Baker v. Bridgestone

• Decision Date: 18 December 2015
• Docket Number: No. 14–2062.,14–2062.
• Citation: 872 N.W.2d 672
• Parties: Bruce BAKER, Appellee, v. BRIDGESTONE/Firestone and Old Republic Insurance, Appellants.
• Court: Iowa Supreme Court

872 N.W.2d 672

Bruce BAKER, Appellee,

v.BRIDGESTONE/Firestone and Old Republic Insurance, Appellants.

No. 14–2062.

Supreme Court of Iowa.

Dec. 18, 2015.

Joseph M. Barron and William Timothy Wegman of Peddicord, Wharton, Spencer, Hook, Barron & Wegman, LLP, West Des Moines, for appellants.

Martin Ozga of Neifert, Byrne & Ozga, P.C., West Des Moines, for appellee.

HECHT, Justice.

An employee of a tire manufacturer strained his back on the job. On the second anniversary of the incident, the manufacturer notified the employee that the limitations period had expired and no further medical services would be provided for treatment of the employee's injury. The employee filed a workers' compensation proceeding within thirty days after receiving the notice from his employer, but the workers' compensation commissioner concluded the statute of limitations barred the claim. We must decide in this case whether the commissioner committed legal error in concluding the discovery rule does not apply under the circumstances presented in this case. Because we conclude the discovery rule can apply under the circumstances presented here, we affirm the district court's judgment reversing the agency's decision.

I. Background Facts and Proceedings.

Bruce Baker works for Bridgestone/Firestone¹ at its Des Moines plant. He has worked for the company since 1994. At the time of the arbitration hearing in this case, he was a maintenance mechanic in the hoist department. As a maintenance mechanic, Baker inspected and repaired machines located at the Bridgestone plant. This position often required him to work on scissor lifts suspended up to twenty-six feet off the ground. As a result, Baker frequently worked in awkward positions—including reaching, leaning, and bending over backwards—to reach the machines.

On May 23, 2010, Baker sustained a back injury while working at the plant. The accident occurred when he bent over to pick up a dropped tool and inadvertently stepped on a lanyard hooked to his chest. When Baker attempted to stand up, the lanyard stuck under his right foot and pulled him to the ground, causing him to roll over. He experienced pain in his lower back and immediately reported the incident to a supervisor as required by company policy. Baker resumed working after reporting the incident.

Dr. Troll, the plant physician, examined Baker on May 25. The doctor recommended stretching exercises and instructed Baker to use acetaminophen and ice for his discomfort. Dr. Troll's progress note for the May 25 examination recommended Baker "work at his own pace today." Although he experienced some pain immediately after the fall, Baker testified—and the commissioner found—that he did not foresee the incident having a lasting impact on his ability to perform the functions of his position.

Unfortunately, Baker's back pain did not subside, so he consulted another plant physician on July 30, as well as Dr. Troll again on September 2. Both doctors recommended Baker treat his pain with over-the-counter analgesics, ice, and light physical therapy. Baker's pain gradually increased, but he was able to continue performing his assigned job duties despite the discomfort. However, because he continued to experience pain, he consulted Dr. Troll four more times in December. At his December 2 appointment—just over six months following the accident—Dr. Troll ordered x-rays and an MRI of Baker's lumbosacral spine and prescribed Tramadol to address Baker's persistent pain. The MRI study revealed Baker had mild lumbar degenerative changes consistent with normal wear and tear. Although Baker reported ongoing low back pain, Dr. Troll's progress note for a December 16 exam reveals Baker was instructed to work at regular duty. Dr. Troll did not assign any lifting or other specific restrictions on Baker's exertion.

In January 2011, Dr. Troll referred Baker to Dr. Hansen, a pain management specialist. Dr. Hansen administered injections for Baker's pain and prescribed other medications, including Hydrocodone, Tizanidine, and Tramadol. Baker testified that by the time he began seeing Dr. Hansen, he had realized his back injury would affect his job performance and his life in general. On April 1, Baker underwent a radiofrequency denervation procedure, causing him to miss work for the first time since the incident on May 23, 2010. Bridgestone paid for this medical treatment provided by Dr. Hansen but did not pay Baker wages or compensation benefits for the five days of missed work. In July 2011, Dr. Troll again advised Baker to "work at his own pace." Dr. Hansen provided treatment for Baker through May 2012.

On May 23, 2012, Bridgestone notified Baker that it would no longer pay for his medical care, as it believed the two-year statute of limitations for workers' compensation benefits had expired. At that time, Baker sought treatment from his family doctor, Dr. Davis, to continue his pain management. Baker paid for this and subsequent medical treatment through his own health insurance plan.

On June 20, 2012, Baker filed two petitions with the Iowa Workers' Compensation Commission seeking benefits for his back injury. One petition alleged an injury date of May 23, 2010; the other petition alleged a cumulative injury arising on June 19, 2012. The commission consolidated the petitions for hearing.

After a hearing, a deputy commissioner issued an arbitration decision ruling that Baker did not sustain a cumulative injury on June 19, 2012, and that the two-year statute of limitations in Iowa Code section 85.26 (2009) barred Baker's claim. The deputy commissioner found Baker knew or should have known his condition was serious before June 20, 2010 because (1) he reported the injury; (2) he sought medical treatment by visiting Dr. Troll on May 25; (3) Dr. Troll imposed "work restrictions" by instructing Baker to work at his own pace; (4) Baker underwent some physical therapy; and (5) Baker testified his symptoms never went away after May 23, 2010. However, the deputy also found "no quarrel" with Baker's testimony that he did not anticipate permanent adverse impact on his employment until after June 20, 2010. Ultimately, the deputy concluded these facts actually did not matter because the discovery rule only applied to cumulative injuries and Baker did not prove a cumulative injury.

Baker filed an intra-agency appeal. The commissioner's appeal decision also determined Baker's claim was time-barred and concluded the discovery rule is categorically inapplicable to workers' compensation claims arising out of a singular event. The commissioner's appeal decision "affirm[ed] and adopt[ed]" the deputy's arbitration decision except for new analysis "on the issue of the discovery rule in traumatic injury claims." The commissioner's appeal decision acknowledged that "traumatic injuries commonly fail to be instantly disabling or otherwise have an immediate significant impact on employment," but nonetheless affirmed the deputy's reliance on Clark v. City of Spencer, Iowa Workers' Comp. Comm'n No. 5017329, 2007 WL 2707714, as agency precedent precluding application of the discovery rule in this case.

Baker filed a petition for judicial review in the district court.² The district court reversed the commissioner's ruling, concluded the discovery rule can apply to injury claims arising from singular events, and remanded to the agency for a determination whether the discovery rule extended Baker's time to file to at least June 20, 2012. Bridgestone appealed, and we retained the appeal.

II. Scope of Review.

The issue we must resolve is whether the discovery rule can be applied in determining when the period of limitation commences for workers' compensation claims arising out of a singular event. "Iowa Code chapter 17A governs judicial review of the decisions of the workers' compensation commissioner." Mycogen Seeds v. Sands, 686 N.W.2d 457, 463 (Iowa 2004). Under Iowa Code section 17A.19"we are free to substitute our own interpretation of statutes ‘whose interpretation[s] ha[ve] not clearly been vested’ in the agency." Roberts Dairy v. Billick, 861 N.W.2d 814, 817 (Iowa 2015) (quoting Iowa Code § 17A.19(10)(c ) ).

The legislature has not expressly granted the commissioner authority to interpret section 85.26, which prescribes periods of limitation for workers' compensation cases. See Iowa Code § 85.26. Normally, in the absence of an express grant of interpretive authority, we must determine whether the legislature has nonetheless "clearly vested the agency with authority to interpret the statutes at issue." Xenia Rural Water Dist. v. Vegors, 786 N.W.2d 250, 253 (Iowa 2010). But the discovery rule question here does not really involve the agency's interpretation of the statute; instead, the question is whether the agency correctly applied the "judicial interpretation that the date of injury referred to in the statute is the time when the employee discovers the injury and its probable compensable nature." Bergen v. Iowa Veterans Home, 577 N.W.2d 629, 630 (Iowa 1998). Therefore, our review is for errors at law. See Vachon v. State, 514 N.W.2d 442, 443 (Iowa 1994) (applying the errors-at-law standard in determining whether the district court correctly applied the discovery rule in a tort action).

III. Analysis.

As we have already noted, the agency's ruling in this case relied on its own prior decision in Clark in concluding the discovery rule does not apply in workers' compensation cases arising from singular traumatic events. Of course, the agency's interpretation of law does not bind the court. Finch v. Schneider Specialized Carriers, Inc., 700 N.W.2d 328, 332 (Iowa 2005) (per curiam). For reasons explained below, the agency's decision in Clark is factually and legally inapposite here.

Section 85.26(1) contains two limitation periods for workers' compensation cases. A two-year period applies unless "weekly compensation benefits are paid under section 86.13." Iowa Code § 85.26(1). If—as in Clark —the employer has...