Lindell Hollingsworth v. S & W Pallet

In this workers' compensation action involving the Second Injury Fund, the employee has suffered two disabling heart attacks. The first was non-compensable; the trial court found the second compensable and awarded permanent and total disability benefits, with 4 percent of the disability allocated to the second heart attack. The court held that the Second Injury Fund would have been responsible for the remaining 6 percent of benefits, but the statute of limitations barred recovery against the Fund. The Special Workers' Compensation Appeals Panel affirmed the trial court's award of permanent total disability but held the employer liable for 1 percent of the benefit award. We granted a motion for review before the entire Supreme Court pursuant to Tenn. Code Ann. _ 5-6-225(e)(5)(B) (1997). Primarily, we are asked to determine whether an employer's allegations of a pre-existing condition covered by the Second Injury Fund statute should be treated as an affirmative defense that is waived if not timely raised. We hold that the employer is not barred from attributing liability to the Fund after the running of the statute of limitations. Additionally, the employee asserts that the trial court erred in attributing 4 percent disability, rather than 1 percent, to the second heart attack. We hold that the evidence supports a finding that the second injury resulted in 4 percent disability. In regard to all remaining issues, we adopt the memorandum opinion of the Special Workers' Compensation Appeals Panel affirming the award of permanent total disability and remanding the cause for determination of temporary total disability.