JBS SWIFT & COMPANY and American Zurich Insurance Company, Appellants, v. Rosalva OCHOA, Appellee.
No. 15-0840
Supreme Court of Iowa.
December 30, 2016
890 N.W.2d 887
James C. Byrne of Neifert, Byrne & Ozga, P.C., West Des Moines, for appellee.
MANSFIELD, Justice.
This case presents the question whether Iowa workers’ compensation law prohibits an employee from collecting both permanent partial disability benefits and permanent total disability benefits at the same time when the employee suffers successive injuries at the same workplace. We find that the general assembly removed the legal barrier to this outcome in 2004. Accordingly, we uphold the commissioner‘s award, affirm the district court judgment, and affirm the decision of the court of appeals.
I. Background Facts and Proceedings.
Rosalva Ochoa began working at JBS Swift & Company (Swift) in 2001. Ochoa had to make boxes, fill them with meat, and place them on a conveyor belt. Each box weighed approximately fifty pounds, and Ochoa would lift the boxes onto the conveyor belt hundreds of times a day. Ochoa was assigned these same job duties for the majority of her employment at Swift.
In early 2011, Ochoa began to feel pain in her left abdomen, which gradually became more severe. Ochoa consulted with Dr. Jerry Wille in February, who referred Ochoa to a second physician, Dr. Stephen Van Buren. Dr. Van Buren determined that Ochoa had developed a left inguinal hernia and recommended surgery. Ochoa underwent the surgery in March.
Following the hernia surgery, Ochoa returned to work. However, she continued to experience pain. Some months later, in November, Ochoa began to develop pain in her neck and right shoulder in addition to her abdomen. She saw Dr. Wille for these problems as well. Dr. Wille diagnosed her with cervicalgia and cervical radiculopathy in her neck and tendonitis in her right rotator cuff. Ochoa‘s last day of work was December 15. Swift terminated her for absenteeism in January 2012.
On June 25, Ochoa filed two workers’ compensation petitions аgainst Swift and its workers’ compensation insurance carrier, American Zurich Insurance Company. The first petition alleged an unscheduled cumulative left groin injury occurring on or about February 24, 2011. The second petition alleged an unscheduled cumulative injury to the neck and right shoulder, occurring on or about December 15, 2011.
Ochoa was examined by two independent physicians, one (Dr. Sunil Bansal) at the direction of her counsel and the other (Dr. Scott Neff) at the direction of Swift. Dr. Bansal found that Ochoa‘s hernia had caused a four percent impairment of the body as a whole, and her shoulder injury had caused a six percent impairment of the body as a whole. Dr. Bansal also recommended that Ochoa should be restricted from lifting above certain levels and should avoid frequent lifting, pushing, or pulling more than five pounds. Dr. Neff, on the other hand, concluded that Ochoa had no permanent functional impairment and was demonstrating symptom magnification and inconsistent effort.
An arbitration hearing on both claims was held before a workers’ compensation deputy commissioner on June 25, 2013. The deputy found that Ochoa‘s injuries to her hernia, neck, and right shoulder arose out of her employment with Swift. The deputy found that Ochoa had sustained the
Swift appealed the deputy‘s decision, and Ochoa cross-appealed. Swift urged the deputy had erred in finding Ochoa had sustained work injuries in February 2011 and December 2011, and also erred in the extent of the two awards of permanent disability benefits. Ochoa‘s cross-appeal was confined to one point. She asked that the awards “be allowed to run concurrently . . . to the extent the two awards overlap.” Ochoa maintained that permanent total disability benefits are not subject to apportionment under
Swift filed a six-page brief in resistance to Ochoa‘s cross-appeal. Swift argued therein that the deputy commissioner had not apportioned the awards pursuant to
[T]here is no statutory provision allowing for such a double recovery as Claimant proposes. Nor do the applicable Code sections provide for any such double recovery. . . . The legislature provided that employees who are permanently totally disabled shall be compensated with permanent total disability benefits and persons with permanent partial disability shall be compensated with permanent partial disability benefits. There is obviously no indication by the legislature that a person who is no longer permanently partially disabled[,] because they are now permanently totally disabled, shall continue to receive PPD and PTD benefits. It is indeed absurd to suggest that a claimant can be permanently totally disabled and permanently partially disabled at the same time!
The commissioner overruled Swift‘s appeal but upheld Ochoa‘s cross-appeal. Thus, the commissioner affirmed the deputy‘s findings of two separate injuries and his determinations of industrial disability. However, the commissioner concluded that Ochoa‘s permanent partial disability payments should not have terminated as of the date when her permanent total disability payments commenced. The commissioner noted,
In this case claimant has sustained successive disabilities with the same employer, JBS Swift & Company, with a first date of injury on February [24], 2011 resulting in permanent disability and a second date of injury of December
15, 2011 also resulting in permanent disability. Therefore the provisions of Iowa Code section 85.34(7) are clearly applicable. The provision[s] ofIowa Code section 85.34(7) were enacted following passage of H.F. 2581, at which time the legislature also amendedIowa Code section 85.34(2)(u) and struckIowa Code section 85.36(9)(c) .When successive disabilities occurred prior to the passage of the new statutory framework, overlapping of permanent partial disability benefits was not allowed by operation of
Iowa Code section 85.36(9)(c) . However, as noted above, that section of the Code was repealed. There is no provision inIowa Code sections 85.34(7) or85.34(2)(u) to prohibit the overlapping payment of permanent disability benefits. Defendants seek to set forth a policy argument that permanent partial disability must cease with a finding of a successive disability resulting in permanent and total disability.
The commissioner thus ordered Swift to pay a full 350 weeks of permanent partial disability benefits at the weekly rate of $477.18, commencing June 14, 2011, and permanent total disability benefits at the weekly rate of $478.44, commencing December 15, 2011. This means thаt Ochoa would receive over six years of overlapping weekly benefits — i.e., $477.18 plus $478.44 — substantially in excess of the $680 per week she was earning when she stopped working for Swift.
Swift filed a petition for judicial review. In its brief to the district court, Swift specifically argued for the first time that
Swift then apрealed from the district court, and we transferred the case to the court of appeals. That court also upheld the commissioner‘s ruling in its entirety. It found sufficient evidence to sustain each of the two awards and also rejected Swift‘s argument that the concurrent permanent partial disability and permanent total disability awards are prohibited by
We granted Swift‘s application for further review.
II. Scope and Standard of Review.
“When this court grants an application for further review, we retain discretion to review all the issues raised on appeal or in the application for further review, or only a portion thereof.” Ramirez-Trujillo v. Quality Egg, L.L.C., 878 N.W.2d 759, 768 (Iowa 2016). Here, we elect to allow the court of appeаls decision to stand as the final decision on whether each award of benefits was supported by substantial evidence. We will limit our opinion to the legal question whether Iowa law permits simultaneous receipt of permanent partial disability benefits and permanent total disability benefits for successive injuries with the same employer.
We review the workers’ compensation commissioner‘s interpretation of
III. Analysis.
A. Preservation of Error.
Before reaching the merits, we must address a question of error preservation. Ochoa contends that Swift failed to preserve error on its contention that
We find that error has been preserved. We note first the procedural history of this case. The deputy‘s arbitration decision did not allow concurrent benefits. Therefore, there was no reason for Swift to raise the issue. After Swift appealed the deputy‘s disability findings to the commissioner, Ochoa cross-appealed and argued that apportionment of permanent total disability benefits was not authorized by
It is true that Swift‘s responsive brief did not specifically refer to
B. Double Recovery Under Section 85.34.
We now turn to the merits of Swift‘s legal contention that concurrent awards for permanent partial and permanent total disability benefits amount to a double recovery prohibited by
Ochoa argues that our decision in Drake University v. Davis controls the outcome here. See id. at 183-85. In that case, we interpreted
b. (1) If an injured employee has a preexisting disability that was caused by a prior injury arising out of and in the course of employment with the same employer, and the preexisting disability was compensable under the same paragraph of subsection 2 as the employee‘s present injury, the employer is liable for the combined disability that is caused by the injuries, measured in relation to the employee‘s condition immediately prior to the first injury. In this instаnce, the employer‘s liability for the combined disability shall be considered to be already partially satisfied to the extent of the percentage of disability for which the employee was previously compensated by the employer.
(2) If, however, an employer is liable to an employee for a combined disability that is payable under subsection 2, paragraph “u“, and the employee has a preexisting disability that causes the employee‘s earnings to be less at the time of the present injury than if the prior injury had not occurred, the employer‘s liability for the combined disability shall be considered to bе already partially satisfied to the extent of the percentage of disability for which the employee was previously compensated by the employer minus the percentage that the employee‘s earnings are less at the time of the present injury than if the prior injury had not occurred.
In Davis, the claimant had suffered three injuries during the course of her employment. 769 N.W.2d at 178-79. Following a combined arbitration hearing, the claimant‘s first injury was found to have caused a fifteen percent permanent partial disability; the second injury was found to have caused a thirty percent permanent partial disability; and the third injury was found tо have caused a one hundred percent loss of earning capacity, entitling the claimant to permanent total disability benefits. Id. at 180. The claimant‘s benefits were apportioned between the first and second injuries, but not between the second and third injuries. Id. at 180-81. In other words, the benefits for the permanent total disability award were not offset by the percentage of disability for which the claimant had already been awarded permanent partial disability. The employer appealed the disability award and claimed the permanent total disability benefits from the third injury should have been apportioned with the benefits frоm the second injury. See id. at 183.
We recognized that we “generally do not apportion the benefits from two successive work-related injuries without a statute allowing us to do so.” Id. at 184 (citing Mycogen Seeds v. Sands, 686 N.W.2d 457, 465 (Iowa 2004)). We observed that the plain language of
Yet both of these provisions in
The plain and unambiguous language of section 85.34(7)(b) indicates the only benefits subject to apportionment are those awarded under section 85.34(2). . . . The agency awarded Davis permanent total disability benefits under section 85.34(3). Permanent total disability benefits are not subject to apportionment under section 85.34(7).
. . . Without an apportionment statute that applies to an award of permanent total disability benefits, there is no basis for the agency to apportion the award. Therefore, the agency was correct when it refused to apportion Davis‘s permanent total disability benefits.
Davis, 769 N.W.2d at 184-85 (citation omitted).
We see no reason to revisit our conclusion in Davis that permanent total disability benefits are not subject to apportionment under
Nonetheless, Swift argues that Davis is not dispositive because Swift is not contending that Ochoa‘s permanent disability benefits should be apportioned under
Swift maintains that once an employee is permanently totally disabled, such an employee can no longer be partially disabled in the eyes of the law and can no longer receive permanent partial disability benefits. Notably, the commissioner‘s decision here results in Ochoa receiving $955.62 weekly in disability benefits for over six years, at which point the permanent partial disability benefits would stop and she would receive only the permanent total disability benefits. During that six-year-plus period of time, Ochoa would receive considerably more in disability benefits than the $680 per week she had previously been paid for working.
More particularly, Swift contends that
Such compensation shall be in addition to the benefits provided in sections 85.27 and 85.28. No compensation shall be payable under this subsection for any injury for which compensation is payable under subsection 2 of this section. In the event compensation has been paid to any person under any provision of this chapter, сhapter 85A or chapter 85B for the same injury producing a total permanent disability, any such amounts so paid shall be deducted from the total amount of compensation payable for such permanent total disability.
Swift insists the last two sentences in the quoted paragraph mean a claimant cannot be compensated for more than a one hundred percent permanent disability at any given time. According to Swift, the commissioner‘s award in this case violates this provision because it effectively treats Ochoa as more than one hundred percent permanently disabled from December 15, 2011, the date when compensation began for Ochoa‘s permanent total disability, to February 27, 2018, the date when compensation will end for Ochoa‘s permanent partial disability. Swift contends this duplication of benefits is both illogical and prohibited by the statute.
As we have recently recognized,
When interpreting the statutory provisions contained in chapter 85 of the Iowa Code, our goal is to determine and effectuate the legislature‘s intent. To determine legislative intent, we look to the language chosen by the legislature and not what the legislature might have said. Absent a statutory definition, we consider statutory terms in the context in which they appear and give each its ordinary and common meaning.
Ramirez-Trujillo, 878 N.W.2d at 770 (citations omitted). “We also consider the legislative history of a statute, including prior enactments, when ascertaining legislative intent.” Evenson, 881 N.W.2d at 367 (quoting State ex rel. Nat. Res. Comm‘n v. Branstad, 871 N.W.2d 291, 295 (Iowa 2015)). Finally, we may consider “‘the statute‘s subject matter, the object sought to be accomplished, the purpose to be served, underlying policies, remedies providеd, and the consequences of the various interpretations.‘” Id. (quoting Branstad, 871 N.W.2d at 295).
We agree with Ochoa that an employee‘s injury limits the scope of this subsection. “Injury” is a familiar term in workers’ compensation. See Almquist v. Shenandoah Nurseries, Inc., 218 Iowa 724, 730, 254 N.W. 35, 38 (1934). An “injury” may occur because of a “traumatic or other hurt or damage to the health or body of an employee.” Id. at 732, 254 N.W. at 39. An injury may also occur gradually under the “cumulative injury rule” “when the claimant, as a reasonable person, would be plainly aware . . . that he or she suffers from a condition or injury.” Herrera v. IBP, Inc., 633 N.W.2d 284, 288 (Iowa 2001); see also McKeever Custom Cabinets v. Smith, 379 N.W.2d 368, 373-74 (Iowa 1985). In either case, our precedents make relatively clear when a discrete “injury” occurs.
Thus, the use of the singular “injury” in
It is true that the second sentence of
The historical origin of this language also supports an interpretation limiting it
In computing the compensation to be paid to any employe[e] who, before the accident for which he claims compensation, was disabled and drawing compensation under the terms of this act, the compensation for each subsequent injury shall be apportioned according to the proportion of incapacity and disability caused by the respective injuries which he may have suffered.
In 1924, the general assembly split the provisions related to permanent partial and permanent total disability into separate sections. See 1924 Iowa Acts Ex. Unpub. ch. 28, §§ 33-34 (codified at
In 1959, the legislature again revised the law. See 1959 Iowa Acts ch. 103. The existing section 85.34 relating to permanent partial disabilities and section 85.35 relating to permanent total disability were rеpealed and replaced with a single section, adopting a format similar to the original 1913 approach. Id. § 6. An accompanying bill explanation distilled the reasoning behind the move: “Clarification of the law is accomplished by placing total permanent disabilities and partial permanent disabilities in the same section where they belong.” H.F. 690, 58th G.A., 1st Sess. Explanation (Iowa 1959). Once again, the legislature did not alter the law relating to apportionment. See 1959 Iowa Acts ch. 103; see also
However, in 1959, the legislature did add language allowing reduction of benefits in the following instance:
In the event compensation has been paid to any person under any provision of this chapter . . . of the Code, for the same injury producing a total permanent disability, any such amounts so paid shall be deducted from the total amount of compensation payable for such permanent total disability.
1959 Iowa Acts ch. 103, § 6 (codified at
Accordingly, in the wake of the 1959 amendment, there were two provisions addressing the problem of overlapping benefits. One provision in
There is no reason to believe that
Our caselaw has discussed what is known as the “full-responsibility rule.”1 We first used this term in a 1978 case. See Anderson v. Second Injury Fund, 262 N.W.2d 789, 791 (Iowa 1978). We discussed the rule in more depth in Celotex Corp. v. Auten, 541 N.W.2d 252, 254-56 (Iowa 1995). The full-responsibility rule provides, “Apart from statute, in a situation of two successive work-related injuries, ‘the employer is generally held liable for the entire disability resulting from the combination of the prior disability and the present injury.‘” Id. at 254 (quoting 2 Arthur Larson, The Law of Workmen‘s Compensation § 59.00, at 10-492.329 (1994)). We have recognized that the rule is “actually another way of describing our general rule governing apportionment of disability in workers’ compensation proceedings. Absent a statute, we generally do not apportion the disability of two successive work-related injuries.” Excel Corp. v. Smithart, 654 N.W.2d 891, 897 (Iowa 2002) (citation omitted), superseded by statute, 2004 Iowa Acts 1st Extraordinary Sess. ch. 1001, § 12, as recognized in Warren Props., 864 N.W.2d at 320. Again: “[I]f two separate injuries are established or if two separate cumulative injuries are established, compensation is based on the existence of the two separate disabilities, both of which are recoverable under the full-responsibility rule, unless otherwise provided by statute.” Id. at 898.
As we have already noted, beginning in 1959, the Iowa Code recognized two kinds of exceptions to the full-responsibility rule. One required apportionment of benefits when the employee was already “disabled and drawing compensatiоn under the provisions of this chapter” for another injury. See
The other exception to full responsibility was the situation covered by
Then came the special session of the Iowa legislature in 2004. In that session, the general assembly repealed
Swift argues that
Here, the commissioner found that Ochoa suffered two cumulative injuries — one on February 24, 2011, and another on December 15, 2011. The commissioner determined that Ochoa‘s first injury resulted in permanent partial disability and the second in permanent total disability. Thus, although Ochoa was already entitled to compensation for a permanent partial disability at the time of her permanent total disability, the disabilities were caused by separate and successive injuries. Cf. Excel Corp., 654 N.W.2d at 899 (noting that “compensation awards are made retroactive to the date of injury“).
Thus, at the end of the day, Swift‘s argument is simply that the legislature would not have intended an employee who sustains successive injuries while working for the sаme employer to receive simultaneous benefits for both partial disability and permanent disability. Swift adds that it is incongruous for someone to be both partially disabled and totally disabled in the eyes of the law at the same time. And even Ochoa‘s counsel at oral argument could not explain why the legislature in 2004 would have wanted apportionment of benefits to occur for two partial disabilities but not for a partial disability followed by a total disability. The same logic seems to apply in both cases.
But our job is to follow what the legislature actually drafted in 2004, not what it might have wanted to draft. As the commissioner correсtly observed, Swift‘s position is at best a “policy argument,” because the legislature in 2004 removed the provision that could have prevented this double recovery from happening and replaced it with a provision that does not apply to permanent total disability.
Swift notes that the legislature incorporated the following statement of legislative intent into the 2004 amendment: “The general assembly intends that an employer shall fully compensate all of an injured employee‘s disability that is caused by work-related injuries with the employer without compensating the same disability
IV. Conclusion.
For the reasons stated, we affirm the decision of the court of appeals and the judgment of the district court.
AFFIRMED.
All justices concur except Cady, C.J., who takes no part.
