ATTORNEYS FOR APPELLANT ATTORNEYS FOR APPELLEE
C. Richard Marshall Jeffrey A. Modisett
Shari E. Kinnaird Attorney General of Indiana
Lincoln Square
430 Second Street Priscilla J. Fossum
Post Office Box 427 Deputy Attorney General
Columbus, IN 47202-0427
Office of Attorney General
Indiana Government Center
South, Fifth Floor
402 West Washington Street
Indianapolis, IN 46204-2770
STELLA I. WALKER, )
Appellant (Plaintiff Below ), ) Supreme Court No.
) 93S02-9804-EX-216
v. )
) Court of Appeals No.
STATE OF INDIANA, ) 93A02-9602-EX-84
MUSCATATUCK STATE )
DEVELOPMENT CENTER, )
)
Appellee (Defendant Below ). )
APPEAL FROM THE WORKER'S COMPENSATION BOARD OF INDIANA
Cause No. C121558
ON PETITION TO TRANSFER
Stella I. Walker, plaintiff and appellant below ("plaintiff"), challenges the decision
of the Worker's Compensation Board ("Board") which denied her application for total permanent
disability payments.See footnote
1
The critical question before this Court is whether the seamstress position at
the Muscatatuck State Development Center ("Center"), which the State offered to plaintiff under
its partial disability program, constitutes "reasonable employment," thereby defeating her claim for
total permanent disability. Both the Board and the Court of Appeals concluded that the position
offered plaintiff under the State's disability program did constitute reasonable employment. We
disagree. We conclude that such employment, as a matter of law, cannot constitute "reasonable
employment" so as to defeat plaintiff's claim for total permanent disability payments because the
offered position was only temporary and was so highly accommodatedSee footnote
2
to plaintiff's disability
that, once the position would end, it would be extremely difficult if not impossible for her to find
suitable employment in the general competitive labor market. We, therefore, reverse the decision
below and remand for further proceedings not inconsistent with this opinion.
education, and reads at the level of a sixth or seventh grader. The parties stipulated that she was
injured in an accident arising out of and during the course of her employmentSee footnote
3
with the Center on
September 3, 1991. As she and another employee pulled apart large laundry baskets which were
stuck together, she felt her lower back pop and experienced significant pain. Then, in December
1991, Dr. Thomas Marshall, a state-provided orthopedic surgeon, diagnosed her as having
degenerative disk disease with a L5/S1 grade II spondylolisthesis, that is, the fifth lumbar vertebra
had slipped forward and displaced more than 25% in relationship to the S1 vertebra. After
conservative treatment was unsuccessful, Dr. Marshall performed spinal fusion surgery to fuse her
L4, L5, and S1 vertebrae.
During 1991 through June 26, 1993, the State paid plaintiff medical benefitsSee footnote
4
and
weekly temporary total disability benefits under its worker's compensation program. Her average
pre-injury weekly salary was $235.50, and her weekly disability rate was $157.01.See footnote
5
The State
paid plaintiff a total of $13,222.49 in temporary total disability benefits over the course of
approximately eighty-four weeks. On June 26, 1993, however, the State ceased all worker's
compensation benefits.See footnote
6
Plaintiff filed an Application for Adjustment of Claim with the Board and an
amended Application on February 12, 1993 and September 3, 1993 respectively. By a letter
dated November 14, 1994, more than three years after her injury and more than a year after
plaintiff filed her amended Application, the State offered plaintiff a temporary, full-time position
as a seamstress under the State's partial disability program,See footnote
7
subject to plaintiff's and Dr.
Marshall's approval. The position was temporary and would exist only until plaintiff "is released
to work without restriction, or is released with restrictions in the third year of long term disability,
or exhausts benefits under the plan" after approximately four years. (R. at 324). Plaintiff, after
consulting with Dr. Marshall, declined to accept this position.
At the hearing on April 26, 1995, plaintiff presented Dr. Marshall who testified
that plaintiff was disabled and unlikely to be able to return to her former employment at the
Center's laundry facility due to her physical limitations. He reported that she cannot perform
work which requires repetitive bending or twisting and cannot do overhead work; that she is
limited to lifting or carrying five to ten pounds occasionally but cannot perform either one of these
activities for any duration; and that it is unlikely that she can perform either one of these activities
for one hour per day.See footnote
8
Regarding the possibility of sedentary work, Dr. Marshall reported that "it is
unlikely that Stella Walker could maintain a sitting posture for two hours at one stretch," and that
"[s]he probably would be able to sit for one hour, but then would have to get up and move
about." (R. at 239-40.) He testified that it is unlikely that she could perform a job that would
involve stooping or bending forward at the waist, given that she had only thirty degrees of
forward flexion instead of seventy-five to ninety degrees. He specifically advised plaintiff that she
could not perform the seamstress position offered to her by letter dated November 14, 1994. He
made it clear that he regarded her condition as having stabilized and her limitations as being
permanent. Specifically, he noted that "[s]he is unfit for any employment because she can't do
anything which requires her to do prolonged standing, sitting or any repetitive bending or
twisting," (R. at 290) and that she is "[u]nfit to return to employment permanently" (R. at 291).
He evaluated her loss at 25% whole body impairment.
Plaintiff also presented the testimony of Archie Sanders, a vocational expert and
certified rehabilitation counselor who interviewed and evaluated plaintiff to determine her
employability. She told him that she had trouble urinating, dressing herself, making the bed, and
running a vacuum cleaner. She stated that she could not stand for more than ten minutes without
experiencing pain in her back and right leg, and could not sit for more than several minutes. She
could not stoop, bend, or squat, and had difficulty climbing steps and lifting a gallon of milk
weighing between eight and nine pounds. She also had experienced a depression that had
improved since she went on medication.
In addition to interviewing plaintiff, Sanders reviewed her medical records to assist
him in evaluating her exertional limitations and also considered nonexertional factors that could
affect her employability, including her age, education level, mental status, intelligence, and prior
training and work experience. Regarding her exertional limitations, Sanders noted that, although
she has range of motion limitations due to her back problem, she also has a significant pain
problem that is associated with her back and that limits her ability to function. According to
Sanders, individuals experiencing such pain often have difficulties concentrating and persevering
with a task, and this, in turn, translates into problems with production and employability.
Regarding her nonexertional limitations, Sanders noted that she was born on
April 17, 1938, that is, she was fifty-seven years old at the time of the hearing; that some work
attributes related to ability to physically exert oneself as well as to eye/hand coordination and to
manual and finger dexterity, often decline as a person ages; and that, in addition, it is more
difficult to find work when you are older. With regard to her education, she did not receive any
schooling beyond the eighth grade, did not receive her GED, and did not receive any vocational
training. Her previous positions all involved manual labor.See footnote
9
Sanders concluded: "Mrs. Walker obviously has too many pain limitations to be
able to perform any kind of work, even at a sedentary level, that I would know of in the economy.
In my opinion, there's [sic] no reasonable kinds of jobs that a person with her limitations could
do." (R. at 57.) He stated that she has no transferrable skills outside of her previous work, and
that, in light of her exertional and nonexertional limitations, there are no categories of
employment that she could do on a full-time or half-time basis, and there is no kind of job in the
economy that he would recommend that she try. He opined that she could not perform as a
seamstress on a full-time basis and could not perform that job four hours per day three days per
week.
Plaintiff testified as to the pain she experiences when sitting or standing and
explained that during the course of the day she needs to lie down five or six times for
approximately forty-five minutes to an hour. She testified her legs and hands sometimes tingle or
get numb, and that she has difficulty thinking because of the pain, but also has difficulty
functioning when she takes the medication to relieve the pain. She also testified that she loved
working, and that, but for the pain, would like to continue to work, but that she knows that she
cannot work and particularly that she cannot work every day. She was familiar with the position
of seamstress, because she did sewing while working at the laundry, and stated that the job
required her to bend forward. She did not think that she could perform the job of seamstress.
In response to plaintiff's evidence, the State presented a report by Dr. Lorber, a
medical doctor who examined her once and opined that her fusion surgery was not successful in
stabilizing her vertebrae, and that her prognosis was poor. He stated that it is unlikely that she
could resume work in the laundry, and he concluded that she has a permanent partial impairment
of 20%. The State also presented a functional capacity evaluation prepared by Roger Stephens,
an occupational therapist. As a result of his examination and interview, he concluded that she has
a legitimate back problem with a "possible psychological overlay influencing Ms. Walker's
perception of her functional impairment." (R. at 276.) He stated that, although she is not totally
functionally impaired and could perform sedentary work, "locating gainful employment within the
limitations she demonstrated during this evaluation would be very difficult." (R. at 275-76.) He
recommended that she seek counseling in chronic pain management to improve her perception of
function and therefore her employability and also suggested that she apply to the Office of
Vocational Rehabilitation to assist her in locating employment within her functional limitations.
Id.See footnote
10
Ralph Hunter, the State's personnel officer for the Center, testified that they would
tailor the seamstress position previously offered to plaintiff as a full-time position, to suit her
disability. In light of the testimony and evidence, Hunter testified that she could work four hours
per day three days per week rather than full-time or even half-time. He stated they would
accommodate her need to stand and sit only for short periods of time and would provide a couch
or cot so that she could lie down as needed. He stated that there would be no production
standard for her, and that she could take off extra time for medical appointments. He confirmed
that this position was being offered pursuant to the State's partial disability program and was
temporary.
Finally, the State's vocational expert, Thomas Roundtree, who interviewed
plaintiff and reviewed her medical records, reported and testified that the State's offered
seamstress position would be consistent with the restrictions emanating from her work-related
impairments. He agreed that it was a position highly accommodated to plaintiff's needs, and
explained, in fact, that he had concluded that she could perform the job based on the State's
representation that it would tailor the position to accommodate her special needs. He did not
disagree with Sanders' conclusions that plaintiff had difficulty sitting and standing, or that it may
be difficult for her to find employment in the local labor market.
On September 7, 1995, the hearing judge prepared findings that stated, among
other things, that Dr. Marshall gave work restrictions of no repetitive bending, twisting, no
overhead work, and limited plaintiff to twenty-five pounds of lifting;See footnote
11
that the functional capacity
test indicated that plaintiff could do sedentary work with occasional lifting of ten pounds and
could occasionally sit, stand, bend, and reach; that Roundtree concluded that plaintiff could
perform the job offered to her; that plaintiff testified that she would like to return to work;See footnote
12
that
the State offered plaintiff a job in which all of her restrictions will be honored, including allowing
a change in position every ten minutes; that Dr. Marshall issued a 25% permanent partial
impairment rating; and that plaintiff has been paid, pursuant to stipulation, $10,000 for a lesser
permanent partial impairment rating based upon Dr. Lorber's report.
The hearing judge then concluded that plaintiff's level of impairment is 25%; that
the State is obligated to pay or reimburse plaintiff for all statutory medical expenses up to and
including May 27, 1993, the date upon which the hearing judge found she had reached maximum
medical improvement; that, although plaintiff has limiting work restrictions due to her injury,
these restrictions do not make her unable to resume reasonable types of employment such as those
which were offered by the State and which are within her work restrictions;See footnote
13
and that plaintiff is
not totally and permanently disabled. The judge then ordered the State to pay an additional
$2,500 to plaintiff to compensate her for the full 25% impairment, and that the State pay plaintiff
for all medical expenses incurred up to and including May 27, 1993.
On January 19, 1996, the Board adopted and affirmed the hearing judge's decision
with one member dissenting. The Court of Appeals affirmed the Board's decision in an
unpublished memorandum opinion on September 16, 1996.
State responds that the job which the Center offered her as a seamstress constitutes reasonable
employment as a matter of law. The critical question before this Court, then, is whether the
temporary and highly accommodated position as a seamstress at the Center, which the State
offered to plaintiff under its partial disability program, constitutes "reasonable employment,"
thereby defeating her claim for total permanent disability.See footnote
14
After first reviewing the burden of proof and standard of review applicable in
worker's compensation cases, we then analyze the concept of "reasonable employment" in the
context of this case and explain why, contrary to the conclusions of the Board and the Court of
Appeals, the employment offered plaintiff, as a matter of law, cannot constitute "reasonable
employment" so as to defeat her claim for total permanent disability benefits.
App. 1993). The term "impairment"See footnote
15
refers to the injured employee's loss of physical
function(s); whereas the term "disability" refers to the injured employee's inability to work. See
Hill v. Woodmark Corp., 651 N.E.2d 785, 786 n.1 (Ind. 1995); Talas v. Correct Piping Co., 435
N.E.2d 22, 26 (Ind. 1982). To establish a "permanent total disability," it is not necessary that the
claimant prove her impairment or loss of bodily function is, or approaches, 100%, because an
injured worker may experience a partial impairment and at the same time be unable to engage in
reasonable forms of work activities. Talas, 435 N.E.2d at 27; Rockwell Int'l v. Byrd, 498
N.E.2d 1033, 1039 (Ind. Ct. App. 1986). Rather, the injured worker must simply establish that
she cannot obtain or perform "reasonable" types of employment. Perez v. United States Steel
Corp., 428 N.E.2d 212, 215-16 (Ind. 1981)(on petition to transfer after second remand); Perez v.
United States Steel Corp., 426 N.E.2d 29, 31 (Ind. 1981)(on petition to transfer after first
remand).
In determining whether a claimant is entitled to "total permanent disability" and
whether the claimant can obtain and perform "reasonable" types of employment, this Court has
employed the definitions set out by Ben F. Small in his treatise Workmen's Compensation Law of
Indiana (1950 & Supp. 1976). Professor Small has emphasized that, while a "total disability to
be permanent must be one which so destroys or shatters a workman's wage earning capacities as
to leave him unable to resume reasonable types of employment for the remainder of his life," it is
not necessary for a claimant to prove "an utter inability to do anything with the remains of his
body" for the "believe-it-or-nots demonstrate that even the most hopeless human wrecks have on
occasion developed obscure means for obtaining livelihood." Id. § 9.4, at 244, cited in Perez v.
United States Steel Corp., 172 Ind. App. 242, 245-46, 359 N.E.2d 925, 927-28 (1977).See footnote
16
Rather,
it is sufficient that the worker show that he cannot carry on reasonable types of employment, with
the "reasonableness" of the worker's opportunities to be "measured by his physical and mental
fitness for them and by their availability." Id.; Perez, 428 N.E.2d at 215-16; Perez, 426 N.E.2d
at 31. See also Rockwell Int'l v. Byrd, 498 N.E.2d at 1039.
Once plaintiff has established the degree of obvious physical impairment, coupled
with other facts such as the claimant's capacity, education, training, or age, and has established
that she has attempted unsuccessfully to find work or that it would be futile to search for work in
light of her impairment and other characteristics,See footnote
17
the burden of producing evidence that
reasonable employment is regularly and continuously available then rests on the employer.See footnote
18
See
generally 4 Arthur Larson, Larson's Workers' Compensation Law § 57.51, at 10-283 to -378, §
57.61(c), at 10-405 to -439 (1997)(discussing the "odd-lot" category of employees)[hereinafter
Larson]. See Rockwell Int'l v. Byrd, 498 N.E.2d at 1039-40, cited in Larson, § 57.51(c), at 10-
341 (affirming award of total permanent disability where partially impaired, uneducated, and
unskilled claimant must lie down at regular intervals to obtain relief from pain after a back injury
and therefore was unable to carry on reasonable types of employment, as measured by his physical
and mental fitness for available job opportunities). Shifting the burden of production to the
employer under these circumstances is justified because it is much easier for the employer, by
virtue of its contact with the labor market, to prove the claimant's employability than it is for the
employee to attempt to prove the universal negative of being totally unemployable. E.R. Moore
Co. v. Indus. Comm'n, 376 N.E.2d 206, 210 (Ill. 1978).
On appeal, we review the decision of the Board, not to re-weigh the evidence or
judge the credibility of witnesses, but only to determine whether substantial evidence, together
with any reasonable inferences that flow from such evidence, support the Board's findings and
conclusions. Perez, 428 N.E.2d at 216, cited in Hill v. Worldmark Corp., 651 N.E.2d at 786.
Where the question before this Court, however, is primarily a legal question, we do not grant the
same degree of deference to the Board's decision, for law is the province of the judiciary and our
constitutional system empowers the courts to draw legal conclusions. See Board of Trustees of
the Public Employees' Retirement Fund v. Miller, 519 N.E.2d 732, 733 (Ind. 1988). Moreover,
in performing a legal analysis and in interpreting the provisions of the Worker's Compensation
Act,See footnote
19
we construe the Act and resolve doubts in the application of terms in favor of the employee
so as to effectuate the Act's humanitarian purpose to provide injured workers with an expeditious
and adequate remedy. See Talas, 435 N.E.2d at 28; Frampton v. Central Indiana Gas Co., 260
Ind. 249, 251, 297 N.E.2d 425, 427 (1973); Kancs v. Walker, 557 N.E.2d 670, 672 (Ind. Ct.
App. 1990).
ten pounds; that her previous positions have all involved manual labor; that she is uneducated;
that, because of her chronic pain, she cannot sit or stand for significant periods of time and must
lie down off and on throughout the day to relieve the pain; that she is capable of neither full-time
nor half-time work; that the seamstress position offered to plaintiff under the State's partial
disability program is for four hours per day three days per week and is a position highly
accommodated to her needs; that the position is temporary and would not be available for more
than approximately four years; and that it would be extremely difficult for someone with plaintiff's
limitations to find similar work in the general competitive labor market.
In light of these undisputed facts, the question before the Court is one of law, and
we conclude, as a matter of law, that plaintiff has met her burden of establishing that, in light of
her impairment, her age, her prior experience, and her lack of education, there are no general
kinds of employment that would be suitable for her, and that it likely would be futile for her to
seek employment in the general competitive labor market. Although the State did put forth
evidence that it had offered her a position as a seamstress, that position cannot constitute
"reasonable employment" for at least two reasons, either of which, standing alone, is sufficient to
demonstrate that the offered employment is not reasonable employment as a matter of law.
First, the temporary nature of the employment is in itself sufficient reason to
conclude that it cannot constitute reasonable employment such that it defeats a claim of total
permanent disability. If the post-injury employment lacks permanence and if it can fairly be said
that, should the claimant lose that job, the claimant would have a hard time getting new work of a
regular and continuous nature, a finding of total permanent disability is in order. See generally
Larson, § 57.35, at 10-247 to -251, § 57.51(c), at 10-331 to -336.See footnote
21
Here, it is not disputed that
the work offered plaintiff was temporary, and, in fact, because it was offered under the State's
partial disability program, its duration is limited by regulation. See Ind. Admin. Code tit. 31, 3-1-
12(a) (1996) (stating that long term disability benefit payments are limited to a maximum of four
(4) years).
Second, work that is highly accommodatedSee footnote
22
to suit the needs and disabilities of a
particular claimant cannot defeat a claim of total permanent disability where it is clear that the
claimant could not find similar work under normally prevailing market conditions. "Wages paid
an injured employee out of sympathy, or in consideration of his long service with the employer"
do not reflect his actual earning capacity under normal market conditions and are to be discounted
for the purposes of determining permanent disability. See Larson, § 57.34, at 10-239. "The same
is true if the injured man's friends help him to hold his job by doing much of his work for him, or
if he manages to continue only by delegating his more onerous tasks to a helper, or if the work for
which claimant is paid is 'made work' or 'sheltered work.'" Id. § 57.34, at 10-239 to -245.
Similarly, an employer cannot avoid deliberately its duty to pay worker's compensation benefits
simply by offering the employee work that is so highly accommodated to the employee's needs
that it would not ordinarily be available under normally prevailing market conditions. See Peoples
v. Cone Mills Corp., 342 S.E.2d 798, 806 (N.C. 1986).
Here, there is no question that the offered position was "highly accommodated."
Ralph Hunter, the State's personnel officer, essentially testified that he would design the position
around plaintiff's special needs, that they would permit her to work four hours a day three days
per week, and that they would even provide her with a cot to lie down on as needed, and Thomas
Roundtree, the State's vocational expert, agreed that the offered position was "highly
accommodated" to plaintiff's needs. (R. at 437.) Moreover, plaintiff's vocational expert Archie
Sanders testified that there were no categories of employment that plaintiff could perform on a
full-time or half-time basis, and that there was no kind of job in the economy that he would
recommend that she try. The State did not present contrary evidence. In fact, the functional
capacity evaluation which it introduced stated in essence that, while in theory she could perform
some sedentary work, in reality, "locating gainful employment with the limitations she
demonstrated . . . would be very difficult." (R. at 275-76.) Thus, if we accept the Board's
conclusion that plaintiff could perform the offered seamstress position four hours per day three
days per week, as we do in this opinion, it is clear that, once the position ended as it certainly
would given that it was temporary by design, it would be very difficult if not impossible for
plaintiff to find other suitable work in the general competitive labor market. Even putting aside
Sanders' testimony and the State's functional evaluation report, it is hard to imagine another
position where a person with significant back problems, limited education, and experienced only
in manual labor, would be hired to work only four hours per day three days per week and then be
permitted to take breaks and lie down on a couch whenever her back bothered her and to meet no
performance standards.See footnote
23
Thus, because the offered employment was temporary and so highly
accommodated to plaintiff's needs that, once the position would end, plaintiff would not likely be
able to find other suitable employment in the general competitive labor market, the offered
position is not reasonable employment and cannot defeat her claim for total permanent disability
benefits.
We are constrained to make one final observation. While we applaud the State's
effort to accommodate the disabled and to place those capable of working in accommodated
positions under the State's partial disability program, the State cannot use this program to defeat
an otherwise valid claim for total permanent disability under the worker's compensation laws.
The worker's compensation scheme reflects a compromise struck by employers and injured
workers. An employer is obligated to provide limited compensation to workers whose injuries and
illnesses arise out of and in the course of their employment, regardless of fault, see Frampton, 297
N.E.2d at 427, and workers who were previously precluded from recovery under common law
theories are thus guaranteed compensation. In exchange, an injured worker relinquishes the right
to sue his employer for negligence, and an employer's liability is thereby reduced. Id. Stated
another way, the worker's compensation scheme becomes the worker's exclusive remedy. Ind.
Code § 22-3-2-6 (1993). The scheme is designed to "shift the economic burden for employment
related injuries from the employee to the employer and consumers of its products." Collins v.
Day, 604 N.E.2d 647, 648 (Ind. Ct. App. 1992), aff'd on other grounds, 644 N.E.2d 72 (Ind.
1994). See also Frampton, 297 N.E.2d at 427.See footnote
24
In light of the exclusive nature of the worker's
compensation remedy and the humanitarian purpose of the statutory scheme, it is particularly
important that, as stated above, we construe the statute liberally in favor of the employee to
effectuate its humanitarian purposes. Id.
The State does not assert that its partial disability program is a substitute for the
worker's compensation scheme, and certainly nothing in Ind. Code § 5-10-8-7 (1993 & Supp.
1997), the asserted statutory basis for the State's program, see supra note 7, can be read to limit
an employee's entitlement to worker's compensation benefits if the statutory prerequisites have
been met. In fact, the only mention of the worker's compensation benefits in § 5-10-8-7 is the
subsection which provides that an employee's state disability benefits "may be reduced, dollar for
dollar" if the employee derives income from one of several enumerated sources, including social
security and worker's compensation. See Ind. Code § 5-10-8-7(d)(6)(A), (E); Ind. Admin. Code
tit. 31, 3-1-22(a)(1), (6)(1996). Thus, while the State may, under the terms of the statute, reduce
its award of disability benefits should an employee participate in its program while receiving
worker's compensation benefits, it may not, by offering an injured employee under its partial
disability program a temporary and highly accommodated position of the sort that would be
difficult if not impossible to find in the general competitive labor market, preclude that employee
from receiving total permanent disability benefits to which the employee would otherwise be
entitled under the worker's compensation scheme.
SHEPARD, C.J., and DICKSON and BOEHM, J.J., concur.
SULLIVAN, J., not participating.
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