Pilgrims Pride Corp. and Gallagher Bassett Services, Inc. v. Jimmy Perren
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ARKANSAS COURT OF APPEALS
NOT DESIGNATED FOR PUBLICATION
WENDELL L. GRIFFEN, JUDGE
DIVISION II
CA07-1248
June 4, 2008
PILGRIM’S PRIDE CORP. and
GALLAGHER BASSETT SERVICES, INC.
APPELLANTS
AN APPEAL FROM THE WORKERS’
COMPENSATION COMMISSION
[F410668]
V.
JIMMY PERREN
APPELLEE
AFFIRMED
On September 27, 2007, the Workers’ Compensation Commission affirmed and
adopted the decision of an administrative law judge (ALJ), who found that appellee Jimmy
Perren was entitled to 40% wage-loss disability in addition to his 10% permanent-impairment
rating. Appellants Pilgrim’s Pride Corporation and Gallagher Bassett Services challenge the
sufficiency of the evidence to support the decision.1 They assert that appellee was not entitled
to wage-loss disability or, alternatively, that he was entitled to less than 40% disability. We
hold that the Commission’s decision is supported by substantial evidence, despite proof that
appellee declined employment as a truck driver, in light of evidence that he had performed
manual labor throughout his life and that his injury left him unable to use his right arm
without difficulty. Accordingly, we affirm.
At the time of the hearing, appellee was sixty-one years old. He went to school for ten
1
The Death and Permanent Total Disability Trust Fund is also a party to this appeal, but it has
opted not to file a brief.
years, but never obtained his GED. After finishing school, appellee did carpentry work and
worked on a farm. He then moved to Illinois and worked for BorgWarner building clutches
and power takeoffs in a factory. He was in the Navy from 1965 to 1968. While there, he
went to diesel school and equipment operator school. He returned to BorgWarner after
leaving the military. He also went to welding school around 1975 or 1976 and became a
certified welder. In 1979, appellee began working for the Clay County Road Department.
He was promoted to foreman in 1990. While working as a foreman, he supervised a crew of
thirty-six workers. His work included taking care of equipment, managing work schedules,
taking care of payroll, and managing his crew. He remained with the road department until
1991, when he left to work for Pilgrim’s Pride (originally ConAgra).
When appellee began working for Pilgrim’s Pride, he worked at the truck shop and
the feed mill. Both jobs required manual labor, and when working as a mechanic, his job
involved lifting and pulling. A year prior to suffering the compensable injury that was the
subject of this case, appellee suffered another workplace injury when he fell eight to nine feet
and landed on his shoulder. He was told by his doctor that he “had a real bad bruise,” but he
missed no time from work.
The compensable injury at the center of this case occurred on October 3, 2003.
Appellee had finished working on fuel pumps and reported completion of the job to his
supervisor. His supervisor then instructed him “to catch the truck that was coming in about
to get on the scales.” As appellee was jogging to the truck, he stepped on a rock and turned
his ankle. He spun around and hit the side of the running board with his shoulder. When he
stood up, he could not move his shoulder. Appellee reported the injury to his supervisor, who
sent him to the company nurse. The company nurse referred appellee to the company doctor,
Dr. Ron Bates. Dr. Bates diagnosed appellee with right shoulder strain. A subsequent MRI
revealed a torn rotator cuff. After treatment, appellee rested at home for a week, then
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returned to work. Appellee reported that he had trouble doing his work and had to work
solely with his left hand. Dr. Jeffery Angel performed surgery to repair the rotator cuff on
November 24, 2003. Appellee still had stiffness in his shoulder, and he underwent another
procedure on March 2, 2004.
Appellee reached maximum medical improvement on June 21, 2004. Dr. Angel noted
that appellee was using his shoulder but, “[Appellee] still lacks flexion above 90 degrees.
Abduction above 80 degrees. He is neurovascularly intact. He does not have much pain.
There is some pop at the very top. Once activated, he can keep it up there.” Dr. Angel
assessed a 10% permanent impairment rating and gave appellee a permanent work restriction,
forbidding overhead lifting. He returned to work, but he was laid off four days later due to
downsizing. Appellee testified, however, that he would have been unable to do the work had
the position still been available. He described the work as requiring him to pull wrenches,
replace augers and bearings, and climb degrees. He stated that he could not do this with one
hand. Richard McDougald, manager at Pilgrim’s Pride, noted that appellee was a “good
worker” and that he hated to see appellee go. However, the company planned to eliminate
the job prior to appellee’s accident.
Because Pilgrim’s Pride wanted to keep appellee and because he had a valid
Commercial Driver’s License, Pilgrim’s Pride offered him a job driving a feed truck. Appellee
testified that he was familiar with the job,2 but that he could not have performed it because
he would have to drive the truck one-handed. He stated that he would have been unable to
shift the truck with his right hand and that it would have been dangerous to try to drive the
2
Appellee described the physical labor involved with driving the truck:
The augers and everything on the trucks are hydraulic, and the boom can raise up to
swing left and right with a switch. To get the augers and everything going, there are
levers you have to pull. There are bins that have to be opened, and you have to use
a ratchet and a socket, and some of them require reaching pretty high to crank open.
It is physical work.
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truck solely with his left hand. He would have also had to open bins with his left hand, and
he stated that he would have been unable to do so. McDougald opined that the job fit within
appellee’s restrictions and stated that the hydraulics on the truck could have been operated
with one hand. However, McDougald agreed that it would be unsafe for appellee to try to
shift with his left hand while driving with his left hand.
After leaving Pilgrim’s Pride, appellee applied for and received unemployment
benefits. During that time, he looked for employment that did not require strenuous use of
his right hand. One of the jobs he looked at was with Sunrise Honda delivering motorcycles.
Appellee had also applied for and received social-security-disability benefits, but he stated that
he is still looking for employment. Appellee testified that if he uses his shoulder a lot, he will
“pay for it” the next day. He stated that he was able to use a riding mower and that he could
use a weed eater if he holds it with his left hand. He also stated that he had two horses, but
he has not ridden them since his accident. Appellee’s wife also testified that appellee enjoys
riding motorcycles; however, he has to use cruise control if he rides long distances.
The ALJ found that appellee did not prove entitlement to permanent and total
disability, as appellee represented that he was able and available to work and because appellee
could do at least sedentary work. However, the ALJ found that appellee was entitled to 40%
wage-loss disability, relying upon appellee’s permanent impairment, Dr. Angel’s opinion that
appellee would not be able to return to doing manual labor, and appellee’s qualification for
social-security-disability benefits. The ALJ observed that appellee was motivated to seek
further employment and had a positive attitude in looking for work. He also found that the
truck-driving job was not a bona fide offer of employment given appellee’s inability to do the
job. The Commission affirmed and adopted the opinion of the ALJ.
Appellants challenge the award of wage-loss disability. They contend that appellee was
entitled to no wage-loss disability or, alternatively, that he was only entitled to a minimal
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amount of wage-loss disability. When reviewing decisions from the Workers’ Compensation
Commission, this court views the evidence and all reasonable inferences deducible therefrom
in the light most favorable to the Commission’s decision and affirms if that decision is
supported by substantial evidence. Smith v. City of Ft. Smith, 84 Ark. App. 430, 143 S.W.3d
593 (2004). Substantial evidence is evidence that a reasonable mind might accept as adequate
to support a conclusion. Williams v. Prostaff Temps., 336 Ark. 510, 988 S.W.2d 1 (1999). The
issue is not whether the reviewing court might have reached a different result from the
Commission; if reasonable minds could reach the result found by the Commission, this court
must affirm the decision. Minnesota Mining & Mfg. v. Baker, 337 Ark. 94, 989 S.W.2d 151
(1999). Normally, this court only reviews the findings of the Commission and not those of
the ALJ. Logan County v. McDonald, 90 Ark. App. 409, 206 S.W.3d 258 (2005). However,
when the Commission adopts the conclusions of the ALJ, as it is authorized to do, this court
considers both the decision of the Commission and the decision of the ALJ. Death &
Permanent Total Disability Trust Fund v. Branum, 82 Ark. App. 338, 107 S.W.3d 876 (2003).
Pursuant to Ark. Code Ann. § 11-9-522(b)(1) (Repl. 2002), the Commission has the
authority to increase a claimant’s disability rating when a claimant has been assigned an
anatomical impairment rating to the body as a whole. See Lee v. Alcoa Extrusion, Inc., 89 Ark.
App. 228, 201 S.W.3d 449 (2005). This wage-loss factor is the extent to which a
compensable injury has affected the claimant’s ability to earn a livelihood. McDonald, supra.
In considering wage-loss disability, the Commission can consider such factors as the claimant’s
age, education, work experience, and “other matters reasonably expected to affect his or her
future earning capacity.” Ark. Code Ann. § 11-9-522(b)(1). In considering factors that may
affect an employee’s future earning capacity, the Commission may consider the claimant’s
motivation to return to work, since a lack of interest or a negative attitude impedes an
assessment of the claimant’s loss of earning capacity. SSI, Inc. v. Lohman, 98 Ark. App. 294,
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___ S.W.3d ____ (2007).
First, appellants contend that appellee was not entitled to wage-loss disability because
he is fully capable of working. They assert that appellee failed to prove that he was entitled
to wage-loss disability in light of the fact that he declined employment within his capacity and
did so after Dr. Angel allowed him to return to work.
Appellants appear to argue that a claimant must be completely incapable of working
before being entitled to wage-loss disability. This is simply not the law. If appellee were
completely incapable of working, then he would have been permanently and totally disabled.
See McDonald, supra (noting that the Commission is authorized to find a claimant permanently
and totally disability based on wage-loss factors). Appellee actually made a claim for
permanent and total disability, and this claim was rejected by the Commission. Wage loss is
awarded to the extent that a claimant has loss the ability to earn wages. Id. And when
considering the aforementioned wage-loss factors, appellee’s ability to earn wages has certainly
diminished. Appellee worked as a laborer for most of his life. He only has a tenth-grade
education and does not have his GED. He is prohibited from doing any overhead lifting.
When moving his right shoulder, he experiences pain.
As for appellants’ argument that appellee rejected suitable employment, we are mindful
that, if a claimant rejects a bona fide and reasonably obtainable offer of employment at wages
equal to or greater than his average weekly wage at the time of the accident, he shall not be
entitled to permanent-partial disability in excess of his permanent-impairment rating. See Ark.
Code Ann. § 11-9-522(b)(2) (Repl. 2002). However, substantial evidence supports a finding
that the truck-driving job was outside appellee’s abilities. True, he never attempted to do the
job, but he did not believe that he could safely drive the truck using only his left arm.
McDougald agreed that it would be unsafe for appellee to drive the truck and operate the
gear shift with only his left hand.
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Appellants also call into question appellee’s motivation to work, observing that
appellee was collecting unemployment and social-security-disability benefits. They argue that,
for the Commission to find that appellee was entitled to wage-loss disability, it would have
to rely on his “self-serving testimony and convenient belief . . . that he is not physically
capable of working for Employer as either a mechanic or a truck driver.” But once the
Commission finds a claimant credible, this court is bound by that determination. See Lohman,
supra. Here, it found appellee’s testimony credible regarding his motivation to work.3 His
testimony, along with other evidence, shows that appellee looked for employment after being
laid off from his job, that he had an extensive history as a manual laborer prior to his
workplace accident, that he continued to work as best he could after the accident until his
position was eliminated, and that appellee was a “good worker.” This evidence supports a
finding that he was motivated to work.
Finally, appellants argue that if appellee was entitled to wage loss, it should be reduced
to a minimal amount. They cite three opinions from the Commission where it awarded less
than 40% wage-loss disability to claimants sixty years of age. In response appellee cites four
unpublished opinions where this court has awarded either 35% or 40% wage-loss disability to
certain claimants.4 As previously stated, our standard of review requires us to affirm if
reasonable men could reach the decision made by the Commission. See Baker, supra. The
non-binding authority cited by the parties illustrate that the determination of wage-loss
disability is fact intensive. There is no formula for determining wage-loss disability; rather, the
Commission is allowed to use its own superior knowledge of industrial demands, limitations,
3
Even the dissenting Commissioner found appellee’s testimony credible. See Appellants’ Brief
at Add. 20, Commission’s Op. at 15 (Commissioner McKinney dissenting).
4
We will save full commentary on parties citing unpublished opinions for another day. For
now, the following citations should suffice. See Ark. Sup. Ct. R. 5-2(d) (prohibiting citation
to unpublished opinions); Family Dollar Stores, Inc. v. Edwards, 97 Ark. App. 156, 245 S.W.3d
181 (2006) (observing that the Commission’s opinions are not precedent to this court).
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and requirements in conjunction with the evidence to determine wage-loss disability. See
Henson v. General Elec., 99 Ark. App. 129, ___ S.W.3d ___ (2007). Though
other reasonable persons may not have awarded 40% wage loss, the factors previously
mentioned (appellee’s age, education, work history and motivation to work) support the
Commission’s award.
The Commission’s decision to award appellee 40% wage-loss disability is supported
by substantial evidence. Accordingly, we affirm.
GLOVER and HEFFLEY, JJ., agree.
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