OSCN Found Document:Lee Way Motor Freight, Inc. v. Wilson

Lee Way Motor Freight, Inc. v. Wilson
1980 OK 48

609 P.2d 777
Decided: 04/01/1980
Supreme Court of Oklahoma


Cite as: 1980 OK 48, 609 P.2d 777

LEE WAY MOTOR FREIGHT, INC., PETITIONER,
v.
FLOYD C. WILSON, RESPONDENT.

¶0 Original proceeding to review an order of the Workers' Compensation Court commuting to a lump-sum payment the balance of an award previously made. James M. Fullerton, Trial Judge.

ORDER SUSTAINED.

Ben A. Goff, Oklahoma City, for petitioner.

C.W. Schwoerke, Oklahoma City, for respondent.

IRWIN, Vice Chief Justice.

¶1 In July, 1977, claimant Wilson sustained a compensable injury. In September, 1978, he was awarded seventy percent (70%) permanent partial disability to the body as a [609 P.2d 778] whole. In January, 1979, upon claimants application, and testimony demonstrating that he was unable to exist on the weekly benefit and had incurred considerable indebtedness while unable to work, the trial court commuted the balance of his award to a lump-sum and ordered the payment of approximately $10,000.00.

¶2 Petitioner first contends that there was insufficient evidence upon which the trial court could base its determination to commute the award to a lump sum. We have held that the State Industrial Court (Worker's Compensation Court) has wide discretion in commuting an award to a lump sum, and where it does not affirmatively appear that the court abused its discretion and such commutation tends to promote substantial justice to all parties involved, such commutation will not be disturbed by this court on review. Kerr's Inc. v. Smith, Okl., 359 P.2d 330 (1961). No such abuse appears in this case, and the order will not be disturbed for lack of evidence.

¶3 Petitioner next contends that the order is in error because it is in excess of the amount that is authorized under 85 O.S. 1977 Supp., § 41 . The 1977 amendatory language, which became effective on July 1, 1978, provides in part:

"Whenever an injured person receives an award for permanent partial disability, the injured employee, for good cause shown, may have the award commuted to a lump-sum payment by permission of the Court. The lump-sum payment shall not exceed Four Thousand Dollars ($4,000.00) or twenty-five percent (25%) of the total award, whichever is the larger sum." (Emphasis added)

¶4 Prior to the 1977 amendment there was no limitation on the amount of an award which could be commuted. As noted, the 1977 limitation did not become effective until July 1, 1978. Wilson's injury occurred prior to that date, and his compensation award was based upon the law in existence at that time. However, petitioner insists that the language of the 1977 amendment is applicable, while respondent contends that his rights are governed by the prior law. If the 1977 amendment is applicable, the commutation order must be reversed. If it is not, the order will be sustained.

¶5 Petitioner's rationale for applying the limitation which became effective on July 1, 1978 to injuries prior to that date is that the amendment is "procedural" rather than "substantive" in nature. It is argued that it affects only the method of payment and must be given retroactive application. Petitioner supports this argument by reference to Special Indemnity Fund v. Dailey, Okl., 272 P.2d 395 (1954) where this court held that 85 O.S. 1953 Supp., § 172 , which authorized lump-sum payments from the Special Indemnity Fund, should be applied retroactively. In that case the Special Indemnity Fund challenged the retroactive operation of the statute, and the reasons for the holding appear to be that to give the Act only prospective operation would create two classes of claimants without a rational basis, and such provision authorizing the granting of lump-sums goes only to the method of payment. The Court said it was the intention of the legislature that the amendments should have a retrospective as well as a prospective application. We note the amendments in Dailey granted the injured employee the right to receive a lumpsum commutation from the Special Indemnity Fund, rather than imposing limitations on the amount that could be commuted.

¶6 The 1953 amendment involved payment from the Special Indemnity Fund, and in Special Indemnity Fund v. Reynolds, 199 Okl. 570, 188 P.2d 841 (1948), we noted that the public interest and welfare was involved in the application of the Workmen's Compensation Act resulting in an award against the Special Indemnity Fund. At the time of the 1953 amendment authorizing the lump-sum payment from the Special Indemnity Fund, lump-sum payments had already been authorized against employers where a contractual relationship existed between the employers and the employee. See Smith and Son Drilling Co. v. Cox, 162 Okl. 301, 21 P.2d 496 (1933). The 1953 amendment considered in Dailey placed the right to receive a lump-sum payment from [609 P.2d 779] the Special Indemnity Fund on the same basis that a claimant would have to receive a lump-sum payment from his employer.

¶7 In our opinion the 1977 amendment under consideration could not affect claimant's rights to have the award commuted. The right to compensation benefits and the obligation to pay such benefits are vested and become fixed by law at the time of the injury. Apple v. State Insurance Fund, Okl., 540 P.2d 545 (1975); and Washabaugh v. Bartlett Collins Glass Co., 177 Okl. 159, 57 P.2d 1162 (1936). A compensation claim is controlled by the laws in existence at the time of the injury and not by laws enacted thereafter. Caswell v. Bird, 160 Okl. 224, 16 P.2d 859 (1933). A claimant's right to compensation is determinable by the laws in force when the injury was sustained, notwithstanding a subsequent amendment to the law. United Iron Works v. Smethers, 159 Okl. 105, 14 P.2d 380 (1932).

¶8 In Magnolia Petroleum v. Watkins, 177 Okl. 30, 57 P.2d 622 (1936) this court laid down the rule relating to changes in worker's compensation benefits:

"The general rule is that the right of an employee to compensation arises from the contractual relation existing between him and his employer on the date of the injury, and the statute then in force forms a part of the contract of employment and determines the substantive rights and obligations of the parties, and that no subsequent amendment which has the effect of increasing or diminishing the amount of compensation recoverable can operate retrospectively to affect in any way the rights and obligations prior thereto fixed."

¶9 Order sustained.

¶10 All the Justices concur.

 

Citationizer© Summary of Documents Citing This Document
Cite Name Level
Oklahoma Court of Civil Appeals Cases
 CiteNameLevel
 1987 OK CIV APP 18, 737 P.2d 955, 58 OBJ 668, Baker v. C-E NatcoCited
 1987 OK CIV APP 19, 739 P.2d 1025, 58 OBJ 905, Ashlock v. Liberty Glass Co.Cited
 1993 OK CIV APP 103, 855 P.2d 147, 64 OBJ 2102, Ailey v. D & B Const. Co.Cited
 2000 OK CIV APP 81, 8 P.3d 197, 71 OBJ 1828, VALENTI v. SPEC. INDEMNITY FUNDDiscussed
Oklahoma Supreme Court Cases
 CiteNameLevel
 1988 OK 29, 752 P.2d 812, 59 OBJ 861, Knott v. Halliburton ServicesCited
 1998 OK 11, 955 P.2d 223, 69 OBJ 461, WAL-MART STORES, INC., v. REINHOLTZDiscussed
 1990 OK 131, 803 P.2d 697, 61 OBJ 3354, York v. Burgess-Norton Mfg. Co.Cited
 1991 OK 38, 809 P.2d 1305, 62 OBJ 1312, Branstetter v. TRW/Reda PumpCited
 1995 OK 43, 895 P.2d 292, 66 OBJ 1593, Special Indemnity Fund v. WeberCited
 2005 OK 78, 127 P.3d 584, KING MANUFACTURING v. MEADOWSDiscussed
 2006 OK 78, 145 P.3d 1097, DEAN v. MULTIPLE INJURY TRUST FUNDDiscussed
 2012 OK 94, 290 P.3d 9, JORDAN v. WESTERN FARMERS ELECTRIC COOPERATIVEDiscussed
 2015 OK 8, 345 P.3d 377, SHEPARD v. OKLAHOMA DEPARTMENT OF CORRECTIONSDiscussed
 2016 OK 46, 371 P.3d 488, LOYD v. MICHELIN NORTH AMERICA, INC.Discussed
 1999 OK 15, 995 P.2d 1071, 70 OBJ 774, Beets v. Metropolitan Life Insurance Co.Discussed
Citationizer: Table of Authority
Cite Name Level
Oklahoma Supreme Court Cases
 CiteNameLevel
 1936 OK 294, 57 P.2d 1162, 177 Okla. 159, WASHABAUGH v. BARTLETT COLLINS GLASS CO.Cited
 1936 OK 372, 57 P.2d 622, 177 Okla. 30, MAGNOLIA PETROLEUM CO. v. WATKINSCited
 1954 OK 167, 272 P.2d 395, SPECIAL INDEMNITY FUND v. DAILEYCited
 1961 OK 27, 359 P.2d 330, KERR'S, INC. v. SMITHCited
 1932 OK 633, 14 P.2d 380, 159 Okla. 105, UNITED IRON WORKS et al. v. SMETHERS et al.Cited
 1932 OK 795, 16 P.2d 859, 160 Okla. 224, CASWELL et al. v. BIRD et al.Cited
 1933 OK 22, 21 P.2d 496, 162 Okla. 301, M. T. SMITH & SON DRILLING CO. et al. v. COX et al.Cited
 1975 OK 88, 540 P.2d 545, APPLE v. STATE INSURANCE FUNDCited
 1948 OK 14, 188 P.2d 841, 199 Okla. 570, SPECIAL INDEM. FUND v. REYNOLDSCited
Title 85. Workers' Compensation
 CiteNameLevel
 85 O.S. 41, RepealedCited
 85 O.S. 172, RepealedCited