v.
Illinois Workers' Compensation Comm'n
2016 IL App (1st) 150122WC
Opinion filed: July 8, 2016 ______________________________________________________________________________
IN THE APPELLATE COURT OF ILLINOIS
FIRST DISTRICT
WORKERS' COMPENSATION COMMISSION DIVISION ______________________________________________________________________________
JOHN CHLADA, ) Appeal from the Circuit Court ) of Cook County, Illinois ) Appellant, ) ) v. ) Appeal No. 1-15-0122WC ) Circuit No. 12-L-51545 ) THE ILLINOIS WORKERS' ) Honorable COMPENSATION COMMISSION et al. ) Alexander P. White, (Burke Beverage, Inc., Appellees). ) Judge, Presiding. ______________________________________________________________________________
PRESIDING JUSTICE HOLDRIDGE delivered the judgment of the court, with opinion. Justices Hoffman, Hudson, Harris, and Stewart concurred in the judgment and opinion. ______________________________________________________________________________
OPINION
¶1 The claimant, John Chlada, filed an application for adjustment of claim under the Workers' Compensation Act (Act) (820 ILCS 305/1 et seq. (West 1998)), seeking benefits for an
injury to his lower back that he allegedly sustained in a work-related accident on July 15, 1999, while he was employed by respondent Burke Beverage, Inc. (employer). After conducting a
hearing, an arbitrator found that the claimant had proven a work injury arising out of and in the course of his employment and that his current lower back condition was causally related to the 1-15-0122WC work accident. The arbitrator ordered the employer to pay the claimant temporary total disability
(TTD) benefits, temporary partial disability (TPD) and maintenance benefits.
¶2 The employer appealed the arbitrator's decision to the Illinois Workers' Compensation
Commission (Commission). The Commission modified the arbitrator's decision by vacating the arbitrator's award of TPD/maintenance benefits and by awarding the claimant wage differential
benefits pursuant to section 8(d)(1) of the Act (820 ILCS 305/8(d)(1) (West 1998)) at a rate of $430 per week for 135 weeks, from June 12, 2000, through January 12, 2003. During that time period, the claimant was unable to return to his usual occupation as a beer delivery truck driver and had been working in the employer's warehouse at a reduced hourly rate. The Commission
found that the claimant's entitlement to wage differential benefits ended on January 12, 2003, when he began losing time from work on account of a separate work-related injury to his cervical spine. [1] The Commission affirmed the arbitrator's decision in all other respects.
¶3 The claimant sought judicial review of the Commission's decision in the circuit court of Cook County, arguing that his entitlement to wage differential benefits did not end on January
12, 2003, and that the Commission had miscalculated the rate for those benefits. The circuit court confirmed the Commission's determination that wage differential benefits should cease on
January 12, 2003. However, the circuit court remanded the matter to the Commission and directed the Commission to recalculate the claimant's average weekly wage and wage differential benefits.
150123
1-15-0122WC
¶4 On remand, the Commission corrected the wage differential benefit rate to $485.65 per
week and awarded the claimant an additional 66 2/7 weeks of wage differential benefits for the time period of January 12, 2003, to April 22, 2004.
¶5 The employer filed a "Motion to Correct Clerical Error" with the Commission, arguing
that the Commission had misstated and misapplied the circuit court's remand order. The Commission denied the employer's motion.
¶6 The claimant sought judicial review of the Commission's remand order in the circuit court of Cook County, arguing that his wage differential benefits should continue indefinitely and should not cease on April 22, 2004, because his disability from the July 15, 1999, work injury had not ended. Neither party contested the Commission's finding that the claimant was entitled to wage differential benefits at the rate of $485.65 per week. The circuit court found that
the Commission's decision to extend the claimant's wage differential award through April 22, 2004, was against the manifest weight of the evidence because the claimant's entitlement to wage differential benefits terminated on January 13, 2003, "at which time PTD benefits began."
Accordingly, the circuit court set aside the Commission's remand order. The circuit court's order also stated, without analysis or explanation, that "the A.W.W. [average weekly wage] pursuant to
Section 8(d)(1) is $455.65."
¶7 This appeal followed.
¶8 FACTS
¶9 At the time of his first injury, the claimant worked for the employer as a beer truck driver
and a beer delivery salesman. His job duties included driving a truck, unloading cases of beer, and sales. On July 15, 1999, the claimant injured his low back while pulling a hand truck loaded with six cases of beer up a stairway.
¶ 10 That same day, the claimant sought treatment with Dr. Mitchell Weiss, a chiropractor.
150124
1-15-0122WC
Dr. Weiss took the claimant off work, performed chiropractic adjustments on the claimant, and diagnosed intercostal neuralgia. 2 Dr. Weiss referred the claimant to Dr. Andrew Zelby, a
neurosurgeon. The claimant treated with Dr. Zelby from October 29, 1999, through May 31, 2000. During that period, Dr. Zelby administered epidural steroid injections and prescribed physical therapy and work hardening. The claimant was kept off work from July 15, 1999, through January 16, 2000.
¶ 11 From January 17, 2000, through March 15, 2000, the claimant worked a light duty job in the employer's warehouse. The position paid less than the claimant's regular position as a beer truck driver. While working in the warehouse, the claimant earned $15.73 per hour (or $629.20 per week for a 40-hour work week). The employer paid the claimant wage differential benefits during this period.
¶ 12 On February 4, 2000, the claimant returned to Dr. Zelby complaining of continuing low back pain and worsening left leg pain. Approximately one month later, Dr. Zelby performed a left sided L5-S1 hemilaminectomy, foraminatomy, and microdiscectomy. The postoperative
diagnosis was a herniated disc at L5-S1. After a course of physical therapy and work hardening, Dr. Zelby released the claimant to light duty work on May 31, 2000, with permanent restrictions of no continuous, repetitive lifting, carrying, bending, and stooping, no repetitive lifting over 35 pounds, and no occasional lifting over 75 pounds.
¶ 13 On June 12, 2000, the claimant returned to work in a light duty position in the employer's warehouse. He worked in that capacity through January 12, 2003. He initially earned $15.73 per
2 "Intercostal neuralgia" is a pain condition involving the intercostal nerves that supply the muscles between the ribs. Patients with this type of neuralgia experience bands of pain around the rib cage. The pain is usually intermittent and spasmodic.
150125
1-15-0122WC hour and worked 40 hours per week. His salary was later raised to $16.23 per hour for a 40-hour work week.
¶ 14 On October 23, 2002, the claimant sustained a neck injury while working in the warehouse. On that date, the claimant pulled up on the spring of a dock plate and notice neck pain radiating down his left arm. The claimant returned to Dr. Zelby, who prescribed medications and four weeks of physical therapy. An MRI of the claimant's cervical spine was performed on January 7, 2013. The MRI revealed a herniated disc at C5-C6 and radiculopathy at
C6. On January 13, 2003, Dr. Zelby took the claimant off work and recommended rest and a series of epidural steroid injections.
¶ 15 On June 17, 2003, Dr. Zelby performed surgery on the claimant's cervical spine, including a discectomy at C5-C6. The postoperative diagnoses were herniated discs and spondylosis at C5-C6 and C6-C7. After surgery, the claimant began a course of physical therapy and work hardening. On November 6, 2003, the claimant underwent a functional capacity examination (FCE) for the cervical region. He was restricted from performing continuous repetitive activities of the upper extremities. Frequent bilateral lifting and carrying at the chest level and above were restricted to 58 pounds, and the claimant was limited to occasional overhead reaching. On January 14, 2004, Dr. Zelby indicated that these restrictions were permanent.
¶ 16 After the claimant received his permanent work restrictions, the employer informed him that he was not wanted back at work. The claimant subsequently conducted a job search during which he contacted more than 1,000 companies. He never received a job, and he has not worked since January 13, 2003.
¶ 17 The claimant filed two separate workers' compensation claims against the employer, one for his July 15, 1999, lower back injury (Case No. 02 WC 58819) and one for his October 23, 150126
1-15-0122WC
2002, cervical injury (Case No. 02 WC 54676). The instant appeal concerns only the former claim (Case No. 02 WC 58819). In that case, the parties stipulated that, during the year prior to
the July 15, 1999, work accident, the claimant's average weekly wage was $1294.20. During the arbitration hearing, the claimant introduced into evidence the collective bargaining agreement
(CBA) that would have covered his employment with the employer from February 1, 2003, through January 13, 2008. At the time of the arbitration hearing, the CBA provided that package driver salesmen earned $0.37 per case. The claimant testified that he sold approximately 4,500 cases per week on average. At the time of the arbitration hearing, the CBA provided that warehouseman were paid $17.49 per hour. The claimant testified that, prior to his cervical injury, he had been working 40 hours per week at the warehouse on average. The employer did not rebut the claimant's testimony on these matters.
¶ 18 The arbitrator found that the claimant had proven that he sustained an accident on July
15, 1999, that arose out of and in the course of his employment and that his current lower back
condition was causally related to that accident. The arbitrator ordered the employer to pay the claimant TTD benefits for a total of 27 weeks, with the final TTD period ending on June 11, 2000. The arbitrator also awarded the claimant "TPD/maintenance" benefits for the period from
June 12, 2000 through October 23, 2002 (the date the claimant sustained his cervical injury), at the rate of $485.65 per week.
¶ 19 The employer appealed the arbitrator's decision to the Commission. The Commission modified the arbitrator's decision by vacating the arbitrator's award of TPD/maintenance benefits and by awarding the claimant wage differential benefits pursuant to section 8(d)(1) of the Act
(820 ILCS 305/8(d)(1) (West 1998)) from June 12, 2000, through January 12, 2003. The Commission found that, as a result of the July 15, 1999, work accident, the claimant was unable to return to his usual occupation as a delivery truck driver. It noted that, although the claimant
150127
1-15-0122WC eventually resumed working for the employer in the warehouse, he did so "at a reduced hourly rate." The Commission calculated the rate of the claimant's wage differential benefits by calculating the difference between the claimant's average weekly wage as a beer truck driver
(which the parties stipulated was $1294.20 per week) and what the claimant testified he was
earning while he worked in the employer's warehouse ($629.20 per week through February 7, 2002, and $649.20 per week thereafter), and then multiplying the resulting figure by two-thirds.
Applying this methodology, the Commission found that the claimant was entitled to a wage differential benefit of $443.33 per week for the time period of June 12, 2000, through February
7, 2002, and $430 per week for the time period of February 8, 2002, through January 12, 2003.
The Commission rejected the claimant's argument that his wage differential should be based
upon the salary he could have earned as a beer truck driver at the time of arbitration (i.e., $1665.00 per week), rather than the average weekly wage he had been earning prior to his back injury. In so ruling, the Commission stated that "the parties stipulated to an average weekly
wage of $1294.20 and that stipulation is binding." In support of its decision to terminate the claimant's wage differential benefits on January 12, 2003, the Commission stated, "Pursuant to § 8(d)(1), the claimant's entitlement to wage
differential continues for the 'duration of the disability'. The Commission finds that the claimant's disability as a result of this injury ended on January 12, 2003, when he began losing time from work on account of his injury on October 23, 2002 (case # 02 WC
54676). Therefore, no further wage differential payments would be due thereafter."
The Commission affirmed and adopted the arbitrator's decision in all other respects.
¶ 20 The claimant sought judicial review of the Commission's decision in the circuit court of 150128
1-15-0122WC
Cook County, arguing that his entitlement to wage differential benefits did not end on January
12, 2003, and that the Commission has miscalculated the rate for those benefits. The circuit court confirmed the Commission's determination that wage differential benefits should cease on
January 12, 2003. The circuit court noted that, in order to qualify for wage differential benefits under section 8(d)(1) of the Act, a claimant must prove: (1) a partial incapacity which prevents
him from pursuing his usual and customary line of employment; and (2) an impairment of earnings. Relying upon our decision in Smith v. Industrial Comm'n, 308 Ill. App. 3d 260 (1999), the circuit court ruled that "[t]he object of section 8(d)(1) is to compensate an injured claimant for his reduced earnings capacity, and if an injury does not reduce his earning capacity, he is not
entitled to compensation" under that section. The court noted that, after January 12, 2003, the claimant was unable to work at all due to his subsequent cervical injury. The court held that, "[a]t that point, the claimant was not suffering an impairment to his earning" because he was unable to show the average amount he was earning or was able to earn in some suitable employment or business after the July 15, 1999, work accident.
¶ 21 However, the circuit court found that the Commission's calculation of the claimant's wage differential benefit rate was contrary to law. Relying upon our decisions in General Electric Co.
v. Industrial Comm'n, 144 Ill. App. 3d 1003, 1014 (1986), and Greaney v. Industrial Comm'n, 358 Ill. App. 3d 1002, 1022-23 (2005), the circuit court noted that section 8(d)(1) requires the Commission to calculate wage differential awards based on the amount that the claimant "would
be able to earn" at the time of the hearing if he were able to fully perform the occupation in which he was engaged at the time of the accident. The court noted that, in this case, the only evidence as to what the claimant could earn as a beer truck driver at the time of the hearing was the claimant's testimony "that he averaged 4500 cases per week at a current union contracted price of 37 cents per case, which equals an average weekly wage of $1,665.00." The court found
150129
1-15-0122WC that the Commission had "erred in its calculation of [the claimant's] wage differential award by basing it on [his] earnings prior to the accident rather than the earnings [he] would have earned in his job as a beer truck driver at the time of the hearing."
¶ 22 Accordingly, the court reversed the Commission's decision in part and remanded the case to the Commission with instructions to: (1) "award [the claimant] wage differential benefits under section 8(d)(1) of the Act beginning on June 12, 2000, and ending on January 12, 2003"; and (2) calculate the claimant's wage differential benefits "in accordance with the court's findings as to the amount [the claimant] would have been able to earn in the full performance of his duties as a beer truck driver at the time of the arbitration hearing and the amount that he is able to earn after his injury and subject to the limitations as the maximum amounts set forth in the Act."
¶ 23 On remand, the Commission noted that the circuit court's order had confirmed the portion of the Commission's prior decision holding that the claimant "was not entitled simultaneously to
a lifetime wage differential and a lifetime permanent and total disability award." However, the Commission stated that the circuit court had reversed the portion of the Commission's prior decision in which the Commission found that the claimant's right to wage differential benefits terminated on January 12, 2003. The Commission stated that "[t]he Circuit Court decision specified that the wage differential award should be set at $485.65 a week and that [the] right to
wage differential should extend past January 12, 2003." Based on this understanding of the circuit court's remand order, the Commission extended the claimant's wage differential award through April 22, 2004, the date that the claimant was found to be permanently and totally disabled from his cervical injury. [3]
150130
1-15-0122WC
¶ 24 The employer subsequently filed a "Motion to Correct Clerical Error" with the Commission, arguing that the Commission had misstated and misapplied the circuit court's remand order. The Commission denied the employer's motion.
¶ 25 The claimant sought judicial review of the Commission's decision on remand in the circuit court of Cook County. The claimant argued that his wage differential benefits should continue indefinitely and should not cease on April 22, 2004, because his disability from the July
15, 1999, work injury had not ended. Neither party contested the Commission's re-calculation of the rate at which the claimant's wage differential benefits should be paid (i.e., $485.65 per week).
The circuit court found that the Commission's decision to extend the claimant's wage differential
award through April 22, 2004, was against the manifest weight of the evidence because the claimant's entitlement to wage differential benefits terminated on January 13, 2003, "at which
time PTD benefits began." Accordingly, the circuit court set aside the Commission's remand order. The circuit court's order also stated, without further discussion or analysis, that "the A.W.W. [average weekly wage] pursuant to section 8(d)(1) is 455.65."
¶ 26 This appeal followed.