Eclipse Collieries, Inc. v. Joey Tackett

IMPORTANT NOTICE

NOT TO BE PUBLISHED OPINION

THIS OPINION IS DESIGNATED “NOT TO BE PUBLISHED.”

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PROMULGATED BY THE SUPREME COURT, CR 76.28(4)(C),

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RENDERED: FEBRUARY 24, 2022 NOT TO BE PUBLISHED

Supreme Court of Kentucky

2021-SC-0016-WC

ECLIPSE COLLIERIES, INC. APPELLANT

ON APPEAL FROM COURT OF APPEALS

V. NO. 2020-CA-0716

WORKERS’ COMPENSATION BOARD

NOS. WC-17-72455 & WC-17-79404

JOEY TACKETT; HONORABLE GRANT APPELLEES ROARK, ADMINISTRATIVE LAW JUDGE;

AND KENTUCKY WORKERS’

COMPENSATION BOARD

MEMORANDUM OPINION OF THE COURT

REVERSING AND REMANDING

The sole issue on appeal concerns the retroactivity of amendments to KRS1 342.040(1) regarding a change in interest rate on past-due benefits from 12% to 6% for workers’ compensation orders or settlements occurring after the effective date of the amendment to the Act, which was June 29, 2017. In this case, the Administrative Law Judge (ALJ) entered an order on January 13, 2020 awarding claimant Joey Tackett partial disability benefits for his May 23, 2017 injury, with interest at 12% on all past-due amounts up to June 28, 2017 and at 6% on all past-due amounts from June 29, 2017 to the present. The employer, Eclipse Collieries, Inc., petitioned the ALJ to correct its order to reflect that per KRS 342.040(1), past-due interest prior to June 28, 2017 shall be paid at 6%. The ALJ denied its petition. Eclipse Collieries appealed to the Board, which affirmed the ALJ, as well as to the Court of Appeals, which also affirmed. This appeal followed.

Since the filing of this appeal, this Court has resolved the issue at hand in Martin v. Warrior Coal, LLC, wherein we held that KRS 342.040(1)’s reduction in interest rate on past-due income benefits applied retroactively and that all income benefits due but unpaid prior to the effective date of the amendment were subject to the 6% interest rate. 617 S.W.3d 391 (Ky. 2021). The parties at bar agree that Warrior Coal is controlling and that the interest rate due Joey Tackett on his past-due benefits is 6%.

The function of this Court “is to correct the Board only where the Court perceives the Board has overlooked or misconstrued controlling statutes or precedent, or committed an error in assessing the evidence so flagrant as to cause gross injustice.” W. Baptist Hosp. v. Kelly, 827 S.W.2d 685, 687–88 (Ky. 1992). “Our standard of review in workers’ compensation claims differs depending on whether we are reviewing questions of law or questions of fact.” Miller v. Tema Isenmann, Inc., 542 S.W.3d 265, 270 (Ky. 2018). With respect to questions of law, an appellate court reviews de novo a decision of the Board or ALJ regarding proper interpretation of the law or its application to the facts. Id. (citation omitted).

Here, the Court of Appeals erred as a matter of law in concluding that an award of 12% interest was due on all past-due benefits from the date of injury through June 28, 2017 and 6% on benefits thereafter. Accordingly, we reverse and remand this case with instructions for the ALJ to enter an order in accordance with this Opinion.

Minton, C.J.; Conley, Hughes, Keller, Nickell and VanMeter, JJ., sitting. All concur. Lambert, J., not sitting.

COUNSEL FOR APPELLANT:

Sarah May

Jones & Jones, PLLC

COUNSEL FOR APPELLEE,

JOEY TACKETT:

McKinnley Morgan

Morgan, Collins, Yeast & Salyer

ADMINISTRATIVE LAW JUDGE:

Hon. Grant S. Roark

WORKERS’ COMPENSATION BOARD:

Michael Wayne Alvey, Chairman