Wilhite v. Liberty Veneer Co.

267 S.E.2d 566, 47 N.C. App. 434, 1980 N.C. App. LEXIS 3127
CourtCourt of Appeals of North Carolina
DecidedJuly 1, 1980
Docket7910IC911
StatusPublished
Cited by12 cases

This text of 267 S.E.2d 566 (Wilhite v. Liberty Veneer Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilhite v. Liberty Veneer Co., 267 S.E.2d 566, 47 N.C. App. 434, 1980 N.C. App. LEXIS 3127 (N.C. Ct. App. 1980).

Opinion

CLARK, Judge.

This appeal presents a question of first impression in this jurisdiction: Whether the dependents of an employee who suffers a serious bodily disfigurement due to an accident covered by the Workers’ Compensation Act, but who dies due to an unrelated cause, are nonetheless entitled to a post mortem award for serious bodily disfigurement?

Several rules of law are undisputed. The purpose of the Workers’ Compensation Act, N.C. Gen. Stat. Ch. 97, is “to furnish compensation for loss of earning capacity.” Branham v. Denny Roll & Panel Co., 223 N.C. 233, 236, 25 S.E. 2d 865, 868 (1943). “[Ujnder our Act, wages earned, or the capacity to earn wages, is the test of earning capacity, or, to state it differently, the diminution of the power or capacity to earn is the measure of compensability.” 223 N.C. at 237, 25 S.E. 2d at 868. This rule also applies to compensation for serious bodily disfigurement under N.C. Gen. Stat. § 97-31(22). “Disfigurement alone is not made compensable by the Act. Before it is compensable it must be ... not only (1) marked disfigurement, but also one which (2) impairs the future usefulness or occupational opportunities of the injured employee.” (Citations and internal quotations omitted) Davis v. Sanford Construction Company, Inc., 247 N.C. 332, 339, 101 S.E. 2d 40, 45 (1957). See also, 2 Larson, Workmen’s Compensation Law 58-32 (1976). “[Tjhere is a serious disfigurement in law only when there is a serious disfigurement in fact. A serious disfigurement in fact is a disfigurement that ... adversely affects the appearance of the injured employee to such extent that it may be reasonably presumed to lessen his opportunity for remunerative employment .... [N]o present loss of wages need be established; but to be serious, the disfigurement must be of such nature that it may be fairly presumed that the injured employee has suffered a diminution of his future earning power.” (Citations omitted) Davis, supra, 247 N.C. at 336, 101 S.E. 2d at 43. The Commission “should take into consideration the natural physical handicap resulting from the disfigurement, the age, training, experience, educa *437 tion, occupation and adaptability of the employee to obtain and retain employment.” Stanley v. Hyman-Michaels Co., 222 N.C. 257, 266, 22 S.E. 2d 570, 576 (1942).

The problem in this case is not one of determining whether the above rules apply, but rather is one of determining when they apply. The appellees assert that the proper focus is upon the post mortem diminution in earning capacity, and that after one’s death there is no earning capacity to be diminished. Appellees also argue that, in any event, no disfigurement award can be made until the decedent had reached maximum medical improvement or the end of the healing period, and since the end of the healing period had not been reached (decedent received temporary total disability payments up to the date of his death), the extent of decedent’s disfigurement could not be computed, was therefore premature and was riot recoverable. N.C. Gen. Stat. § 97-31 does lend some credence to this argument by providing for compensation during specified periods of time beyond the “healing period.” The introductory language of N.C. Gen. Stat. 97-31, however, does not account for the possibility that death from another cause may cut off the healing period. The better rule, we think, is expressed by Professor Larson:

“[I]f the injured employee dies before stabilization has taken place, the degree of impairment should not be taken as that in effect at the moment of death. The proper procedure is to make the best possible medical estimate of the probable residual disability that would have remained if the employee had lived to complete his healing period.”

2 Larson, Workmen’s Compensation Law, § 58-40 at 10-258 to -259 (1976). This result, we think, is more consonant with N.C. Gen. Stat. § 97-37, which provides in relevant part:

“Where injured employee dies before total compensation is paid. —When an employee receives or is entitled to compensation under this Article for an injury covered by G.S. 97-31 and dies from any other cause than the injury for which he was entitled to compensation, payment of the unpaid balance of compensation shall be made: First to the surviving whole dependents .. .in lieu of the compensation *438 the employee would have been entitled had he lived.” (Emphasis supplied.)

This determination, however, does not quite resolve the question before us because no claim for disfigurement was filed before decedent’s death and no adjudication of such claim was made before his death. The appellees argue that N.C. Gen. Stat. § 97-37, supra, only applies when the “employee receives or is entitled to compensation” under the Act and that he cannot be so entitled if no adjudication has been made prior to his death. Most courts have held that recovery by a decedent’s estate may be had “[i]f a claim [was] filed by the injured worker, but no award [was] made at the time of his death,” or if “death occurred after an award was made but while it was pending on appeal, even if the original award was a denial.” Larson, supra, § 58.40 at 10-255 to -258. Accord, Inman v. Meares, 247 N.C. 661, 101 S.E. 2d 692 (1958); Butts v. Montague Bros., 204 N.C. 389, 168 S.E. 215 (1933). In North Carolina, in the situation where a claimant dies after a claim has been filed, the claimant’s estate may recover all accrued but unpaid benefits, and all unaccrued benefits to which the employee “would have been entitled” had he lived are payable to decedent’s dependents pursuant to N.C. Gen. Stat. 97-37. McCulloh v. Catawba College, 266 N.C. 513, 146 S.E. 2d 467 (1966); Inman v. Meares, supra.

Generally speaking, a lump sum award made prior to decedent’s death is deemed to be an “accrued” benefit, Larson, supra, § 58.40 at 10-247; but logic compels us to conclude that if, pursuant to N.C. Gen. Stat. 97-31(22), no determination of the lump sum award for disfigurement had been made prior to death, then such entitlements are “unaccrued” until such time as they are determined, and, for this reason, the payment of the lump sum award for disfigurement would pass to the worker’s dependents purusant to N.C. Gen. Stat. 97-37 rather than to the deceased worker’s estate.

Whether these principles also apply where no claim had been filed by the worker prior to his death is a novel question in this jurisdiction. We note that some states have permitted recovery in this situation. Snyder Construction Co. v. Thompson, 145 Ind. App. 103, 248 N.E. 2d 560 (1969); Kozielec v. Mack Mfg. *439 Corp., 29 N.J. Super. 272, 102 A. 2d 404 (1953). Contra, Flynn v. Asten Hill Mfg. Co., 34 Pa. Commw. Ct. 218, 383 A. 2d 255 (1978), tacitly rejected in Frederico Granero Company v. Commonwealth, Workmen’s Compensation Appeal Board, 409 A. 2d 1187 (1980).

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Cite This Page — Counsel Stack

Bluebook (online)
267 S.E.2d 566, 47 N.C. App. 434, 1980 N.C. App. LEXIS 3127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilhite-v-liberty-veneer-co-ncctapp-1980.