2005

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“In Nabors WCAB Confirms Calculations of PD After Apportionment”
by Scott M. Tilley, Esq.

On June 9, 2005, the Workers’ Compensation Appeals Board (WCAB) in Nabors v. Piedmont Lumber & Mill Co., an en banc decision, confirmed the holding in Fuentes v. WCAB (1976) 41 CCC 42, and provided some clarification on how to determine an applicant’s current permanent disability when there is apportionment to prior disability per Labor Code § 4663/4664.

Mr. Nabors suffered injury to his back and lower extremities as a result of a cumulative trauma ending in August 2002 while employed with Piedmont Lumber & Mill Company. In the case-in-chief, Mr. Nabors was found by the WCJ to have 31% permanent disability after consideration of apportionment. The apportionment was based on a 1996 Stipulated Award with the same employer wherein there was a stipulation of 49% permanent disability for the low back and lower extremities.

The Applicant filed a Petition for Reconsideration objecting to the method of calculation used in determining the remaining permanent disability after apportionment. The WCJ and the DEU, following Fuentes, had simply subtracted the prior Award percentage (49%) from the present percentage (80%) and arrived at 31% permanent disability after apportionment. The 31% rating was equivalent to $22,610.00.

The Applicant contended that it should be the dollar amount that is subtracted. The permanent disability from the cumulative trauma equaled 80% for an equivalent of $118,795.00. The permanent disability from the prior Award of 49% was equivalent to $42,476.00. The applicant argued that he was entitled to the monetary difference which was $72, 319.00.

The WCAB, confirming that Fuentes is still controlling in a post SB-899 world, indicated that the WCJ had calculated the permanent disability correctly. When determining permanent disability after apportionment per L.C. § 4663/4664, we are to subtract the percentage of disability being apportioned from the current percentage of permanent disability.

As we can see, the difference in the two approaches is dramatic, especially when dealing with high percentages of permanent disability. In a time when apportionment seems to be at issue with almost every case, practitioners need to confirm that the proper calculations are being performed.

 

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