James Donald Lattimore v. Cna Insurance Company,

This workers' compensation appeal has been referred to the Special Workers' Compensation Appeals Panel of the Supreme Court in accordance with Tenn. Code Ann. _ 5-6-225(e)(3) for hearing and reporting to the Supreme Court of findings of fact and conclusions of law. In this appeal, the Second Injury Fund insists the trial court erred in awarding disability benefits in excess of the limitation provided by law where the injured worker was more than sixty years old at the time of the injury. As discussed below, the panel has concluded the Second Injury Fund is not entitled to credit for overpayment made by the employer. Tenn. Code Ann. _ 5-6-225(e) (22 Supp.) Appeal as of Right; Judgment of the Criminal Court Affirmed JOE C. LOSER, JR., SP. J., in which FRANK F. DROWOTA, III, C. J., and JAMES L. WEATHERFORD, SR. J., joined. Paul G. Summers, Attorney General and Reporter, and E. Blaine Sprouse, Assistant Attorney General, Nashville, Tennessee, for the appellant, Second Injury Fund William Joseph Butler and E. Guy Holliman, Farrar, Holliman & Butler, Lafayette, Tennessee, for the appellee, James Donald Lattimore Daniel H. Rader, III and Lane Moore, Moore, Rader, Clift & Fitzpatrick, Cookeville, Tennessee, for the appellees, CNA Insurance Company and TRW Steering Systems, Inc. MEMORANDUM OPINION The employee or claimant, Mr. Lattimore, initiated this civil action to recover workers' compensation benefits for alleged injuries to his back, left leg and right leg resulting from an accident arising out of and in the course of his employment with the employer, TRW Steering Systems, in December 1999. He demanded, among other things, permanent partial disability benefits. The claim was settled on October 6, 22. The settlement order recites that the accident occurred on December 15, 1999 and provided for an award based on 19 weeks of benefits at the employee's agreed compensation rate. On March 8, 21, the claimant applied for reconsideration of the above award pursuant to Tenn. Code Ann. _ 5-6-241(a)(2), averring that he was no longer working for the employer. Because the claimant was seeking permanent total disability benefits and had disability pre-existing the December 1999 accident, the Second Injury Fund was added as an additional defendant. Both defendants denied liability. After a trial on the merits, the trial court found the employee to be permanently and totally disabled as a result of the combined effects of his pre-existing disabilities and those resulting from his work related accident of December 1999. The trial court found his disability from the work related accident to be 27 percent to the body as a whole and apportioned the award 27 percent to the employer and 73 percent to the Second Injury Fund. Because the employee was more than sixty years old at the time of his work related accident, the percentages were applied to 26 weeks, as required by Tenn. Code Ann. _ 5-6-27(4)(A)(I).1 The employer was given credit for benefits already paid as a result of the earlier settlement, but the Fund was not given credit for payments made by the employer in excess of its ultimate liability. As a result of the award, the employee will actually receive, when combined with the benefits already paid by the employer, 298.8 weeks of benefits or benefits for 38.8 weeks more than the maximum allowed by the above statute for workers more than sixty years old at the time of their compensable injuries. The Second Injury Fund contends its liability should be reduced, therefore, by 38.8 weeks. Put another way, the Fund seeks credit against its liability for benefits paid by the employer in excess of the employer's ultimate liability. The fund does not take issue with the factual findings of the trial court, including the apportionment of liability between it and the employer. 1. (4)(A)(i) PERM ANE NT TO TAL DISAB ILITY . For permanent total disability as defined in subdivision (4)(B), sixty-six and two-thirds percent (66 2/3 %) of the wages received at the time of the injury, subject to the maximum weekly benefit and minimum weekly benefit; provided, that if the employee's average weekly wages are equal to or greate r than the minim um weekly b enefit, the e mplo yee sha ll receive not less tha n the m inimum week ly bene fit; provided further, that if the employee's average weekly wages are less than the minimum weekly benefit, the employee shall receive the full amount of the employee's average weekly wages, but in no event shall the compensation paid be less than the minimum weekly benefit. This compensation shall be paid during the period of the pe rman ent total d isability until the e mplo yee is, by a ge, eligib le for full be nefits in the O ld Ag e Insur ance Be nefit Program under the Social Security Act; provided, that with respect to disabilities resulting from injuries which occur after 6 years of age, regardless of the age of the employee, permanent total disability benefits are payable for a perio d of two hund red six ty (26 ) week s. Such com pensation p ayme nts shall b e red uced by the a mou nt of any o ld age insurance benefit payments attributable to employer contributions which the employee may receive under the Social Security Act, U.S.C., title 42, chapter 7, subchapter II, as amended. -2-