Archer Daniels Midland v. Williams
Date Filed2023-12-20
Docket22-2075
Cited0 times
StatusPublished
Full Opinion (html_with_citations)
IN THE COURT OF APPEALS OF IOWA
No. 22-2075
Filed December 20, 2023
ARCHER DANIELS MIDLAND,
Petitioner-Appellant/Cross-Appellee,
vs.
RICHIE WILLIAMS,
Respondent-Appellee/Cross-Appellant.
________________________________________________________________
Appeal from the Iowa District Court for Polk County, Joseph W. Seidlin,
Judge.
An employer appeals the district courtâs ruling on judicial review of the
workersâ compensation commissioner decision. An employee cross-appeals the
district courtâs ruling affirming that he is not entitled to healing period benefits.
REVERSED AND REMANDED ON APPEAL; AFFIRMED ON CROSS-APPEAL.
Peter J. Thill and Brandon W. Lobberecht of Betty, Neuman & McMahon,
P.L.C., Davenport, for appellant/cross-appellee.
Andrew M. Giller of Rush & Nicholson, P.L.C., Cedar Rapids, for
appellee/cross-appellant.
Considered by Ahlers, P.J., Badding, J., and Danilson, S.J.*
*Senior judge assigned by order pursuant to Iowa Code section 602.9206
(2023).
2
AHLERS, Presiding Judge.
In 2018, while working at Archer Daniels Midland (ADM), Richie Williams
fell on his right side and sustained an injury. Williams eventually underwent
surgery to his right shoulder. After recovering from surgery, Williams returned to
work without restrictions.
Williams filed a claim for workersâ compensation benefits for his injury. He
sought industrial disability benefits based on a claim that his injuries occurred
proximal to the glenohumeral joint, so the injury was to his body as a whole rather
than a scheduled shoulder injury under Iowa Code section 85.34(2)(n) (2018). He
also sought healing period benefits for days he called in sick to work before his
surgery. Following a hearing, the deputy workersâ compensation commissioner
found that the injury was to a scheduled member (i.e., the shoulder) rather than to
Williamsâs whole body and he was not entitled to healing period benefits for days
when he called in sick to work.1 Both parties appealed to the workersâ
compensation commissioner on multiple issues, and the commissioner affirmed
the deputy commissionerâs decision.
Both parties sought judicial review of the commissionerâs decision through
Iowa Code chapter 17A.2 Williams sought reversal of the commissionerâs decision
that his injury was limited to a scheduled shoulder injury and that he was not
entitled to healing period benefits. ADM argued that Williams failed to preserve
1 The hearing involved other issues that were resolved by the deputy
commissioner, but we confine our discussion to the issues that are raised on
appeal.
2 The parties raised several issues, but we again confine our discussion to the
issues raised on appeal.
3
error on his challenge to the scheduled nature of his injury because he took a
different tack on judicial review when claiming his injury extended to his whole
body. The district court determined the issue was preserved and reversed the
commissioner, remanding to the agency to make further disability findings as to all
body parts affected. The district court affirmed the commissionerâs decision
denying Williamsâs claim for healing period benefits for his sick days.
ADM appeals, arguing Williams failed to preserve error on the issue of
whether the injury extended to his whole body. Williams cross-appeals, arguing
the district court erred by failing to reverse the commissionerâs decision denying
him healing period benefits.
Iowa Code chapter 17A guides our review of agency decision-making.
Chavez v. M.S. Tech. LLC, 972 N.W.2d 662, 666 (Iowa 2022). We assess whether we come to the same conclusions as the district court.Id.
When reviewing decisions of the workersâ compensation commissioner interpreting Iowa Code chapter 85, we review for correction of errors at law rather than deferring to the agencyâs interpretation âbecause the legislature has not clearly vested the commissioner with authority to interpret that chapter.âId.
That said, â[w]e accept the commissionerâs factual findings when supported by substantial evidence.âId.
(quoting Gumm v. Easter Seal Socây of Iowa,943 N.W.2d 23
, 28 (Iowa 2020)). âEvidence is substantial if a reasonable mind would find it adequate to reach the same conclusion.â Evenson v. Winnebago Indus., Inc.,881 N.W.2d 360, 366
(Iowa 2016) (quoting Coffey v. Mid Seven Transp. Co.,831 N.W.2d 81, 89
(Iowa 2013)). Evidence is not insubstantial just because it could lead reasonable minds to different conclusions.Id.
4
I. Error Preservation
We begin with ADMâs claim that Williams did not preserve error on his
argument that he is entitled to body-as-a-whole benefits because he suffered
injuries to his shoulder and arm. This issue stems from the differences in
compensation for injuries to scheduled body parts and unscheduled body parts.
Iowa Code section 85.34(2)(a)â(u) provides a schedule of injuries to specified body
parts and how they are compensated, while section 85.34(2)(v) covers injuries that
do not fall under the scheduled-member subsections.3 See Chavez, 972 N.W.2d
at 666â67 (describing the difference between scheduled injuries and unscheduled
injuries). In addition to providing a greater potential number of weekly benefits
than any scheduled injury, section 85.34(2)(v) also calls for disability to be based
on the workerâs industrial disability, which is based on loss of earning capacity
rather than strictly functional impairment. Id.
To better understand the issue over error preservation, a timeline in the
development of this case, legislative amendments, and interpretation of those
amendments is useful. Prior to 2017, shoulder injuries were considered
unscheduled injuries to the body as a whole. See Second Inj. Fund v. Nelson, 544
N.W.2d 258, 269 (Iowa 1995) (âWe have previously held that an injury to a joint
such as a hip or shoulder should be treated as an injury to the body as a whole,
not as a scheduled injury.â). However, â[i]n 2017, the legislature amended
3 Iowa Code section 85.34(2)(n) provides: âFor the loss of a shoulder, weekly
compensation during four hundred weeks.â And Iowa Code section 85.34(2)(v)
provides: âIn all cases of permanent partial disability other than those [previously
described,] the compensation shall be paid during the number of weeks in relation
to five hundred weeks . . . .â
5
section 85.34(2) to add âshoulderâ to the list of scheduled injuries and set the
benefits schedule for âthe loss of a shoulderâ to âweekly compensation during four
hundred weeks.ââ Chavez, 972 N.W.2d at 667 (citation omitted). But the legislation
did not define âshoulder.â Id.
The lack of definition in the new legislation led to legal tussles over what
constitutes a âshoulder.â Resolution of those tussles started to shape the definition
of the term, beginning with two decisions by the workersâ compensation
commissioner in Deng v. Farmland Foods, Inc., File No. 5061883, 2020 WL
5893577(Iowa Workersâ Comp. Commân Sept. 29, 2020), and Chavez v. MS Technology, LLC, File No. 5066270,2020 WL 6037534
(Iowa Workersâ Comp. Commân Sept. 30, 2020). In Deng, the commissioner determined that the term âshoulderâ in section 85.34(2)(n) is not limited to the glenohumeral joint but also includes the muscles that make up the rotator cuff. Deng,2020 WL 5893577
, at *10. In Chavez, the commissioner built on the foundation laid in Deng and concluded that a labral tear, a subacromial decompression, or both would be injuries to the âshoulder.â Chavez,2020 WL 6037534
, at *3â4.
The commissionerâs decision in Chavez posed a problem for Williams,
because, as he admitted in his brief to the deputy, the injured parts of his body âfall
within the [c]ommissionerâs definition of the shoulder [the commissioner]
articulated in Chavez.â Of course, having the same injury that was found to be a
shoulder injury in Chavez hampered Williamsâs ability to argue before the agency
that his injuries were unscheduled injuries to his body as a whole. To try to
overcome that problem, Williams took one and only one tack. He argued the
commissionerâs Chavez decision on the issue of what body parts constitute the
6
shoulder was âwrongly decidedâ and he âhereby preserves this issue for appeal.â
After losing this argument before the deputy due to the commissionerâs Chavez
decision, Williams appealed to the commissioner and repeated his argument on
this issue verbatim.
After briefs were submitted to the commissioner on intra-agency appeal, the
supreme court filed its decision ruling on the commissionerâs interpretation of the
term âshoulderâ in Chavez. 972 N.W.2d at 667â68. The supreme court agreed
with the commissionerâs interpretation and held that âshoulderâ is not limited to the
glenohumeral joint but also includes âall of the muscles, tendons, and ligaments
that are essential for the shoulder to function.â Id. at 668. In Williamsâs case, the
commissioner affirmed the deputyâs decision limiting Williams to benefits from a
scheduled shoulder injury.
As Williams pursued judicial review of the commissionerâs ruling, his entire
argument before the agency on the extent of his injuryâthat the commissionerâs
Chavez decision was wrongly decidedâwas dead in the water due to the supreme
courtâs decision on judicial review. So, Williams charted an entirely new course.
He argued that he sustained an injury to both his shoulder and his arm. This new
argument triggered the error-preservation issue here.
The district court found that Williams preserved this issue for judicial review
because the parties have always disputed whether Williamsâs injury qualified as a
scheduled-member shoulder injury or a body-as-a-whole industrial disability. We
respectfully disagree. â[J]udicial review of administrative action is limited to
questions considered by the agency.â Pruss v. Cedar Rapids/Hiawatha
Annexation Special Loc. Comm., 687 N.W.2d 275, 285 (Iowa 2004). To preserve
7
error on an issue, Williams needed to raise the issue during the agency
proceedings and not for the first time during judicial review. Staff Mgmt. v.
Jimenez, 839 N.W.2d 640, 647(Iowa 2013) (âWe have held a party preserves error on an issue before an agency if a party raises the issue in the agency proceeding before the agency issues a final decision and both sides have had an opportunity to address the issue.â). The question is whether Williamsâs argument that the injury extends to the body as a whole because he suffered impairment in both his arm and shoulder is a wholly new argument or simply âadditional ammunition for the same argument.â See JBS Swift & Co. v. Ochoa,888 N.W.2d 887, 893
(Iowa
2016).
Neither party introduced evidence to support or rebut the contention that the
elbow/arm impairment was separate from the shoulder impairment, nor did either
party make any arguments before the agency to support or rebut the contention
that the elbow/arm impairment should cause the injury to be classified as an
industrial disability. See Jimenez, 839 N.W.2d at 647(recognizing error is preserved if there is a final ruling and both sides have been able to address the issue). The argument must be made specifically enough âto alert the court and opposing counsel to the claims he now raises.â Pharaoh-Carlson v. Hy-Vee, Inc., No. 13-1446,2015 WL 566666
, at *4 (Iowa Ct. App. Feb. 11, 2015). The specifics of Williamsâs argument are factually different such that neither the agency nor ADM were alerted to it until it was raised on judicial review. On judicial review, the district court found error on an issue the agency never actually considered. And even if that was a mistake on the part of the agency, it was Williamsâs responsibility to obtain a ruling on the issue. See KFC Corp. v. Iowa Depât of Revenue,792 N.W.2d
8
308, 329 (Iowa 2010) (âWhen an agency fails to address an issue in its ruling and
a party fails to point out the issue in a motion for rehearing, we find that error on
these issues has not been preserved.â).
This is not an instance where Williams clearly made the argument but
simply failed to cite a specific legal authority. See Ochoa, 888 N.W.2d at 893. Nor is it a case where it is clear that he was arguing the issue but did not specifically name the theory upon which he relied. See Off. of Consumer Advoc. v. Iowa State Com. Commân,465 N.W.2d 280
, 283â84 (Iowa 1991) (finding error was preserved when a party raised a Fourteenth Amendment due process claim even though it never specifically mentioned the due process clause because it could not have been arguing anything other than procedural unfairness). Rather, it is a case of Williams finding an alternative way to make his case late in the process and trying to dress it up as a preserved issue. We are not persuaded that Williams raised this issue before the agency. Thus, we find the district court erred in deciding the issue was preserved for judicial review. Cf. Schoenberger v. Acuity, No. 22-1613,2023 WL 2908622
, at *2â3 (Iowa Ct. App. Apr. 12, 2023) (finding error preserved
where claimant raised his industrial disability argument based on the combination
of shoulder and arm injuries on appeal to the commissioner). As a result, we
reverse on ADMâs appeal and remand for entry of an order denying Williamsâs
petition for judicial review as it relates to challenging the commissionerâs ruling that
his injury is limited to a scheduled shoulder injury.
II. Healing Period Benefits
Williams called in sick from work several times due to his shoulder pain and
sought healing period benefits for those days. The commissioner denied his
9
request, and Williams seeks reversal of the commissionerâs decision denying him
healing period benefits.
From the date Williams injured his shoulder until he underwent surgery for
the injury, Williams worked at ADM under restrictions. The deputy commissioner
found that ADM did not provide a formal or written offer of suitable work but instead
simply had Williams find work to do within his restrictions. At least once, Williams
was reprimanded for not working when he was unable to find something he could
do. During this period when Williams had returned to work under restrictions, he
experienced shoulder pain and called in sick, resulting in him missing fifty-two days
of work.
The commissioner4 found the work ADM provided to Williams suitable and
that Williams âdoes not have license to just call in when his injured body part is
particularly sore and then later claim healing period for those dates.â The
commissioner also addressed ADMâs failure to put the offer of work in writing. The
commissioner determined that, in an instance where the employee returned to
work, the failure to provide a written offer of work does not give the employee the
option to collect healing period benefits for days the employee does not feel well
enough to come in.
Williams insists ADM did not meet its responsibility to offer him suitable work
for two reasons. First, he claims the work was not suitable because it is not clear
4 Because the commissioner adopted the deputy commissionerâs proposed ruling,
we treat the two decisions as one and refer to them collectively as the
commissionerâs ruling. See Schutjer v. Algona Manor Care Ctr., 780 N.W.2d 549,
556 n.2 (Iowa 2010) (following the same method for referencing the two decisions
of the agency).
10
from the record that Williams was able to avoid work outside his restrictions.
Second, he points out that the offer was not in writing, as required by
section 85.33(3)(b). As part of his argument, he contends his return to work should
not preclude him from collecting healing period benefits for his sick days.
As to Williamsâs first argument, substantial evidence supports the
commissionerâs finding that the work offered to Williams was suitable. See Neal
v. Annett Holdings, Inc., 814 N.W.2d 512, 519, 524(Iowa 2012) (noting that the question whether an employer offered suitable work is ordinarily a fact question, the resolution of which must be affirmed if supported by substantial evidence). ADM allowed Williams to return to work while only working within his restrictions. Williamsâs supervisor, whom the commissioner found credible, explained the light- duty jobs given to Williams during this time. Williams argues that the reprimand he received for sitting around when he couldnât find a task to do raises the question of whether he was allowed to avoid work outside his restrictions. But nothing in the record suggests ADM ever asked Williams to do anything outside his restrictions. We cannot find lack of substantial evidence that Williams was offered suitable work simply because one could look at the reprimand and perhaps conclude that the work offered to Williams was not within his restrictions. See Evenson,881 N.W.2d at 366
(âAn agencyâs decision does not lack substantial evidence because inconsistent conclusions may be drawn from the same evidence.â (quoting Coffey,831 N.W.2d at 89
)). The evidence in the record is sufficient to allow a reasonable factfinder to conclude that ADM offered Williams suitable work. Seeid.
11
We also do not find it appropriate to permit ADMâs failure to put the offer of
work in writing to lead to the extreme result Williams requests. Section 85.33(3)(a)
precludes an employee from receiving healing period benefits if the employer
offers suitable work and the employee refuses. Under section 85.33(3)(b), the
offer of work must be in writing. The employeeâs refusal must also be in writing.
Iowa Code § 85.33(3)(b). Williams suggests that because the offer was not in writing, ADM cannot now argue that it offered suitable work. He reasons that because the offer of work was not in writing, it is not necessary to address whether he refused the work and we should reverse the denial of healing period benefits. But we find this section simply adds a hurdle to an employerâs defenseâa defense not applicable here due to Williamsâs acceptance of the work. See Cent. Iowa Fencing, Ltd. v. Hays, No. 21-1530,2022 WL 2826011
, at *6 (Iowa Ct. App. July
20, 2022) (holding that an employer may not defend against a claim for healing
period benefits by asserting that the employee refused work when the offer of work
was not in writing). Because ADM is not claiming Williams refused work, it is not
defending his claim for healing period benefits on that basis. Williamsâs undisputed
return to work made any failure to put the offer of work in writing inconsequential.
The writing requirement does not independently create grounds for an employee
to recover healing period benefits, as Williamsâs argument suggests.
Regardless, Williams is only entitled to benefits for the days he did not work
if we find he was otherwise eligible to receive them. But Williams returned to work,
and, under section 85.34(1), doing so cuts off his entitlement to healing period
12
benefits.5 Williams urges us not to use his return to work as a barrier to granting
him healing period benefits. He suggests that to find his return to work
discontinued his healing period would create unfair results by punishing employees
who accept unsuitable work and allow employers to act unscrupulously. But the
statute is clear that an employee is entitled to healing period benefits only until the
employee returns to work.6 We cannot read in an exception to the statute to avoid
potential undesirable outcomes. See Goche v. WMG, L.C., 970 N.W.2d 860, 866
(Iowa 2022) (â[I]t is not our role to rewrite the Iowa statute in the guise of
interpretation.â). We come to the same conclusion as the commissioner that, upon
returning to work, Williams no longer qualified for healing period benefits.
Because substantial evidence supports the finding that ADM offered
Williams suitable work, Williams accepted that work, and Williams returned to
work, he cannot now argue for healing period benefits for the days he called in sick
following his return to work. Therefore, on cross-appeal, we affirm the district
courtâs decision denying Williamsâs petition for judicial review of the
commissionerâs decision denying additional healing period benefits.
5 Iowa Code section 85.34(1) states:
If an employee has suffered a personal injury causing
permanent partial disability for which compensation is payable as
provided in subsection 2 of this section, the employer shall pay to the
employee compensation for a healing period, as provided in section
85.37, beginning on the first day of disability after the injury, and until
the employee has returned to work or it is medically indicated that
significant improvement from the injury is not anticipated or until the
employee is medically capable of returning to employment
substantially similar to the employment in which the employee was
engaged at the time of the injury, whichever occurs first.
6 Of course, a new healing period as a result of additional treatment or
reaggravating the injury is not precluded. See Waldinger Corp. v. Mettler, 817
N.W.2d 1, 8 (Iowa 2012).
13
III. Conclusion
On ADMâs appeal issue, we reverse and remand. We reverse that part of
the district courtâs decision granting Williamsâs petition for judicial review
challenging the commissionerâs decision to compensate Williams for a scheduled
shoulder injury only. We remand to the district court to issue an order denying
Williamsâs petition for judicial review on that issue.
As to Williamsâs cross-appeal, we affirm the district courtâs decision denying
Williamsâs petition for judicial review challenging the commissionerâs decision to
deny additional healing period benefits. Costs on appeal are assessed to Williams.
REVERSED AND REMANDED ON APPEAL; AFFIRMED ON CROSS-
APPEAL.