Court Opinion

ID: 9515092
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:53:41.369833+00
Date Added: 2024-06-11T09:06:24.819522
License: Public Domain

[¶ 35.]
GIENAPP, Circuit Judge
(dissenting).
[¶ 36.] I dissent as to one aspect of the majority decision on Issue Two. I agree that Blenner is entitled to prejudgment interest on the benefits due under the PPD rating for the permanent injury to her back. I also agree with the majority decision relating to the determination that when there is not a lump sum payment that prejudgment interest should be calculated on each weekly payment as it becomes due. Where I part company with the majority is as to the issue as to the time of the commencement of PPD benefits and as a result when interest would commence accruing on the PPD benefits. The PPD benefits are not due until the rehabilitation benefits terminate and interest should not commence until that time.
[¶ 37.] SDCL 62-4-6, as it existed at the time, indicates that PPD payments would be for the following further periods (emphasis supplied.) The use of the word further in SDCL 62-4-6 establishes that those periods would not commence until subsequent to the exhaustion of the rehabilitation benefits. As a result, unless there was a lump sum payment which is *514not the case herein, the periodic payments for PPD benefits do not commence until after the exhaustion of the rehabilitation benefits under the plain statutory wording and as a consequence prejudgment interest would not commence until that time. Under the facts of this case that time is subsequent to the date of Dr. Ahrlin’s PPD rating.
[¶ 38.] The true intention of a statute is to be ascertained primarily from the language expressed in the statute. Moss v. Guttormson, 1996 SD 76, 551 N.W.2d 14. The use of the word further in SDCL 62-4-6 establishes that the PPD benefits are after the rehabilitation benefits. I would reverse and remand for the computation of prejudgment interest from the time that the PPD benefits became payable which is after the exhaustion of the rehabilitation benefits.
[¶ 39.] 6IENAPP, Circuit Judge, writing for the majority on Issue Three.
ISSUE THREE
[¶ 40.] What is the applicable rate of prejudgment interest?
[¶ 41.] The ALJ allowed prejudgment interest on the PPD, but did not determine the applicable rate of interest. The circuit court held the applicable statutory prejudgment interest rate was pursuant to SDCL 54-3-5 at the Category B rate, ten percent, as established in SDCL 54-3-16(2).3 This issue is before this Court pursuant to a notice of review filed by Blenner. This is a question of law and is reviewed by this Court de novo. Divoidson v. Horton, 2002 SD 27 at ¶ 17, 641 N.W.2d at 141.
[¶ 42.] Blenner contends that SDCL 54-3-5 is the operative statute for prejudgment interest and interest should be at the Category F rate established by SDCL. 54-3-16. Blenner contends that payments for PPD do not constitute damages as referred to in SDCL 21-1-13.1 and as a consequence SDCL 54-3-5 is the operative statute.
[¶ 43.] Employer/Insurer takes the position that SDCL 21-1-13.1 is the operative statute for the purpose of determining the rate of interest and that interest should be at the Category B rate.4 SDCL 21-1-13.1 was enacted in 1990 and had not been enacted at the time of the incidents involved in Shelly Oil and Tischler decisions.
[¶ 44.] In Shelly Oil and Tischler this Court upheld prejudgment interest in workers’ compensation cases. In both Shelly Oil and Tischler SDCL 21-1-11 was established as being the empowering statute for prejudgment interest. While Blen-ner takes the position that SDCL 54-3-5 is the applicable statute, it was enacted prior to Shelly Oil and Tischler decision, and, was in existence at the time the issue was decided.
*515[¶ 45.] SDCL 54-3-5 sets the interest rate, in relevant part, on amounts “due on any instrument of writing, and on moneys lent, or due on any settlement of accounts.”
[¶ 46.] SDCL 57A-3-104(b) defines “instrument” as a negotiable instrument. Additionally, an instrument has been defined as:
A formal or legal document in writing, such as a contract, deed, will, bond or lease. A writing that satisfies the requisites of negotiability prescribed by UCC Art. 3. A negotiable instrument (defined in UCC § 3-104), or a security (defined in UCC § 8-102) or any other writing which evidences a right to the payment of money and is not itself a security agreement or lease and is of a type which is in ordinary course of business transferred by delivery with any necessary indorsement or assignment. UCC § 9-501(1).
Black’s Law Dictionary, 801 (6th ed. 1990). Workers’ compensation benefits are not encompassed in the wording at SDCL 54-3-5 and prejudgment interest should not be based on SDCL 54-3-5.
[¶47.] SDCL 21-1-13.1 provides for prejudgment interest, under certain criteria, for any person who is entitled to recover damages. SDCL 21-1-1 defines damages:
Every person who suffers detriment from the unlawful act or omission of another may recover from the person in fault a compensation therefore in money, which is called damages. Detriment is a loss or harm suffered in person or property.
This definition utilizes the phrase “recover for the person in fault” as part of the definition of damages. Compensation under the workers’ compensation law is not based on fault, but rather is a responsibility which the employer assumes. SDCL 62-3-1; Benson v. Sioux Falls Medical and Surgical Clinic, 62 S.D. 324, 252 N.W. 864 (1934). An award for workers’ compensation pursuant to a work related injury is not encompassed by the wording of SDCL 21-1-13.1.
[¶48.] Shelly Oil and Tischler held SDCL 21-1-11 to be the operative statute for prejudgment interest in connection with workers’ compensation awards. SDCL 54-3^4 would have been the appropriate statute for interest computation pursuant to SDCL 21-1-11. The enactment of SDCL 21-1-13.1 and SDCL 21-1-13.2 does not alter the applicability of SDCL 54-3-4. That statute, a catchall provision that applies the category C rate of interest, applies where there is any general “ obligation to pay interest.” Id. Because this is the most applicable statute for a workers compensation award, the category C rate applies. Prejudgment interest is recoverable at the Category C rate of interest pursuant to SDCL 54-3-4, and SDCL 54-3-16(3).5
[¶ 49.] The lower court’s decision to impose a Category B rate of interest pursuant to SDCL 54-3-16(2) is reversed and remanded for entry of an order indicating that the Category C rate is assessed pursuant to SDCL 54-3-16(3).
[¶ 50.] GILBERTSON, Chief Justice, ZINTER and MEIERHENRY, Justices, and LOVRIEN, Circuit Judge, concur.
*516[¶ 51.] GIENAPP, Circuit Judge, for SABERS, Justice, disqualified.
[¶ 52.] LOVRIEN, Circuit Judge, for KONENKAMP, Justice, disqualified.

. The circuit court held that the applicable statutory prejudgment interest statute is SDCL 54-3-5 and indicated that interest under SDCL 54-3-5 is at the Category B rate as established by SDCL 54-3-16(2) of ten percent. The circuit court’s decision is inconsistent. If SDCL 54-3-5 is the applicable statute it should not be Category B interest. Conversely, if the interest is Category B interest then SDCL 54-3-5 is not the enabling statute.

. In Herr v. Dakotah, Inc., 2000 SD 90, 613 N.W.2d 549, this Court dealt with a workers’ compensation case that provided for interest at the ten percent rate. The issue of the proper rate of interest was not raised or addressed in that decision.

. Category C interest is presently twelve percent and was amended to twelve percent in 1994 which was prior to the time when any prejudgment interest would be payable to Blenner.