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Carabajal v. State

9/16/2005

Before HILL, C.J., and GOLDEN, KITE, VOIGT, and BURKE, JJ.


[ ]Leroy Carabajal appeals from an Order Denying Benefits and Granting Petition to Modify issued by the Office of Administrative Hearings (OAH). Upon our review, we find that the hearing examiner erred as a matter of law in failing to apply the second compensable injury rule in determining whether Mr. Carabajal was entitled to workers' compensation benefits. Accordingly, we reverse and remand for reconsideration.


ISSUES


[ ] We restate the issues presented by Mr. Carabajal as follows:


1. Did the hearing examiner err in failing to apply the second compensable injury rule?


The Division frames the issues as:


1. Whether consideration of the second compensable injury rule is inappropriate because it is a new theory raised for the first time on appeal?


2. Whether the Hearing Examiner's Order Denying Benefits and Granting Petition to Modify is supported by substantial evidence?


FACTS


[ ] The facts of this case are not disputed. On August 10, 1977, Mr. Carabajal injured his lower back while using a sledgehammer to clean coal ash from a chute for his employer, Pacific Power & Light. Mr. Carabajal sustained a herniated disc at the L5-S1 level that required surgery. He received workers' compensation benefits from 1977 until 1980. Mr. Carabajal returned to work and did not seek, or receive, additional benefits until 2002.


[ ] In 2002, Mr. Carabajal experienced low back pain while walking. He was not at work at the time. He sought medical treatment and an MRI revealed scar tissue and a herniated disc at L5-S1. Mr. Carabajal had microdiscectomy surgery to repair the herniated disc, but problems with his back persisted. He continued receiving medical treatment and underwent a fusion surgery in 2003. He has been unable to return to work since the surgery.


[ ] Prior to the 2003 surgery, Mr. Carabajal sought payment of his medical bills and temporary total disability benefits (TTD) from the Division. On November 20, 2002, the Division issued its final determination regarding Mr. Carabajal's claims. The Division allowed payment of medical benefits but denied TTD benefits. The Division cited Wyo. Stat. Ann. § 27-14-605(a) and (c) (LexisNexis 2001) as authority for its decision. Mr. Carabajal timely objected to the Division's determination and requested a contested case hearing.


[ ] In preparation for the hearing, the parties deposed Dr. Joseph Sramek, Mr. Carabajal's treating physician, regarding the relationship between the 1977 injury and the 2002 injury. After reviewing Dr. Sramek's testimony, the Division concluded that it had erroneously paid Mr. Carabajal's medical bills relating to his 2002 injury. On March 6, 2003, the Division filed an Application for Modification of Benefits Due to Mistake pursuant to Wyo. Stat. Ann. § 27-14-605(a) in an attempt to correct the error and recoup the medical payments it had made.


[ ] On April 1, 2003, a contested case hearing was held to address the denial of TTD benefits and the Division's application for modification. The OAH affirmed the Division's denial of TTD benefits on the basis that Mr. Carabajal had failed to prove he sustained a work-related injury as defined by Wyo. Stat. Ann. § 27-14-102(a)(xi) and that Mr. Carabajal had failed to file his claim within the four-year time limitation required by Wyo. Stat. Ann. § 27-14-605(a). The OAH also approved the Division's application for modification based on Mr. Carabajal's failure to prove his condition was directly related to the original injury under Wyo. Stat. Ann. § 27-14-605(c). Mr. Carabajal fi

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