S. F. Raymond Smith, Esq.
Rundle & Rundle
Pineville, West Virginia
Attorney for Appellant Repass
Don M. Stacy, Esq.
Reginald D. Henry, Esq.
Beckley, West Virginia
Attorneys for Appellant Bower
Darrell V. McGraw, Jr.
Attorney General
Sandra Keech
Assistant Attorney General
Charleston, West Virginia
Attorneys for Appellee Workers'
Compensation Division
Howard G. Salisbury, Esq.
Kay, Casto & Chaney, PLLC
Charleston, West Virginia
Attorney for Appellee USX Corporation/
U. S. Steel Mining Company
John W. Woods, III, Esq.
Tracy L. Webb, Esq.
Bowles Rice McDavid Graff & Love
Charleston, West Virginia
Attorneys for Appellee Maple Meadow
Mining Company
Timothy J. Huffman, Esq.
John L. McClaugherty, Esq.
Jackson & Kelly
Charleston, West Virginia
Attorneys for Amicus Curiae West
Virginia Chamber of Commerce
Sue Anne Howard, Esq.
Wheeling, West Virginia
Attorney for Amici Curiae West Virginia
Trial Lawyers Association and West
Virginia AFL-CIO
William D. Turner, Esq.
Crandall, Pyles, Haviland & Turner, LLP
Lewisburg, West Virginia
Attorney for Amicus Curiae West Virginia
Trial Lawyers Association
Thomas P. Maroney, Esquire
Charleston, West Virginia
Attorney for Amicus Curiae West Virginia
AFL-CIO
JUSTICE McGRAW delivered the Opinion of the Court.
CHIEF JUSTICE DAVIS and JUSTICE MAYNARD dissent
and reserve the right to file dissenting opinions.
1. 'The
Workmen's Compensation Law is remedial in its nature, and must be given a
liberal construction to accomplish the purpose intended.' Syl. pt. 3, McVey
v. Chesapeake & Potomac Telephone Co., 103 W. Va. 519, 138 S.E. 97
(1927) (citation omitted). Syl. pt. 1, Plummer v. Workers' Compensation
Division, 209 W. Va. 710, 551 S.E.2d 46 (2001).
2. '[The
Workers' Compensation Act] requir[es] the state compensation commissioner
in administering the workmen's compensation fund, to ascertain the substantial
rights of the claimants in such manner as will carry out justly and
liberally the spirit of the act unrestricted by technical and formal
rules of procedure . . . .' Syllabus, in part, Culurides
v. Ott, 78 W. Va. 696, 90 S.E. 270 (1916) (citation omitted). Syl.
pt. 2, Plummer v. Workers' Compensation Division, 209 W. Va. 710, 551
S.E.2d 46 (2001).
3. The ultimate responsibility for the fiscal health of the West Virginia Workers' Compensation system rests with the Legislature. Balancing the conflicting goals of minimizing premiums while providing full and fair compensation to injured workers is the exclusive province of our publicly elected legislators, and is not to be invaded by the Commissioner, or the Courts.
4. Any
rules or regulations drafted by an agency must faithfully reflect the intention
of the Legislature, as expressed in the controlling legislation. Where a statute
contains clear and unambiguous language, an agency's rules or regulations must
give that language the same clear and unambiguous force and effect that the
language commands in the statute. Syl. pt. 4, Maikotter v. University
of West Virginia Bd. of Trustees/West Virginia Univ., 206 W. Va. 691, 527
S.E.2d 802 (1999).
5. It
is fundamental law that the Legislature may delegate to an administrative
agency the power to make rules and regulations to implement the statute under
which the agency functions. In exercising that power, however, an administrative
agency may not issue a regulation which is inconsistent with, or which alters
or limits its statutory authority. Syl. pt 3, Rowe v. W. Va. Dept.
of Corrections, 170 W. Va. 230, 292 S.E.2d 650 (1982).
6. The
judiciary is the final authority on issues of statutory construction, and
we are obliged to reject administrative constructions that are contrary to
the clear language of a statute. Syl. pt. 5, CNG Transmission Corp.
v. Craig, ___ W. Va. ___, ___ S.E.2d ___ (No. 29996, Apr. 26, 2002).
7. Judicial
review of an agency's legislative rule and the construction of a statute that
it administers involves two separate but interrelated questions, only the second
of which furnishes an occasion for deference. In deciding whether an administrative
agency's position should be sustained, a reviewing court applies the standards
set out by the United States Supreme Court in Chevron U.S.A., Inc. v. Natural
Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d
694 (1984). The court first must ask whether the Legislature has directly spoken
to the precise question at issue. If the intention of the Legislature is clear,
that is the end of the matter, and the agency's position only can be upheld
if it conforms to the Legislature's intent. No deference is due the agency's
interpretation at this stage. Syl. pt 3, Appalachian Power Co. v. State
Tax Dept. of West Virginia, 195 W. Va. 573, 466 S.E.2d 424 (1995).
8. A
rule promulgated by the Workers' Compensation Division that mandates the use
of a non-legislatively created guide for the examination of certain injuries
is valid only to the extent that the mandated guide does not conflict with
the specific dictates of the Legislature as expressed by statute. Those aspects
of the mandated guide that are in conflict are invalid.
9. Because
the Diagnosis-Related Estimate Model for the examination of spine injury claims,
as set forth in The American Medical Association's, Guides to the Evaluation of Permanent Impairment, Fourth Edition (1993),
cannot be reconciled with several specific workers compensation statutes promulgated
by the West Virginia Legislature, any medical examination conducted in accordance
with that model is invalid and unreliable.
McGraw, Justice:
Two workers' compensation
claimants who suffered back injuries disagreed with the initial disability
ratings granted them by the Workers' Compensation Division and appealed. In
each case, the Office of Judges found that examinations conducted under one
examination model were unreliable, and granted the claimants higher disability
ratings. The employer in each case appealed, and the Workers' Compensation
Appeal Board found the questioned method of examination to be valid, and reinstated
the original awards granted by the Workers' Compensation Division. The claimants
appeal, arguing that the Office of Judges was correct in disregarding the
questioned examination model because it is in conflict with our law. Because
we concur with the logic of the Office of Judges, we reverse.
Today
we examine two cases, which we consolidated because they concern the same questions
of law. Both cases concern the use of a particular diagnostic method, or model,
for the evaluation of injuries to the spine. One method, the Range of Motion
Model, or ROM, measures, as the name implies, the patient's range of motion
across several specific movements. The doctor then compares these ranges against
presumed normal ranges for uninjured individuals. Doctors using the other method,
the Diagnostic-Related Estimate Model, or DRE, examine a patient's injury or symptoms and then assign the
patient to one of eight categories, or pigeon holes, based on
those particular symptoms. Both models are found in
the American Medical Association's Guides to the Evaluation of Permanent
Impairment, Fourth Edition (1993). Rules promulgated by the Workers' Compensation
Commissioner command doctors to conduct their examinations and prepare their
reports in accordance with this publication when examining patients for permanent
partial disability.
(See footnote 1) The two models often produce very different
impairment ratings, with the DRE usually producing a lower percentage of impairment,
and the ROM producing a higher percentage of impairment; each model has its
supports and detractors. However, the fourth edition of the Guides
demands that the DRE Model be used in most circumstances unless a doctor can
show some special reason why that model should not be used. Because of concerns about
the DRE Model, discussed at greater length infra, the Workers' Compensation
Office of Judges deemed DRE-based examinations unreliable in late
1997. However, the Workers' Compensation Appeal Board continued to accept
DRE- based examinations. The two appellants in this case both received lower
ratings under the DRE Model and higher ratings under the ROM Model. Each appealed a decision
of the Workers' Compensation Division to the Office of Judges, where each
prevailed. Then, each of them had that favorable decision reversed by the
Workers' Compensation Appeal Board, and subsequently appealed that adverse
decision to this Court. For the reasons set forth below, we find that examinations
performed under the DRE are invalid and unreliable, and reverse the decisions
of the Appeal Board.
Mr. Repass protested the Division's
award and submitted an evaluation report conducted by a Dr. Carlson on August
1, 1997. Dr. Carlson examined Mr. Repass using the ROM Model and concluded that
Mr. Repass suffered a 9 percent impairment, specifically, 5 percent for the
fracture and 4 percent for limitation of flexion in his back. Thereafter, Mr.
Repass' employer, U.S. Steel Mining Company, had yet another doctor examine
Mr. Repass. Dr. Paul Bachwitt examined Mr. Repass on October 14, 1997, and his
report referenced both the DRE and ROM methods, but apparently the doctor claimed
that the ROM findings were not credible and that the ROM method should not be
used. Under the DRE method, Dr. Bachwitt, in agreement with the report of Dr.
Landis, found that Mr. Repass should be granted a 5 percent award.
The Workers' Compensation
Office of Judges considered Mr. Repass' appeal and on March 11, 1998, issued
a decision reversing the Division's prior award of 5 percent, and granting
Mr. Repass a 9 percent award based on Dr. Carlson's findings. In reaching
this conclusion, the administrative law judge referenced an earlier opinion
of the Office of Judges, known as the Cottrell decision of August 1997,
(See footnote 2)
in which the chief administrative law judge had determined that examinations
conducted using the DRE were unreliable. U.S. Steel Mining Company appealed,
and on September 30, 1998, the Workers' Compensation Appeal Board reversed and reinstated the initial 5 percent award for permanent
partial disability granted by the Division. Mr. Repass now challenges the
Appeal Board's final decision.
No fewer than eight doctors examined Mr. Bower between January 1996 and December 1998, using either the DRE Model, the ROM Model, or both, and giving him impairment ratings from 4 percent to 16 percent. By April 22, 1997, the Division had made awards for a total of 5 percent permanent partial disability. After the issuance of Cottrell and a flurry of additional examinations, the Office of Judges reversed the Division and granted Mr. Bower a disability rating of 16 percent. The Office of Judges apparently disregarded any examination based upon the DRE and applied the liberality rule, basing the award upon the highest impairment rating found under the ROM Model. The employer appealed, and on June 29, 2000, the Appeal Board reversed and reinstated the earlier award by the Division of a 5 percent permanent partial disability. Mr. Bower now asks this Court to reverse the Appeal Board's June 29, 2000 decision.
The Act is designed to compensate injured workers as speedily and expeditiously
as possible in order that injured workers and those who depend upon them for
support shall not be left destitute during a period of disability. The benefits
of this system accrue both to the employer, who is relieved from common-law tort
liability for negligently inflicted injuries, and to the employee, who is
assured prompt payment of benefits.
Meadows v. Lewis, 172 W. Va. 457, 469, 307 S.E.2d 625, 638 (1983).
In restating this principle, we are not unmindful of the perception that our
system makes our state less attractive to some businesses. But it is for the
Legislature, not the Commissioner, or the courts, to make the difficult and
sometimes unpopular decisions necessary to fund the system or limit its expenses.
The Commissioner must follow the commands of the Legislature as expressed
by statute. In the absence of express statutory authority, it is not the Commissioner's
duty to take major steps to limit compensation to deserving workers, or design
systems that make recovery less likely. Indeed:
[The Workers' Compensation Act] requir[es] the state compensation commissioner
in administering the workmen's compensation fund, to ascertain the substantial
rights of the claimants in such manner as will carry out justly and liberally
the spirit of the act, unrestricted by technical and formal rules of procedure
. . . . Syllabus, in part, Culurides v. Ott, 78
W. Va. 696, 90 S.E. 270 (1916) (citation omitted);
Martin v. Workers Compensation Div., 210 W. Va. 270, 275, 557 S.E.2d
324, 329 (2001) (quoting syl. pt. 2, Plummer v. Workers' Compensation Division,
209 W. Va. 710, 551 S.E.2d 46 (2001)). This does not mean that any person
claiming an injury should instantly be awarded the maximum possible compensation.
We recognize that workers' compensation is not the equivalent of a welfare system.
(See footnote 3) The command of the law that
the workers' compensation process be unrestricted by technical and formal
rules of procedure means that, if the statutes would provide a worker
with compensation, the Commissioner cannot create barriers or hurdles that
would prevent that recovery. If the system is not producing the desired results,
then the Legislature can change the statute, and in so doing craft a solution
suitable to a majority of the electorate. We recognize that the ultimate responsibility
for the fiscal health of the West Virginia Workers' Compensation system rests with
the Legislature. Balancing the conflicting goals of minimizing premiums while
providing full and fair compensation to injured workers is the exclusive province
of our publicly-elected legislators, and is not to be invaded by the Commissioner,
or the Courts.
And so bearing in mind that
although the rules and regulations governing the workers' compensation
system in this state are necessarily detailed and complex, we must be careful
to prevent those deserving of compensation from being thwarted by technicalities
or procedural niceties, Martin v. Workers Compensation Div.,
210 W. Va. 270, 275, 557 S.E.2d 324, 329 (2001), we turn to an examination
of the instant dispute.
Before addressing the application
of this publication to examinations of spinal injuries, we first explain how
it is that this publication is at issue in the cases below. As we have discussed
in previous cases, the Legislature made significant changes to the workers'
compensation system in 1995.
On February 10, 1995, the West Virginia Legislature passed and enacted Committee
Substitute for Senate Bill 250, which comprehensively revised numerous aspects
of West Virginia workers' compensation law. The purported goal of these sweeping
reforms envisioned ameliorating the workers' compensation fund's fiscal crisis
and restoring its financial integrity. See State ex rel. Blankenship v.
Richardson, 196 W. Va. 726, 729-31, 474 S.E.2d 906, 909-11 (1996).
State ex rel. ACF Industries, Inc. v. Vieweg, 204 W. Va. 525, 529, 514 S.E.2d 176, 180 (1999) (footnote omitted). Of specific importance to this case is that the Legislature altered the way in which one discovers the extent of an injured worker's permanent partial disability; under current law, one determines the level of permanent disability by first finding the worker's degree of whole body medical impairment. The Legislature also granted the Commissioner authority to establish standards for the determination of that impairment:
[T]he degree of permanent disability other than permanent total disability shall
be determined exclusively by the degree of whole body medical impairment that
a claimant has suffered. . . . The workers' compensation division shall adopt
standards for the evaluation of claimants and the determination of a claimant's
degree of whole body medical impairment. Once the degree of medical impairment
has been determined, that degree of impairment shall be the degree of permanent
partial disability that shall be awarded to the claimant.
W. Va. Code § 23-4-6(i) (1999). (See footnote 5) Of course the ultimate question being asked is, how much, if any do we (the State) owe the injured worker? Before 1995, our system took into account factors beyond medical impairment when making a determination about permanent partial disability. As Justice Starcher explained in a concurring opinion,
Prior to the Legislature's amendments in 1995, the Workers' Compensation Act
distinguished between impairment, which is a medical question, and disability,
which is a legal question. To determine impairment, a doctor would examine the
claimant and render a scientific opinion regarding how much a claimant's physical
functions were impaired by a work-related injury. The Workers' Compensation
Commissioner would then determine disability by looking at the doctor's opinion
on impairment, and mix that opinion with the evidence of the claimant's earning
capacity, the effect of the impairment on the claimant's efficiency at work,
and the effect of the impairment on the claimant's pursuit of normal everyday
living. From a mix of these factors, the Commissioner would compute the claimant's
percentage of permanent partial disability. The Commissioner's permanent partial
disability award would, in theory, only partially take into account the doctor's
determination of impairment.
In 1995 the Legislature amended W. Va. Code, 23-4-6(i)
to state that the degree of permanent disability other than permanent
total disability shall be determined exclusively by the degree of whole body
medical impairment that a claimant has suffered. This amendment altered
the Workers' Compensation Act in two ways significant to this case. First,
after 1995 doctors are to make impairment evaluations using a standardized,
whole body impairment rating system--in other words, they are
to use the American Medical Association's Guides to the Evaluation of Permanent
Impairment, Fourth Edition (1993). Second, the Commissioner is to make
permanent partial disability awards solely on the basis of the doctor's impairment
evaluation. Put another way, the percentage of medical impairment now equals
the percentage of permanent partial disability, and the Commissioner cannot
take into consideration any other factors.
Wagner v. Workers' Compensation Div., 205 W. Va. 186, 191-92, 517
S.E.2d 283, 288-89 (1998) (per curiam) (Starcher J., concurring) (footnote
omitted).
Moreover, the Commissioner has
equated an impairment rating conducted under this standard to be the equivalent
of a disability rating for permanent impairment. The authors of The Guides
themselves urge against any system that equates medical impairment with disability.
As we noted in a case challenging the constitutionality of the 1995 changes:
See 85 CSR 16-3.4 (defining permanent impairment and impairment,
according to the Guides, and indicating that [a] claimant's degree of
permanent whole body medical impairment is to be determined in keeping with
the determination of whole person permanent impairment as set forth in the Guides.
Id., in relevant part.)
The exclusive use of the Guides for evaluation of impairment and, therefore,
permanent partial disability, is not recommended by its author:
The critical problem is that no formula is known by which knowledge
about a medical condition can be combined with knowledge about other factors
to calculate the percentage by which the employee's industrial use of the
body is impaired. Accordingly, each commissioner or hearing official must
come to a conclusion on the basis of assessment of the available medical and
nonmedical information. The Guides may help resolve such a situation, but
it cannot provide complete and definitive answers. Each administrative or
legal system that uses permanent impairment as a basis for disability ratings
should define its own means for translating knowledge about an impairment
into an estimate of the degree to which the impairment limits the individual's
capacity to meet personal, social, occupational, and other demands or to meet
statutory requirements.
It must be emphasized and clearly understood that impairment percentages
derived according to Guides criteria should not be used to make direct financial
awards or direct estimates of disabilities.
Id. at 1/4-1/5 (bold provided [in text of Guides]).
In light of the AMA's admonition against the exclusive use of its Guides for
evaluation of permanent disability, we question the Commissioner's wisdom in
adopting them.
State ex rel. Blankenship v. Richardson, 196 W. Va. 726, 735-36,
n.13, 474 S.E.2d 906, 915- 16, n.13 (1996) (quoting Guides, Fourth,
emphasis in original). While we still have our concerns about a system that
makes a one-to-one correlation between impairment and disability, and while
we continue to question the wisdom of employing the Guides, Fourth
in a fashion contrary to the intent of the authors, neither issue is squarely
before the Court today. What is before the Court, is whether the adoption
of the Guides, Fourth as a mandatory set of instructions for performing
an examination of a claimant with a spinal injury is consistent with our workers'
compensation law.
Pursuant to the W. Va. Code § 23-4-6(i) (1999), the Division (See footnote 6) issued a rule that established standards for determining an injured worker's degree of permanent impairment:
§85-16-4. Adoption of Standards.
4.1. Except as provided for
in section 6 of this rule, on and after the effective date of this rule all
evaluations, examinations, reports, and opinions with regard to the degree
of permanent whole body medical impairment which a claimant has suffered shall
be conducted and composed in accordance with the Guides to the Evaluation
of Permanent Impairment, (4th ed. 1993), as published by the American
Medical Association. If in any particular claim, the examiner is of the
opinion that the Guides or the section 6 substitutes cannot be appropriately
applied or that an impairment guide established by a recognized medical speciality
group may be more appropriately applied, then the examiner's report must document
and explain the basis for that opinion. Deviations from the requirements of
the Guides or the section 6 substitutes shall not be the basis for excluding
evidence from consideration. Rather, in any such instance such deviations
shall be considered in determining the weight that will be given to that evidence.
An example of an acceptable recognized medical speciality group's own guides
is the Orthopaedic Surgeons Manual in Evaluating Permanent Physical
Impairment.
85 C.S.R. § 85-16-4(1996)(emphasis added)
(See footnote 7) .
We find it extremely important
to note that the rule commands a doctor to conduct the examination and compose
the report in accordance with the guides and not simply to use the
models or suggestions contained in the publication. Indeed, the basis of the
appellees' argument is that, minus the exceptions specified in the rule, the
whole of the Guides, Fourth, including the DRE section, must be
followed by any doctor performing an examination on a claimant. As a result
of this phrasing, the Division has essentially incorporated by reference into
the rule, the entirety of the Guides, Fourth. While the publication runs
some three hundred pages and encompasses all aspects of impairment of many bodily
systems, we are concerned in this case with injuries of the spine. In the section
dealing with spinal injuries, the Guides, Fourth describes two methods
of determining impairment. One is called the ROM, or Range of Motion Model.
The other is called the DRE, or Diagnosis-Related Estimate Model, or simply,
the Injury Model, and was newly introduced in the fourth edition of the Guides.
(See footnote 8)
We shall make reference to either ROM or DRE for the remainder of this
opinion.
The Guides, Fourth
is far more than a chart or reference table consulted by doctors; it is a
complete set of extremely detailed instructions as to how a doctor should
evaluate a claimant's injury. Of particular importance in the instant case
is that the Guides, Fourth mandates the use of the DRE model for most
back injuries.
The evaluator assessing the spine should use the Injury Model [the DRE], if
the patient's condition is one of those listed in Table 70 (p. 108). That
model, for instance, would be applicable to a patient with a herniated lumbar
disk and evidence of nerve root irritation. If none of the eight categories
of the Injury Model is applicable, then the evaluator should use the Range
of Motion Model.
Guides, Fourth, § 3.3, p. 94. Implicit in this instruction is
that very few claimants would ever be evaluated under the ROM Model, since
most would fall into one of the eight categories. The Guides, Fourth,
goes on to list other specific instructions as to not only how a doctor should
perform an examination, but what sort of data a doctor should consider, and
in some cases, what weight the doctor should give that data. Again, we stress
that, by virtue of incorporation by rule, the Guides, Fourth section
on spinal injuries is far more than a guide, model, or illustration; it is
a mechanical set of rules that compels a doctor to consider x
but exclude y.
It is with this controlling
aspect of the Guides, Fourth that appellants most strongly disagree.
Appellants point out that several commands of the Guides, Fourth appear
to be in conflict with specific dictates of the Legislature, and that the spine
injury section of the Guides, Fourth is also internally inconsistent.
In essence, appellants echo the logic expressed in a policy memorandum
issued by the then-chief administrative law judge, which rejected the DRE Model.
Chief Administrative Law Judge Robert Smith issued the policy memorandum shortly
after rendering a decision in the case of Thelma Cottrell v. Workers' Compensation
Division and Community Health Associates, Claim No. 92-56811 (August 22,
1997). In that case, the chief administrative law judge determined that the
DRE Model ran afoul of several Code provisions, and as a result, reports conducted
in accordance with the DRE are unreliable and thus should not be
considered in a determination of disability. Appellees argue that the decision
of the chief administrative law judge was in excess of his statutory authority,
and cannot bind either the Division or the Appeal Board.
Before reaching the question
of the administrative law judge's authority, we examine appellants' argument
that the DRE conflicts with our workers' compensation statutes. First, appellants
point out that the text of the Guides, Fourth states that the DRE Model
considers a claimant's impairment at the time of the injury, not the time
of evaluation, that the text of the DRE Model excludes consideration of occupational
wear and tear or so called developmental findings, and finally,
that the Guides, Fourth rates one specific injury, but cannot be used where there are sequential injuries to the same
body part or when an injury grows worse over time. It is clear that several
statutes and opinions of this Court are in apparent conflict with the Guides,
Fourth.
First, we note that the
section we quoted, supra, states that the degree of permanent
disability other than permanent total disability shall be determined exclusively
by the degree of whole body medical impairment that a claimant has suffered.
W. Va. Code § 23-4-6(i) (1999) (emphasis added). We believe has
suffered implies that any rating of permanent partial impairment must
be made when the claimant has healed as much as possible. Furthermore, the
Code suggests that the permanent partial impairment rating of an injured worker
must be made after he or she has reached the maximum degree of improvement.
(c) When the authorized treating physician concludes that the claimant has
either reached his or her maximum degree of improvement or is ready for disability
evaluation, or when the claimant has returned to work, such authorized treating
physician may recommend a permanent partial disability award for residual
impairment relating to and resulting from the compensable injury.
W. Va. Code § 23-4-7a(c)(1995); accord, Dalton v. Spieler, 184 W. Va. 471, 473, 401 S.E.2d 216, 218 (1990). Clearly, this Code section does not contemplate an impairment rating made based upon the claimant's condition at the time of injury, or even at some time after injury that is prior to reaching the maximum degree of improvement. However, on its face, the DRE Model suggests that once an estimate of impairment is made, subsequent treatment or improvement of the injury should not change the initial estimate.
With the Injury Model [the DRE], surgery to treat an impairment does not modify
the original impairment estimate, which remains the same in spite of any changes
in signs or symptoms that may follow the surgery and irrespective of whether
the patient has a favorable or unfavorable response to treatment.
Guides, Fourth at §3.3d, p. 100. Although this statement seems
at odds with other language in the spine section of the Guides, Fourth,
(See footnote 9)
it nonetheless directs a physician to ignore the outcome of a claimant's
treatment, and to rely upon the first estimate of impairment. By virtue of
the Commissioner's decision to incorporate the Guides, Fourth, we are
left with a nonsensical command that conflicts with the statute. Although
during oral argument before this Court, certain parties intimated that this
command is, in practice, ignored, we note that ignoring it doesn't make it
disappear. Thus, we believe that this aspect of the DRE Model conflicts with
W. Va. Code §§ 23-4-7a (1995) and 23-4-6(i) (1999).
Appellants also argue that the
DRE Model, as set forth in the Guides, Fourth, is geared more toward
rating single incident traumas to the spine, and purports to exclude any injury
that appears over time.
The Injury Model [the DRE] attempts to document physiologic and structural impairments
relating to insults other than common developmental findings, such as (1) spondylolysis,
found normally in 7% of adults; (2) spondylolisthesis, found in 3%;
(See footnote 10)
(3) herniated disk without radiculopathy, found in more than 30% of individuals
by age 40 years; and (4) aging changes, common in 40% of adults after age 35
years.
Guides, Fourth, § 3.3d, p. 100 (footnotes omitted) (footnote
added). This sort of analysis would be inappropriate where a workers' injury
has occurred over time. We have made clear that: An employee who is
injured gradually by reason of the duties of employment and eventually becomes
disabled is, under our workmen's compensation law, no less the recipient of
a personal injury than one who suffers a single disabling trauma. Syl.
pt. 3, Lilly v. Workers' Compensation Commissioner, 159 W. Va. 613,
225 S.E.2d 214 (1976); accord, Syl. pt. 2, Sansom v. Workers' Compensation
Commissioner, 176 W. Va. 545, 346 S.E.2d 63 (1986). We have also stated
that:
A compensable injury which does not initially or of itself produce a permanent
total disability may become progressively worse over time or combine with
prior impairments under the second injury statute, W. Va. Code, 23-3-1, so
as to result in a permanent total disability. . . . .
Syl. pt. 1, Lambert v. Workers' Compensation Division, ___ W. Va. ___,
___ S.E.2d ___ (Nos. 30041, 30042, 30043, Apr. 26, 2002) (quoting Miracle
v. Workers' Compensation Commissioner, 181 W. Va. 443, 383 S.E.2d 75 (1989)).
Obviously, our law contemplates that an injury is not necessarily static, and
can become worse over time, a concept to which the DRE is at odds, and to which
it must yield.
Another argument advanced
by appellants is that W. Va. Code § 23-4-16 (1995) allows a claimant
to re-open his or her claim if a compensable injury worsens. The
Code provides that in any claim in which an award of permanent disability
was made, any such request must be made within five years of the date of the
initial award. During that time period, only two such requests may be filed.
As we noted above, the authors of the DRE state that the original impairment
estimate remains the same, even if a claimant's condition worsens or improves.
Thus, a claimant who attempts to reopen a claim would appear to be blocked
by this language. Moreover, even if we accept the appellees' argument that
this language can be ignored or explained, a claimant evaluated under the
DRE Model who attempts to reopen still faces the enormous challenge of getting
out of the box or category of his or her initial rating.
This same problem also befalls
a claimant who does not attempt to reopen for a change in an injury, but is
simply injured a second time in a separate incident. The Code provides for additional compensation for claimants who become further impaired
as a result of a second injury. See, W. Va. Code § 23-4-6(d) (1999).
Because the DRE puts a claimant in one category or another, his or her rating
will be 5 percent, 10 percent, 15 percent, etc. Once rated at 5 percent, for
example, a claimant must suffer a severe enough second injury to make the
quantum leap between the 5 percent category and the 10 percent category. Thus,
a claimant whose second injury under the ROM Model would have moved him or
her from 5 percent to 7 percent, would remain stuck at 5 percent under the
DRE Model. Thus, there is effectively no compensation for a second injury
under this scenario, which we believe conflicts with our law.
W. Va. Code § 23-5-8(e) (2001). We also note that the Code provides the chief administrative law judge with broad authority to exercise such powers as may be necessary for the proper administrative review of disputed claims.
The chief administrative law judge shall continue to have the power to hear
and determine all disputed claims in accordance with the provisions of this
article, establish a procedure for the hearing of disputed claims, take oaths,
examine witnesses, issue subpoenas, establish the amount of witness fees,
keep such records and make such reports as are necessary for disputed claims
and exercise such additional powers, including the delegation of such powers
to administrative law judges or hearing examiners as may be necessary for
the proper conduct of a system of administrative review of disputed claims.
The chief administrative law judge shall make such reports as may be requested
of him or her by the compensation programs performance council.
W. Va. Code § 23-5-8(f) (2001).
Appellees still argue that the
decision in Cottrell, and subsequent policy memorandum, could not act
as binding precedent on other administrative law judges, the Division, or the
Appeal Board. Appellants argue that the Cottrell policy memorandum was
never intended to be applied in that fashion, but rather provided notice to
all litigants that medical evaluations relying upon the DRE Model were unreliable
to support a finding regarding a claimant's degree of impairment before the
Office of Judges, only. Thus, they argue, this memorandum did not promulgate
a legislative rule as asserted by defense counsel nor did it establish a precedent
before the Division or Appeal Board. That is to say, argue appellants, the policy
memorandum about Cottrell was necessary precisely because the decision
in Cottrell did not have precedential value.
We concur that W. Va. Code
§ 23-5-8(f) (2001) gives the chief administrative law judge broad authority
to manage cases before the Office of Judges.
(See footnote 11) We agree with the appellees
that neither a policy memorandum, nor a decision by the Office of Judges can
bind the Division or the Appeal Board in all future claims, but we find no
authority that would prohibit the chief administrative law judge from enacting a uniform policy
for his or her office to follow.
Some might argue that the
use of the Guides, Fourth amounts to an impermissible delegation of
the Legislature's power to a group of non-elected doctors and experts. However,
we note that the delegation of authority to an agency for rule-making purposes
is permitted. It is clear that the Legislature may delegate certain powers
or responsibilities to an agency: 'The delegation by the legislature
of broad discretionary powers to an administrative body, accompanied by fitting
standards for their exercise, is not of itself unconstitutional.' Point 8
Syllabus, Chapman v. Huntington, West Virginia, Housing Authority,
121 W. Va. 319 [, 3 S.E.2d 502 (1939) ]. Syl. pt. 5, State ex rel.
W. Va. Hous. Dev. Fund v. Copenhaver, 153 W. Va. 636, 171 S.E.2d 545 (1969).
And we note that incorporation of a standard not created by the Legislature
is permitted, provided that the standard is static. Because of changes made
in the Guides, some might argue that the proper course of action would
be to apply the language of the most recent version. However, changes to an
already adopted standard cannot be made automatically.
In a case from North Dakota, the relevant statute required examinations be conducted in accordance with the most recent edition of the Guides. On the date of the statute's enactment, the most recent edition was the third revised edition of the Guides, but when the worker was evaluated in 1994, the Guides, Fourth was the most recent edition. The worker received a 20 percent evaluation from his doctor under the ROM Model, but the Bureau had him evaluated by another doctor under the DRE Model, which resulted in an impairment rating of 10 percent. The worker appealed and the Supreme Court of North Dakota held that, while incorporation of an existing standard is permissible, the attempted adoption of a future standard would be unconstitutional.
Numerous other courts hold that a statute that attempts to incorporate future
changes of another statute, code, regulation, standard, or guideline is an unconstitutional
delegation of legislative power. See, e.g., International Ass'n of Plumbing
and Mechanical Officials v. California Bldg. Standards Comm'n, 55 Cal.App.4th
245, 64 Cal.Rptr.2d 129, 134 (1997); People v. Pollution Control Bd.,
83 Ill.App.3d 802, 38 Ill.Dec. 928, 932-933 404 N.E.2d 352, 356-357 (1980);
Gumbhir v. Kansas State Bd. of Pharmacy, 228 Kan. 579, 618 P.2d 837, 842-843
(1980); Board of Trustees v. City of Baltimore, 317 Md. 72, 562 A.2d
720, 731 (1989); Michigan Mfrs. Ass'n v. Director of Workers' Disability
Compensation Bureau, 134 Mich.App. 723, 352 N.W.2d 712, 715 (1984); Meyer
v. Lord, 37 Or.App. 59, 586 P.2d 367, 371 (1978); City of Chamberlain
v. R.E. Lien, Inc., 521 N.W.2d 130, 132-133 (S.D.1994); Independent Community
Bankers Ass'n v. State, 346 N.W.2d 737, 744 (S.D.1984); Woodson v. State,
95 Wash.2d 257, 623 P.2d 683, 685 (1980). . . . We agree with those courts taking
this view.
The distinction is that,
when an existing standard is incorporated by reference, there is the presumption
that a legislature is familiar with that standard in its entirety and approves
of it. However, by attempting to incorporate a standard, plus any modifications
it might undergo, a legislature is delegating its authority to the non-elected
authors of the standard, who could then change the standard in some way not
contemplated by the legislature. See, Michigan Mfrs. Ass'n v. Director
of Workers' Disability Compensation Bureau, 134 Mich.App. 723, 352 N.W.2d
712, 715 (1984) (statute was not an impermissible delegation of authority
to an association to create a standard because statute made a valid adoption
of a standard already in existence.)
However, while permissible,
the incorporation of a publication like the Guides, Fourth is far more
troublesome than the incorporation of pure data, or a printed chart, or a
schedule of impairment values.
(See footnote 12) Statutes and rules are written
by lawyers with the understanding that any word written may eventually be subject to construction
or attack by other lawyers. Thus, statutes and rules generally have very specific
definitions and the authors take pains to make them internally consistent
and as unambiguous as possible. An instruction manual written by doctors for
doctors is not usually composed with these concerns in mind.
Appellees argue that the
advantage of the DRE is that it is somehow more objective than the ROM. Indeed,
the Guides state that the purpose of the DRE is to counter objection
that the ROM is too subjective:
One of the purposes of the Guides is to lead to similar results when
different clinicians evaluate illnesses and impairments. For evaluating spine
impairments, past Guides editions have used a system based on assessing
the degree of spine motion and assigning impairment percentages according
to limitations of motion. Impairment percents related to the range of motion
were to be combined with percents based on diagnoses or therapeutic approaches
and neurologic impairments.
One concern with the range of motion system has been that in applying it,
other clinical data and diagnostic information tend to be ignored. Also some
physicians are concerned about the accuracy and reproducibility of mobility
measurements, while others believe the system fails to account for the effects of aging.
Guides, Fourth §3.3.
p. 94. However, we find it important to restate that the spinal section of
the Guides, Fourth is not simply a guide as the name would
imply_it is a set of instructions to be followed. While a uniform set of instructions,
on its face, would appear to offer some degree of objectivity in examinations,
one must be convinced that the process that created that set of instructions
was itself objective, reasonable, or impartial. We remain unconvinced that
the DRE is somehow perfectly objective. As one scholar has explained, it is
wrong to assume that the Guides are somehow perfect or flawless. Ellen Smith Pryor, Flawed Promises: A Critical Evaluation of the American
Medical Association's Guides to the Evaluation of Permanent Impairment,
103 Harv. L. Rev. 964, 965-66 (1990) (footnote omitted).
(See footnote 13)
[T]he Guides is not the
objective, medical evaluative system that it purports to be and that has been
so appealing to legislators and other decision makers. Instead, like any impairment
rating scheme, it rests in large part on important and difficult normative
judgments. Yet the Guides obscures this from the reader; it is laden with
hidden or poorly explained value judgments that frequently are gender-biased.
The Guides' flawed promises of objectivity are especially troubling because
they appeal to the craving of legislators and other decision makers for certainty
and clarity in the difficult arena of impairment and disability assessment.
By uncritically embracing the Guides, these decision makers delegate significant
normative decisions to the book's medical authors.
Of course, the Legislature can
adopt any system it wants, within the ambit of our constitution, to evaluate
injuries, impairments, or disabilities. But we must recognize that merely labeling
an evaluation system as objective and making uniform application of it does
not somehow make that system a perfect one.
The need
for these decisions dooms the Guides' claims that its impairment evaluation
scheme is objective and purely medical. These claims seem most appealing with
respect to some organ-level impairments, such as those to the orthopedic extremities,
where one might argue that a basic consensus exists on the qualities that
should serve as the norm (such as range of motion). But even this argument
does not justify the Guides' claims of objectivity and of its medical nature.
Id. at 968-69 (footnote omitted). In short, the Commissioner, in
concert with the Performance Council may, within the bounds of their authority,
adopt the standard of their choosing, but we must remember that the introduction
of the Guides, Fourth into our workers' compensation system
was not accompanied by a burning bush, or even direct action of the Legislature.
Thus, when we find it to be in conflict with our existing statutory law, we
must adhere to the law.
Syl. pt. 4, Maikotter v. University of West Virginia Bd. of Trustees/West
Virginia Univ., 206 W. Va. 691, 527 S.E.2d 802 (1999). Or in other words:
Although an agency may have power to promulgate rules and regulations,
the rules and regulations must be reasonable and conform to the laws enacted
by the Legislature. Anderson & Anderson Contractors, Inc. v.
Latimer, 162 W. Va. 803, 807-08, 257 S.E.2d 878, 881 (1979) (citing Sheppe
v. West Virginia Bd. of Dental Exmrs., 147 W. Va. 473, 128 S.E.2d 620
(1962)). The power of the Legislature
is paramount when a court is faced with a conflict between a statute and a
rule: Syl. pt 3, Rowe v. W. Va. Dept. of Corrections, 170 W. Va. 230, 292
S.E.2d 650 (1982); accord, CNG Transmission Corp. v. Craig, ___
W. Va. ___, ___ S.E.2d ___ (No. 29996, Apr. 26, 2002); State ex rel. McKenzie v. Workers' Compensation Commissioner,
___ W. Va. ___, ___ S.E. ___ (No. 29645, June 28, 2002.)
(See footnote 14)
Though the courts have the power to harmonize a rule with an ambiguous
statute, we must follow the will of the Legislature when expressed with clarity.
The judiciary is the final authority on issues of statutory construction,
and we are obliged to reject administrative constructions that are contrary
to the clear language of a statute. Syl. pt. 5, CNG Transmission
Corp. v. Craig, ___ W. Va. ___, ___ S.E.2d ___ (No. 29996, Apr. 26,
2002). As we noted earlier
in this opinion, in those instances where an agency rule addresses some issue
that is already the subject of Legislative action, [i]f the intention
of the Legislature is clear, that is the end of the matter, and the
agency's position only can be upheld if it conforms to the Legislature's intent.
Syl. pt. 3, in part, Appalachian Power Co. v. State Tax Department of West
Virginia, 195 W. Va. 573, 466 S.E.2d 424 (1995). We must apply the same standard
to the rule in this case. Thus, we hold that a rule promulgated by the workers'
compensation division that mandates the use of a non-legislatively created guide for the examination of certain injuries is valid
only to the extent that the mandated guide does not conflict with the specific
dictates of the Legislature as expressed by statute. Those aspects of the
mandated guide that are in conflict are invalid. The DRE Model for the evaluation
of spinal injuries conflicts with our law in several areas. The DRE disagrees
with statutes that control: the proper time for making an impairment rating,
the proper treatment of progressive injuries, the procedure for reopening
a claim, and the consideration of a second injury. Any aspect of the Guides,
Fourth that conflicts with these statutes must fail. Accordingly, we hold,
because the Diagnosis-Related Estimate Model for the examination of spine
injury claims, as set forth in The American Medical Association's, Guides
to the Evaluation of Permanent Impairment, Fourth Edition (1993),
cannot be reconciled with several specific workers' compensation statutes
promulgated by the West Virginia Legislature, any medical examination conducted
in accordance with that model is invalid and unreliable. Some might argue that the
Guides, Fourth were adopted in an effort to hold down costs in the
workers' compensation system. In arguments before this Court, counsel for
appellants suggested that compensation for back injuries was greatly reduced
by the application of the DRE Model. We note that at least one observer suggests
that the problems of our workers' compensation system are not the result of
overpayment, but rather of under-collection.
(See footnote 15) But we take the more charitable view that
the Commissioner adopted the Guides, Fourth in an effort to determine
once and for all objective rules or procedures that
We are also concerned that,
in a quest for bright line rules and predictability, participants in the workers'
compensation system may latch onto buzzwords or phrases to decide
a case. We fear that most any sentence in this, or any opinion, could be fastened
upon by the Commissioner, Office of Judges, or Appeal Board and be imbued
with near magical powers and employed almost as a spell or incantation that
can open the lock for a claimant seeking compensation. We wish
to do all that we can to discourage the use of such magic words,
as we recently noted in a case concerning permanent total disability claims: Lambert v. Workers' Compensation Division, ____ W. Va. ___, ___,
____ S.E.2d ___, slip op. at ___ (Nos. 30041, 30042, 30043, Apr. 26, 2002).
We again encourage the Division to look at a claimant's record as a whole,
and to resist a simplistic review based upon magic words.
There is no question that when
the rules of an agency come into conflict with a statute that the statute must
control:
Any rules or regulations drafted by an agency must faithfully reflect the intention
of the Legislature, as expressed in the controlling legislation. Where a statute
contains clear and unambiguous language, an agency's rules or regulations must
give that language the same clear and unambiguous force and effect that the
language commands in the statute.
It is fundamental law that Legislature may delegate to an administrative agency
power to make rules and regulations to implement the statute under which the
agency functions. In exercising that power, however, an administrative agency
may not issue a regulation which is inconsistent with, or which alters or
limits its statutory authority.
In practical application, this holding seems to have resulted in the Division
searching medical, psychiatric, and vocational reports for a magical phrase
stating the claimant is permanently and totally disabled from future
employment,. . . If the magical words have not been included, the content
to the report appears to often be disregarded. . . . [W]e specifically discourage
compete reliance on buzzwords contained in medical evaluations. Instead, the
Division should look at the record as a whole and give due consideration to the actual content of medical reports
to determine whether they support a finding of PTD and may, thus, indicate
the onset thereof.
CONCLUSION
For the reasons stated, the
judgment of the Workers' Compensation Appeal Board is reversed, and these cases
are remanded for further proceedings consistent with this opinion.
Part of the problem with workers' compensation legislation is the apparent
confusion over this very issue. Ask any legislator to think about a hard-working
person s/he knows who was injured on the job: the legislator will insist to
you that the person, perhaps a neighbor, deserves our help, our trust, and
adequate benefits from the workers' compensation program. On the other hand,
the image of injured workers which often emerges in political discussions
is tainted by the perception that workers' compensation is just another welfare
program: that people (that is, injured workers) get something for nothing;
that the system encourages idleness, fraud, and other socially unwanted and
expensive behaviors. The focus then becomes how to limit benefits in order
to reduce any economic incentive for workers to behave badly (at best) or
fraudulently (at worst). The image of the legitimately injured worker in need
of help fades from the discussion. This turns out to be politically useful,
since the limitation on benefits not only discourages this apparently anti-social
behavior of workers; it also results in the desired cost-savings for businesses,
establishing fiscal stability without significant premium increases.
Emily A. Spieler, Assessing Fairness in Workers' Compensation Reform: A Commentary on the 1995 West Virginia Workers' Compensation Legislation, 98 W. Va. L. Rev. 23, 131 (1995) (footnotes omitted).
(i) For the purposes of this chapter, with the exception of those injuries provided for in subdivision (f) of this section and in section six-b of this article, the degree of permanent disability other than permanent total disability shall be determined exclusively by the degree of whole body medical impairment that a claimant has suffered. For those injuries provided for in subdivision (f) of this section and section six-b of this article, the degree of disability shall be determined exclusively by the provisions of said subdivision and said section. The occupational pneumoconiosis board created pursuant to section eight-a of this article shall premise its decisions on the degree of pulmonary function impairment that claimants suffer solely upon whole body medical impairment. The workers' compensation division shall adopt standards for the evaluation of claimants and the determination of a claimant's degree of whole body medical impairment. Once the degree of medical impairment has been determined, that degree of impairment shall be the degree of permanent partial disability that shall be awarded to the claimant. This subdivision shall be applicable to all injuries incurred and diseases with a date of last exposure on or after the second day of February, one thousand nine hundred ninety-five, to all applications for an award of permanent partial disability made on and after such date, and to all applications for an award of permanent partial disability that were pending before the division or pending in litigation but not yet submitted for decision on and after such date. The prior provisions of this subdivision shall remain in effect for all other claims.
Guides, Fourth at § 3.3, p. 94.
[I]ncorporation by reference may complicate the task of ascertaining the
meaning of legislation; it may permit the passage of statutes that could not
have garnered majority support if the effects of the incorporated texts were
fully understood; and it may promote the passage of statutes without full and intelligent
consideration.
Jonathan R. Siegel, The Use of Legislative History in a System of Separated Powers, 53 Vand. L. Rev. 1457,1488 (2000) (footnote omitted) (citing, Horace Emerson Read, Is Referential Legislation Worth While?, 25 Minn. L. Rev. 261, 277 (1941)).
The unfunded liability of the Workers' Compensation Fund is ultimately the
result of the failure to collect adequate premiums in order to fund the promises
made to pay benefits to workers. Notably and indisputably, the premium levels
charged to subscribing employers in West Virginia have been comparatively
low since the mid-1980s, when compared nationally or within this region. In
1985, the Moore Administration chose to reduce premium rates by 30 percent
and to freeze the premiums at this unsound -- and illegal -- level. Premium
rates were not adjusted until 1989. While premium levels all over the country
rose dramatically from 1985 to 1990, West Virginia's premium rates were artificially
suppressed. Premium levels in West Virginia have never regained the level
they should and would have attained if the reduction had not occurred.
Since 1989, increases in West Virginia have not overtaken national average
increases. Because of the rate reduction in 1985 and the subsequent failure
to increase rates for over three years, West Virginia's rates continue to
lag substantially behind national norms. According to a 1994 study undertaken
by the Oregon Department of Consumer and Business Services, West Virginia's
premiums ranked near the bottom in premium cost (46th) in 1994 -- after the
rate increases in 1989 -1993. Other studies consistently show similar results.
Emily A. Spieler, Assessing Fairness in Workers' Compensation Reform: A Commentary on the 1995 West Virginia Workers' Compensation Legislation, 98 W. Va. L. Rev. 23, 84-85 (1995)(footnotes omitted) (emphasis in original). We have also noted that the decision of a more recent governor not to pursue lawsuits against employers who may have failed to pay required premiums for their contract employees had a serious and deleterious impact on our workers' compensation fund. See, State ex rel. Affiliated Constr. Trades Found. v. Vieweg, 205 W. Va. 687, 520 S.E.2d 854 (1999)(McGraw, J. & Starcher, J., dissenting).