Appeal by defendants from opinion and award entered 7
September 2000 by Commissioner Christopher Scott of the North
Carolina Industrial Commission. Heard in the Court of Appeals 4
December 2001.
Devore, Acton & Stafford, P.A., by William D. Acton, Jr., for
plaintiff appellee.
Hedrick, Eatman, Gardner & Kincheloe, L.L.P., by Paul C.
Lawrence and Terry L. Wallace, for defendant appellants.
McCULLOUGH, Judge.
Defendants WNA, Inc./Imperial Fire Hose, the employer, and
Travelers Insurance Company, the carrier, appeal from an opinion
and award by the North Carolina Industrial Commission awarding
plaintiff Marie Derosier permanent partial disability benefits
pursuant to N.C. Gen. Stat. § 97-30 (1999).
On 3 October 1996 plaintiff slipped and fell down a flight of
steps while at work. The steps beneath her gave way, and plaintiff
suffered a leg laceration and back strain due to the accident.
Defendant WNA, Inc./Imperial Fire Hose filed a Form 60 with the
Industrial Commission on 25 October 1996, admitting plaintiff's
right to compensation and paid plaintiff temporary total disabilitybenefits.
Plaintiff, prior to her accident, was assigned to what is
called a floater position in the weave department at work at the
time of the accident. A floater performs many different tasks as
needed around the department. Plaintiff earned $10.50 per hour and
$15.75 per overtime hour as a floater. She averaged 17.93 hours of
overtime per week.
Plaintiff reached maximum medical improvement on 6 March 1998.
Plaintiff had been given a lifting restriction of 25 pounds and
limited bending, stooping and squatting. Her doctor gave her a 2%
permanent partial disability rating. These permanent restrictions
prevented plaintiff from performing the duties of a floater.
Plaintiff did not return to work until 8 March 1997. She
worked part-time from then through 28 September 1997, during which
time she received temporary partial disability benefits from
defendants. When she returned, plaintiff was assigned to the
Quality Control Department as a lab technician because she could no
longer perform the job of floater due to her restrictions.
However, plaintiff earned the exact same wages as a lab technician
as she did when she was a floater. Plaintiff's wages were also the
exact same as the present floater, Sheila DeMarco.
Sheila DeMarco replaced plaintiff as floater. As said above,
Ms. DeMarco's hourly wage and plaintiff's hourly wage were
identical when plaintiff returned to work. Evidence in the record
showed that Ms. DeMarco worked 436.5 hours of overtime during the
period between January 1998 through September 1999. During thesame period, plaintiff worked 257.5 hours of overtime as a lab
technician. This averages out to 13.23 hours per week. Not only
is this average significantly less than what plaintiff averaged as
a floater before she was injured, 17.93 hours per week, but is also
less than the present floater. The record shows that the floater
position worked 179 more overtime hours than did the position of
lab technician during the same time period.
The Industrial Commission found as a fact that plaintiff's job
in the Quality Control Department afforded her fewer opportunities
to work overtime. Consequently, plaintiff's earning capacity
decreased. Finding of Fact #8 reads:
8. The evidence of record establishes
that plaintiff's decrease in earnings
following her injury by accident was due to
her having to work in defendant-employer's
Quality Control Department as the result of
her restrictions, which afforded her fewer
opportunities to work overtime and thus
decreased her earning capacity.
The Commission made the conclusion of law that [p]laintiff
sustained a decrease in earning capacity due to her admittedly
compensable injury by accident. The award read, in pertinent
part, as follows:
1. Subject to attorney's fees hereinafter
provided, defendants shall pay to plaintiff
weekly compensation pursuant to G.S. § 97-30
in an amount equal to sixty-six and two-thirds
percent of the difference between her average
weekly wages at the time of her injury and the
average weekly wages which she has been and is
able to earn thereafter until 300 weeks from
the date of the injury.
(Emphasis added.) Defendant appeals from this opinion and award. Defendant makes several assignments of error as to the opinion
and award, but the sole question presented is whether the
Industrial Commission erred in awarding plaintiff benefits pursuant
to N.C. Gen. Stat. § 97-30.
The standard for appellate review of an opinion and award of
the Industrial Commission is well settled. Review is limited to
a determination of (1) whether the findings of fact are supported
by competent evidence, and (2) whether the conclusions of law are
supported by the findings. Barham v. Food World, 300 N.C. 329,
331, 266 S.E.2d 676, 678 (1980); see also Calloway v. Memorial
Mission Hosp., 137 N.C. App. 480, 484, 528 S.E.2d 397, 400 (2000);
Shah v. Howard Johnson, 140 N.C. App. 58, 61, 535 S.E.2d 577, 580
(2000), disc. review denied, 353 N.C. 381, 547 S.E.2d 17 (2001).
In addition, so long as there is some 'evidence of substance
which directly or by reasonable inference tends to support the
findings, this Court is bound by such evidence, even though there
is evidence that would have supported a finding to the contrary.'
Id. at 61-62, 535 S.E.2d at 580 (quoting Porterfield v. RPC Corp.,
47 N.C. App. 140, 144, 266 S.E.2d 760, 762 (1980)). The Calloway
Court went further stating that our task on appeal is not to weigh
the respective evidence but to assess the competency of the
evidence in support of the Full Commission's conclusions.
Calloway, 137 N.C. App. at 486, 528 S.E.2d at 401.
I.
Defendants contend that the Industrial Commission erred byawarding plaintiff benefits pursuant to N.C. Gen. Stat. § 97-30 in
that there is no competent evidence in the record to support its
findings of fact and conclusions of law that plaintiff sustained a
decrease in earning capacity due to her injury.
The term disability means incapacity
because of injury to earn the wages which the
employee was receiving at the time of injury
in the same or any other employment. N.C.
Gen. Stat. § 97-2(9). To support a conclusion
of disability, the Commission must find: (1)
that the plaintiff was incapable after his
injury of earning the same wages he earned
before his injury in the same employment, (2)
that the plaintiff was incapable after his
injury of earning the same wages he earned
before his injury in any other employment and
(3) that the plaintiff's incapacity to earn
was caused by his injury. If the Commission
makes these findings, and they are supported
by competent evidence, they are conclusive on
appeal even though there is evidence to
support a contrary finding. A claimant who is
able to work and earn some wages, but less
than the wages earned at the time of injury,
is partially disabled. Disability is a legal
conclusion and will be binding on the
reviewing court if supported by proper
findings.
Harris v. North American Products, 125 N.C. App. 349, 354, 481
S.E.2d 321, 324 (1997). The burden is on the employee to prove his
incapacity to earn, as a result of the compensable injury, the same
wages he was earning at the time of the injury.
Hall v. Thomason
Chevrolet, Inc., 263 N.C. 569, 575, 139 S.E.2d 857, 861 (1965).
Defendant correctly points out that although the Plaintiff's
post-injury earnings were less than her pre-injury earnings, the
focus should be on the issue of whether Plaintiff's earning
capacity or power has been diminished. Our Supreme Court has heldthat [c]ompensation must be based upon loss of wage earning power
rather than the amount actually received. It was intended by the
statute to provide compensation only for loss of earning capacity.
Hill v. DuBose, 234 N.C. 446, 447-48, 67 S.E.2d 371, 372 (1951).
In support of its contention that the Industrial Commission
erred, defendants contend that its economic downturn evidence
negates the pre-injury wage and post-injury wage comparison as
being the proper way to determine earning capacity in this case.
It is uniformly held that while an injured employee's post-injury
wages may create a presumption of post-injury earning capacity, the
presumption may be rebutted by either party upon a showing that
such wages are an unreliable basis for determining the employee's
actual earning capacity. North Carolina follows this rule.
Harris, 125 N.C. App. at 355, 481 S.E.2d at 325 (citation omitted).
The
Harris case dealt with an employee who became sick on the
job due to conditions on the site. Once he left that job and found
other work, his hourly wage went down but his income went up
because of the hours he was working. Rather than holding that the
employee suffered no loss of earning capacity, this Court concluded
that the evidence showed that the plaintiff-employee's actual post-
injury earnings were not a reliable indicator of his post-injury
earning capacity. The Court said:
[T]he presumption [of post-injury earning
capacity] may be rebutted by evidence
independently showing incapacity or explaining
away the post-injury earnings as an unreliable
basis for estimating capacity. Unreliability
of post-injury earnings may be due to a number
of things[:] increase in general wage levelssince the time of the accident; claimant's own
greater maturity or training;
longer hours
worked by claimant after the accident; payment
of wages disproportionate to capacity out of
sympathy to claimant; and the temporary and
unpredictable character of post-injury
earnings.
Harris, 125 N.C. App. at 356, 481 S.E.2d at 325 (quoting
Sjoberg's
Case, 394 Mass. 458, 462, 476 N.E.2d 196, 198-99 (1985) (citations
omitted)).
In the present case, defendant contends that plaintiff's
inflated pre-injury wages due to overtime hours worked during a
period of economic stability and the subsequent downturn by the
plant which resulted in a plant-wide reduction of overtime hours
available explains the disparity in plaintiff's pre-injury wages
and her post-injury wages. In other words, plaintiff's decrease
in wages was not caused by her injury by accident, but due to the
period of decline in the fire hose industry that coincided with her
injury. According to defendants, the employee now filling the
floater position has less overtime opportunities than were
available in the previous years.
We agree with defendants that plaintiff's pre-injury earnings
as floater should not be compared with plaintiff's post-injury
earnings as a lab technician to determine her loss in earning
capacity in this case. The Industrial Commission was wrong to
compare pre-injury and post-injury earnings as to earning capacity
in this case, because as defendants contend, circumstances
surrounding the pre-injury position have changed. Even if she was
still the floater, presumably she would not work the hours as shedid before.
However, this conclusion does not necessarily mandate that
plaintiff suffered no loss in earning capacity. It would seem that
plaintiff would be harmed, if at all, in the following way: If she
had not suffered the injury, she could still be working as a
floater. That job apparently has a certain amount of overtime
hours available to work. Since she was injured, she is now working
as a lab technician that also has a certain amount of overtime
hours available to the employee. If there is a difference between
the hours of overtime available between present floater and present
lab technician, then she has lost the capacity to earn those
overtime hours. Thus, the proper comparison should be between the
amount of overtime
available, not
worked, to the present floater
and the plaintiff in her present job as lab technician.
The record does not allow such a comparison. The closest the
record comes to making this comparison is with defendant's exhibits
one and two. These exhibits are salary histories of Ms. Derosier
and Sheila DeMarco during a specified period of time. They show
the hours worked, regular and overtime, by each respective
employee. The columns are clearly marked, and nowhere do they make
reference to overtime hours available.
Testimony about these exhibits seems to confuse what they
plainly represent. For instance, Sherrie Hutchinson, the personnel
manager at Imperial Fire Hose, testified that the exhibits
represented 1998 and 1999's year-to-date earnings, which include
hours and overtime hours worked. When asked about the exhibitdealing with the present floater, Ms. DeMarco, Ms. Hutchinson
testified that it represented the hours available for a floater to
work from that period of time 1998 through the end of August 1999.
Finally, later on in Ms. Hutchinson's testimony, the following
exchange in regard to the same two exhibits took place:
Q. These would be, in essence, a comparison
of the overtime hours, if we follow the
two columns for both of these people, we
can compare the overtime hours Ms.
Derosier worked with the overtime hours
Ms. Demarco worked; is that right?
A. [Hutchinson]: Correct.
At the very least, it is confusing as to what exactly the records
represent.
We do note that there is evidence in the record that Ms.
Derosier has been allowed fewer overtime opportunities as a lab
technician than as a floater:
Q. . . . And in the lab technician, have you
been allowed to work as much overtime
work as you had been offered before when
you were a floater?
A. No, sir.
There is also evidence that, due to her injury, Ms. Derosier did
not work every overtime hour available to her, even though her
doctor never said she could not work the overtime. As said above,
we hold that based on the facts of this case the proper comparison
to arrive at Ms. Derosier's earning capacity is between the hours
of overtime available to the present floater and the overtime
available to plaintiff in her present job as lab technician. The
record does not provide such a comparison. Therefore we reversethe decision and remand for further findings consistent with this
opinion.
Reversed and remanded.
Judge CAMPBELL concurs.
Judge GREENE dissents.
===========================
GREENE, Judge, dissenting.
In remanding this case to the Full Commission, the majority
accepts defendants' position that plaintiff's post-injury overtime
hours decreased due to an economic downturn experienced by the
company. The majority therefore orders the Full Commission to
compare the number of overtime hours available to the present
floater, Ms. DeMarco, and those available to plaintiff in her post-
injury job as a lab technician in order to determine whether
plaintiff suffered a loss in earning capacity. Because I believe
this analysis to be an issue that is only reached upon a finding by
the Full Commission that defendants have met their burden under
Harris v. North Am. Prods., 125 N.C. App. 349, 481 S.E.2d 321
(1997), a finding the Full Commission did not make, I dissent.
(See footnote 1)
In
Harris, this Court held that while an injured employee's
post-injury wages create a presumption of post-injury earning
capacity, the presumption may be rebutted by either party upon a
showing that such wages are an unreliable basis for determining theemployee's actual earning capacity.
Id. at 355, 481 S.E.2d at
325. In this case, defendants offered evidence that an economic
downturn, resulting in an overall decrease in overtime, caused
plaintiff's post-injury earnings to be reduced. The deputy
commissioner found competent evidence in the record . . . that
[plaintiff's] decrease in earnings following her admittedly
compensable injury by accident was due to her having to work in the
defendant-employer's Quality Control Department which afforded her
fewer opportunities to work overtime and thus decreased her earning
capacity. On appeal to the Full Commission, Defendants assigned
as error that this finding was not supported by the competent
evidence of [r]ecord in that the [d]eputy [c]ommissioner failed to
take into account the economic downturn faced by the [d]efendant[-
employer] and the effect of the economic downturn on [plaintiff's]
ability to work overtime. The Full Commission, however,
implicitly rejected defendants' argument by adopting the deputy
commissioner's finding almost verbatim. As plaintiff has met her
burden of proving a decrease in her earning capacity and defendants
have failed to meet their burden of showing plaintiff's evidence to
be unreliable,
see id.,
I would affirm the Full Commission's
opinion and award.
Footnote: 1