TRICON GLOBAL RESTAURANT v. JODI JOHNSON; HON. RICHARD M. JOINER, ADMINISTRATIVE LAW JUDGE; AND WORKERS' COMPENSATION BOARD
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RENDERED:
SEPTEMBER 9, 2005; 2:00 p.m.
NOT TO BE PUBLISHED
Commonwealth Of Kentucky
Court of Appeals
NO. 2005-CA-000007-WC
TRICON GLOBAL RESTAURANT
APPELLANT
PETITION FOR REVIEW OF A DECISION
OF THE WORKERS’ COMPENSATION BOARD
ACTION NO. WC-00-76023
v.
JODI JOHNSON; HON. RICHARD M.
JOINER, ADMINISTRATIVE LAW JUDGE;
AND WORKERS' COMPENSATION BOARD
APPELLEES
OPINION
AFFIRMING
** ** ** ** **
BEFORE:
GUIDUGLI, JOHNSON, AND McANULTY, JUDGES.
JOHNSON, JUDGE:
Tricon Global Restaurant has petitioned for
review from an opinion of the Workers’ Compensation Board
entered December 3, 2004, which affirmed the Administrative Law
Judge’s opinion and award rendered June 28, 2004, on a motion to
reopen by Jodi Johnson, and awarded Johnson increased permanent,
partial disability benefits.
Having concluded that the Board
properly affirmed the ALJ’s decision as based on substantial
evidence, we affirm.
Johnson, who was born on October 29, 1969, is a high
school graduate and has completed some college courses.
Following her brief college experience, Johnson enlisted in the
United States Navy and has since received an honorable
discharge.
Johnson worked primarily in fast-food restaurants
and convenience stores, serving mostly in a management or
supervisory capacity, until her work-related injury forced her
to discontinue that type of employment.
Johnson’s work-related injury occurred on July 11,
2000, while working for Tricon Global at a Taco Bell in
Louisville, Kentucky.
As Johnson attempted to remove cartons of
food from a shelf in a walk-in cooler, the shelf fell onto her,
causing several 40 pound boxes of frozen food to fall onto her
head and neck.
Johnson was transported to the emergency room at
Baptist East Hospital by her immediate supervisor.
Johnson
returned to work four or five weeks after the injury, but due to
the pain was only able to work four or five days.
Johnson was examined by Dr. David Changaris, a
neurosurgeon, on August 14, 2000.
Dr. Changaris reviewed a CT
scan from Johnson’s previous 1998 injury 1 and reviewed a lumbar
MRI scan.
Dr. Changaris diagnosed a herniated disc at L3-4
centrally, a herniated disc at L2-3 centrally and slightly
1
In 1998 prior to her July 2000 work-related injury, Johnson was injured
while working at Speedway SuperAmerica. She had been treated by Dr. Gregory
Nazar for the injury to her low back and had undergone surgery at the L3-4
level to correct her back pain in 1998.
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paracentral to the right, a diffused disc bulge at L3-4, a disc
bulge at L4-5, and a disc bulge at L5-S1.
Dr. Changaris
assessed a 10% impairment rating based on the AMA Guides to the
Evaluation of Permanent Impairment, Fourth Edition. 2
Dr.
Changaris recommended that Johnson lift no more than 20 pounds,
do only minimal bending, stooping, and climbing, and sit down
every one to two hours.
He further opined that Johnson could
only return to light-duty work.
Johnson was under the care of Dr. Gregory Nazar from
August 24, 2000, until March 14, 2001, for ulnar neuropathy and
back pain.
Records dated August 25, 2000, indicate that while
Johnson had full range of motion in her neck, she was continuing
to have neck pain.
A chart note from Dr. Nazar dated January
18, 2001, diagnosed Johnson with neck pain with associated disc
protrusion at C6-7 and to a lesser extent at C5-6.
This
diagnosis was consistent with an MRI scan of Johnson taken on
January 10, 2001, which revealed disc protrusions at C5-6 right
of midline and at C6-7 left extending into intervertebral
foramen.
A chart note from Dr. Nazar on March 14, 2001,
indicates that Johnson had recovered from her ulnar neuropathy,
but was still having neck pain, particularly with flexion and
extension and from turning her head from side to side.
2
Prior to
Dr. Changaris attributed the impairment solely to the work-related injury of
August 13, 1998.
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surgery, Dr. Nazar assessed Johnson with an impairment rating
for a DRE Category III and assigned a 15% to 18% impairment to
the whole person and related the condition to the July 2000
work-related injury.
He placed restrictions on Johnson of
minimal lifting (less than 15 pounds), bending, stooping,
climbing, crawling, overhead work and no use of vibrating tools.
If Johnson returned to work, she would require frequent breaks
and would be able to perform only light or sedentary work.
Dr.
Nazar treated Johnson conservatively, and determined if that
treatment failed, surgery would be the next option.
On October 31, 2000, Johnson was examined by Dr.
Richard Sheridan, an independent medical evaluator.
Dr.
Sheridan reviewed reports from Dr. Nazar and Dr. Changaris, and
an MRI scan and X-ray report from July 2000.
Dr. Sheridan
diagnosed Johnson with resolved acute low-back sprain/strain and
resolved acute left trapezial and interscapular strain, all
related to the July 2000 injury. 3
Dr. Sheridan stated that
Johnson had reached maximum medical improvement for the lumbar
sprain/strain and that there was no medical necessity to
continue treatment.
On August 3, 2001, Johnson was again examined by Dr.
Changaris.
He reviewed the cervical MRI dated January 10, 2001.
He diagnosed Johnson with cervical radiculopathy, disc
3
He also diagnosed Johnson with possible left ulnar neuropathy, but stated
that it was not related to the work injury.
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herniation at C6-7, and mild depression, and stated that this
diagnosis was concurrent with her work-related injury of July
11, 2000.
He assigned her a 21-24% impairment rating based on
the AMA Guides, Fifth Edition.
Dr. Changaris recommended that
Johnson lift less than 20 pounds, perform minimal bending,
stooping, climbing, overhead work, and that she use no vibrating
tools.
He specified that she required a job tailored to her
specific needs that would allow her to take breaks every one to
two hours, and would have to be of a light-duty or sedentary
nature.
On February 6, 2002, Johnson and Tricon Global entered
into a settlement agreement, which was approved by the
Administrative Law Judge. 4
The agreement only provided for
compensation for Johnson’s claim of cervical injury, and also
provided payment of permanent, partial disability based on a 15%
impairment rating.
Johnson received a lump-sum payment of
$15,985.60 in accordance with the settlement.
The settlement
agreement specifically provided:
This is a compromise settlement of a
disputed claim wherein the DefendantEmployer and Plaintiff have reached a
compromise agreement. The Plaintiff has
alleged several injuries against Taco Bell,
all stemming from the alleged incident of
4
At this time, Johnson’s symptoms included sharp pain in her neck, radiating
down both arms, especially her left arm. She was unable to turn her head
very far without pain, and had numbness and tingling in her hands and arms,
mostly on her left side. To be comfortable, she had to change positions
almost every hour.
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July 11, 2000. The Plaintiff has agreed
that the ulnar neuropathy is a pre-existing
active condition not related to her alleged
work injury with Taco Bell and [that claim]
shall therefore be dismissed with prejudice.
Defendant–Employer shall be responsible for
no medical benefits for the ulnar
neuropathy, nor shall the Defendant-Employer
be responsible for any benefits under KRS
342.730 or KRS 342 as a whole. The
Plaintiff further has alleged carpal tunnel
as being related to the July 11, 2000
injury. The Plaintiff shall dismiss with
prejudice her alleged bi-lateral carpal
tunnel claim. The Plaintiff acknowledges
that the condition is not work-related. The
Defendant-Employer shall be responsible for
no medicals or any other benefits under KRS
342 for the alleged carpal tunnel syndrome.
The Plaintiff further acknowledges that the
low back sprain/strain actually relates to a
prior injury. Therefore, it is pre-existing
and active, and not the responsibility of
Taco Bell. The Plaintiff shall dismiss her
low-back claim with prejudice. The
Plaintiff acknowledges that this is not
related to her work at Taco Bell, and Taco
Bell shall be responsible for no medical
indemnity or any other benefits under KRS
342. The Plaintiff’s low back claim is
dismissed with prejudice. The Plaintiff’s
left trapezial sprain shall be dismissed
with prejudice. The Defendant-Employer
shall be responsible for no medical, no
indemnity benefits or any other benefits
under KRS 342. The left trapezial sprain
claim is dismissed with prejudice. The
Plaintiff agrees that she shall waive her
right to reopen any and all of those
dismissed claims. As consideration for this
waiver, Plaintiff acknowledges receiving the
settlement on her neck lump sum is
sufficient consideration for waiver of her
right to reopen any of the alleged dismissed
claims. Plaintiff further acknowledges that
all the dismissed claims are dismissed with
prejudice and that they are not related to
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her work at Taco Bell and, therefore, are
not compensable under KRS 342. The
Plaintiff has also alleged
psychological/depression. The Plaintiff
acknowledges that this is not a work-related
condition and dismisses any allegation/claim
for psychological/psychiatric/depression,
medicals, indemnity or any other benefits
under KRS 342, although not formally
brought, with prejudice. As a compromise of
this claim, the Defendant-Employer shall
accept as compensable the Plaintiff’s
cervical claim. The Plaintiff has agreed to
waive any past-due temporary total
disability claim she may have for the
cervical condition. The Defendant-Employer
has disputed the compensability of the
cervical condition from the start. The
Plaintiff understands that she will receive
no claimed past-due temporary total
disability for the cervical condition. The
Defendant-Employer will, however, pay a 15%
permanent partial disability for the neck
condition. This is a compromise permanent
partial disability based on the disputed
nature of the claim. The 15% shall be
calculated as above for a lump sum payment
of $15,985.60. The Plaintiff understands
and accepts a 15% permanent partial
disability paid at $15,985.60 as sufficient
consideration for buyout and waiver of any
right to indemnity benefits she may have
under KRS 342.730, be that permanent
partial, permanent total or past-due
temporary total disability benefits. Should
the Plaintiff have surgery, the DefendantEmployer will pay temporary total disability
benefits per the statute. The Plaintiff’s
medicals for the cervical condition shall be
covered per KRS 342.020 and the Kentucky Fee
Schedule. The Plaintiff enters into this
agreement freely, knowingly, intelligently
and with advice of competent counsel. The
Plaintiff acknowledges that she is not
entitled to any 1.5 enhancer and any claim
for such is waived in this agreement.
[emphases added].
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After approval of the settlement agreement, Johnson
underwent an anterior cervical discectomy and fusion at C6-7
level, by Dr. Nazar, on November 4, 2002.
She was examined in
April 2003 by Dr. Warren Bilkey, an independent medical
examiner, who reviewed Dr. Nazar’s records and concluded that
although Johnson had a good surgical outcome, the surgery had
not improved her condition and he recommended light-duty work
restrictions. 5
Dr. Bilkey reviewed an MRI of Johnson’s neck,
performed on March 31, 2003, and stated that it demonstrated
anterior fusion C6-7 with anatomic alignment.
He also noted
disc bulge at C5-6 and C6-7 causing mild canal stenosis.
He
diagnosed her with cervical strain with disc herniation.
On May 9, 2003, Dr. Bilkey reported that Johnson had
complained of upper-back pain, neck pain and shoulder pain with
pain radiation into the right upper limb and a sense of numbness
in the left upper limb.
On July 21, 2003, Dr. Bilkey again
examined Johnson and reported that she complained of neck pain
that radiated into the right upper limb and numbness of the left
upper limb.
He stated that she had reached maximum medical
improvement and based on the AMA Guides, Fifth Edition, assigned
her a 25% impairment rating to the body as a whole for a DRE
5
Dr. Bilkey stated that there was residual myofascial pain involving shoulder
and neck musculature related to tightness and weakness. This pain might
explain Johnson’s residual symptoms, and if addressed, offered her a chance
for significant improvement.
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cervical category IV impairment. 6
He opined that she should lift
a maximum of ten pounds and perform no overhead and repetitive
upper extremity work. 7
On October 10, 2003, Johnson filed a motion to reopen
her claim.
She offered as evidence the medical reports of Dr.
Bilkey 8 which stated that her impairment rating had increased
since surgery and since the time the settlement agreement was
signed by the parties.
Tricon Global filed its objection to the
motion to reopen stating that “in consideration of the receipt
by her of the compromised amount, [Johnson] gave up any
opportunity to receive additional benefits.”
On December 1,
2003, the ALJ granted Johnson’s motion to reopen.
Johnson was deposed on January 28, 2004.
that she is better in some ways and worse in others.
She stated
She can
sit longer without hurting, and while her range of motion,
looking up and down and from side to side, is less, the movement
hurts less.
However, she still suffers pain in her neck and
shoulder blade area.
She testified that she does not sleep well
since her surgery because she has to change positions several
times during the night.
She also has to change positions when
6
This rating is due to the fact that Johnson had a one-level, anteriorcervical discectomy and fusion.
7
Johnson was urged to continue with home exercises and to advance to push-ups
for shoulder protractor strengthening.
8
Dr. Bilkey’s testimony and medical records are the only medical evidence in
the record subsequent to Johnson’s surgery.
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sitting and watching TV.
She further testified that her
stiffness makes driving difficult.
She has weakness in her left
arm, which has occurred since her injury.
Johnson further
testified that she has pain when she wears a bra because it
pulls at her neck.
She did not have this problem at the time of
settlement.
While Johnson testified that she had looked for work,
she had not returned to work because her restrictions would not
allow her to perform the type of work she was doing at the time
of her injury and she has no other job skills.
Johnson
testified that she was attempting to go back to school and learn
a trade.
However, she has not been able to get student loans
because she has bad credit due to outstanding medical bills
relating to her injury that have not been paid by Tricon Global.
Dr. Bilkey testified by deposition on March 26, 2004,
why in his opinion Johnson’s impairment rating was not correct
based on the Fifth Edition of the AMA Guides. 9
9
Dr. Bilkey
Dr. Bilkey stated that a change occurred in the impairment ratings for
radiculopathy (cervical fusions) when the AMA Guides, Fourth Edition was
replaced. According to the Fourth Edition of the AMA Guides, if a claimant
had a disc herniation with a pinched nerve and had undergone surgery, the
claimant was assigned a DRE Category III impairment. A separate impairment
rating was assigned if instability of the spine required a fusion operation.
Dr. Bilkey stated that the surgery to correct disc herniations in the neck
had been altered, and now included operating from the front of the spine to
the back. By cutting through from front to back and removing the entire
disc, any posterior protrusions of the disc that might be compressing nerve
roots were eliminated. The disc is replaced with bone wedge and the spine is
bound together at that point. The Fifth Edition of the AMA Guides states
that for a fusion instability operation, a DRE Category IV impairment rating
is assigned and the pinched nerve is no longer rated. Essentially, this
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testified that as a licensed independent medical examiner he had
been told by the Board of Independent Medical Examiners that the
authors of the Fifth Edition of the AMA Guides, which included
some members of the IME Board, did not intend to substantially
change the impairment ratings.
He claimed the intention was
that there was to be no more than a 3% difference in the amount
of impairment as stated in the Guides.
Based on this
information, Dr. Bilkey testified that Johnson should be rated
as a DRE Category III, with a 15% permanent impairment.
However, because his opinion was based on the most current
edition of the AMA Guides, Dr. Bilkey stated that Johnson’s
impairment rating based on the July 2000 work-related injury is
25%.
He recommended that she lift no more than ten pounds,
perform no overhead work, no repetitive upper extremity work,
and not use ladders.
A final hearing was held before the ALJ on May 4,
2004.
Johnson offered into evidence the medical reports of Dr.
Bilkey dated May 23, 2003, May 9, 2003, and July 21, 2003; Dr.
Nazar dated August 24, 2000, through March 14, 2001; Dr.
Changaris dated August 3, 2001; and Dr. Sheridan dated October
31, 2000; and a notice of filing parol evidence. 10
Tricon Global
edition of the Guides directed that any fusion operation resulted in a DRE
Category IV impairment.
10
On April 19, 2004, Johnson filed parol evidence in the form of a letter
dated December 10, 2001, sent from her attorney to the attorney for Tricon
Global. The letter set forth that Johnson had read through Tricon Global’s
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filed the depositions of Johnson and Dr. Bilkey as evidence. 11
Johnson was the only live witness, and her testimony was similar
to the testimony given in her deposition.
Since no one appeared
for Tricon Global at the final hearing, the ALJ allowed the
parties to file briefs before entering his opinion and award.
In his opinion and award entered on June 30, 2004,
the ALJ found that Johnson’s disability rating had increased
since settlement and awarded her permanent, partial disability
based on a 25% impairment rating, as well as payment of medical
expenses.
the Board.
On July 21, 2004, Tricon Global filed its appeal to
The Board entered an opinion on July 3, 2004,
affirming the ALJ’s award.
This appeal followed. 12
Upon review, this Court will reverse the Board’s
decision only when it has “overlooked or misconstrued
controlling law or committed an error in assessing the evidence
proposed settlement agreement and would not agree to settle her claim unless
she could retain her right to reopen the claim. Apparently, following this
letter the agreement was modified because there is no mention in the
agreement of the fact that Johnson did not have a right to make a motion to
reopen her claim.
11
Tricon Global filed a motion to supplement the record with medical reports
from Dr. Nazar from 1998-July 5, 2000, and Dr. Changaris dated August 14,
2000. There was no objection by Johnson. However, there is no order of
record allowing these records into evidence.
12
Johnson argues to this Court that Tricon Global’s petition should be
dismissed because of its failure to name her attorney as a party to the
appeal. Johnson claims that her attorney was awarded attorney’s fees by an
order entered July 19, 2004, and is, thus, an indispensable party to the
appeal. We fail to see how the attorney is indispensable to the issues
raised in this petition.
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so flagrant as to cause gross injustice” [citations omitted]. 13
To properly review the Board’s decision, this Court of course
must review the ALJ’s underlying decision.
Where the ALJ has
found in favor of the party with the burden of proof, this Court
must determine whether the ALJ’s findings were supported by
substantial evidence. 14
The Supreme Court of Kentucky has
defined substantial evidence as “evidence of substance and
relevant consequence having the fitness to induce conviction in
the minds of reasonable [people]” [citations omitted]. 15
In
other words, such evidence “would permit a fact-finder to
reasonably find as it did.” 16
As the fact-finder, the ALJ, not
this Court and not the Board, “has the sole discretion to
determine the quality, character, and substance of evidence.” 17
Not only does the ALJ weigh the evidence, but the ALJ may also
choose to believe or disbelieve any part of the evidence,
regardless of its source. 18
13
Daniel v. Armco Steel Co., 913 S.W.2d 797, 798 (Ky.App. 1995).
14
Special Fund v. Francis, 708 S.W.2d 641, 643 (Ky. 1986). See also Wolf
Creek Collieries v. Crum, 673 S.W.2d 735, 736 (Ky.App. 1984).
15
Smyzer v. B. F. Goodrich Chemical Co., 474 S.W.2d 367, 369 (Ky. 1971).
16
Special Fund, 708 S.W.2d at 643.
17
Whittaker v. Rowland, 998 S.W.2d 479, 481 (Ky. 1999) (citing Paramount
Foods, Inc. v. Burkhardt, 695 S.W.2d 418 (Ky. 1985).
18
Id. (citing Caudill v. Maloney’s Discount Stores, 560 S.W.2d 15, 16 (Ky.
1977). See also Snawder v. Stice, 576 S.W.2d 276, 280 (Ky.App. 1979).
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Tricon Global argues that the settlement agreement
signed between the parties precluded an award of additional
benefits for permanent, partial disability.
It argues that
because the settlement agreement stated that Johnson agreed to
$15,985.60 as sufficient consideration for buyout and waiver of
any right to indemnity benefits she may have under KRS 342.730,
that she waived her right to reopen her claim.
In the
alternative, Tricon Global argues that the ALJ’s decision was
not based on a correct use of the AMA Guides or substantial
evidence.
We disagree.
After reviewing the parties’ arguments and the record
below, we conclude the Board’s well-written opinion by Member
Gardner is persuasive, and we adopt it, in pertinent part, as
our own:
The ALJ reviewed the lay and medical
testimony in considerable detail. On the
issue of whether a reopening was barred by
the terms of the February 6, 2002 settlement
agreement, the ALJ concluded:
There are six separate body parts
identified in this settlement
agreement. Claims relating to
five of those body parts are
dismissed with prejudice. One
claim, the claim with respect to
the cervical spine, is accepted as
compensable. The waiver of the
right to reopen is only identified
as applying to the dismissed
claims.
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The agreement contemplates
additional income benefits to be
paid for temporary total
disability automatically in the
event of surgery. The terms of
the agreement do not restrict the
right to reopen the cervical spine
claim. When one considers the
parol evidence, it becomes even
more clear that the right to
reopen continues to exist with
respect to the cervical spine
claim. Reopening is not barred by
the terms of the settlement
agreement.
The ALJ next determined whether Johnson
experienced a change to warrant reopening
under KRS 342.125 stating:
KRS 342.125 permits a claim to be
reopened with a showing of change
of disability as shown by
objective medical evidence of
worsening or improvement of
impairment due to a condition
caused by the injury since the
date of the award or order. Here,
Ms. Johnson has established that
she had a 15%-18% impairment
relating to the cervical spine
prior to the settlement. She has
since undergone surgery and now
has demonstrated a 25% impairment
relating to the cervical spine.
This change is sufficient to
warrant reopening.
Finally, the ALJ determined extent and
duration of Johnson’s permanent partial
disability concluding as follows:
Inasmuch as Jodi Johnson does not
claim to be totally disabled, I
must consider whether there is a
permanent partial disability.
Permanent partial disability is
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the condition of an employee who,
due to an injury, has a permanent
disability rating but retains the
ability to work. A permanent
disability rating is the permanent
impairment rating selected by an
administrative law judge times the
factor set forth in the table that
appears at KRS 342.730(1)(b) and a
permanent impairment rating means
the percentage of whole body
impairment caused by the injury or
the occupational disease as
determined by ‘Guides to the
Evaluation of Permanent
Impairment, American Medical
Association, latest available
edition.’ It is 25% based on the
report of Dr. Bilkey. The
employer suggests that this
impairment rating should not be
accepted because Dr. Bilkey had a
conversation with ‘the principals
in the American Board of
Independent Medical Examiners’ who
held the opinion that the 25%
rating is not consistent with the
original intent of the writers of
the AMA guidelines. The
Legislature has delegated to the
authors of the AMA [G]uides to
[E]valuation of [P]ermanent
[I]mpairment the determination of
impairment pursuant to the
[G]uides as written. It is
difficult to understand how such
delegation can be legal in view of
Legislative Research Commission v.
Brown, Ky., 664 S.W.2d 907 (1984).
However, it is my obligation to
apply the statute as written. An
Administrative Law Judge has no
authority to pass a law in the
legality of legislative
delegations. The AMA [G]uides
prove that a cervical fusion
warrants a 25% rating. This is an
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increase in impairment over what
Ms. Johnson had before the
surgery.
I conclude that Jodi Johnson has a
25% whole body impairment in
accordance with the Guides.
The ALJ awarded benefits based on the 25%
impairment rating. 19
On appeal, Tricon frames the issue
as:
[W]hether or not the original
settlement precludes the claimant
from any further receipt of
permanent partial disability
benefits; and, if that could be
found to be the case, whether or
not the ALJ’s reliance upon the
finding of Dr. Bilkey was
reasonable, given his testimony
and demur in his deposition.
Tricon contends Johnson agreed to waive
future entitlement to indemnity benefits,
including permanent partial benefits
pursuant to KRS 342.730 and only agreed she
was entitled to future temporary total
disability benefits if she underwent the
surgery. Tricon admits that while Dr.
Bilkey assessed a 25% impairment rating in
his report, his deposition testimony was
dispositive.
First considering the issue of whether
Johnson waived her right to reopen, we agree
with the ALJ that she did not. In Huff
Contracting v. Sark, Ky. App., 12 S.W.3d 704
(2000), the court stated that consideration
19
Various other issues were raised by Tricon Global, but were quickly
dismissed by the ALJ, including: (1) could the claims be reopened as pleaded
in Form 101, (2) is the claim barred by KRS 342.270; (3) is any exclusion
proper because of pre-existing active disability or impairment; (4)
causation; and (5) liability for certain medical expenses.
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for a waiver must be contained on the face
of the settlement and “may not simply be
implied from some other activity. The
waiver of any right under the Kentucky
Workers’ Compensation Act in a settlement
document must meet this standard.” Id. at
706.
While the settlement agreement between
Tricon and Johnson specifically provided for
waiver of the right to reopen the dismissed
claims, there was no specific waiver for the
cervical claim. Furthermore, the December
10, 2001 letter submitted by Johnson and
relied upon by the ALJ supports a finding
that Johnson did not agree to a waiver of
the right to reopen. Accordingly, the ALJ
did not err in his determination that
Johnson did not waive her right to reopen
her cervical injury claim.
The burden was on Johnson to show she
sustained a change in occupational
disability since the time of the original
settlement due to the effects of the injury.
Peabody Coal Co. v. Gossett, Ky., 819 S.W.2d
33 (1991). In Beale v. Faultless Hardware,
Ky., 837 S.W.2d 893 (1992), the court
recognized that reopening awards pursuant to
approved settlement are treated differently
from reopening awards made pursuant to fully
litigated claims, and determined the
percentage of occupational disability
contained in the settlement agreement is not
conclusive of actual disability on the
settlement date. Here, the ALJ made the
required specific findings as to the extent
of occupational disability that existed at
the time of settlement. He determined
Johnson established she had a 15%-18%
impairment rating relating to her cervical
spine prior to settlement.
The ALJ as fact finder has the sole
authority to initially judge the weight,
credibility, substance and inferences to be
drawn from the evidence, which is now
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challenged on appeal. Paramount Foods, Inc.
v. Burkhardt, Ky., 695 S.W.2d 418 (1985).
When the evidence is in conflict, the ALJ is
at liberty to choose to believe parts of the
evidence and disbelieve other parts of the
evidence, whether the evidence comes from
the same witness or the same party’s total
proof. Brockway v. Rockwell International,
Ky. App., 907 S.W.2d 166 (1995). The
determinative question to be answered is
whether the ALJ’s finding is so unreasonable
under the evidence that it must be viewed as
erroneous as a matter of law. KRS 342.285
and Ira A. Watson Department Store v.
Hamilton, Ky., 34 S.W.3d 48 (2000).
Since this is a post 1996 claim, the
issue is whether Dr. Bilkey’s 25% impairment
rating constitutes substantial evidence upon
which an increased award could be based. In
his report, Dr. Bilkey assessed the 25%
rating. However, at his deposition, he
retreated from that position and explained
why a 15% impairment under the Fifth Edition
of the Guides was appropriate. Dr. Bilkey
explained that pursuant to conversations
with members of the American Board of
Independent Medical Examiners he was told it
was not the original intent of the authors
of the Guides, Fifth Edition, to
substantially alter the impairment ratings
found in the Guides, Fourth Edition. The
ALJ, in deciding Johnson had a 25%
impairment rating, specifically stated he
relied on Dr. Bilkey’s 25% impairment rating
because “[t]he AMA [G]uides provide that a
cervical fusion warrants a 25% rating.” The
sum and substance of Dr. Bilkey’s testimony
was that the Guides, Fifth Edition, if
applied literally, authorize a 25%
impairment, but if one looks behind the
literal language to the intent of the
drafters – 15% impairment is authorized.
In the face of conflicting impairment
ratings, this Board has determined that the
ALJ is free to consult the Guides to assess
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the appropriate weight and credibility to be
assigned to conflicting evidence. Dr.
Bilkey’s testimony was both equivocal and
contradictory in nature, yet the ALJ
concluded that part of his testimony was
entitled to credence. Our only concern on
appeal is whether this finding is so
unreasonable that it must be disregarded as
a matter of law. It is not.
Accordingly, the decision of the
Administrative Law Judge is hereby AFFIRMED
[emphasis original].
For the foregoing reasons, the opinion of the Workers’
Compensation Board is affirmed.
ALL CONCUR.
BRIEFS FOR APPELLANT:
BRIEF FOR APPELLEE:
Walter E. Harding
Louisville, Kentucky
Jeffrey T. Sampson
Louisville, Kentucky
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