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Sharp v. Montana Municipal Insurance Authority3/17/2000
DECISION AND JUDGMENT
The sole issue as presented by the parties in this case is whether a lump-sum payment of an impairment award under the 1995 version of the Workers' Compensation Act may be discounted to present value. The matter is one of statutory interpretation and is submitted on briefs.
Procedural History
This is the second case brought by claimant, Gerald Sharp. The first case resulted in a judgment finding him permanently totally disabled but authorizing the insurer to credit previously paid permanent partial disability benefits against its liability for permanent total disability benefits. Sharp v. Montana Municipal Ins. Authority, 1999 MTWCC 32. Subsequent to the judgment the insurer paid benefits as ordered, taking its credit for the previously paid partial disability benefits. However, it has since agreed to pay a "15 percent impairment award in a lump sum, subject to a discount to present value." (RESPONDENT'S BRIEF IN SUPPORT OF PRESENT VALUE REDUCTION at 2.) Claimant wants the full 15 percent, undiscounted.
Discussion
The claimant was injured on May 22, 1997, hence his entitlement to benefits is governed by the 1995 version of the Workers' Compensation Act. Buckman v. Montana Deaconess Hospital, 224 Mont. 318, 321, 730 P.2d 380, 382 (1986).
At issue is the application of section 39-71-741, MCA (1995), which governs compromise settlements and lump-sum payments. Subsection (4) provides:
(4) Any lump-sum conversion of benefits under this section must be converted to present value using the rate prescribed under subsection (5)(b).
The rate specified in subsection (5)(b) is "based on the average rate for United States 10-year treasury bills in the previous calendar year." ยง 39-71-741(5)(b), MCA (1995).
The insurer argues that lump summing of the impairment award is pursuant to sub-section (2), which governs permanent partial disability benefits. The subsection provides in relevant part:
(2) (a) Permanent partial disability benefits may be converted in whole or in part to a lump-sum payment if:
(i) an insurer has accepted initial liability for an injury; and (ii) the claimant and the insurer agree to a lump-sum conversion.
Claimant disagrees, urging that the impairment award is not a permanent partial disability benefit and is in a benefits class of its own.
Permanent partial disability is defined in section 39-71-116(22), MCA (1995), as follows:
(22) "Permanent partial disability" means a physical condition in which a worker, after reaching maximum medical healing:
(a) has a permanent impairment established by objective medical findings;
(b) is able to return to work in some capacity but the permanent impairment impairs the worker's ability to work; and
(c) has an actual wage loss as a result of the injury. [Emphasis added.]
Decision and Judgment
Permanent partial disability benefits are governed by section 39-71-703, MCA (1995), which provides the following eligibility standard:
(1) If an injured worker suffers a permanent partial disability and is no longer entitled to temporary total or permanent total disability benefits, the worker is entitled to a permanent partial disability award if that worker:
(a) has an actual wage loss as a result of the injury; and (b) has a permanent impairment rating that: (i) is established by objective medical findings; and (ii) is more than zero . . . . [Emphasis added.]
The language of these sections is plain and clear, therefore they require
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