Bruce Hardin v. Travelers Indemnity Co. of Illinois

This workers' compensation appeal has been referred to the Special Workers' Compensation Appeals Panel of the Supreme Court pursuant to Tenn. Code Ann. _ 5-6-225(e)(3) for hearing and reporting to the Supreme Court of findings of fact and conclusions of law. The defendant, Travelers Indemnity Co. of Illinois (Travelers) appeals that part of the trial court's judgment which ordered Travelers to pay to the plaintiff, Bruce Hardin (Hardin) and his attorney, $28,652.23 the total of Hardin's medical expenses and required Hardin's attorney to satisfy Blue Cross and Blue Shield's subrogation lien. For the reasons stated in this opinion, we reverse the judgment of the trial court requiring the payment of the total medical expenses and remand for a determination of the amount of medical expenses paid by Hardin. Tenn. Code Ann. _ 5-6-225(e) (1999) Appeal as of Right; Judgment of the Chancery Court Reversed and Remanded W. MICHAEL MALOAN, SP. J., in which JANICE M. HOLDER, J. and JOE C. LOSER, JR. SP. J., joined. Mary Peterson, Memphis, Tennessee, for the appellant, Travelers Indemnity Co. of Illinois. Ricky Boren, Jackson, Tennessee, for the appellee, Bruce Hardin. MEMORANDUM OPINION The relevant facts are not in dispute. Hardin filed a claim for workers' compensationbenefits for an April 1998 fall at his place of employment, Young Radiator. The employer's insurance carrier, Travelers, provided benefits including medical treatment for some period of time but, after an investigation, denied liability and ceased any benefits. Hardin continued to receive medical treatment which was paid in part by him and by his group health insurance carrier, Blue Cross and Blue Shield. At trial, the parties stipulated Hardin's total medical expenses of $28,652.23 were reasonable and necessary. The trial court found Hardin's claim to be compensable and awarded permanent partial disability benefits of forty-three (43) percent to the body as a whole. Further, the trial court ordered Travelers to pay to Hardin and his attorney the total of his medical expenses of $28,652.23 and for them to satisfyBlue Cross and Blue Shield'ssubrogation interest. Travelers appeals this part of the trial court's order. The scope of review of questions of law is de novo with no presumption of correctness. Cunningham v Shelton Sec. Services, Inc., 958 S.W.2d 338, 34 (Tenn. 1997). The sole issue of this appeal is the authority of the trial court to order Travelers to paythe total medical expenses to Hardin and his attorney. This issue was considered in the recent case of State Auto Mut. Ins. Co. v Hurley, 31 S.W.3d 562, 565 (Tenn. Sp. Workers' Comp. 2). The Special Workers' Compensation Panel of the Supreme Court held as follows: We find this issue is controlled by the language of Tenn. Code Ann. _ 5-6-24(a)(1) and by the Tennessee Supreme Court decision of Staggs v National Health Corp., 924 S.W.2d 79, 81 (Tenn. 1996). Tenn. Code Ann. _ 5-6-24(a)(1) provides in part: The employer or employer's agent shall furnish free of charge to the employee such medical and surgical treatment, medicine, medical and surgical supplies, . . . made reasonably necessary by accident, . . . as may be reasonably required;. . . . In Staggs, 924 S.W.2d at 81, the Supreme Court held as follows: An employee is not entitled to personally receive payment for medical expenses unless he or she personally paid the medical expenses and is due reimbursement. Instead, employers must pay the providers of medical care directly for incurred medical expense. State Auto Mut. Ins. Co., 31 S.W.3d at 565. Hardin attempts to distinguish the present case from State Auto by the fact he paid a portion of the premiums to his group health insurance carrier, Blue Cross and Blue Shield. He relies on the following language in Tenn. Code Ann. _ 5-6-114(b): (b) However, any employer may set off from temporary total, temporary partial, and permanent partial and permanent total disability benefits any payment made to an employee under an employer funded disability plan for the same injury; provided, that the disability plan permits such an offset.... -2-