Opinion

State ex rel. Nicholson v. Copperweld Steel Co.

  • 77 Ohio St. 3d 193
  • 1996 Ohio 198
Court
Ohio Supreme Court
Filed
Dec 18, 1996
Status
Published
Cited by
0 cases
Authority
More cited than 34.9%

The opinion

[This opinion has been published in Ohio Official Reports at 77 Ohio St.3d 193.]

THE STATE EX REL. NICHOLSON, APPELLANT, v. COPPERWELD STEEL

COMPANY; INDUSTRIAL COMMISSION OF OHIO, APPELLEE.

[Cite as State ex rel. Nicholson v. Copperweld Steel Co., 1996-Ohio-198.]

Workers’ compensation—R.C. 4123.60 affords dependents, upon timely

application, the right to claim compensation for which a decedent was

eligible but was not paid before death—Mandamus available to enforce

this right—Industrial Commission’s order denying application for

compensation an abuse of discretion when requirements of Noll not met.

(No. 94-2352—Submitted September 24, 1996—Decided December 18, 1996.)

APPEAL from the Court of Appeals for Franklin County, No. 93APD08-1091.

__________________

{¶ 1} Appellant, Marian Nicholson, seeks a writ of mandamus (1) to vacate

appellee Industrial Commission of Ohio’s denial of her “Application for Payment

of Compensation Accrued at Time of Death,” and (2) to award her the permanent

total disability compensation (“PTD”) she claims her husband should have received

prior to his death.

{¶ 2} Marian’s husband, Charles Nicholson, was injured in 1973 and again

in 1974 while working for Copperweld Steel Company. His workers’

compensation claims were recognized for “right foot” and “contusion and

ecchymosis of left buttock, strain of left sacroiliac, aggravation of pre-existing

arthritis of the lumbar spine, spondylolisthesis at L5/S1 and central bulging discs

at L4/5, L5/S1.” In July 1990, Charles applied for PTD. His physician, Dr. Martin

J. Lohne, reported that Charles was “100% disabled” due to his back injury. A

commission specialist, Dr. David M. Baroff, reported Charles had a twenty-five

percent permanent partial impairment based on the allowed back condition, but

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concurred that Charles was unfit for sustained remunerative employment. Charles

died on February 18, 1992, before any disposition of his PTD application.

{¶ 3} On April 13, 1992, Marian applied, as Charles’s dependent, for the

compensation Charles could have received prior to his death. The commission

denied her application in February 1993, finding that Charles had been permanently

and totally disabled when he died, but not due to either of his allowed conditions.

The commission explained:

“The reports of Doctors Lohne, Baroff and McCloud were reviewed and

evaluated. This order is based particularly upon the report of Doctor McCloud.

“The medical evidence found persuasive includes the report of Commission

orthopedist Dr. McCloud. The report, which consists of a review of both allowed

claim files subsequent to the claimant’s death, finds a 30% permanent partial

impairment due to the claimant’s allowed conditions and opines these conditions

did not render the claimant permanently totally impaired. It is noted that the

claimant’s course of treatment for his allowed conditions was exclusively

conservative in nature. The report of Commission specialist Dr. Baroff, which finds

only a 25% permanent partial impairment but opines the claimant is permanently

disabled from any work, is found unpersuasive in that it is not supported by

objective medical evidence on file. Medical evidence on file indicates at the time

of his death the claimant suffered from a seizure disorder and arthritis in both knees.

The death certificate indicates the claimant’s immediate cause of death was cardiac

arrest, with meningeal sarcoma and coronary a[r]teriosclerotic heart disease listed

as contributing causes. Therefore, while the Commission finds the claimant to have

been incapable of gainful employment at his date of death, it is determined that the

claimant’s inability to work was not causally related to the allowed conditions in

the claim files. This finding is based on a consideration of Dr. McCloud’s report,

the claimant’s conservative course of treatment, the claimant’s advanced age of 68

at his date of death, and his serious non-work related medical conditions.

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January Term, 1996

Accordingly, the IC-2 filed 7/17/90 [Charles’s application] and the C-6 filed

4/13/92 [Marian’s application] are denied.”

{¶ 4} Marian then filed her complaint in mandamus in the Court of Appeals

for Franklin County. She argued that the allowed conditions and Charles’s other

vocational characteristics had made him unfit for sustained remunerative

employment and, therefore, that the commission had abused its discretion by

denying her payment for the PTD Charles should have received prior to his death.

A referee recommended denial of the writ without reaching Charles’s PTD

eligibility. The referee concluded that Charles’s claim had abated upon his death

and that Marian had no legal right, under R.C. 4123.60, to pursue payment for his

PTD by an action in mandamus. The court of appeals agreed, adopted the referee’s

reasoning, and denied the writ.

{¶ 5} The cause is before this court upon an appeal as of right.

__________________

Jurus Law Offices and Michael J. Muldoon, for appellant.

Betty D. Montgomery, Attorney General, and Charles Zamora, Assistant

Attorney General, for appellee.

__________________

Per Curiam.

{¶ 6} Two questions are presented for our review: (1) Is mandamus

available to compel payment, pursuant to R.C. 4123.60, to a decedent’s spouse of

the PTD the decedent could have received prior to his death? and (2) Did the

commission abuse its discretion in finding that Charles was not entitled to PTD and

denying Marian the payments available under R.C. 4123.60? For the reasons that

follow, we hold that R.C. 4123.60 affords dependents, upon timely application, the

right to claim compensation for which a decedent was eligible but was not paid

before death and that mandamus is available to enforce this right. We further hold

that the commission’s order is not sufficiently specific under State ex rel. Noll v.

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Indus. Comm. (1991), 57 Ohio St.3d 203, 567 N.E.2d 245, and, therefore,

constitutes an abuse of discretion. Accordingly, we reverse and return this cause to

the commission for further consideration and an amended order.

R.C. 4123.60

{¶ 7} Marian applied for payment of compensation for which Charles

qualified before he died pursuant to R.C. 4123.60, which provided, in part:

“In all cases of death from causes other than the injury or occupational

disease for which award had theretofore been made on account of temporary, or

permanent partial, or total disability, in which there remains an unpaid balance,

representing payments accrued and due to the decedent at the time of his death, the

commission may, after satisfactory proof has been made warranting such action,

award or pay any unpaid balance of such award to such of the dependents of the

decedent, or for services rendered on account of the last illness or death of such

decedent, as the commission determines in accordance with the circumstances in

each such case. If the decedent would have been lawfully entitled to have made

application for an award at the time of his death the commission may, after

satisfactory proof to warrant an award and payment, award and pay an amount,

not exceeding the compensation which the decedent might have received, but for

his death, for the period prior to the date of his death, to such of the dependents of

the decedent, or for services rendered on account of the last illness or death of such

decedent, as the commission determines in accordance with the circumstances of

each case, but such payments may be made only in cases in which application for

compensation was made in the manner required by sections 4123.01 to 4123.94 of

the Revised Code, during the lifetime of such injured or disabled person, or within

one year after the death of such injured or disabled person.” (Emphasis added.)

(136 Ohio Laws, Part I, 1075, 1169-1170.)

{¶ 8} The court of appeals concluded that Charles’s PTD claim abated upon

his death, which is true under State ex rel. Hamlin v. Indus. Comm. (1993), 68 Ohio

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January Term, 1996

St.3d 21, 22, 623 N.E.2d 35, 36. The court further held that his surviving spouse

had no right under R.C. 4123.60 to “step into * * * [his] shoes” for the purpose of

pursuing his claim, and this is also true. State ex rel. Manns v. Indus. Comm.

(1988), 39 Ohio St.3d 188, 529 N.E.2d 1379, paragraph three of the syllabus (where

deceased claimant was paid lump-sum advance for anticipated future

compensation, advance was not “accrued compensation” to which dependents may

be entitled under R.C. 4123.60, and a surviving spouse cannot pursue the

decedent’s claim for the advance). The commission urges us to affirm for the same

reasons.

{¶ 9} We, however, read the emphasized language of R.C. 4123.60 to

expressly authorize a deceased worker’s dependents’ receipt of compensation for

which the worker qualified and should have received before death. Indeed, we have

already said that where a deceased worker’s dependents’ claims accrued

compensation under R.C. 4123.60, “[t]he award is not personal to the worker

because R.C. 4123.60 specifically provides that dependents may recover the

compensation the deceased worker was entitled to receive.” State ex rel. Nyitray v.

Indus. Comm. (1983), 2 Ohio St.3d 173, 177, 2 OBR 715, 719, 443 N.E.2d 962,

966, fn. 5. For this reason, an R.C. 4123.60 award is similar to a death benefit

award under R.C. 4123.59 -- both exist separate and apart from the rights of the

injured worker. Nyitray at 174, 2 OBR at 716, 443 N.E.2d at 963; Manns, 39 Ohio

St.3d at 190, 529 N.E.2d at 1381.

{¶ 10} Thus, contrary to the court of appeals’ decision, Marian is not

attempting to pursue Charles’s PTD claim, which he filed pursuant to R.C. 4123.58,

on his behalf. Rather, when Marian filed her application for accrued compensation,

she instituted her own claim for compensation Charles could have received, a claim

that is expressly sanctioned by R.C. 4123.60. As a result, Marian’s claim was not

abated by Charles’s death—her interests actually arose at that time and, under R.C.

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4123.60, they became independently actionable. Nyitray at 174, 2 OBR at 716, 443

N.E.2d at 963.

{¶ 11} The court of appeals also concluded that R.C. 4123.60 requires the

commission to decide a dependent’s application for accrued compensation, but

stops short of authorizing a dependent’s suit in mandamus if the application is

denied. The court came to this conclusion because R.C. 4123.60 does not identify

mandamus as an avenue for challenging the commission’s denial of compensation

and because the statute states that the commission “may” compensate dependents

of deceased workers, connoting a discretionary decision. Neither consideration,

however, justifies the appellate court’s refusal to recognize Marian’s claim as

actionable in mandamus.

{¶ 12} The court of appeals cited State ex rel. Yurcsisin v. Indus. Comm.

(1944), 142 Ohio St. 479, 27 O.O. 408, 52 N.E.2d 991, which noted the

discretionary language of the predecessor to R.C. 4123.60, but did not deny

mandamus on that basis alone. The Yurcsisin court instead held that a widow had

failed to prove claimed compensation was “accrued and due” under the first

sentence of the statute. This holding does not bar mandamus where such proof

exists.

{¶ 13} Furthermore, in Nyitray we granted mandamus to remedy the denial

of equal protection represented by former R.C. 4123.60. At that time, R.C. 4123.60

denied accrued compensation to dependents of workers who died of industrial

injury or occupational disease, but allowed compensation for qualifying dependents

of workers who died of other causes. We held that no rational basis justified a

distinction based on cause of death and granted the writ. By affording this relief,

we effectively ordered the commission to award any compensation for which the

surviving spouse in that case qualified. Thus, R.C. 4123.60 is enforceable through

mandamus.

PTD Denial

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January Term, 1996

{¶ 14} In reviewing the PTD application of a claimant who is only

permanently partially impaired due to industrial injury, the commission must

consider the claimant’s age, work experience, education, or other relevant

nonmedical or vocational characteristics, as required by State ex rel. Stephenson v.

Indus. Comm. (1987), 31 Ohio St.3d 167, 31 OBR 369, 509 N.E.2d 946, and

determine whether the claimant is nevertheless foreclosed from sustained

remunerative employment. State, ex rel. Hopkins v. Indus. Comm. (1994), 70 Ohio

St.3d 36, 38,635 N.E.2d 1257, 1259; State ex rel. Lawrence v. Am. Lubricants Co

(1988), 40 Ohio St.3d 321, 322, 533 N.E.2d 344, 345-346; State ex rel. Hartung v.

Columbus (1990), 53 Ohio St.3d 257, 258, 560 N.E.2d 196, 198. And, for all its

determinations, Noll, supra, requires the commission “to prepare orders that ‘are

fact-specific and which contain reasons explaining its decisions. * * * Such

order[s] must specifically state what evidence has been relied upon to reach its

conclusion and, most important, briefly explain the basis of its decision.’” State ex

rel. Pass v. C.S.T. Extraction Co. (1996), 74 Ohio St.3d 373, 375, 658 N.E.2d 1055,

1057, quoting Noll, 57 Ohio St.3d at 206, 567 N.E.2d at 249. The commission’s

failure to specify and explain the impact of the Stephenson factors, in accordance

with Noll, is an abuse of discretion for which mandamus is the remedy. State ex

rel. Ranomer v. Indus. Comm. (1994), 71 Ohio St.3d 134, 137, 642 N.E.2d 373,

376.

{¶ 15} Marian argues that the commission did not sufficiently account for

the Stephenson factors when it denied her application for compensation that had

accrued to Charles before he died. We agree.

{¶ 16} Charles was approximately seventy-years old and a nursing-home

resident when he died. He had a seventh-grade education and had been employed

as a railroad brakeman and steel mill laborer. He had not worked since his injury

in 1974, and he appeared to have no rehabilitation potential.

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{¶ 17} The commission noted Charles’s age in its order but no other

nonmedical characteristics. It instead relied completely on Dr. McCloud’s October

1992 report, which, except for one or two conclusions, reads as if he were

determining Charles’s cause of death for a death-benefit claim, rather than

Charles’s fitness for sustained remunerative employment on his application for

PTD. The report stated:

“HISTORY

“Injured 4-30-74

“1) 562043-22 is allowed for right foot # 2) 73-41359 is allowed for

contusions and ecchymosis of left buttock, strain of left sacroiliac, aggravation of

pre-existing arthritis of lumbar spine and spondylolisthesis at L5-S1 with disc

bulging at L4-5 and L5-S1. He was a general laborer for the Copperweld Steel

Company.

“I was asked to review the industrial records to help determine if there was

medical evidence consistent with considering this claimant unable to perform any

sustained work activity. It is important to note that at the time of his death his back

injury was some 19 years old and his foot injury was some 18 years old. His

treatment in regard to each of these problems was conservative in nature and I did

review a variety of clinical notes from Dr. Burrows [sic, Baroff]. The charts are

quite thick but there is nothing in the chart that would indicate any specific or

radical changes that occurred through his clinical course as the conservative

treatment and various conservative modalities were continued throughout his

clinical history in regard to these claims. The claimant did die on February 18,

1992 and I did review the death certificate as prepared by the coroner. The primary

cause of death was listed as a cardiac arrest with a contributing factor of meningeal

sarcoma. Further, the claimant was felt to have arterial sclerotic heart disease as a

contributing factor as well.

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January Term, 1996

“In summary, this individual died as a result of cardiac arrest and the

precipitating factor as well as the contributing factors [was] described on the death

certificate by the coroner. Neither the primary factor in relation to his death nor the

contributing factors in any fashion can be related to the conditions permitted to be

a portion of either of these two claims. Therefore, review of the medical

information in the record would indicate that this claimant cannot be considered

permanently and totally impaired based upon the conditions permitted to be a

portion of either claim.

“* * *

“562043-22 = 0% [Percentage of impairment]

“73-41359 = 30% [Percentage of impairment].”

{¶ 18} To receive PTD, Marian must demonstrate not only Charles’s

inability to perform sustained remunerative employment, but also that the inability

is causally related to the allowed conditions. State ex rel. LTV Steel Co. v. Indus.

Comm. (1992), 65 Ohio St.3d 22, 23, 599 N.E.2d 265, 267. “Permanent total

disability cannot be based, wholly or partially, on nonallowed medical conditions.”

State ex rel. Erico Products, Inc. v. Indus Comm. (1994), 70 Ohio St.3d 661, 663,

640 N.E.2d 824, 826, citing State ex rel. Fields v. Indus. Comm. (1993), 66 Ohio

St.3d 437, 613 N.E.2d 230. However, “[t]he presence of debilitating nonallowed

conditions * * * does not preclude permanent total disability compensation so long

as the allowed conditions * * * independently [or together with nonmedical

disability factors, LTV Steel at 24, 599 N.E.2d at 267] prevent sustained

remunerative employment.” Erico at 663, 640 N.E.2d at 826, citing State ex rel.

Waddle v. Indus. Comm. (1993), 67 Ohio St.3d 452, 619 N.E.2d 1018.

{¶ 19} Only the total absence of impairment attributable to allowed

conditions eliminates the commission’s obligation to consider nonmedical factors

recognized in Stephenson. In that situation, “there is no allowable impairment with

which the nonmedical factors could conceivably combine to produce [a finding that

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the claimant was unfit for sustained remunerative employment].” Erico at 663, 640

N.E.2d at 826. Here, the commission was persuaded that Charles was thirty-percent

impaired due to his allowed back condition, but did not finish the PTD analysis. It

overlooked that the combination of the thirty percent impairment and Charles’s

education, age, and work history might have precluded his return to work

independently of his otherwise failing health.

{¶ 20} The commission argues, however, that Dr. McCloud’s report was

“some evidence” upon which it could conclude that Charles’s permanent and total

disability was exclusively due to nonallowed conditions. The commission cites

LTV Steel, in which we declared it “pointless” to order an explanation of how

nonmedical factors justified a PTD award. LTV Steel at 25, 599 N.E.2d at 267.

There, medical evidence attributed permanent and total disability exclusively to

nonallowed conditions and, thus, necessarily established that the claimant’s

inability to work was not due to the allowed conditions.

{¶ 21} LTV Steel sanctions the commission’s noncompliance with Noll

where it legitimately denies PTD on evidence that exclusively attributes disability

to nonallowed conditions. LTV Steel, 65 Ohio St.3d at 24-25, 599 N.E.2d at 267.

LTV Steel, however, was distinguished on this basis in Waddle, and the distinction

applies here for the reasons just discussed:

“LTV held that the presence of a totally disabling nonindustrial condition

negated the need for further Noll consideration. Unlike this case, however, the

claimant in LTV suffered no underlying impairment whatsoever from the allowed

condition. There was thus no allowed condition/impairment with which the

Stephenson factors could conceivably combine to produce permanent total

disability. The present claimant clearly has a work-related physical impairment

with which the Stephenson factors could combine.

“For the above reasons, the judgment of the court of appeals [granting a writ

of mandamus] is affirmed[,] and the cause is returned to the commission for

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January Term, 1996

additional consideration and and amended order consistent with Noll.” Waddle at

458, 619 N.E.2d at 1022-1023.

{¶ 22} Accordingly, we reverse the judgment of the court of appeals as to

the availability of mandamus to enforce R.C. 4123.60, and issue a limited writ

returning the cause to the commission for compliance with the specificity

requirements of Noll and an amended order.

Judgment reversed and

limited writ granted.

MOYER, C.J., DOUGLAS, RESNICK, F.E. SWEENEY, PFEIFER, COOK and

STRATTON, JJ., concur.

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