediately after issuing the initial decision and award. Assuming that the substituted administrative law judge had the authority to modify the award under the circumstances presented in this case, the second issue concerns the legal correctness of the modification made by the substituted administrative law judge.

The relevant background is as follows. The respondent employee (claimant) herniated a cervical disk in an accident arising out of and in the course of his employment. .Treating neurosurgeon Paul W. LaPrade, [170]*170M.D., performed a diskectomy to decompress the left C-7 nerve root. The normal consequence of this surgery is a narrowed disk space. The surgery appeared successful. A nerve conduction study and electromyography were normal. Physical examination revealed no weakness. Although the claimant continued to complain of neck pain, Dr. LaPrade expected progressive improvement. After discussing the case with a rehabilitation counselor, Dr. LaPrade concluded that within approximately two months the claimant should be able to return to regular work.

After the claimant learned of this prognosis, he began to complain of severe, disabling neck pain. Dr. LaPrade ran a battery of tests to determine the cause of these symptoms. All test results were normal. Because Dr. LaPrade considered the symptoms unusual and entirely subjective, he suspected that the claimant was malingering.

A surveillance film obtained by the carrier showed the claimant performing various physical activities without apparent discomfort and with normal range of neck motion. After viewing this film, Dr. LaPrade issued a report discharging the claimant without “permanent disability.”

Relying on this report, the carrier issued a notice of claim status closing the claim. The claimant protested, asserting that he was not yet stationary or that he had a permanent impairment. Hearings were then conducted.

Dr. LaPrade testified that the claimant was stationary and unimpaired. Although he conceded that the American Medical Association Guides to the Evaluation of Permanent Impairment (Guides) provided for a 5% impairment for the surgical removal of a disk even if the removal had no residual or other effects, he disregarded the Guides because in his opinion the recommended rating was too liberal in this case:

“I mean, it’s a guide. It is a key. I don’t think—I don’t believe those figures are etched in stone, and I think that occasionally we deviate a little bit, I think. Sometimes if somebody has a bad problem that renders an upper extremity virtually useless so they cannot perform their work, I think sometimes they don’t suggest enough disability, and on the other hand I think that sometimes if somebody has a problem that can be corrected surgically and for all intents and purposes they are back to normal, I think it gives them too much permanent disability. So, it is just my own personal feeling and, you know, for what it is worth.”

Orthopedic surgeon Joseph Gimble, M.D., who had examined the claimant twice, also testified. He had no diagnosis to explain the claimant’s subjective symptoms, and he deferred to the treating physician’s rating of impairment. Although he also confirmed that the Guides allow a 5% impairment for the surgery itself, he agreed with Dr. LaPrade that in his opinion this was only a guideline:

“I use the AMA Guides as a basis if I give you a rating, but a lot of times I’ll let my impression of the patient in terms of how he is doing and how functional he is override the Guidelines in my estimation in my opinion.
“I will have patients that are functionally able to return and I don’t give them a rating at all. I may be a little stricter in terms of rating than the average person might be, but I use the AMA Guidelines as a guide, as just what they say, Guidelines, and I don’t stick to them and use them as a Bible.”

The administrative law judge who heard the evidence then issued an award closing the claim without permanent impairment. Although the award made factual findings relevant to credibility, it drew no conclusion about the claimant’s credibility. Rather, the award was based on the medical evidence:

“12. It is found that Dr. LaPrade was familiar and aware of the AMA Guidelines and that he stated that the AMA Guidelines did not cover these [sic] specific impairment or lack thereof of this individual case. Dr. LaPrade stated that in his opinion the guidelines were guide[171]*171lines and that flexibility was allowed within the guidelines and that in his medical opinion the applicant had no permanent impairment causal [sic] related to the original industrial injury.”

After issuing this award, the administrative law judge resigned, and a substitute administrative law judge was assigned for administrative review. See generally A.R.S. § 23-942(B). The claimant’s request for administrative review argued that the initial administrative law judge had misinterpreted the Commission’s rule and the cases interpreting it. The substituted administrative law judge entered a decision upon review, finding as follows:

“14. While Dr. LaPrade chose not to follow the AMA Guidelines with respect to rating impairment of applicant relative to his industrial injury, the AMA Guidelines must be employed where applicable. See Desert Insulations v. Industrial Commission, 134 Ariz. 148, 654 P.2d 296 (App.1982), Adams v. Industrial Commission, supra. Dr. LaPrade admitted that AMA Guidelines, would have found applicant had a 5% impairment since he had an operation for a herniated disc, without residuals. While it is true Dr. LaPrade found applicant had no permanent impairment because of no residuals following surgery and because he could not believe the applicant’s complaints of pain following review of surveillance films, the AMA Guidelines are clear that applicant has an impairment of whole man of 5% even without residuals when a herniated disc has been removed by surgery.
“15. Dr. LaPrade’s finding of no permanent impairment under case law and under AMA Guidelines is without foundation since applicant’s injury was an injury involving removal of a herniated disc from spinal cord. Therefore, it is determined that such opinion cannot be used as basis for finding applicant had no permanent impairment relative to his industrial accident. Desert Insulations v. Industrial Commission, supra.
“16. Based on AMA Guidelines with respect to rating impairment, applicant had a 5% permanent impairment of whole man and his condition became medically stationary by June 15, 1983.
“17. Determination with respect to loss of earning capacity and amount of permanent partial disability compensation are matters for future administrative action.”

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Cite This Page — Counsel Stack

Bluebook (online)
722 P.2d 337, 150 Ariz. 169, 1985 Ariz. App. LEXIS 854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wa-krueger-co-v-industrial-commission-arizctapp-1985.