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Ireland v. State3/2/2000
Appeal from the District Court of Hot Springs County Honorable Gary P. Hartman, Judge
Francis Ireland appeals from the district cour's order affirming the hearing examine's denial of worke's compensation loss of earnings benefits. In 1997, after Irelan's third surgery for his work-related shoulder injury, Irelan's surgeon filed a report with the Wyoming Worker' Compensation Division (Division). The report requested a physical capacity evaluation to determine his physical ability to perform different types of jobs and assist in retraining. The Division apparently treated that letter as an application for loss of earnings benefits pursuant to Wyo. Stat. Ann. ' 27-12-403 (1983).
The Divisio's Final Determination Letter stated that Ireland was entitled to loss of earnings benefits and offered $855.37 for his loss of earnings. Ireland declined the offer because it did not explain what the award was for, the period of time it covered, and did not reflect his lost wages due to the injury. After a contested case hearing, the hearing examiner issued an order denying any benefits and finding that Ireland did not prove he had any loss of earnings related to his work injury.
Ireland contends the hearing examiner exceeded his authority when he considered an issue not before him and entered an order pertaining to that issue. In Irelan's view, the Division had already determined Ireland was entitled to loss of earnings benefits and the only issue before the hearing examiner was the amount of loss due to his injury. We agree that the Office of Administrative Hearings (OAH) may rule only on issues before it. Therefore, we reverse and remand for a hearing on the sole issue in this case, the amount of the loss of earnings incurred by Ireland because of his work related injury.
ISSUES
Ireland presents these issues:
1. Did the hearing examiner err as a matter of law in denying loss of earnings benefits to Appellant?
2. The Wyoming Worker' Compensation Division conceded at hearing that Mr. Ireland had a loss of earnings as a result of his work related injury. The evidence and arguments presented at hearing only addressed the amount of the loss of earnings award. Does the hearing examiner have the authority to deny all loss of earnings benefits when the only issue is how much the award should be?
3. The findings in the hearing examine's order contain several critical errors, which are contrary to any facts presented at trial, and which the hearing examiner relied on in making his determination. Is it arbitrary and an abuse of discretion to misstate critical facts in the order and rely on those misstated facts in denying benefits?
4. Did the hearing examiner abuse his discretion in failing to address the criteria for establishing a loss of earnings award as set out in the White case and did such failure result in an arbitrary decision?
The Division submits these issues:
1. Was the order denying loss of earnings benefits supported by substantial evidence?
2. Was the order denying loss of earnings benefits arbitrary, capricious or an abuse of discretion?
3. Was the order denying loss of earnings benefits in accordance with Wyoming law?
FACTS
Ireland suffered a work-related injury to his left shoulder on February 23, 1987. His injury was surgically treated in 1987 and 1992. On May 16, 1996, he underwent a third surgery followed by a vigorous physical therapy program. Irelan's surgeon, Dr. Kenneth Butters, followed his progress closely and determined there was some permanent medical impairment relative to loss of motion and strength.
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