Deese v. Southeastern Lawn and Tree Expert Co.
Deese v. Southeastern Lawn and Tree Expert Co.
Opinion of the Court
In this appeal, we are called upon to review the opinion and award of the Industrial Commission for the existence of legal error (see G.S. 97-86) in that agency’s interpretation and application of G.S. 97-38. The statute in question governs the payment and allocation of compensation benefits in cases where the employee has died as the result of a work-related injury. See G.S. 97-29. Put as simply as possible, the sole issue is whether G.S. 97-38 requires a reapportionment of the entire amount of payable death benefits among the remaining dependent children in equal shares as each child reaches the age of eighteen, after the expiration of the initial compensation period of 400 weeks.
This Court has interpreted the statutory provisions of North Carolina’s workers’ compensation law on many occasions. In every instance, we have been wisely guided by several sound rules of statutory construction which bear repeating at the outset here. First, the Workers’ Compensation Act should be liberally construed, whenever appropriate, so that benefits will not be denied upon mere technicalities or strained and narrow interpretations of its provisions. Watkins v. City of Wilmington, 290 N.C. 276, 225 S.E. 2d 577 (1976); Petty v. Transport, Inc., 276 N.C. 417, 173 S.E. 2d 321 (1970). Second, such liberality should not, however, extend beyond the clearly expressed language of those provisions, and our courts may not enlarge the ordinary meaning of the terms used by the legislature or engage in any method of “judicial legislation.” Andrews v. Nu-Woods, Inc., 299 N.C. 723, 726, 264 S.E. 2d 99, 101 (1980) (“|j]udges must interpret and apply statutes as they are written”); Davis v. Granite Corporation, 259 N.C. 672,
In pertinent part, G.S. 97-38 states the following:
If death results proximately from the accident and within two years thereafter, or while total disability still continues and within six years after the accident, the employer shall pay or cause to be paid, subject to the provisions of other sections of this Article, weekly payments of compensation equal to sixty-six and two-thirds percent (66 2/3%) of the average weekly wages of the deceased employee at the time of the accident ... to the person or persons entitled thereto as follows:
(1) Persons wholly dependent for support upon the earnings of the deceased employee at the time of the acci*279 dent shall be entitled to receive the entire compensation payable share and share alike to the exclusion of all other persons. If there be only one person wholly dependent, then that person shall receive the entire compensation payable.
. . . Compensation payments due on account of death shall be paid for a period of 400 weeks from the date of the death of the employee; provided, however, after said 400-week period in case of a widow or widower who is unable to support herself or himself because of physical or mental disability as of the date of death of the employee, compensation payments shall continue during her or his lifetime or until remarriage and compensation payments due a dependent child shall be continued until such child reaches the age of 18.
The thrust of plaintiffs’ claim in this case is that the general provision in G.S. 97-38 for the continuation of “compensation payments” to a disabled spouse or minor child beyond the 400-week period is amplified by the specific provision of subsection (1) for dependents of the deceased employee to receive “the entire compensation payable” (emphasis added), and that, when these provisions are properly read together, it is manifest that the legislature intended for the total compensation award (6673% of the deceased’s average weekly wage) to be paid so long as there are any beneficiaries eligible to take it. According to plaintiffs’ theory of the statute then, when &• member of the post-400 week beneficiary group becomes ineligible to receive further death benefits, his or her share is put back into the compensation “pot,” and the entire award is redistributed equally among the remaining eligible beneficiaries. We disagree.
To us, the plain terms of G.S. 97-38 express a clear legislative intent that the employer and its insurance carrier pay the full amount of the specified compensation for 400 weeks (approximately 7.7 years), or the commuted present value of that sum, if the deceased employee is survived by dependents or next of kin. G.S. 97-38(1) — (3), 97-40. That is the overall, governing aim of the statute, and we are compelled thereby to conclude that, if there is a decrease in the dependent beneficiary pool during the 400 weeks following the employee’s death, there must be a corre
The legislative history of G.S. 97-38 is significant in this respect. Prior to 1975, workers’ compensation death benefits were awarded in an appointed sum for a flat period under the statute. Benefits were not paid to anyone upon any basis beyond the stated term. The General Assembly created an exception to that rule in 1974 by ratifying an amendment to G.S. 97-38 entitled “An Act to Amend the Workmen’s Compensation Act Regarding the Duration of Benefits.” 1973 Sess. Laws, ch. 1308, § 4 (emphasis added). That amendment added language authorizing the continuation of compensation payments beyond 400 weeks to the deceased employee’s spouse or child for so long as he or she continued to be “dependent” in a factual or legal sense.
On the face of it, the 1974 amendment to G.S. 97-38 was enacted as a simple means to accomplish a limited end, i.e., the expansion of coverage for two distinct classes of dependents. See
The 1974 amendment does not plainly say, as it so easily could have with a few more strokes of the pen, that a dependent spouse or child is entitled to receive the entire amount of all compensation due from the employer or carrier on account of the employee’s death. Instead, the amendment only says that the compensation payments due the dependent shall continue to be paid. There is no indication that that which is due a dependent during the period of extended coverage may vary from that which was due during the initial 400 weeks of coverage. In short, the omission of an explicit and clear mandate concerning the entitlement of the designated dependents to receive, and the obligation of the employer or carrier to pay, the full award beyond the initial period, as opposed to the dependents’ previously determined shares thereof, is critical, and we shall not overlook it or attempt to fill its void by means of this judicial opinion. We hold that G.S. 97-38 does not permit a reapportionment of the entire compensation award among eligible dependents after 400 weeks have elapsed.
Our interpretation of the statute as it is written accords completely with its overriding policy of providing death benefits, at a fixed rate for a fixed period, to the individual dependents of an employee who has met with an untimely and unexpected demise. It should also be noted that it was never contemplated that the Workers’ Compensation Act would provide full compensation in the event of injury or death or that it would be the equivalent of general accident, health or life insurance. See Taylor v. Twin City Club, 260 N.C. 435, 132 S.E. 2d 865 (1963); Kellams v. Metal Products, 248 N.C. 199, 102 S.E. 2d 841 (1958). Instead, this legislation
In closing, we mention that we have reviewed cases from other jurisdictions regarding reapportionment of workers’ compensation benefits. See generally 81 Am. Jur. 2d Workmen’s Compensation § 218 (1976 and 1981 Supp.); 99 C.J.S. Workmen’s Compensation § 324(e) (1958 and 1981 Supp.). An in-depth analysis of these authorities, which are based upon unique and materially different statutes, would be fruitless and unavailing to our construction of North Carolina’s own compensation law, and we shall not engage in lengthy citation here. See Shealy v. Associated Transport, 252 N.C. 738, 114 S.E. 2d 702 (1960); Hill v. Cahoon, 252 N.C. 295, 113 S.E. 2d 569 (1960); Rice v. Panel Co., 199 N.C. 154, 154 S.E. 69 (1930).
For the reasons stated, the decision of the Court of Appeals and the award of the Industrial Commission are affirmed.
Affirmed.
. The same issue is raised in another workers’ compensation case decided by our Court today: Chinault v. Pike Electrical Contractors, 306 N.C. 286, 293 S.E. 2d 147 (1982).
Dissenting Opinion
dissenting.
The interpretation of G.S. 97-38 applied by the majority in the present case will clearly cause the amount of total death benefits payable to workers’ dependents to vary wildly from case to case upon no basis other than the number and ages of worker’s wholly dependent survivors. Unlike the majority, I do not believe that such results are “inherent in the variety of life itself, and . . . do not strictly spring from the operation of G.S. 97-38.”
A comparison of two hypothetical situations involving the death of the same worker is sufficient to reveal the inequitable results which will certainly arise from the application of the ma
If the same hypothetical worker was a widower and happened to be survived by three wholly dependent minor children whose ages were one year, five years and ten years respectively, a far different result would be required under the interpretation of the statute employed by the majority. Under the majority’s interpretation of G.S. 97-38 the “total compensation award” or maximum weekly compensation of $180 per week would be divided equally with each child receiving $60 per week until he reached 18 years of age. The one year old child would receive $60 per week for 17 years for a total of $53,040. The five year old child would receive $60 per week for 13 years for a total of $40,560. The ten year old child would receive $60 per week for 8 years or a total of $24,960. The total amount paid the three minor children would be $118,560 or $40,560 less than the $159,120 received by the sole surviving minor child in the first hypothetical situation.
In my view, such inequities are created primarily by the majority’s interpretation of G.S. 97-38 and are not “inherent in the variety of life itself.” It is frequently said that variety is the spice of life. Assuming this to be the case, the dish served by the majority is too heavily spiced to suit my taste.
I believe that a proper construction of the statute would allow the dependents of the deceased worker in the second hypothetical situation to receive $180 per week until the youngest of the three children reached 18 years of age with the $180 being divided each week among those still eligible to receive a share. G.S. 97-38(1) provides that:
*284 Persons wholly dependent for support upon the earnings of the deceased employee at the time of the accident shall be entitled to receive the entire compensation payable share and share alike to the exclusion of all other persons. If there be only one person wholly dependent, then that person shall receive the entire compensation payable.
(Emphasis added.) The general provision of G.S. 97-38 providing for the continuation of “compensation payments” to a disabled spouse or minor child beyond the 400 week period is, in my view, amplified and extended by the specific provisions of subsection (1) commanding that dependents of the deceased worker receive the “entire compensation payable.” When these provisions are read together, it is my view that they are entirely consistent and harmonious and manifest a legislative intent that the term “entire compensation payable” be construed as referring to the required total compensation award of 66% percent of the average weekly wage earned by the deceased immediately prior to his death. Further, I find that the manifest legislative intent was that this total compensation award or “entire compensation payable” be paid so long as there are beneficiaries eligible to take. See generally 81 Am. Jur. 2d Workmen’s Compensation § 218 (1976 and 1981 Supp.); 99 C.J.S. Workmen’s Compensation § 324(e) (1958 and 1981 Supp.). When a member of the post-400 week beneficiary group becomes ineligible to receive further benefits, that portion of the “entire compensation payable” previously distributed to him should be distributed to the remaining eligible beneficiaries.
I would point out that the interpretation of the statute for which I argue would not remove the inequities “inherent in the variety of life itself.” If a worker dies leaving three small children, each of them would still receive less total compensation than he would have received had he been the sole surviving wholly dependent minor child of the same worker. This type of inequity faces every child who has brothers or sisters and is truly “inherent in the variety of life itself.”
The interpretation I suggest would, however, prevent the harsh and inequitable results which will arise as a result of the majority’s interpretation of the statute. The opinion of the majority compounds and exacerbates the inequities “inherent in the variety of life itself.” It will in many cases cause a worker’s minor
Even if it is conceded arguendo that the statute in question lends itself as easily to the interpretation applied by the majority as to the interpretation for which I argue, the plaintiffs here should prevail under established rules of statutory construction applicable to the Worker’s Compensation Act. In seeking to discover the legislative intent behind the Act, this Court must consider the language of the Act, the spirit of the Act, and what the Act seeks to accomplish. Stevenson v. City of Durham, 281 N.C. 300, 188 S.E. 2d 281 (1972). Additionally, the Worker’s Compensation Act should be liberally construed, whenever appropriate, so that benefits will not be denied upon mere technicalities or strained and narrow interpretations of its provisions. Watkins v. City of Wilmington, 290 N.C. 276, 225 S.E. 2d 577 (1976); Stevenson v. City of Durham, 281 N.C. 300, 188 S.E. 2d 281 (1972). In my view, these rules mandate that G.S. 97-38 be interpreted to provide for a reapportionment of the entire amount of the total compensation award among the remaining dependent minor children in equal shares as each child reaches the age of 18, after the expiration of the initial compensation period of 400 weeks.
For these reasons I respectfully dissent from the opinion of the majority and vote to reverse the Court of Appeals.
Reference
- Full Case Name
- BRENDA H. DEESE, Widow; BRACY DEESE, Guardian of Katie Lynn Deese, Stephen Haywood Deese, and Christopher Wayne Deese, Minor Children; BRACY DEESE, Administrator of the Estate of Charles W. Deese, Deceased, Employee, Plaintiffs v. SOUTHEASTERN LAWN AND TREE EXPERT COMPANY, Employer, FIDELITY AND CASUALTY COMPANY OF NEW YORK, Carrier, Defendants
- Cited By
- 43 cases
- Status
- Published