Reinforced Earth Co. v. WCAB

• Decision Date: 06 November 2002
• Docket Number: No. 124 MAP 2000.,124 MAP 2000.
• Citation: 570 Pa. 464,810 A.2d 99
• Parties: The REINFORCED EARTH COMPANY, v. WORKERS' COMPENSATION APPEAL BOARD (ASTUDILLO), Appeal of the REINFORCED EARTH COMPANY AND STATE WORKERS' INSURANCE FUND.
• Court: Pennsylvania Supreme Court

810 A.2d 99

570 Pa. 464

The REINFORCED EARTH COMPANY, v. WORKERS' COMPENSATION APPEAL BOARD (ASTUDILLO),

Appeal of the REINFORCED EARTH COMPANY AND STATE WORKERS' INSURANCE FUND.

No. .

Supreme Court of Pennsylvania.

Argued November 13, 2001.

Resubmitted June 3, 2002.

Decided November 6, 2002.

Joseph F. Frattone, Philadelphia, Stephen J. Harlen, Haverford, for appellant, Reinforced Earth Co./SWIF.

John J. Stanzione, Downingtown, for appellee, Juan Carlos Astidillo

James A. Holzman, Harrisburg, Amber M. Kenger, Mechanicsburg, for appellee, W.C.A.B.

Before ZAPPALA, C.J., and CAPPY, CASTILLE, NIGRO, NEWMAN, SAYLOR and EAKIN, JJ.

OPINION ANNOUNCING THE JUDGMENT OF THE COURT

Justice CAPPY.

In this appeal of The Reinforced Earth Company and its insurer, the State Workers' Insurance Fund (collectively, "Reinforced Earth") we consider (1) whether the Commonwealth Court erred in holding that public policy does not exclude the appellee, Juan Carlos S. Astudillo ("Claimant"), an unauthorized alien, from receiving relief under the Pennsylvania Workers' Compensation Act¹; and (2) assuming Claimant's eligibility to receive benefits in the first instance, whether the Commonwealth Court's decision that Reinforced Earth failed to establish that it is entitled to a suspension of the benefits awarded him is contrary our holding in Banic v. Workmen's Compensation Appeal Bd. (Trans-Bridge Lines, Inc), 550 Pa.276, 705 A.2d 432 (1997). We conclude that Claimant is not barred from the Act's relief for reasons of public policy and that our decision in Banic applies to determining whether Reinforced Earth is entitled to a suspension of Claimant's total disability compensation. Accordingly, the order of the Commonwealth Court is affirmed, albeit for reasons which differ from those relied upon below, and this case is remanded to the Workers' Compensation Judge ("WCJ") for further proceedings on the issue of a benefits suspension.

Claimant filed a Claim Petition under the Act, alleging that he had been injured in the course of his employment with Reinforced Earth. Reinforced Earth filed an Answer to the Claim Petition, denying Claimant's allegations.

The WCJ held hearings in January and September 1995. Claimant's evidence included his testimony before the WCJ, his own deposition, and the deposition testimony of his treating physician, James B. Stephenson, M.D. Reinforced Earth countered Claimant's medical evidence with the deposition testimony of Armando A. Mendez, M.D., who examined Claimant on one occasion.² With Claimant's agreement, Reinforced Earth also submitted the Affidavit of M. Frances Holmes, the Assistant District Director Examinations, for the United States Department of Justice, Immigration and Naturalization Service ("INS"), Philadelphia District, which stated that "[a]ccording to our records Alien number A90 237 990 on the copy of the Alien Registration Card ... does not relate to J. Carlos S. Astudillo. After a complete name search on our computer, we have no record of Mr. Astudillo." (R. 192a-193a).

Based on the foregoing evidence, the WCJ found the following facts. Claimant initially immigrated to the United States of America in 1988, entering California from Mexico, and moved to Pennsylvania in 1990. The documents Claimant obtained and presented to Reinforced Earth in order to secure employment were invalid, not having been issued by the INS.

Claimant worked for Reinforced Earth as a maintenance helper. In this capacity, he cut and welded iron and repaired motors, and was required to climb scaffolds and ladders and lift heavy steel beams. On May 20, 1994, as he was working, Claimant was struck in and about the head, neck and back by a steel beam, and was rendered unconscious. Claimant was taken to the hospital, and came under the care of Dr. Stephenson both during and after his hospital stay. Dr. Stephenson diagnosed Claimant as having sustained a concussion, a mild head injury and an acute cervical and lumbro-sacral strain and sprain. Over the ensuing months, Claimant experienced headaches, dizziness, loss of balance, trouble sleeping, and upper and lower back pain. Upon Dr. Stephenson's recommendation, Claimant commenced physical therapy treatments in June 1994, and consulted an ear, nose and throat specialist and a neurosurgeon thereafter. Dr. Stephenson last saw Claimant on March 14, 1995. As of that date, Dr. Stephenson maintained a diagnosis of chronic cervical and lumbro-sacral sprain and strain, and concluded that Claimant was unable to perform the duties of his pre-injury job. Dr. Stephenson testified that Claimant would have to avoid climbing on ladders and scaffolds, and restricted his lifting to less than 20 to 25 pounds. Claimant never returned to Reinforced Earth's employ. On September 24, 1994, with the execution of a Separation Agreement and Release, which preserved Claimant's rights under the Act, Claimant's employment relationship with Reinforced Earth was terminated.

The conclusions of law the WCJ reached were as follows. First, the WCJ concluded that even "[a]ccepting that Claimant as an alien did not have proper [INS] documentation to work for [Reinforced Earth], such illegal alien status at the time of injury does not bar relief to the Claimant under the [Act]." (R. 199a).³ Second, the WCJ concluded that Claimant met his burden of proof, establishing all of the elements of compensability by substantial and competent evidence. Third, the WCJ concluded that under the circumstances, Reinforced Earth presented a reasonable basis for contest.

Accordingly, the WCJ circulated an order on November 26, 1997, granting Claimant's Claim Petition, and ordering Reinforced Earth to pay Claimant compensation for total disability at the rate of $384.86 per week commencing as of May 21, 1994 and continuing thereafter until liability is altered pursuant to law; to pay all of Claimant's related reasonable and necessary medical expenses, including those Claimant had submitted, subject to the Act's limitations; to remain responsible for Claimant's medical expenses; and to pay the litigation costs.

Reinforced Earth appealed to the Workers' Compensation Appeal Board ("Board"), objecting to the WCJ's first and second conclusions of law. Without taking additional evidence, the Board affirmed the WCJ's decision and order. With respect to Reinforced Earth's argument that Claimant's status as an unauthorized alien barred him from the Act's coverage, the Board determined that Reinforced Earth failed to prove that Claimant's alleged violation of the law—the use of invalid documents to secure employment—was causally related to his injury.⁴ In addition, the Board stated that any determination that Claimant's immigration status alone would vitiate his entitlement to compensation benefits would violate the humanitarian purposes of the Act. Next, the Board concluded that the WCJ correctly decided that Claimant met his burden of proof, showing that he was totally disabled for all periods covered by the record. Finding that Reinforced Earth failed to show Claimant's possible earnings, the Board then rejected Reinforced Earth's argument that a suspension of benefits was in order because Claimant could not show that he was disabled throughout the proceedings. Finally, of the view that Claimant's employability was not yet an issue in light of the WCJ's conclusion that Claimant was totally disabled, the Board also rejected Reinforced Earth's argument that the WCJ should have suspended Claimant's benefits because his unauthorized alien status prevents him from ever returning to work or from making good faith efforts to secure employment.

Reinforced Earth appealed to the Commonwealth Court. Reinforced Earth argued, inter alia, that the Board's ruling that Claimant's status as an unauthorized alien does not bar him from receipt of the Act's relief is inconsistent with the Commonwealth Court's decision to refuse workers' compensation to an escaped prisoner in Graves v. Workmen's Compensation Appeal Bd. (Newman), 668 A.2d 606 (Pa.Cmwlth.1995), and that assuming arguendo that Claimant may be awarded workers' compensation benefits, due to Claimant's immigration status which renders him unemployable, it is entitled to a suspension of the benefits.

A unanimous panel of the Commonwealth Court affirmed the Board's order. The Reinforced Earth Company v. Workers' Compensation Appeal Bd. (Astudillo), 749 A.2d 1036 (Pa.Cmwlth.2000).

After rejecting Reinforced Earth's assertion that the IRCA forecloses the grant of workers' compensation benefits,⁵ the Commonwealth Court considered Reinforced Earth's request that the court "employ the public policy exception [it] applied in [Graves]" to unauthorized aliens. Id. at 1038. The court commenced its analysis with the following description of the decision it rendered in that case:

In [Graves], we held that a claimant who was an escaped prisoner was not entitled to workers' compensation benefits because to grant him benefits would have been to reward him for his prison escape, and was an absurd and unreasonable result and contrary to the General Assembly's intention to provide compensation for work-related injuries. In so holding, however, we expressly limited that holding to escaped prisoners stating that:

[W]e expressly limit our holding to the proposition that an escape from official detention renders a claimant ineligible for benefits under the Act. We do not hold that any other violation of law committed prior to employment leads to a similar result. This holding balances the legitimate needs of employees with society's interest in ensuring that the workmen's compensation system is not used to the advantage of prison escapees.

Id. at 1038-39 (quoting, Graves, 668 A.2d at 609) (footnote omitted).

The court then declined to extend the holding in Graves to unauthorized aliens, explaining that "we specifically limited the Graves holding to escaped convicted criminals only, not illegal...