Workers’ Compensation
Court of Appeals
April through June 2006
Case summaries published are
those prepared by the WCCA
Causation
Substantial evidence, including expert opinion, supported the judge’s decision that the employee’s
work-related injury was a substantial contributing cause of the employee’s ankle condition and
resulting need for surgery.
Affirmed.
Where it was not unreasonable in light of the whole medical and other evidentiary record, the
compensation judge’s conclusion that the employee’s lumbosacral work injury eight years earlier
was a substantial contributing factor in the employee’s need for intermittent treatment by four
intervening medical providers was not clearly erroneous and unsupported by substantial evidence,
notwithstanding the express expert opinion of the employer’s independent medical examiner, nor
was the judge’s award of reimbursement legally inconsistent with her conclusion that the employee
had not proved entitlement to permanent partial disability compensation for a concurrently evident
compression fracture that was attributable to a pre-existing bone condition.
Affirmed.
Where at the time of her injury, the employee had neither entered the building in which she normally
worked nor signed in for her shift, where there was no evidence to support her assertion that she was
conducting business in a sanctioned area at the time of the injury or was otherwise engaged in
Summaries of Decisions
activities incidental to her employment, and where the hazards to which she was exposed as a
pedestrian on the public sidewalk were no different from those to which the general public was
exposed, the compensation judge’s conclusion that the employee’s freak injury on the public
sidewalk near the entrance to her workplace, when she was hit by a tire that had flown off a passing
truck as she approached her workplace, did not arise out of and in the course of her employment was
not clearly erroneous and unsupported by substantial evidence.
Affirmed.
Substantial evidence in the form of a well-founded medical opinion supports the compensation
judge’s determination that the employee did not sustain an injury to his lumbar spine.
Affirmed.
Causation – Aggravation
Substantial evidence supports the compensation judge’s decision that the employee’s Aug. 20, 2002,
injury did not represent a substantial contributing factor in the cause of, aggravation of or
acceleration of the employee’s current condition, but that, instead, the employee’s current symptoms
and need for medical treatment are causally related to his pre-existing low back condition.
Affirmed.
Substantial evidence, including the testimony of the employee and the medical records and opinions
of his treating physician, support the compensation judge’s finding that the medical treatment
provided to the employee, including a morphine pump and narcotic medications, was reasonable and
necessary.
Medical Treatment and Expense – Treatment Parameters
Challenges to the reasonableness and necessity of medical treatment under the treatment parameters
will not be considered by this court where the issue was not raised at the hearing before a
compensation judge.
Affirmed.
Substantial evidence, including lay testimony, medical and vocational records, and expert opinion,
supported the finding that the employee was permanently totally disabled.
Affirmed.
Earning Capacity
Temporary Partial Disability
Affirmed.
Earning Capacity
Substantial evidence, including the testimony of the employee and of the employee’s supervisor,
supported the compensation judge’s decision that the employee’s reduction in earnings is causally
related to the employee’s work injury.
Affirmed.
Based upon the records of the employee’s treating physician and the testimony of the employee, the
compensation judge could reasonably conclude the employee had restrictions on his physical
activities and award temporary partial disability benefits.
There is a difference between disregarding unopposed medical opinion and rejecting an opinion on
the basis of other evidence. Where the employee testified that he continued to have limitations on his
physical activities, and his doctor’s records and opinions regarding work restrictions were not
unequivocal or unambiguous, the compensation judge did not err in rejecting the doctor’s Sept. 2,
2004, release to return to work without restrictions.
D-3 • COMPACT • August 2006 *This case is on appeal to the Minnesota Supreme Court.
Summaries of Decisions
Evidence – Estoppel
Where the employee was not successful in applying for and did not receive unemployment benefits,
and there was no evidence regarding why a form completed by the employee’s doctor was submitted
to the Department of Economic Security, the positions and assertions of the parties, or any other
information about the unemployment proceeding, we decline to apply the doctrine of judicial
estoppel.
Affirmed.
Where the employer had agreed with the employee’s request to drive home from Brainerd to Little
Falls on Friday evening in a company van that the employee would need early Monday morning for
a client pick-up in Little Falls, and where the employee was fatally injured Friday night on his drive
home in the van, the compensation judge’s conclusion that the business purpose of the trip was at
least a concurrent reason for the employee’s activities at the time of his injury and that the
employee’s dependent was therefore entitled to benefits was not clearly erroneous and unsupported
by substantial evidence.
Affirmed.
Where there was no change in the employee’s ability to work or permanent partial disability, the
change in the employee’s diagnosis was not necessarily significant, and the employer and insurer
were paying for ongoing medical expenses related to the employee’s injury, and where the employee
did not clearly establish that any change in his condition was not anticipated and could not
reasonably be anticipated at the time of the settlement, good cause to vacate the award on stipulation
was not established.
Penalties
Attorney Fees – Heaton
Attorney Fees – Contingent Fees
Minnesota Statutes §176.225, subd. 1
The fact that contingent fees were voluntarily paid by the insurer, and there was no order or award
directing payment of the fees, does not provide a basis for avoidance of a penalty under Minnesota
Statutes §176.225, subd. 1, for prohibited conduct. A penalty is not appropriate where benefits are
the subject of a real controversy and the employer and insurer interpose a colorable claim or good
D-4 • COMPACT • August 2006 *This case is on appeal to the Minnesota Supreme Court.
Summaries of Decisions
faith defense. The employer and insurer asserted a colorable defense, even though they lost, that
attorney fees were properly withheld from benefits voluntarily paid following a hearing that included
a dispute over primary liability, and the award of a penalty was not appropriate.
An employer and insurer may not withhold contingent attorney fees on compensation benefits when
specifically requested not to do so by the employee’s attorney.
Reversed.
Where there was no evidence of a job offer after the initiation of temporary total disability, and no
evidence of a refusal by the employee, Minnesota Statutes §176.101, subd. 1(i) does not apply.
Reversed.
Wages
The compensation judge did not err by excluding amounts paid into a national pension fund, a local
pension fund, a health and welfare fund, an apprenticeship fund, an international training fund and the
piping industry fund from the employee’s weekly wage calculation where the payments were not
discretionary and the employee had no independent control over the amount contributed to each fund.
Affirmed.
Where the critical issue was whether the employee’s alleged need for surgery was causally related to
the employee’s admitted work injuries, the compensation judge did not err by basing her decision on
expert medical opinion as to causation.
Affirmed.
D-5 • COMPACT • August 2006 *This case is on appeal to the Minnesota Supreme Court.
Summaries of Decisions
Substantial evidence, including medical records and witness testimony, supports the compensation
judge’s finding that the employee remained entitled to temporary total disability benefits through
Aug. 13, 2005, the date of the expiration of the statutory 90-day period following service of
maximum medical improvement.
Substantial evidence, including medical records, supports the compensation judge’s finding that the
employee sustained a 10 percent permanent partial disability of the whole body as a substantial result
of his Oct. 4, 2004, work-related injury.
Affirmed.
Under Morehouse v. Geo. A. Hormel & Company, 313 N.W.2d 8, 34 W.C.D. 314 (Minn. 1981), an
employee need not show that his or her injury was temporary rather than permanent in nature in
order for the employee to be entitled to temporary partial disability benefits.
Where the issue before the compensation judge was whether the employee was entitled to temporary
partial disability benefits for a certain period of time, and at the hearing the employer argued that the
employee was not restricted from working for a second employer at that time, the compensation
judge did not err by correctly noting that the employer presented no evidence to the contrary
regarding the availability of a position at the second employer in order to rebut the presumption that
the employee’s post-injury wage represented her reduced earning capacity.
Substantial evidence, including adequately founded medical opinion, supports the compensation
judge’s finding that the employee was permanently restricted from working for a second employer
and was entitled to temporary partial disability benefits.
Affirmed.
Where the medical evidence established that the employee, who was a traveling employee,
contracted a staph or strep infection while on a work trip, and where it was reasonable for the
D-6 • COMPACT • August 2006 *This case is on appeal to the Minnesota Supreme Court.
Summaries of Decisions
compensation judge to conclude that the employee contracted the infection from a dirty motel room,
the judge properly determined that the cellulitis and toxic shock syndrome resulting from the
infection were compensable.
Affirmed.
Substantial evidence supports the compensation judge’s determination that the employee’s
permanency was ascertainable and her finding regarding the extent of permanent partial disability at
the time of the employee’s death.
Affirmed.
Causation
Substantial evidence, including expert opinion, adequately supported the compensation judge’s
determination that the employee’s work-related neck injury substantially contributed to the
employee’s subsequent neck condition, need for surgery and resulting disability.
Affirmed as modified.
Where the employee had worked for more than 12 years following his work injury with essentially
the same permanent restrictions, where the employee’s own QRC clearly suggested that the
employee’s job search during the period at issue had been insufficiently diligent and expressly
agreed that her labor market survey was very cursory, where there was no medical evidence that the
employee could not work full time, where there was expert vocational opinion supportive of the
conclusion that “more than sporadic employment resulting in an insubstantial income” was available
to someone of the employee’s physical condition, age, training and experience, and where the
employee’s own attorney conceded that the job that the employee quit when he was awarded Social
Security benefits could perhaps have been modified to better comport with the employee’s
restrictions, analysis of the case pursuant to the standard articulated in Schulte v. C.H. Peterson
Construction, 278 Minn. 79, 153 N.W.2d 130, 24 W.C.D. 290 (1967), resulted in a conclusion that
the compensation judge’s award of permanent total disability benefits was clearly erroneous and
unsupported by substantial evidence.
Reversed.
D-7 • COMPACT • August 2006 *This case is on appeal to the Minnesota Supreme Court.
Summaries of Decisions
Substantial evidence supports the compensation judge’s finding that chiropractic treatment from July
10, 2004, through Aug. 3, 2005, was not reasonable or necessary for the cure and relief of the
employee’s March 8, 2004, work injury.
Affirmed.
Causation
Substantial evidence, including the employee’s testimony and the medical opinions of her treating
doctors, support the compensation judge’s finding that the employee’s June 16, 1999, work injury
was a substantial contributing cause of her carpal tunnel syndrome.
Substantial evidence, including the opinion of the employee’s treating orthopedic surgeon, supports
the compensation judge’s finding that proposed carpal tunnel release surgery is reasonable and
necessary.
The compensation judge did not abuse her discretion by denying a continuance for the purpose of
joining an additional insurer where the employer and insurer may assert a contribution claim at a
later date and were not prejudiced by the judge’s ruling.
Affirmed.
Where the employee’s psychological diagnoses include the existence of a general medical condition,
that both the employee’s physician and the independent medical examiner agree is the employee’s
work-related right hand and arm condition with ongoing pain, the compensation judge erred in
denying payment of the employee’s claimed medical expenses based on a finding that the employee
did not sustain a consequential psychological condition, and the judge’s denial of the claimed
medical expenses is vacated and the matter remanded for further findings.
Substantial evidence supports the compensation judge’s determination that the employee failed to
conduct a diligent job search prior to July 23, 2004, and the judge’s denial of temporary total
D-8 • COMPACT • August 2006
Summaries of Decisions
disability benefits up to that date. Based on the testimony of the employee and the records and
testimony of the employee’s QRC, there is substantial evidence to support the compensation judge’s
finding of a reasonably diligent job search and the award of wage-loss benefits from and after
July 23, 2004.
Substantial evidence, including treatment records and a report from the employee’s treating
physician, supports the compensation judge’s finding that the employee has not reached maximum
medical improvement.
The medical experts for both parties had adequate foundation to provide an expert opinion. While it
can be argued that there are inaccuracies and inconsistencies with respect to the facts relied upon by
the medical experts on both sides, and that the experts for both sides lacked complete knowledge
about every aspect of the employee’s medical history, treatment and work activities, such concerns
go to the persuasiveness or weight to be afforded the opinions offered, but are insufficient to
establish lack of foundation.
The compensation judge did not err in applying the standard of proof for a Gillette injury under
Steffen v. Target Stores, 517 N.W.2d 579, 50 W.C.D. 464 (Minn. 1994) by considering the
employee’s treating physicians’ failure to identify the specific work activities they believed caused
the employee’s claimed cervical injury in weighing the medical expert opinions before her.
Causation
Substantial evidence supports the compensation judge’s findings that the employee failed to prove a
work-related neck and upper extremity injury as a result of her admitted carpal tunnel injury or her
work activities, and that the employee failed to prove causally-related reflex sympathetic dystrophy
(RSD).
Affirmed.
Causation
Substantial evidence, including expert medical opinion, supports the compensation judge’s finding that
the employee did not sustain a physical injury as a result of the Dec. 11, 2004, incident, where a vehicle
crashed into the employer’s store but the employee was not struck by the vehicle, debris or glass.
D-9 • COMPACT • August 2006
Summaries of Decisions
Substantial evidence supports the compensation judge’s finding that the employee’s psychological
injury was not compensable under the Minnesota Workers’ Compensation Act under Lockwood v.
Indep. Sch. Dist. No. 877, 312 N.W.2d 924, 34 W.C.D. 305 (Minn. 1981), in which the Supreme
Court barred claims where mental stress has produced mental injury.
Affirmed.
The voluntary payment of benefits by the self-insured employer to the injured employee does not bar
the employer from later changing its position and asserting defenses to continuing liability.
Causation
Substantial evidence, including the opinion of the independent medical examiner, supports the
compensation judge’s determination that the employee failed to establish that his current disability is
causally related to his July 30, 1998, personal injury.
Affirmed.
Substantial evidence, including expert opinion, supported the compensation judge’s denial of the
employee’s permanent total disability claim.
Substantial evidence, including expert opinion, supported the compensation judge’s conclusion that
the employee’s psychological condition did not substantially contribute to the employee’s disability.
Where a work-related condition is not a substantial contributing factor in the employee’s disability
and need for restrictions, and produces no permanent partial disability, attainment of MMI from that
condition has no relevance in determining whether an employee is entitled to economic recovery
compensation or impairment compensation for another work-related condition.
Affirmed.
The compensation judge properly concluded that the employee’s former attorney was entitled to a
$13,000 contingent fee, in view of the attorney’s experience, the complexity of the issues, the time
and expense necessary to prepare the case, and the result obtained.
Affirmed.
Rehabilitation – Retraining
Where the employee initially returned to work with the employer and later was precluded from
performing positions available with the employer due to her physical work restrictions, where the
employee had conducted an adequate job search with no success in obtaining replacement
employment, and where the record contains a labor market survey, vocational reports and testimony
that reflect that a job in the field of social work eventually could provide the employee with an
economic status as close as possible to her pre-injury status, substantial evidence supports the
compensation judge’s findings that the Poole factors had been met and the related award of a
retraining program.
Affirmed.
Where the employee presented no evidence as to the connection between her work activity and the
personal injury, the employee failed to establish that her injury arose out of her employment.
Reversed.
Where it was not unreasonable for the judge to sustain a hearsay objection on grounds that better
evidence in the form of in-person testimony was scheduled, and where the Minnesota Statutes
§268.105 express prohibition of use of unemployment compensation testimony in non-
unemployment compensation cases was more specific than the Minnesota Statutes §176.411
provision that workers’ compensation judges are not bound by statutory “rules of evidence” and
“rules of pleading or procedure,” the compensation judge did not err in denying admission of two
unemployment compensation decisions together with statements and materials related to those
litigations.
Where the judge’s decision evidently credited both the employee’s testimony, that he understood
himself to have been fired and would have returned to his job had the employer’s operations manager
called him to return the next day, and the employee’s supervisor’s testimony, that the employee was
expressly not terminated for his OSHA safety violation on the day he was sent home from work, but
only later for a history of lesser offenses, the compensation judge’s conclusion that the employee
neither voluntarily quit his job nor was terminated for misconduct was not clearly erroneous and
unsupported by substantial evidence, and the judge’s award of temporary total disability benefits was
therefore not improper under the provision in Minnesota Statutes §176.101, subd. 1.(e)(1) (2002),
that benefits may not be recommenced after a termination for misconduct.
The choice between calculating temporary partial disability benefits on a week-by-week basis and
calculating those benefits on an averaging basis is not a legal issue but a fact issue for the
compensation judge, and, where the particular mode of calculation was not clearly at issue before the
judge and there was a relatively minimal disparity between the two alternative results and the judge’s
choice was not unreasonable, the judge’s decision to calculate benefits on a week-by-week basis was
not clearly erroneous and unsupported by substantial evidence, notwithstanding the judge’s failure to
explain the rationale for his choice.
Causation – Surgery
Maximum Medical Improvement
Where evidence supporting the judge’s decision included recent diagnostic opinion, evidence of
continuity of the employee’s thumb pain since the date of his work injury, the absence of thumb
problems prior to that work injury, current medical recommendations of surgery, a QRC’s supportive
testimony, and the employee’s own testimony of continuing pain and hope in the proposed surgical
option, the compensation judge’s conclusion that the employee’s work injury was a substantial
contributing factor in his need for the proposed fusion and tendon realignment surgery was not
clearly erroneous and unsupported by substantial evidence, notwithstanding an earlier medical
opinion by the employee’s own doctor that the employee had already reached MMI, and
notwithstanding evidence of a re-injury of the employee’s thumb at his post-injury job.
Affirmed.
Substantial evidence, including the testimony of the employee and the records and opinions of her
treating doctors, supports the compensation judge’s determination that the employee sustained a
Gillette injury to her neck, shoulders and upper back as a result of her job duties as an American
Sign Language (ASL) interpreter, even though the employee continued to work without restrictions.
D-12 • COMPACT • August 2006
Summaries of Decisions
Permanent partial disability benefits are intended to compensate for permanent loss or impairment of
bodily function and are in no way dependent upon work restrictions or inability to work. Where there
was substantial evidence to support the conclusion that the employee met the criteria in the
permanent partial disability schedules for the assigned permanency ratings, the compensation judge
did not err in awarding benefits based on those ratings.
The compensation judge did not err in denying the employer’s request for examination of the
employee by a neutral physician, pursuant to Minnesota Statutes §176.155, subd. 2 (2005), given the
issues in dispute in this case.
Affirmed.
The employer and insurer failed to rebut the presumption of earning capacity based on actual wages
where the employee’s post-injury job with the employer was terminated for reasons not related to the
work injury and was no longer available to him, the employee had permanent work restrictions, and
the employer and insurer conceded the employee made a diligent job search post-termination
resulting in a suitable job at a wage loss. An employee is not required to relocate outside his home
community, and the compensation judge did not err in concluding the employee reasonably declined
the employer’s offer of a similar job in Ohio.
Affirmed.
The compensation judge properly determined that the employee had failed to give the workers’
compensation insurer notice of settlement negotiations in the employee’s civil action against the
third-party tortfeasor, that the presumption of prejudice had not been rebutted, and that, pursuant to
Womack v. Fikes of Minn., 61 W.C.D. 574 (W.C.C.A. 2001), the entire net proceeds of the third-
party settlement were available for purposes of a credit against workers’ compensation liability,
subject to the insurer’s ongoing responsibility for the costs of collection.
Affirmed as modified.
The compensation judge properly concluded that the employee’s treatment for chronic pain and
depression was governed by the treatment parameters covering “chronic management,” where the
treatment at issue was rendered after the employee had received all appropriate nonsurgical and
surgical care.
Affirmed.
Minnesota
Supreme Court
April through June 2006
Case summaries published are
those prepared by the WCCA
Decision of the Workers’ Compensation Court of Appeals filed December 6, 2005, affirmed without
opinion.
• Carrie L. Busch v. Wal Mart, and Claims Management, Inc., and Mayo Foundation, Mankato Clinic,
Ltd., Mankato Chiropractic Center, Mankato Anesthesia Associates, Ltd., Wal Mart Claims
Administration, and Orthopaedic & Fracture Clinic, P.A., Intervenors, A06-161, April 28, 2006
Decision of the Workers’ Compensation Court of Appeals filed December 22, 2005, affirmed without
opinion.
Decision of the Workers’ Compensation Court of Appeals filed December 22, 2005, affirmed without
opinion.
• Alvin V. Aho v. Duluth Transit Authority, and State Fund Mutual Insurance Company, A06-490,
May 24, 2006
Decision of the Workers’ Compensation Court of Appeals filed March 1, 2006, affirmed without
opinion.