No.11-063860 (Mo. Lab. & Indust. Rel. Comm’n Jan. 26, 2018)
Full Opinion: [Clifford Potts v. State of MO, Fulton State Hospital]
Code(s): C003 SIF liability; C026 PTD
Factual
Background:
Prior
to the date of accident the employee suffered from a number of pre-existing
permanent partially disability conditions: learning disability, frostbite
injury to both feet, type 2 diabetes with neuropathy into lower extremities,
right knee pain, degenerative disc disease affecting cervical spine, and a
history prior complaints to low back.
Employee’s learning disability and illiteracy was main focus in the
decision. He was expelled in 7th grade for behavioral and learning
problems, diagnosed with learning disturbance in 1971, and admitted in 1972 to
Hospital because of ongoing difficulties and behavioral issues. He escaped the
hospital and became a ward of the Juvenile Court and was committed to Division
of Mental Diseases. He was determined to only function at 4th grade
level, never returned to school, and did not obtain GED. He remained functionally
illiterate.
ALJ Decision:
The
ALJ found the vocational expert’s testimony that employee is able to perform
less demanding physical work such as assembly packing or office cleaning jobs
persuasive. The ALJ held the employee is not PTD and therefore the SIF not
liable for any PTD benefits. The employee appealed alleging the ALJ erred in
concluding he did not meet his burden on the issue of PTD.
Analysis/Holding:
The
Commission noted that the mere fact an employee could perform certain jobs does not necessarily compel a finding
that the employee could compete for
such jobs in the open labor market. The analysis must include whether the
employee is “reasonably likely to be hired for such positions.” The vocational
expert acknowledged that employee’s poor academic history and illiteracy will
significantly limit his ability to perform jobs. The Commission evaluated his
potential candidacy for assembly packing and office cleaning jobs and held the
employee is unable to compete in the open labor market as a result of the
primary injury in combination with his preexisting disability and thus the SIF
is liable for PTD benefits.
The Takeaway:
In
PTD cases, significant mental deficiencies will be involved in the analysis of
whether the employee can compete in the open labor market. The employer can use this argument to shift
the liability onto the Fund.