CAIN v. WASTE MANAGEMENT, INC
Case Details
- Citation
- 465 Mich. 509
- Judge(s)
- Corrigan, C.J., and Cavanagh, Weaver, Young, and Markman, JJ., concurred with Taylor, J.; Kelly, J., concurred in the result only.
- Procedural Posture — the stage the case had reached
- appeal
- State
- Michigan
Related Laws
No specific laws identified for this ruling.
Claim Types
Outcome
The Michigan Supreme Court reversed in part and remanded, holding that the 'corrected standard' should be applied when evaluating total and permanent disability claims under MCL 418.361(3)(g) for loss of industrial use of limbs. The court's decision partially favored the employee by clarifying the applicable legal standard, though the ultimate entitlement to benefits was remanded for reconsideration by lower authorities.
Excerpt
CAIN v WASTE MANAGEMENT, INC Docket Nos. 116389, 116945, 116953. Argued November 7, 2001 (Calendar No. 7). Decided January 23, 2002. Scott M. Cain brought a claim for worker’s compensation benefits against his employer, Waste Management, Inc., and its insurer, claiming total and permanent disability as a result of the amputation of his right leg and the loss of the use of his left leg following injuries suffered in the course of his employment. A magistrate granted total and permanent disability benefits, finding that the plaintiff had lost the industrial use of both legs. The Worker’s Compensation Appellate Commission reversed, holding that the magistrate erred in failing to use a “corrected” standard in assessing the usefulness of the left leg. The Court of Appeals, Fitzgerald, P.J., and Saad and Whitbeck, JJ., affirmed in part and reversed in part in an unpublished opinion per curiam, holding that the wcac had exceeded its authority in applying the corrected test (Docket No. 214445). The parties seek leave to appeal. In an opinion by Justice Taylor, joined by Chief Justice Corrigan, and Justices Cavanagh, Weaver, Young, and Markman, the Supreme Court held'. Total and permanent disability is not demonstrated where the proofs indicate that a braced limb is functional and can support industrial use. In evaluating a claim under MCL 418.361(3)(g), the corrected standard should be applied. 1. Specific loss and total and permanent disability entitlements in the worker’s compensation statute are separately identified in specific subsections. They are unique categories with substantial differences. The focus of specific loss is on anatomical loss, irrespective of wage earning ability. In contrast, the focus of total and permanent disability is on the loss of wage earning capacity. While the test for specific loss is an uncorrected test, i.e., without regard to whether the loss could be corrected or restored, the test for total and permanent disability is a corrected test. Thus, in determining specific loss benefits, prostheses are not to be considered; in determining total and permanent loss, prosthetic devices and implants must be taken into consideration. 2. The “corrected” standard accords with the intent of the Legislature as expressed in the language of MCL 418.361(3)(g) and is properly applied in this case. Justice Kelly concurred in the result only. Reversed in part and remanded. Pinsky, Smith, Fayette & Hulswit (by Edward M. Smith and Pamela K. Bratt), for the plaintiff. Straub, Seaman & Allen, PC. (by Daniel W. Grow and James M. Straub), for defendants Waste Management, Inc., and Transportation Insurance Company. Jennifer M. Granholm, Attorney General, Thomas L. Casey, Solicitor General, and Ray W. Cardew, Jr., and Mitchell J. Wood, Assistant Attorneys General, for defendant Second Injury Fund. Amici Curiae: Libner, VanLeuven, Evans & Portenga, PC. (by John A. Braden), for the Worker’s Compensation Law Section of the State Bar of Michigan, supporting the employee. Gerald M. Marcinkoski, for the Worker’s Compensation Law Section of the State Bar of Michigan, supporting the employer and insurers. Taylor, J. The issue in this case concerns the proper standard for determining whether an injured employee is entitled to collect worker’s compensation benefits for total and permanent disability pursuant to MCL 418.361(3)(g). Specifically, the question is whether such a person’s injured limb or member should be evaluated in its “corrected” or “uncorrected” state. The Worker’s Compensation Appellate Commission (wcac) held that a “corrected standard” should be applied, whereas the Court of Appeals held that an “uncorrected standard” was applicable. In keeping with prior decisions of this Court, and for the reasons set forth below, we reverse in part the judgment of the Court of Appeals and hold that § 361(3)(g) envisions that a “corrected” standard be applied. i We begin by noting that this case involves a fairly uncommon kind of claim for worker’s compensation benefits. The worker’s compensation act provides, if certain conditions are met, for payments to workers who are injured or become disabled on the job. MCL 418.101 et seq. The most common situation is controlled by the general disability provision. MCL 418.301(1) provides that an employee, who receives a personal injury arising out of and in the course of employment for an employer who is subject to this act at the time of the injury, shall be paid compensation as provided in this act. If such a showing is made, one must then determine if the disability is total or partial. Payment formulas are set by statute. In addition to these more common claims for disability benefits, the act provides compensation for the loss of certain body parts. These are known as “scheduled” disabilities. MCL 418.361(2). For exam-pie, if a worker loses his foot at work he is given payments for 162 weeks. Loss of an arm results in payments for 269 weeks. These are known as “specific loss” benefits. If a worker suffers from certain enumerated injuries, such as loss of both hands or both feet, he may be entitled to benefits for total and permanent disability, as defined by MCL 418.361(3). As explained more fully hereinafter, such total and permanent disability benefits are a type of scheduled benefit, but they are distinct from the scheduled specific loss benefits. Total and permanent disability benefits are intended for those who sustain the more catastrophic loss of more than one member. “Loss of industrial use” is a special category of total and permanent disability benefits found in MCL 418.361(3)(g). This category allows recovery for total and permanent disability where there is no anatomical loss, but where there is a loss of industrial use. Hence, for example, even if an employee does not suffer actual amputation of one or both legs so as to qualify for specific loss benefits, he may nevertheless be entitled to scheduled benefits for injury to both legs if he has lost the “industrial use” of his legs. In this way the “loss of industrial use” category of total and permanent benefits differs from other total and permanent categories. The case at bar involves this distinctive “loss of industrial use” kind of total and permanent disability claim. n Plaintiff Scott M. Cain worked as a truck driver and trash collector for defendant, Waste Management, Inc. In October 1988, as he was standing behind his vehicle emptying a rubbish container, he was struck by an automobile that crashed into the back of the truck. Mr. Cain’s legs were crushed. Physicians amputated Mr. Cain’s right leg above the knee. His left leg was saved with extensive surgery and bracing. In February 1990, Mr. Cain was fitted with a right leg prosthesis, and he was able to begin walking. He returned to his employment at Waste Management and started performing clerical duties. Mr. Cain’s left leg continued to deteriorate. In October 1990, he suffered a distal tibia fracture. Doctors diagnosed it as a stress fracture caused by preexisting weakness from the injury sustained in the accident. After extensive physical therapy and further surgery on his left knee, Mr. Cain was able to return to Waste Management in August 1991, first working as a dispatcher and then in the sales department. Waste Management voluntarily paid Mr. Cain 215 weeks of worker’s compensation benefits for the specific loss of his right leg. MCL 418.361(2)(k). However, there was disagreement concerning whether he was entitled to additional benefits. m In August 1992, Cain filed a petition with the Bureau of Worker’s Compensation, seeking total and permanent disability benefits, which stated: My legs were crushed in a motor vehicle accident resulting in an amputation above the knee of my right leg. The severity of my injuries to my left leg result [sic] in the industrial loss of use of both legs. I am, therefore, entitled to permanent and total disability benefits. At the end of the second day of the hearing, Mr. Cain moved to amend his petition to include a claim for the specific loss of his left leg. The magistrate denied the motion. Less than a week later, Mr. Cain filed a petition requesting benefits for the specific loss of the left leg: In addition to my initial application, I am claiming specific loss of my left lower extremity for dates of injury of 10/25/88 and 10/21/90. On 10/21/90, while walking down a ramp at home, I refractured my left tibia causing it to become necessary for me to wear a permanent brace on my left leg. In December 1993, the magistrate awarded specific loss benefits (to be paid consecutively) for the loss of both legs. Although he had denied the motion to add a claim for the specific loss of the left leg, the magistrate nonetheless awarded the benefits, reasoning that Mr. Cain’s assertion of the loss of the industrial use of both legs implicitly included a claim for the specific loss of the left leg. The magistrate found that the left leg had been effectively lost in October 1990, when the stress fracture occurred and “any hope of restoring the member was abandoned.” The condition of the Plaintiff’s left leg subsequent to 10/21/90 appears to be tantamount to amputation. He cannot support himself without the brace which was fashioned for him. The Plaintiff is in effect wearing a prosthetic device on the left leg. Thus, he ruled that the Second Injury Fund would be obligated to pay benefits for total and permanent disability because Mr. Cain had lost the industrial use of both legs. Waste Management and its insurer appealed to the wcac, which reversed the judgment of the magistrate in April 1997. The wcac ruled that, in light of the phrasing of Mr. Cain’s initial petition to the bureau, the magistrate had erred in awarding benefits for the specific loss of the left leg. The wcac also held that the magistrate had committed legal error in his analysis of the total and permanent disability claim, since he had failed to use a “corrected” standard to examine the remaining usefulness of Mr. Cain’s braced leg. Applying such a standard, the wcac concluded that Mr. Cain is not totally and permanently disabled. In May 2000, the Court of Appeals affirmed in part, reversed in part, vacated in part, and remanded for further proceedings. The Court of Appeals affirmed the wcac’s denial of specific loss benefits, agreeing that Mr. Cain’s petition did not state a claim for such benefits. However, the Court of Appeals reversed and vacated with regard to the finding of total and permanent disability, stating: We reverse that portion of the wcac’s decision which holds that a claim for [total and permanent] disability benefits must be analyzed under the corrected test. While use of the corrected test is mandated in vision cases, [Hakala v Burroughs Corp (After Remand), 417 Mich 359; 338 NW2d 165 (1983)], and has been expanded to cases involving implants, [O’Connor v Binney Auto Parts, 203 Mich App 522; 513 NW2d 818 (1994)], its use has not been extended to cases involving prosthetics or braces. In the instant case, plaintiff wears a prosthetic right leg and a brace on his left leg. The brace is not permanently attached to plaintiff’s leg. In holding that use of the corrected test was required in this case, the wcac read Hakala, supra, and O’Connor, supra, too broadly. The issue whether a claimant has suffered loss of industrial use is one of fact. Pipe v Leese Tool & Die Co, 410 Mich 510, 527; 302 NW2d 526 (1981). We hold that the wcac exceeded its authority by applying the corrected test to make initial findings of fact regarding whether plaintiff had suffered the loss of industrial use of his legs. Such initial findings are within the exclusive province of the magistrate. [Layman v Newkirk Electric Associates, Inc, 458 Mich 494; 581 NW2d 244 (1998)].[ ] We vacate that portion of the wcac’s decision denying plaintiff’s claim for [total and permanent] disability benefits and remand with instructions that the wcac apply the uncorrected test to plaintiff’s claim. If necessary, the wcac may further remand the case to the magistrate for additional findings of - fact. Id.; MCL 418.861a(12); MSA 17.237(861a)(12). Applications for leave to appeal were filed by Waste Management, Inc., and the Second Injury Fund. Mr. Cain responded with an application for leave to appeal as cross-appellant. We granted all three applications and invited amicus curiae participation. IV We address only one issue: whether the “corrected” standard of Hakala, applied to a vision claim pursuant to MCL 418.361, should be applied to a permanent and total loss of industrial use of both legs claim pursuant to MCL 418.361(3)(g). In Hakala, a worker with a preexisting vision disability suffered the loss of a hand. This second loss gave rise to the issue whether he was totally and permanently disabled under the predecessor of MCL 418.521(1). The parties turned to the predecessor of MCL 418.361(2)(1) for the rule that eighty percent loss of vision in an eye constitutes total loss of that eye. As it happened, Mr. Hakala’s uncorrected vision loss was greater than eighty percent, but his corrected vision did not constitute an eighty-percent loss. The question whether to gauge Mr. Hakala’s vision in its corrected or uncorrected state had led to a division in the Worker’s Compensation Appeal Board panel that decided the case. In our Hakala opinion, we resolved the matter in this fashion: In Nulf [v Browne-Morse Co, 402 Mich 309; 262 NW2d 664 (1978)], we refused to extend the “uncorrected” vision test to total and permanent claims, although we had adopted such a test for specific loss claims in Lindsay v Glennie Industries, Inc, 379 Mich 573; 153 NW2d 642 (1967). We observed: “In Hakala v Burroughs Corp (On Rehearing) [399 Mich 162; 249 NW2d 20 (1976)], this Court recognized that the question of Second Injury Fund benefits in situations involving the loss of an eye could not be adequately resolved by the universal adoption of either the ‘uncorrected vision’ test or the ‘corrected vision’ test. The Court held that the question of entitlement to Second Iqjury Fund benefits must be determined by reference to the statutory language creating those benefits found in MCL 418.521; MSA 17.237(521), which requires a determination of whether the employee has suffered a ‘permanent disability in the form of the loss of a[n]... eye.’ The determination of whether a loss is a permanent disability within the meaning of that section must be evaluated in terms of the underlying legislative purpose of aiding the handicapped in obtaining and maintaining employment.” [Nulf] 402 Mich 312-313. We are persuaded that the Legislature intended compensation for a specific loss without regard to whether the vision could be “corrected” or restored after the ir\jury. Lindsay, supra. We are now persuaded that the Legislature intended that a different standard be used in determining total and permanent disability inasmuch as it provided that only “total and permanent loss of sight” would constitute the qualifying eye loss for such benefits. We are satisfied that to carry out the legislative intent a “corrected” vision standard should hereafter be used in assaying claims for total and permanent disability involving the loss of sight. We conclude that in this connection that is the sense in which the term “permanently disabled” is used for the purposes of the Second Injury Fund. [417 Mich 363-364.] We have not had occasion subsequently to elaborate upon or clarify the rule of Hakala. As noted in its opinion in the present case, the Court of Appeals has extended the principle only so far as cases involving “implants,” such as the knee replacement surgery discussed in O’Connor. 203 Mich App 522. v The question whether MCL 418.361(3)(g) requires application of a “corrected” or “uncorrected” standard in the present case is a legal question, which we review de novo. Mudel v Great Atlantic & Pacific Tea Co, 462 Mich 691, 697, n 3; 614 NW2d 607 (2000). Ultimately, entitlement to worker’s compensation benefits must be determined by reference to the statutoiy language creating those benefits. Nulf at 312. As previously indicated, total and permanent disability, compensation for which is provided in MCL 418.351, means: (g) Permanent and total loss of industrial use of both legs or both hands or both arms or 1 leg and 1 arm .... [MCL 418.361(3).] We conclude that the words “permanent” and “total” indicate the Legislature intended a “corrected” test. We agree with the O'Connor Court, supra at 533, that [t]he concept of permanence is necessarily one of status, involving an assessment of medical deterioration, stabilization, or improvement, and consideration of medical treatment options. Moreover, as indicated in Hakala and Nulf, the ordinary meaning of the word “permanent” suggests a condition or injury that cannot be improved or made functional. The word “total” similarly suggests a situation that cannot be corrected. Further, the use of the phrase “industrial use” in this section itself implies the kind of functional analysis that is implicit in the “corrected” standard of MCL 418.351. This phrase modifies “permanent and total loss” and effectively limits the coverage of this provision to only certain kinds of permanent and total losses, to wit, those that have adverse implications for the ability of an employee to cany out his industrial responsibilities. Different forms of serious injury may carry altogether different consequences in terms of the ability of an employee to perform his “industrial” responsibilities. The express language of MCL 418.351, in particular the phrase “industrial use,” makes these different consequences relevant. There certainly exist conditions that can be overcome, and we have previously held that the Legislature intended that poor vision, correctable with glasses, be evaluated in its corrected state. No sound distinction would lead to a different result in the case of a limb that, like vision corrected by glasses, can function with the aid of an external device. Where the legal inquiry is the effect of the work injury on a worker’s use of members in industry, that effect can only be reasonably measured by use of the members as aided and corrected, whether by the devices listed in MCL 418.315(l) or otherwisé. The Court of Appeals opined that the wcac had read Hakala and O’Connor too broadly. However, in actuality, and as indicated above, it is the Court of Appeals that read Hakala too narrowly. In considering the present issue, we have remained cognizant of the distinction between specific loss benefits and total and permanent disability benefits. As mentioned at the beginning of the opinion, they are unique categories with substantial differences. In its April 1997 decision, the wcac included this analysis, which we adopt as our own: We believe that the historical distinction repeatedly recognized by the appellate courts throughout the long interpretational history of the two statutory provisions continues to provide an important divider between the specific loss entitlements and the total and permanent disability entitlements established under the statute. An even more significant contrast between the two entitlements concerns the question of whether loss is measured with the help of prosthetics or without. The test for specific loss is clearly an uncorrected test. In Lindsay v Glennie Industries, Inc, 379 Mich [573] (1967), the plaintiff suffered an ii\jury that compelled surgical removal of his cataract, but even though he had virtually no sight in that eye, the subsequent use of contact lenses enabled him to er\joy virtually full vision. The Supreme Court reversed the lower court’s finding that no specific loss could be found because plaintiff’s vision had been restored, and stated that the proper analysis should take place without the corrective procedure. The Lindsay Court stated: “We recognize that substitut
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