J. C. Reagan v. American Policyholders‪'‬

This workers' compensation case of first impression involves an appeal by Sue Ann Head, Commissioner of the Second Injury Fund, and the employer's insuror, American Policyholders' Insurance Company, from a judgment of the Chancery Court of Clay County finding that J. C. Reagan, Plaintiff-Appellee, is totally and permanently disabled. Although the Defendants-Appellants do not dispute the finding that the employee is permanently and totally disabled, they do dispute the trial court's apportionment of liability for payment of 550 weeks of benefits between the employer's insuror and the Second Injury Fund. The primary issue in this case, therefore, is whether the Chancellor erred in ordering the Second Injury Fund to pay 15% of 400 weeks at the employee's weekly benefit rate of $128.79, plus 15% of 150 weeks at the minimum weekly benefit rate of $35.00. The facts in this case are not disputed. In 1973, the employee sustained a compensable injury for which he was compensated by payment of 15% permanent impairment to the body as a whole pursuant to a court-approved settlement. Subsequently, the employee was rendered permanently and totally disabled when he fell through a floor in August, 1988, and a month later when he injured his back while engaged in heavy lifting in the course and scope of his employment. It is also undisputed that the benefits due the employee are payable over 550 weeks because his average weekly wage, $128.79, is less than the statutory maximum weekly benefit. T.C.A. § 50-6-207(4). 1 Pursuant to T.C.A. § 50-6-208, the Chancellor ordered the Second Injury Fund to pay 15% of 400 weeks of benefits at the employee's weekly benefit rate of $128.79, plus 15% of 150 weeks at the minimum weekly benefit rate of $35.00. The employer's insuror was ordered to first pay its share of the 400 weeks followed by the Second Injury Fund for its share of the 400 weeks. After that, the employer's insuror would pay its 85% of the remaining 150 weeks and the Second Injury Fund would then follow with its 15%.