Ladner v. Zachry Construction
130 So. 3d 1085
| Miss. | 2014Background
- Ladner, a Zachry Construction employee, injured his back at work on December 27, 2006, reported the incident, and received company medical attention.
- He continued receiving his full wages while undergoing treatment and reached maximum medical improvement (MMI) on May 20, 2008.
- Ladner filed a petition to controvert on August 24, 2009; Zachry admitted the injury but argued the two-year statute of limitations barred the claim under Miss. Code § 71-3-35(1).
- An administrative judge found Zachry’s wage payments tolled the statute (wages in lieu of compensation); the Commission reversed, finding Ladner had performed enough post-injury work to have “earned” his wages.
- The Harrison County Circuit Court and a majority of the Court of Appeals affirmed the Commission; the Mississippi Supreme Court granted certiorari.
- The Supreme Court reversed, holding the record lacked substantial evidence that Ladner performed sufficient work to earn his wages and therefore Zachry’s payments tolled the limitations period; the case was remanded for a merits hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether employer’s continued payment of wages after injury tolled the 2-year statute of limitations by constituting "wages in lieu of compensation" | Ladner: full wages paid until MMI were effectively payments in lieu of workers’ compensation because he did little or no work | Zachry: Ladner performed post-injury duties (hole watch, filing, standby attendant, safety audits) and therefore earned his wages, so payments were not in lieu of compensation | Held: Reversed — insufficient evidence employer rebutted Ladner’s claim; payments tolled the statute and the claim was timely |
| Whether Commission’s factual finding was supported by substantial evidence | Ladner: Commission lacked evidence about how much work he actually performed; witnesses could not quantify his time or duties | Zachry: Supervisor testimony established Ladner performed various duties post-injury | Held: Reversed — supervisors could not specify hours or job description; evidence did not reasonably support the Commission’s conclusion |
| Proper standard of review | N/A: parties accepted standard | N/A: parties accepted standard | Held: Court applied substantial-evidence review to factual findings and de novo review to legal questions |
| Remedy | Ladner: remand for merits if tolling found | Zachry: affirm dismissal if tolling rejected | Held: Remanded to the Commission for a hearing on the merits after finding tolling applied |
Key Cases Cited
- Parchman v. Amwood Prods., 988 So.2d 346 (Miss. 2008) (explains when continued salary constitutes wages in lieu of compensation)
- Martin v. L. & A. Contracting Co., 162 So.2d 870 (Miss. 1964) (voluntary payment of compensation may constitute waiver and toll the statute of limitations)
- George S. Taylor Constr. Co. v. Harlow, 269 So.2d 337 (Miss. 1972) (intent to pay wages in lieu of compensation is inferred from surrounding circumstances)
- Gregg v. Natchez Trace Elec. Power Ass’n, 64 So.3d 473 (Miss. 2011) (standard of review for Workers’ Compensation Commission decisions)
- Ladner v. Zachry Construction, 130 So.3d 1121 (Miss. Ct. App. 2013) (Court of Appeals decision affirming Commission; noted in opinion including dissent on sufficiency of evidence)