This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
A kitchen helper employed at a restaurant suffered a workplace injury in April 1991 when he slipped and fell on a stairway, injuring his head and back. The worker had preexisting heart and lung conditions, including rheumatic heart disease, asthma, and bronchitis, which required prior surgical intervention and ongoing medication. The injury resulted in a permanent physical impairment and limited the worker to sedentary jobs, whereas he had previously performed heavy labor (paras 4-7).
Procedural History
- Workers' Compensation Administration, 1994: The Workers' Compensation Judge determined the worker's permanent partial disability at 61% and ordered attorney fees to be split equally between the worker and the employer/insurer (paras 1-2).
Parties' Submissions
- Employer and Insurer (Appellants): Argued that the Workers' Compensation Judge erred in determining the worker's residual physical capacity by considering preexisting conditions unrelated to the workplace injury. They also contended that the impairment rating should only reflect the back injury and that the attorney fees should not be fully borne by them (paras 2, 15-16, 24-25).
- Worker (Appellee and Cross-Appellant): Claimed that the impairment rating should include the combined effects of the workplace injury and preexisting conditions. Additionally, the worker argued that the employer/insurer should pay 100% of the attorney fees under the applicable statutory provisions (paras 2, 20, 24).
Legal Issues
- Whether the worker's residual physical capacity should account for preexisting conditions unrelated to the workplace injury (para 15).
- Whether the impairment rating should include the combined effects of the workplace injury and preexisting conditions (para 20).
- Whether the employer/insurer should pay 100% of the worker's attorney fees under the statutory offer of judgment provisions (para 24).
Disposition
- The determination of the worker's residual physical capacity was affirmed (para 30).
- The determination of the worker's impairment rating was reversed, requiring inclusion of preexisting conditions (para 30).
- The order splitting attorney fees equally was reversed, and the employer/insurer was ordered to pay 100% of the worker's attorney fees (para 30).
Reasons
Per Donnelly J. (Apodaca and Flores JJ. concurring):
Residual Physical Capacity: The court held that the worker's residual physical capacity should consider the combined effects of the workplace injury and preexisting conditions. The judge correctly applied the law by recognizing that the worker's preexisting impairments, though not caused or aggravated by the injury, contributed to his overall disability when combined with the workplace injury (paras 15-19).
Impairment Rating: The court found that the impairment rating should reflect the combined effects of the workplace injury and preexisting conditions, consistent with established precedent (e.g., Reynolds v. Ruidoso Racing Ass'n). The statutory formula for determining permanent partial disability must be interpreted in light of this precedent, ensuring that the full extent of the worker's disability is accounted for (paras 20-23).
Attorney Fees: The court determined that the statutory offer of judgment provisions were intended to encourage settlement by shifting responsibility for attorney fees. The employer/insurer's rejection of the worker's offer, which was more favorable than the final decision, triggered their obligation to pay 100% of the worker's attorney fees. The court identified a drafting error in the statute and interpreted it to align with legislative intent (paras 24-29).
The case was remanded for recalculation of benefits and attorney fees (para 30).