Hale v. CDR Operations, Inc.
474 S.W.3d 129
| Ky. | 2015Background
- Ronnie Hale, a bulldozer operator with ~30 years’ heavy-equipment work, worked for CDR Operations for ~3 months (Nov 2011–Feb 7, 2012) and was laid off on Feb 7, 2012.
- Hale filed a workers’ compensation cumulative-trauma claim alleging manifestation on February 7, 2012; that date was stipulated at the Benefit Review Conference (BRC).
- The ALJ credited Hale and Dr. Madden, found cumulative-trauma injuries manifested on Feb 7, 2012, and awarded permanent total disability (PTD) benefits against CDR.
- The Workers’ Compensation Board vacated and remanded, holding Feb 7 was not a manifestation date and directing apportionment to reflect the portion of disability attributable to Hale’s three months at CDR (relying on Southern Kentucky Concrete).
- The Court of Appeals affirmed the Board on those points but agreed that Dr. Madden’s opinion provided sufficient evidence of a cumulative injury; Hale and CDR appealed to the Supreme Court.
- The Kentucky Supreme Court reinstated the ALJ’s award: it held Southern Kentucky apportionment is inapplicable under the current statutory scheme and the February 7, 2012 stipulation controls the manifestation date; it also found Dr. Madden’s opinion sufficient to support the ALJ’s findings.
Issues
| Issue | Plaintiff's Argument (Hale) | Defendant's Argument (CDR) | Held |
|---|---|---|---|
| Applicability of Southern Kentucky apportionment rule | Southern Kentucky not applicable; employer at manifestation date should be liable | Southern Kentucky requires apportionment based on percentage of worklife at last employer | Southern Kentucky apportionment rule no longer applies; employer at date of manifestation is liable for the award under current law |
| Date of manifestation / effect of BRC stipulation | Stipulated date (Feb 7, 2012) is binding; ALJ properly used it | Board may reassess manifestation date because Feb 7 was layoff date, not discovery | The stipulation in the signed BRC controls; Feb 7, 2012 is the manifestation date |
| Sufficiency of evidence for cumulative trauma causation | Dr. Madden’s exam, history, and opinion sufficiently link cumulative work trauma to disability | Medical evidence does not show objective change attributable specifically to CDR’s 3-month employment | Dr. Madden’s opinion provides substantial evidence to support the ALJ’s finding of cumulative trauma and causation |
| Liability scope given multi-employer work history | Employer at manifestation should bear full liability for compensable cumulative injury | Liability should be apportioned among employers (or to Special Fund) based on contribution | Under post-1996 statutory scheme, liability does not get apportioned to the Special Fund; employer at manifestation bears liability |
Key Cases Cited
- Southern Kentucky Concrete Contractors, Inc. v. Campbell, 662 S.W.2d 221 (Ky. Ct. App. 1983) (apportionment to last employer based on worklife percentage under earlier law)
- Haycraft v. Corhart Refractories, 544 S.W.2d 222 (Ky. 1976) (definition of "injury" and framework for apportionment where preexisting condition is aggravated by work)
- Alcan Foil Prods. v. Huff, 2 S.W.3d 96 (Ky. 1999) (discovery rule for gradual/cumulative injuries: notice and limitations triggered by worker’s knowledge of harmful change and cause)
- Gibbs v. Premier Scale Co./Indiana Scale Co., 50 S.W.3d 754 (Ky. 2001) (objective medical findings requirement can be satisfied by observed symptoms and standardized objective methods, not only advanced imaging)
- Roberts Bros. Coal Co. v. Robinson, 113 S.W.3d 181 (Ky. 2003) (distinction between preexisting impairment and preexisting active disability for PTD awards)