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University of Iowa Hospitals and Clinics v. Waters9/14/2005
Employer appeals the district court's affirming on judicial review an Iowa Workers' Compensation Commission decision awarding permanent total disability benefits to an employee. AFFIRMED IN PART, REVERSED IN PART AND REMANDED.
Considered by Huitink, P.J., and Vogel and Zimmer, JJ.
The University of Iowa Hospitals and Clinics and the State of Iowa, (together referred to as UIHC) appeal the district court's ruling, affirming a decision by the Iowa Workers' Compensation Commission awarding permanent total disability benefits to Jack Waters. We affirm in part, reverse in part and remand.
Backgrounds Facts and Proceedings
Jack Waters worked for nearly thirty years as a custodian for UIHC. Waters has a history of work-related back injuries dating back to 1968, which required several surgeries over the years. He has also sustained other, non-work-related back injuries during this time. Waters was working as a custodian for UIHC until June 21, 1997, when he alleges the cumulative effect of his back injuries rendered him unable to continue working. Waters handed his keys to his supervisor at the end of his shift on June 21 and told him something to the effect, "That's it. I'm done." Waters sought medical care for this latest injury, which shortly thereafter required surgery.
Waters filed a petition for Workers' compensation benefits in February 1999. UIHC defended the claim arguing that Waters's injury was not work-related and that he further failed to give notice to his employer within the statutory ninety-day period after the injury. The Workers' compensation deputy commissioner filed an arbitration decision on February 20, 2001, awarding Waters permanent total disability benefits. The intra-agency appeal decision filed on November 16, 2001, affirmed the award. UIHC sought judicial review of the agency decision, in which UIHC raised four grounds for reversal. The district court reversed on a single issue, finding the commissioner abused his discretion in awarding benefits on a theory of recovery not plead by Waters, e.g. cumulative injury. On appeal, this court affirmed the district court. Our Supreme Court reversed the district court on further review, holding that a claim for Waters's cumulative injury should have been inferred by UIHC due to Waters's long history of work-related back injuries. Univ. of Iowa Hosp. & Clinics v. Waters, 674 N.W.2d 92, 98-99 (Iowa 2004). On remand, the district court considered the additional grounds argued by UIHC on judicial review and affirmed the agency decision. UIHC now appeals asserting: (1) Waters's injury was not work-related; (2) Waters did not comply with the statutory ninety-day notice period; and (3) the agency erred in reducing UIHC's credit under Iowa Code section 85.38(2) for taxes allegedly paid by Waters on the long-term disability payments already received. We affirm on the first two issues as each is supported by substantial evidence but reverse the reduction of UIHC's credit and remand to the agency for further proceedings.
I. Scope of Review
Review of agency actions is limited to correcting errors at law. IBP, Inc. v. Harpole, 621 N.W.2d 410, 414 (Iowa 2001). The agency's decision will be upheld if supported by substantial evidence and is otherwise free of legal or other error. See Iowa Code § 17A.19(10) (2001). Substantial evidence exists if the entirety of the record, including supporting and detracting relevant evidence, as well as credibility assessments, is sufficient to allow a reasonable and neutral person to reach the same conclusion as the agency. Id. § 17A.19(10)(f). "We apply agency findings broadly and liberally to uphold, rather than to defeat, an agency's dec
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