Ward v. Allen County Hospital
324 P.3d 1122
| Kan. Ct. App. | 2014Background
- Judy Ward, a nurse, reinjured her cervical spine at work in 2010; she had prior C6-7 surgery in 2003 with residual symptoms.
- After the 2010 injury and surgery, medical testimony (Dr. Stein) assigned 25% whole-person impairment with a 15% preexisting impairment; task-loss estimates produced a 75.75% work disability (ALJ found 75.50%).
- ALJ awarded permanent partial disability up to the statutory maximum of $100,000.
- The Workers Compensation Board majority reduced Ward’s work-disability percentage by 15% (yielding 60.75% work disability) rather than reducing the compensation award itself by 15%; Ward still received the $100,000 cap.
- A Board dissenter and the hospital argued the statutory credit under K.S.A. 44-501(c) requires reducing the compensation award (i.e., reduce the $100,000 cap by the preexisting impairment percentage).
- The Kansas Court of Appeals affirmed that the 15% preexisting impairment finding was supported by substantial evidence, but held the Board erred in its calculation and directed applying the 15% reduction to the compensation award when the claimant’s calculated award reaches the statutory maximum.
Issues
| Issue | Plaintiff's Argument (Ward) | Defendant's Argument (Hospital) | Held |
|---|---|---|---|
| Whether the 15% preexisting functional impairment finding was supported by substantial evidence | Dr. Stein’s AMA-guides opinion establishes 15% preexisting impairment; Board’s finding should stand | Board’s finding is supported by medical evidence (hospital defends credit amount) | Affirmed: 15% preexisting impairment is supported by substantial evidence (Dr. Stein’s testimony unrebutted) |
| How to apply K.S.A. 44-501(c) preexisting-impairment credit when award reaches statutory maximum | Reduction can be applied to work-disability percentage (Board majority’s approach) | Credit must reduce the award amount (apply percentage to the computed award or statutory cap) | Reversed Board majority: statute requires reducing the award by preexisting impairment; when work-disability value exceeds the statutory cap and claimant would reach the cap before exhausting maximum weeks, apply the percentage reduction to the monetary cap (resulting here in $85,000) |
| Whether Payne’s weeks-based formula governs calculation here | Ward: Board’s subtraction-of-percentage-from-disability is proper | Hospital: Payne method (convert preexisting % to weeks) should apply | Payne not followed here; court favors reducing the monetary award (or equivalently reducing the capped weeks) when claimant reaches cap before exhausting weeks |
| Proper remedial direction on remand | Uphold Board’s calculation as reasonable | Reverse and remand for recalculation consistent with statute | Reverse and remand with directions to calculate award by reducing compensation by the preexisting impairment percentage where applicable to the statutory cap |
Key Cases Cited
- Douglas v. Ad Astra Information Sys., 296 Kan. 552 (court no longer defers to agency statutory interpretation)
- Bergstrom v. Spears Mfg. Co., 289 Kan. 605 (courts must follow express statutory language; do not add provisions)
- Saylor v. Westar Energy, Inc., 292 Kan. 610 (definition and use of substantial evidence)
- Payne v. Boeing Co., 39 Kan. App. 2d 353 (weeks-based method previously used to apply K.S.A. 44-501(c) credit)
- Lyons v. IBP, Inc., 33 Kan. App. 2d 369 (aggravation of preexisting condition must increase disability before credit applies)
- Demars v. Rickel Mfg. Corp., 223 Kan. 374 (historical rule placing risk of preexisting disability on employer prior to statutory change)