Opinion ID: 885192
Heading Depth: 1
Heading Rank: 6

Heading: wage loss

Text: ¶ 67 The court found that S.L.H. had suffered a twenty percent wage loss and assessed a penalty for unreasonable conduct. However, the court also held that the State Fund had a reasonable argument for denying ten percent of the twenty percent wage loss and consequently assessed a penalty for only ten percent of the wage loss. Although the judge initially awarded S.L.H. attorney fees for the unreasonable denial of ten percent of the wage loss, he later reversed himself and concluded that the State Fund had conceded the issue prior to trial and that an award of attorney fees was therefore precluded. ¶ 68 S.L.H. urges this Court to direct the Workers' Compensation Court to award both a penalty for the additional ten percent wage loss and attorney fees for the entire twenty percent wage loss. S.L.H. contends that the court's findings are based on factual inaccuracies. She claims that the court erred in finding that the State Fund did not act unreasonably in denying the entire twenty percent wage loss. S.L.H. also asserts that the State Fund did not concede a ten percent wage loss until the first day of trial and that she was required to litigate and present proof of the entire wage loss. Consequently, she argues, the court's finding that attorney fees could not be assessed because the State Fund conceded the issue prior to trial, is unsupported by substantial evidence in the record. ¶ 69 The State Fund responds that in this case, statutory interpretation was required before either party could know what might be a reasonable wage loss figure. The State Fund points to the order in which the judge explained that while § 39-71-703(3)(c), MCA (1991), speaks simply of a wage loss of less than $2 or less an hour, the court was required to consider the claimant's inability to work full time and how that would impact the figuring of wage loss. The State Fund defends the court's decision not to award attorney fees by pointing again to the court's order in which the judge finds that, because the State Fund conceded the initial ten percent wage loss prior to trial, the court did not adjudicate the issue and S.L.H. was therefore not entitled to attorney fees. ¶ 70 In light of questions of legal interpretation relating to the ability to work full time or part time and how that relates to wage loss, the court's factual finding that the State Fund acted unreasonably only as to the initial ten percent wage loss was supported by substantial evidence in the record. We therefore affirm the court's ruling that a penalty pursuant to § 39-71-2907, MCA, was appropriate only for the initial ten percent wage loss. ¶ 71 As discussed above, the attorney fees statute requires that the case be brought before the judge for adjudication, that a judge award an amount greater than that initially offered by the insurer, and that a judge find the insurer's actions unreasonable before attorney fees may be assessed pursuant § 39-71-612, MCA. We have held that when a party concedes an issue in the opening statement of a trial, the issue remains in controversy into the adjudication phase, and attorney fees and costs may be assessable for that issue. Krause v. Sears Roebuck & Co. (1982), 197 Mont. 102, 641 P.2d 458. ¶ 72 In the case at hand, the court found the State Fund conceded a ten percent wage loss prior to trial. The transcript, however, reveals that the State Fund explicitly declined to concede the issue on the first day of trial: MR. BRONSON: But as we have read the medical evidence, there is no indication that she is going to be absolutely barred from eventually performing some kind of full-time work. Perhaps at wages that are identical to, if not greater than what she was earning at the time of injury. .... And I hesitate to have a situation where we decide automatically that she is entitled to a wage loss simply because of the limited experience so far in doing some part-time work, when there is some potential for full-time work and none of her medical providers are discouraging her from eventually getting into full-time work. THE COURT: Yes. But you are not I mean, even under that analysis, isn't she due some benefits for her current situation, where she is not working full-time? MR. BRONSON: My THE COURT: You are basically offering her nothing. MR. BRONSON: My concern, Your Honor, is that I think it should be left open-ended for a reasonable period of time here. THE COURT: And you would pay her nothing? MR. BRONSON: For wage loss. THE COURT: Even though she currently does have a wage loss. MR. BRONSON: That's correct. ¶ 73 This discussion between the State Fund and the judge at trial clearly shows that the State Fund had not conceded any wage loss prior to trial. The only evidence to suggest that the State Fund made any concession prior to trial consists of a statement by S.L.H.'s attorney that the State Fund's previous attorney had orally admitted a ten percent wage loss. However, the attorney who represented the State Fund at trial maintained the State Fund's denial of any wage loss payment. Furthermore, the State Fund made no wage loss payments prior to trial, and made no attempt to refute S.L.H.'s opening statement in which she stated: the State Fund has persisted in saying that she is entitled to no benefits for her wage loss. Additionally, although both the court and S.L.H. listed and discussed the conceded issues, (the subrogation claim, the MRI/EMG, the gastrointestinal medication, and the physical restriction), neither referred to the wage loss as a conceded issue. ¶ 74 Looking to the substance of the trial, it is clear that the wage loss issue remained in controversy into the adjudication phase of the proceedings. S.L.H. was required to litigate the issue, presenting witnesses and proof of her wage loss at trial, before the judge awarded her a twenty percent wage loss. S.L.H. submitted proof on the issue, the State Fund argued against any wage loss, and the Workers' Compensation Court entered a conclusion of law and a finding of fact regarding the entire wage loss and the State Fund's unreasonable actions. We find that the record provides no substantial credible evidence to support the Workers' Compensation Court's finding that the State Fund conceded any wage loss prior to trial. We therefore reverse the court's denial of attorney fees and remand for a determination of reasonable attorney fees and costs in relation to S.L.H.'s proof of the initial ten percent wage loss.