Title: Ross v. Lytle Co.

State: kansas

Issuer: Kansas Supreme Court

Document:

183 Kan. 825 (1958)
332 P.2d 592
WILLIAM E. ROSS, Appellee,
v.
C.F. LYTLE COMPANY and EMPLOYERS MUTUAL LIABILITY INSURANCE COMPANY, Appellants.
No. 41,130

Supreme Court of Kansas.
Opinion filed December 6, 1958.
Robert N. Partridge, of Wichita, argued the cause, and George B. Powers, Carl T. Smith, John F. Eberhardt, Stuart R. Carter, Robert C. Foulston, Malcolm Miller, Robert M. Siefkin, Richard C. Harris, and Gerald Sawatzky, all of Wichita, were with him on the briefs for the appellants.
Fred R. Vieux, of Augusta, argued the cause, and J.B. McKay and James B. McKay, Jr., both of El Dorado, were with him on the brief for the appellee.
The opinion of the court was delivered by
JACKSON, J.:
This is a workmen's compensation case and really presents only one question for our decision. The question presented is whether an award made to the claimant for a condition found to be temporary in character may be commuted or settled by an order for a lump sum payment.
It will be helpful to briefly give a review of the background of the case. Claimant, who is the appellee here, has been engaged in heavy manual labor during his working life. In 1945, he suffered a back injury and underwent surgery involving a spinal fusion. After his return to work, he was employed by various employers in work in keeping with his capabilities. In August, 1955, he again injured his back while in the employ of the respondent, who is the appellant. The original award of compensation herein was entered on March 20, 1956, and was for "not to exceed 415 weeks of temporary total disability at the rate of $32 per week, subject to review and modification as provided by law."
Soon after this award, proceedings seem to have been initiated looking toward the redemption of the award by a lump sum payment. The matter came on for hearings before the examiner for the workmen's compensation commissioner on June 15, 1956, and July 10, 1956. At that time, the examiner made findings which read *826 in part as follows: "However, it is found that inasmuch as the award originally entered was for temporary total disability, it is the opinion of the Examiner that he should not entertain an application for the redemption of liability until it is determined that the claimant is suffering total permanent disability, for the reason that apparently the temporary nature of the disability might at some future date be resolved." The examiner concluded that it had not been shown to be to the claimant's best interests that a lump sum redemption of the award be ordered.
On May 3, 1957, claimant filed a second application for redemption of liability, and thereupon, respondent and the insurance carrier filed an application to reduce and modify the award contending that claimant's condition had improved. After proper hearings before the examiner, an order modifying the award was filed as of September 12, 1957. That order reads in part as follows:
"FINDINGS
The examiner entered an order appropriate to the above findings.
Thereafter, the claimant appealed this modified award to the district court. The findings and decision of the district court on appeal may be shown by its journal entry, the pertinent part of which reads:
*827 "JOURNAL ENTRY"
I.
II.
III.
IV.
V.
VI.
The authority for the redemption of an award made to a workman is found under the provisions of G.S. 1957 Supp. 44-531. That section was amended as part of Chap. 250, Laws of 1955, and has not been before this court since its amendment. The section reads:
It will be noted that section 44-531 does not specify the type of an award which shall be subject to redemption by lump sum payment. But we are of the opinion that the section must be read together *828 with other parts of the compensation act, and in particular with G.S. 1957 Supp. 44-528, which provides for review, modification or cancellation of awards. It will be noted that these two sections constituted sections 7 and 8 of Ch. 250, Laws of 1955. Thus, the legislature can certainly be presumed to have intended that section 8 of the act was to be construed with section 7 thereof.
Now, it may be noted that if an award such as re-established by the district court for temporary total disability for not to exceed the maximum period of 415 weeks be allowed to be redeemed by a lump sum payment of 95% of the maximum payments to be due, section 44-528 will be nullified. Actually, a temporary disability is turned into a permanent disability. Moreover, if at some future time, claimant does improve as must be expected from the nature of the award, the possibility of having a review and modification of the award under section 44-528 is foreclosed. Such a construction would seem to do violence to the intent of the act.
Furthermore, it cannot be overlooked that the respondent may have paid considerably more than would have been due if claimant does improve. Of course, a claimant who has been awarded a partial temporary disability may suffer loss upon a lump sum settlement, if his disability should increase.
We are clear that the act read as a whole does not provide for the redemption of awards for temporary disability.
Even under the old compensation act of 1911, under which the district court, within its discretion, might give judgment for a lump sum, this court said in Roberts v. Packing Co., 95 Kan. 723, 149 Pac. 413:
In Woodward v. PGH. Eng. & Const. Co. et al., Aplnts., 293 Pa. 338, 143 Atl. 21, the Supreme Court of Pennsylvania construed a provision not too dissimilar to the Kansas statute. The court said in part:
In Ashley v. Ware Shoals Mfg. Co. et al., 210 S.C. 273, 42 S.E.2d 390, the court said:
In view of what has been said above, the order of the district court directing that the award of April 20, 1956, be redeemed by a lump sum payment must be reversed and set aside. Since there is evidence to support the court's action of reinstating the award of March 20, 1956, in place of the modified award of September 12, 1957, that part of the district court's decision must be affirmed.
It is so ordered.