Honeywell v. Allen Drilling Co., 92-1228

• Decision Date: 20 October 1993
• Docket Number: No. 92-1228,92-1228
• Citation: 506 N.W.2d 434
• Parties: Roy HONEYWELL, II, Appellant, v. ALLEN DRILLING CO., and Bituminous Casualty Corp., Appellees.
• Court: Iowa Supreme Court

Page 434

506 N.W.2d 434

Roy HONEYWELL, II, Appellant, v. ALLEN DRILLING CO., and Bituminous Casualty Corp., Appellees.

No. 92-1228.

Supreme Court of Iowa.

Oct. 20, 1993.

Rehearing Denied Nov. 23, 1993.

Donald Gonnerman, Waukee, for appellant.

John E. Swanson of Hansen, McClintock & Riley, Des Moines, for appellees.

Considered by HARRIS, P.J., and CARTER, LAVORATO, NEUMAN, and ANDREASEN, JJ.

ANDREASEN, Justice.

The Iowa Industrial Commissioner awarded an injured employee workers' compensation benefits for a scheduled injury arising from an accident that severed the employee's right arm. Believing he was entitled to compensation for an unscheduled injury, the employee filed a petition for review with the district court. The district court affirmed the commissioner's decision. We reverse and remand.

I. Background Facts and Proceedings.

Roy Honeywell, II, suffered a complete amputation of his upper right arm at the mid-forearm on February 5, 1983, while employed by Allen Drilling Company. Although the arm of the twenty-two-year-old employee was successfully reattached, the injury caused permanent partial disability to his right arm. The employer and its insurer, Bituminous Casualty Corp., agreed the injury to Honeywell arose out of and in the course of employment. The insurer paid medical expenses and disability payments during the healing periods in 1983, 1984, and 1985.

In May of 1986 Honeywell was hospitalized and treated for addiction to pain-killing drugs. He filed a petition with the industrial commissioner in 1988 requesting arbitration of his claim for additional benefits for medical expenses, rehabilitation benefits, additional healing period benefits, and for additional permanent disability benefits. He claimed 100% disability of his right arm and his body as a whole.

The arbitration decision was filed by the deputy industrial commissioner in February 1991. The deputy commissioner awarded 127 weeks of healing period benefits for the periods February 5, 1983 through April 16, 1985; August 15, 1985 through October 15, 1985; and May 13, 1986 through June 12, 1986. In addition, the deputy commissioner found Honeywell entitled to permanent partial disability benefits for 230 weeks based upon an impairment of ninety-one percent to the right upper extremity as provided by Iowa Code section 85.34(2)(m) (1991). The employee appealed and the insurer and employer cross-appealed.

On October 31, 1991, the commissioner filed his appeal decision. He affirmed the award of healing period benefits and permanent partial disability benefits. The commissioner modified the arbitration decision award of costs. On application of the insurer and employer, the commissioner recomputed the disability benefits to allow benefits for 227.5 weeks rather than the 230 weeks (ninety-one percent of 250 weeks). Honeywell then petitioned the district court for review of the commissioner's decision. The employee urged the injury should have been treated as an injury to the body as a whole, the award of healing period benefits was inadequate, and that the commissioner undertaxed the costs. In its answer, the insurer and employer challenged only the commissioner's finding as to the extent of impairment of the scheduled member.

The district court affirmed the commissioner's decision. The court found Honeywell failed to prove that he suffered an industrial disability as a result of his work-related injury. Honeywell appeals from the district court decision. No appeal was taken by the insurer or employer.

II. Scope of Review.

This is a judicial review of the industrial commissioner's decision under Iowa Code chapter 17A. See Iowa Code § 86.26. Our review, like that of the district court, is for the correction of errors at law, not de novo. Mortimer v. Fruehauf Corp., 502 N.W.2d 12, 14 (Iowa 1993). We may reverse the commissioner's finding of facts if they are unsupported by substantial evidence in the record made before the agency when the record is viewed as a whole. Iowa Code § 17A.19(8)(f). "Evidence is substantial if a reasonable mind would accept it as adequate to reach the same findings." Suluki v. Employment Appeal Bd., 503 N.W.2d 402, 404 (Iowa 1993).

III. Scheduled and Unscheduled Workers' Compensation Benefits.

If an employee suffers a personal injury causing permanent partial disability, the employee is entitled to workers' compensation benefits based upon the employee's average weekly spendable earnings during the healing period and for an additional period of time as compensation for the permanent partial disability suffered by the employee. Iowa Code § 85.34. As we have stated:

Permanent partial disabilities are classified as either scheduled or unscheduled. Scheduled injuries are set forth in section 85.34(2)(a)-(t) which fixes the number of weeks a worker must be compensated for loss of designated body parts. Unscheduled disabilities are those which are not listed in subparagraphs (a)-(t) and instead constitute a disability to the body as a whole. Iowa Code § 85.34(2)(u). The disability referred to in this section is known as "industrial disability, disability to the body as a whole, or simply an 'unscheduled injury.' "

Second Injury Fund v. Braden, 459 N.W.2d 467, 470 (Iowa 1990) (citations omitted).

Scheduled weekly benefits are allocated for injury to a specific body part ranging from 20 weeks for the loss of a little finger, to 250 weeks for the loss of an arm. Iowa Code § 85.34(2)(e), (m). In all cases of permanent partial disability from unscheduled injuries, compensation is paid during the number of weeks in relation to 500 weeks as the disability bears to the body of the injured employee as a whole. Iowa Code § 85.34(2)(u). If, as a result of a single accident, an employee receives both an injury to a scheduled member and an injury to parts of the body not included in the schedule, then compensation is based upon industrial disability, not the loss or impairment of the scheduled injury. Mortimer, 502 N.W.2d at 16-17. In determining industrial disability, functional impairment is just one factor. Id. at 14. "Other factors include the employee's age, education, qualifications, experience, and the inability of the employee to engage in employment for which the employee is fitted." Id. at 14-15.

IV. Psychological Condition Caused or Aggravated by Work-Related Injury.

A. Compensability.

The deputy commissioner in his findings of fact found Honeywell's work experience at the time of his injury was as a roughneck for a drilling company. Following his injury Honeywell returned to college and completed a four-year college degree. While hospitalized for the injury, Honeywell was administered morphine, codeine and demerol for pain. He testified that he became addicted to morphine as a result of the medical treatment following the severance of his arm. The deputy commissioner found Honeywell's testimony credible. The record shows that Honeywell had a preexisting personality disorder and substance abuse disorder. The deputy commissioner found:

It is found that claimant's preexisting personality disorder and substance abuse disorder were materially aggravated by the accident of February 5, 1983. The aggravations are compensable.

Only one period of lost time can be linked to the aggravation. That being the inpatient treatment for opiate addiction starting on May 13, 1986 and ending June 12, 1986. Claimant's inpatient treatment was a direct result of his addiction to morphine.

....

Claimant's entitlement to permanent partial disability is at issue. Claimant alleges an entitlement to industrial disability due to psychological impairment. The treating doctors failed to issue an impairment rating which apportioned the impairment allegedly caused by the aggravation of the preexisting substance abuse disorder and personality disorder. Therefore, claimant has failed to prove by a preponderance of the evidence that the aggravation of the preexisting disorders resulted in permanent partial disability. Claimant's demand for industrial disability also fails as a matter of law in that the claimant is compensated for any reduction in earning capacity through the schedule.

The record reflects that Dr. Reagan rated the impairment to Honeywell's right upper extremity at seventy-one percent, Dr. Clendenin at seventy-five percent, and Dr. Sauer rated the impairment at ninety-one percent. The deputy commissioner stated in his findings that he accepted Dr. Sauer's opinion because Dr. Sauer was the primary treating physician, his rating was related to the AMA guidelines and most accurately reflected the severity of the impairment, and he had followed claimant continuously over a longer period of time.

In his conclusions of law, the deputy commissioner stated:

Claimant has met his burden in proving that the February 5, 1983, amputation injury aggravated his preexisting substance abuse disorder and personality disorder ....

A claimant may not recover benefits for industrial disability if the injury is to a scheduled member and not to the body as a whole even when psychological problems affect earning capacity. A claimant is compensated for any reduction in earning capacity through the...