Austin Powder Company v. Billy Keith Stacy, 2016 SC 000347

Background

Billy Keith Stacy worked as a drill operator (heavy equipment) from 2005–2012 and claimed cumulative-trauma injuries to his wrists/hands and low back, and occupational hearing loss after layoff.
Medical evidence included reports from Drs. Hughes, Schiller, Gabriel, Belhasen, Raichel, audiologist Moore, NCV testing showing bilateral carpal tunnel, and a 108-HL from state examiners (Drs. Jones and Ormond).
Dr. Hughes attributed Stacy’s bilateral hand/wrist pain and lumbar symptoms to long-term repetitive occupational trauma and assigned a combined permanent impairment rating (16% by Dr. Hughes; ALJ initially referenced 18%).
Dr. Jones (state exam) concluded Stacy’s audiogram was compatible with workplace hazardous noise and assigned a 2% impairment; employer presented testimony that the drill cab was pressurized and below OSHA threshold.
The ALJ credited Stacy and Dr. Hughes, found occupational hearing loss and cumulative-trauma wrist/back injuries, and awarded permanent total disability. The Board and Court of Appeals vacated certain impairment findings (grip strength and lumbar spine ratings), affirmed the wrist (6%) and hearing (2%) ratings, and remanded for further findings on back injury, extent/duration of wrist disability, and onset/apportionment issues.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Validity of wrist/hand impairment rating	Stacy relied on Dr. Hughes’s exam and AMA Guides–based rating showing wrist impairment	Austin Powder argued Dr. Hughes failed to follow the AMA Guides (no passive ROM testing), had unreliable history, and lacked work-duty specificity	Court affirmed reliance on Dr. Hughes for wrist ROM impairment; active ROM testing may prevail and rating was supported enough for ALJ to credit
Whether Dr. Hughes’s methodology complies with AMA Guides	Dr. Hughes used active ROM testing and clinical judgment	Austin Powder said failure to perform passive ROM undermines rating; cited Jones v. Brasch-Barry	Court held active ROM can take precedence under the Guides; Jones is distinguishable and does not bar Dr. Hughes’s rating here
Causation for hearing loss (injurious workplace exposure)	Stacy: audiogram pattern compatible with noise-induced loss; he reported noisy drill and unpressurized cab	Austin Powder: cab was pressurized, measured <85 dB, and hearing protection further reduced noise; Dr. Jones could not identify Austin Powder as last injurious exposure	Court upheld ALJ’s and Board’s finding that presumption (KRS 342.7305) and Dr. Jones’s opinion favored Stacy; awarded medical benefits (no income benefits for <8% rating)
Permanent total disability and other impairment components	Stacy argued overall limitations (age, education, restrictions) justify permanent total disability	Austin Powder challenged aggregate impairment basis (some ratings vacated)	Court affirmed vacatur of lumbar and grip-strength impairment and remanded to ALJ to reassess medical benefits, extent/duration of wrist disability, and onset; prior PTD finding vacated but ALJ may reconsider on remand

Key Cases Cited

Paramount Foods, Inc. v. Burkhardt, 695 S.W.2d 418 (Ky. 1985) (ALJ as factfinder assesses weight and credibility)
Caudill v. Maloney's Discount Stores, 560 S.W.2d 15 (Ky. 1977) (factfinder may accept or reject parts of testimony)
Whittaker v. Rowland, 998 S.W.2d 479 (Ky. 1999) (standard: substantial evidence supports ALJ findings)
Smyzer v. B.F. Goodrich Chem. Co., 474 S.W.2d 367 (Ky. 1971) (definition of substantial evidence)
Ira A. Watson Dep't Store v. Hamilton, 34 S.W.3d 48 (Ky. 2000) (ALJ decision reversible if unreasonable as a matter of law)
Purchase Transp. Servs. v. Estate of Wilson, 39 S.W.3d 816 (Ky. 2001) (mixed questions of fact and law review)
Uninsured Employers' Fund v. Garland, 805 S.W.2d 116 (Ky. 1991) (appellate review of WC determinations)
Gibbs v. Premier Scale Co./Indiana Scale Co., 50 S.W.3d 754 (Ky. 2001) (patient complaints alone are not objective medical findings)
Jones v. Brasch-Barry Gen. Contractors, 189 S.W.3d 149 (Ky. Ct. App. 2006) (physician may not assign impairment percentages inconsistent with AMA Guides)
Hale v. CDR Operations, Inc., 474 S.W.3d 129 (Ky. 2015) (apportionment/onset guidance for cumulative trauma claims)