Pope, Gregory v. Nebco of Cleveland, Inc., d/b/a Toyota of Cleveland , 2016 TN WC App. 65 ( 2016 )


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  •             TENNESSEE BUREAU OF WORKERS’ COMPENSATION
    WORKERS’ COMPENSATION APPEALS BOARD
    Gregory Pope                                  )   Docket No. 2015-01-0010
    )
    v.                                            )   State File No. 65681-2014
    )
    Nebco of Cleveland Inc., d/b/a                )
    Toyota of Cleveland, et al.                   )
    )
    )
    Appeal from the Court of Workers’             )
    Compensation Claims                           )
    Thomas Wyatt, Judge                           )
    Reversed and Dismissed - Filed November 28, 2016
    This appeal involves a car salesman who injured his knee participating in a recreational
    charity event sponsored in part by his employer, a car dealership. The employer refused
    to pay workers’ compensation benefits on the basis that the salesman’s participation in
    the recreational activity was voluntary and not a part of his work duties. The trial court
    found that the salesman’s injury occurred in the course and scope of his employment and
    ordered the employer to reimburse him for his out-of-pocket expenses and pay the
    medical bills associated with his treatment. The trial court also ruled that the salesman’s
    attorney was entitled to calculate his fee based on the amount of the medical expenses
    and out-of-pocket expenses. The employer has appealed, raising two issues: (1) whether
    the evidence preponderates against the trial court’s determination that the salesman’s
    participation in the recreational activity was impliedly required within the meaning of
    Tennessee Code Annotated section 50-6-110(a)(6)(A) and was a part of his work duties
    under Tennessee Code Annotated section 50-6-110(a)(6)(C), and (2) whether the award
    of attorney’s fees was proper. We hold that the trial court erred in finding the salesman’s
    participation in the recreational event was impliedly required by the employer or was a
    part of his work duties, pretermitting our consideration of the attorney’s fees issue. The
    trial court’s decision is reversed and the case is dismissed. The court’s order, as reversed,
    is certified as final.
    Presiding Judge Marshall L. Davidson, III, delivered the opinion of the Appeals Board in
    which Judge David F. Hensley and Judge Timothy W. Conner joined.
    1
    Jennifer Orr Locklin, Nashville, Tennessee, for the employer-appellant, Nebco of
    Cleveland, Inc., d/b/a Toyota of Cleveland
    William J. Brown, Cleveland, Tennessee, for the employee-appellee, Gregory Pope
    Factual and Procedural Background
    Gregory Pope (“Employee”), a fifty-three-year-old resident of Bradley County,
    Tennessee, suffered a serious knee injury on August 16, 2014, while participating in a
    “mud run” charity event sponsored in part by his employer, Nebco of Cleveland, Inc.,
    d/b/a Toyota of Cleveland (“Employer”). The mud run, a fundraiser to benefit Habitat
    for Humanity, involved numerous teams competing for the fastest time negotiating an
    obstacle course in the mud. Employee was injured attempting to scale a six-foot wall
    approximately ten minutes into the course.
    Employee’s injury, a left quadriceps tendon rupture, required surgery to repair.
    His personal health insurance paid most of his medical bills, which exceeded $19,000,
    and he incurred out-of-pocket expenses of approximately five hundred dollars. Employer
    denied Employee’s workers’ compensation claim based upon its belief that he had
    voluntarily participated in the event, barring any recovery. Employee responded that his
    participation in the mud run was required and was a part of his work-related duties.
    Although Employee returned to work following his surgery, he was eventually terminated
    for reasons unrelated to his injury.
    Three individuals testified at trial: Dave Mason, a fellow sales consultant and the
    individual tasked with forming the mud run team; Eddie Triplett, Employer’s general
    manager who asked Mr. Mason to form a team; and Employee. Employee testified that
    when he was first approached by Mr. Mason to participate in the mud run, Mr. Mason
    told him that Mr. Triplett had asked him to organize a team for the event. Employee
    declined to participate because the event was on a Saturday morning, which he described
    as a “peak selling time” for sales people. In all, Mr. Mason approached Employee three
    or four times about joining the team and, eventually, Employee agreed to participate
    because he believed “that if [he] bailed at that point because it was so close to the event
    that everyone would have remembered, ‘[o]kay. Greg Pope didn’t do it.’ So it kind of
    put me out there.” Employee was not concerned that any adverse employment action
    would be taken against him if he declined, which he did at least twice before finally
    agreeing to participate.
    Employee also testified that he did not want to be away from the dealership on a
    Saturday, stating that, as a single parent, he “had to think of making money for [his
    family] versus doing [the mud run] and the possibility of getting hurt.” When asked
    whether he was concerned about being disciplined if he refused to participate, he
    testified, “I didn’t think I would [have] been fired if I didn’t do it. I just [thought] that . . .
    2
    everyone would have realized Greg was the last hope and he didn’t do it. And that would
    have been a let down for the team.”
    Employee further testified that he felt participating in the mud run was a work-
    related activity because it occurred during working hours – a Saturday morning – and he
    felt it was his duty to help represent the dealership. He also described having attended a
    gathering at the dealership approximately two days prior to the event at which Mr.
    Triplett distributed matching “Captain America” t-shirts and asked the team to dress
    alike.1 The participants on the team were allowed to drive dealership cars to the event,
    but they were not obligated to stay with the vehicles, attempt to sell any vehicles, or staff
    a tent operated by Employer’s corporate owner. At the beginning of the event, Mr.
    Triplett used his influence as one of the event sponsors to obtain an earlier starting time
    for his team, as the salesmen wanted to return to the dealership so they could sell
    vehicles. It is undisputed that team members were not provided any type of
    compensation to participate.
    Employee acknowledged that he had not participated in prior mud runs sponsored
    by Employer. He also acknowledged that no one threatened to take adverse employment
    action against him if he declined to participate.
    Mr. Mason, who was Employee’s co-worker and friend, testified that Employer, in
    return for sponsoring the mud run, had been allotted multiple teams to enter in the event.
    He indicated that Mr. Triplett asked him to put together a team, and Mr. Mason
    considered participation to be a work-related activity because it was an opportunity to
    promote the dealership. He stated that because he had seen Employee in the gym and
    knew him to be in good physical condition, he decided to ask Employee to join the team.
    After experiencing difficulty filling the team, he returned to Employee and “did pressure
    him into doing it.” Mr. Mason had no supervisory responsibilities at the dealership. He
    was, like Employee, a sales consultant.
    Mr. Mason also testified that he did not tell Employee that participation in the mud
    run was required and that he had not been threatened with any adverse employment
    action had he been unable to get a team together or had he decided not to participate
    himself. He stated that, had he been unable to organize a team, he assumed the
    dealership would simply not enter a team or would look for participants elsewhere. He
    further indicated that he had not been instructed to attempt to sell cars at the mud run or
    staff the dealership tent.
    1
    It is undisputed that the shirts contained no company logo and did not otherwise associate the team
    members with Employer or its dealership.
    3
    Mr. Triplett, the dealership’s general manager, testified that he believed
    sponsorship of events like the mud run was an important element of being a good
    corporate member of the community. He testified that Employer had sponsored a number
    of community events over the years and, while some employees participated in some of
    those events, participation was never mandatory. While the mud run organizers had
    allotted teams to the dealership in the past, Mr. Triplett had not previously asked that a
    team be organized, giving those entry spots to others who wanted to form a team instead,
    such as specific employees or family members who expressed a desire to participate. In
    the past and at the event in question, the teams fielded from Employer’s allotment were
    not required to wear clothing or engage in any other conduct identifying themselves as
    being associated with Employer.
    In addition, Mr. Triplett testified that he had decided to put together a team on this
    particular occasion because it would be fun and because his children had put “peer
    pressure” on him to enter, telling him he was “too old, too fat, and too slow to do it.” He
    stated, “I’m sitting there with two unclaimed teams. And it’s not that big a deal. Nobody
    would notice if we weren’t there, probably. But I didn’t want them to completely go to
    waste either, and I thought it would be fun.” He stated that, while he believed it would be
    beneficial to have a team entered in the mud run, he did not believe the business would
    suffer if it failed to enter a team.
    Finally, Mr. Triplett did not “shame” any employee who declined to participate in
    the mud run and, in fact, was unaware of who had refused to be on the team. He testified
    that he did not consider participation in the event to be a part of the participants’ work
    duties. When asked what, if any, action he would have taken had Employee declined to
    participate, he testified that “short of personal disappointment,” there would have been no
    adverse employment consequences. Mr. Triplett testified that he did not “lean” on
    Employee or anyone else to join the team.
    At trial, Employer argued that Employee’s participation on the team was not
    associated with his work duties, as it was a recreational event in which participation was
    purely voluntary. By contrast, Employee took the position that because he was pressured
    into joining the team, participation was a part of his work duties. The trial court agreed,
    concluding that Employee’s participation in the mud run was impliedly required and was
    a part of his work-related duties. The court awarded benefits in the form of
    reimbursement of Employee’s out-of-pocket expenses and payment of the medical bills
    associated with his treatment. The trial court also awarded Employee’s attorney a fee
    based on Employee’s out-of-pocket expenses.
    Employee filed a post-trial motion asking the trial court to reconsider the issue of
    attorney’s fees, arguing that the medical expenses associated with treating his injury were
    a part of his recovery or award and, thus, his attorney should be entitled to calculate his
    fee on the basis of the medical bills, not just the out-of-pocket expenses. The trial court
    4
    agreed and awarded Employee’s attorney a fee based on the out-of-pocket expenses as
    well the medical bills Employer was ordered to pay.
    Employer has appealed, arguing that the trial court erred in finding Employee’s
    injury to be compensable, as participation in the mud run was not required and was not a
    part of his work duties. Employee responds that his participation was, in fact, required as
    a part of his work-related duties. For the reasons that follow, we reverse the trial court’s
    decision and dismiss the case.
    Standard of Review
    The standard we apply in reviewing a trial court’s decision is statutorily mandated
    and limited in scope. Specifically, “[t]here shall be a presumption that the findings and
    conclusions of the workers’ compensation judge are correct, unless the preponderance of
    the evidence is otherwise.” Tenn. Code Ann. § 50-6-239(c)(7) (2015). The trial court’s
    decision may be reversed or modified if the rights of a party “have been prejudiced
    because findings, inferences, conclusions, or decisions of a workers’ compensation judge:
    (A)    Violate constitutional or statutory provisions;
    (B)    Exceed the statutory authority of the workers’ compensation judge;
    (C)    Do not comply with lawful procedure;
    (D)    Are arbitrary, capricious, characterized by abuse of discretion, or
    clearly an unwarranted exercise of discretion; or
    (E)    Are not supported by evidence that is both substantial and material
    in the light of the entire record.”
    Tenn. Code Ann. § 50-6-217(a)(3) (2015).
    Analysis
    A.
    It has long been the general rule in Tennessee that injuries sustained while an
    employee is voluntarily engaged in a recreational activity are not compensable as work-
    related accidents. Indeed, as far back as 1932, the Tennessee Supreme Court observed
    that “where an employe[e] departs from his work to engage in a sportive act that is in
    nowise connected with his employment, or incidental thereto, he cannot recover for an
    injury resulting from such act.” Hawkins v. Nat’l Life & Accident Ins. Co., 
    46 S.W.2d 55
    ,
    56 (Tenn. 1932).
    More recently, our Supreme Court was confronted with a case involving an
    employee who drowned while boating on his lunch break. Jordan v. United Methodist
    Urban Ministries, Inc., 
    740 S.W.2d 411
    (Tenn. 1987). The employee and other workers
    5
    were being trained in construction work and were allowed to eat their lunch by a lake a
    short distance away from their worksite.
    Id. at 412.
    The workers found a boat and rowed
    it out onto the lake.
    Id. The employee jumped
    from the boat to swim to shore and
    drowned. The Supreme Court concluded that the employee’s conduct “constituted a
    complete departure from the scope and course of [the] employment.”
    Id. Accordingly, death benefits
    were denied.
    Id. Shortly after Jordan
    was decided, the Supreme Court again addressed recovery for
    injuries sustained while engaged in recreational activities. In Ward v. Mid-South Home
    Serv., 
    769 S.W.2d 486
    (Tenn. 1989), the employee, a construction worker, suffered an
    injury playing basketball at a customer’s home during a lull in the work. Denying his
    claim for benefits, the Supreme Court noted that “compensation has been awarded only
    when recreational or social activities are shown to be a regular incident of the
    employment or under circumstances where the employer requires participation or
    otherwise derives some substantial direct benefit from the activity.”
    Id. at 487.
    Because
    the recreational activity in which the injured worker was engaged was “purely for [his]
    own entertainment and amusement,” he was not within the course and scope of his
    employment when he was injured and, therefore, was not entitled to recover workers’
    compensation benefits.
    Id. In still another
    case, Tucker v. Acme Boot Co., 
    856 S.W.2d 703
    (Tenn. Workers’
    Comp. Panel 1993), the Special Workers’ Compensation Appeals Panel was faced with a
    situation in which, unlike the employees in Jordan and Ward who were injured during
    their working hours, the employee was injured while participating on a softball team
    organized by a co-worker. Employees were not required to participate, and the employer
    did not expressly sponsor the team.
    Id. at 704.
    However, the employer encouraged
    employees to participate, paying the team’s league entry fee, paying a lighting fee for
    practices, providing equipment and shirts displaying the employer’s logo, and awarding
    “aerobic bucks” to employees who participated, which could be exchanged for prizes.
    Id. The Court in
    Tucker followed the analysis in Jordan and Ward and adopted the following
    test to determine whether an injury sustained while participating in a recreational activity
    is compensable:
    [R]ecreational or social activities are within the course of employment
    when (1) they occur on the premises during a lunch or recreational period
    as a regular incident of the employment, or (2) the employer, by expressly
    or impliedly requiring participation, or by making the activity part of the
    services of the employee, brings the activity within the orbit of the
    employment, or (3) the employer derives substantial direct benefit from the
    activity beyond the intangible value of improvement in employee health
    and morale that is common to all kinds of recreation and social life.
    6
    Id. at 705.
    The Panel in Tucker determined that the employee’s injury was not made
    compensable by either of the first two factors, as the injury did not occur on the
    employer’s premises and participation in the softball league was not required.
    Id. Furthermore, the Panel
    concluded that the employee’s participation was not of a nature to
    provide a benefit to the employer beyond the benefits inherent in any “refreshing social
    and recreational” activity.
    Id. Subsequently, the test
    adopted in Tucker was applied in a case in which the
    employee was injured at a car race sponsored by the employer. In Cameron v. Fireman’s
    Fund Ins. Co., No. E1998-00678-WC-R3-CV, 2000 Tenn. LEXIS 725, at *2 (Tenn.
    Workers’ Comp. Panel Dec. 15, 2000), the employer held a “race night” several days in
    advance of the race and required some employees to attend and perform certain functions,
    although the employee who was injured had no duties at the actual race where she was
    injured.
    Id. at *3-4.
    The Panel concluded that none of the factors enumerated in Tucker
    brought the employee’s claim within the ambit of workers’ compensation.
    Id. at *9-10.
    The injury did not occur on the employer’s premises, attendance at the race was not
    required, and there was no evidence the employer received a benefit from the employee’s
    participation.
    Id. Hence, the employee
    was not entitled to a recovery.
    In yet another recreational activity case, Young v. Taylor-White, PLLC, 
    181 S.W.3d 324
    (Tenn. 2005), the Supreme Court considered whether an employee who was
    injured participating in a three-legged race at a company picnic could recover workers’
    compensation benefits. The picnic was held outside of normal work hours at a public
    park.
    Id. at 326.
    Although employees had to sign up to attend the picnic and check in
    upon arrival, attendance was not required.
    Id. at 327.
    There were no negative
    consequences for not attending, and no one was paid to attend.
    Id. In its analysis
    of the
    case, the Supreme Court noted that “the voluntary nature of the activity, rather than the
    fact that the activity occurs on the employer’s premises or provided a benefit to the
    employer, is the touchstone for determining whether the injury occurred during the
    course of employment.”
    Id. at 329.
    The Court determined that, although others
    encouraged the employee to participate in the three-legged race, her participation in the
    race was voluntary. Thus, an award of benefits was reversed.
    Finally, in 2007, the Supreme Court again considered the parameters of
    compensable injuries in the context of recreational activities. In Gooden v. Coors Tech.
    Ceramic Co., 
    236 S.W.3d 151
    (Tenn. 2007), the employee suffered a fatal heart attack
    playing basketball during a regular work break.
    Id. at 153.
    There was no dispute that
    playing basketball contributed to the employee’s heart attack or that supervisors
    occasionally joined employees playing basketball.
    Id. at 154.
    The trial court denied
    benefits, finding the employee had pre-existing heart disease and that the injury did not
    arise out of the employment. The Supreme Court reconsidered its identification of the
    voluntary nature of the employee’s activity as the “touchstone” of the analysis, observing
    that it was “not a judicious use of the term” and that “[e]levating this factor above all
    7
    others would be a clear departure from our traditional emphasis on ‘the time, place, and
    circumstances of the injury.’”
    Id. at 155.
    Addressing the circumstances surrounding the
    employee’s death, the Court held that the employer’s “acquiescence combined with the
    regularity of the basketball games made the games an incident of [the employee’s]
    employment.”
    Id. at 156.
    Against this extensive backdrop of case law, the General Assembly, in 2009,
    adopted Tennessee Code Annotated section 50-6-110(a)(6), which was unchanged by the
    2013 Workers’ Compensation Reform Act. In keeping with the long-held view that
    injuries resulting from “refreshing social and recreational” activities are generally not
    compensable, 
    Tucker, 856 S.W.2d at 705
    , the statute declares that an injury is not
    compensable if it occurs as a result of “[t]he employee’s voluntary participation in
    recreational, social, athletic or exercise activities, including, but not limited to, athletic
    events, competitions, parties, picnics, or exercise programs, whether or not the employer
    pays some or all of the costs of the activities.” Tenn. Code Ann. § 50-6-110(a)(6).
    However, benefits may be awarded if the activity falls into one or more of the following
    exceptions:
    (A)     Participation was expressly or impliedly required by the employer;
    (B)     Participation produced a direct benefit to the employer beyond
    improvement in employee health and morale;
    (C)     Participation was during employee’s work hours and was part of the
    employee’s work-related duties; or
    (D)     The injury occurred due to an unsafe condition during the voluntary
    participation using facilities designated by, furnished by or
    maintained by the employer on or off the employer’s premises and
    the employer had actual knowledge of the unsafe condition and
    failed to curtail the activity or program or cure the unsafe condition.
    Id. The statute further
    provides that if an employer “defends on the ground that the injury
    arose in any or all of the ways stated in subsection (a),” which includes a number of
    defenses in addition to the recreational activity defense, “the burden of proof shall be on
    the employer to establish the defense.” Tenn. Code Ann. § 50-6-110(b).2
    2
    While the statute is clear that the burden of establishing the defense set out in section 50-6-110(a)(6) lies
    with the employer, it is less clear who bears the burden of proving the existence or absence of the
    exceptions set out in subsections (A)-(D). Employer takes the position that an employee must establish
    any applicable exception before an employer is obligated to present proof that any such exception does
    not apply. Employee, on the other hand, asserts an employer bears the burden of disproving each
    exception and that an employee bears no burden of proof once an employer asserts the defense. While we
    acknowledge the statute can be interpreted in different ways, we need not resolve this issue in the present
    8
    B.
    Guided by the foregoing principles, we return to the facts of this case. The trial
    court concluded that Tennessee Code Annotated section 50-6-110(a)(6)(A) and (C)
    applied, finding that Employee was impliedly required to participate in the mud run and
    that it was a part of his job duties. According to the trial court, Employee’s “work
    assignment was to participate in the mud run.” We disagree.
    Participation Impliedly Required
    With respect to whether Employee’s participation in the mud run was “impliedly
    required” within the meaning of section 50-6-110(a)(6)(A), the proof is uncontradicted
    that Employee would not have faced any adverse employment consequences if he
    declined to participate. Mr. Mason, the salesman tasked with assembling the team,
    testified that he asked Employee to be on the team because Employee was in good
    physical condition and “enjoyed that kind of thing.” According to Mr. Mason, Mr.
    Triplett never told him that participation was required and he, in turn, never told
    Employee that participation was a part of his job duties. In fact, when Mr. Mason
    experienced difficulty filling the team, he told Employee that Employee was “our last
    choice and I need you to do it if you can.” If Employee had been required to participate,
    there would have been no need for Mr. Mason to ask him to join the team several times,
    and only then “if [he] can.”
    We also note that Mr. Mason was Employee’s friend and co-worker, not his
    supervisor, undercutting any implication Employer coerced Employee to participate.
    While Mr. Mason did pressure Employee to participate, he did so because it would be
    “fun” and they would be able to “get out of work for a few hours.” He never told
    Employee participation was required. Mr. Mason did not believe anyone would have
    suffered negative consequences for declining to participate. Further, Mr. Triplett never
    suggested to Mr. Mason that he or anyone else would suffer adverse consequences if he
    did not put together a team.
    For his part, Mr. Triplett, the general manager of the dealership, testified that he
    believed entering a team in the mud run would be “fun,” that participation was “definitely
    voluntary,” and that he would not and did not take any adverse employment action
    against anyone who declined to participate. In fact, he did not know who was being
    asked to participate or who declined to do so, and he did not “shame” or discipline
    anyone for not participating. Moreover, Mr. Triplett did not consider participation to be a
    part of Employee’s job duties, and he did not “lean” on Employee or anyone else to
    participate. This evidence was undisputed.
    appeal because, regardless of whether the statute contemplates a shifting burden of proof, the evidence
    preponderates against the trial court’s finding of compensability.
    9
    Employee himself acknowledged that he did not believe any negative employment
    action would be taken against him if he declined to be on the team, and that the only
    adverse effect of a refusal to participate would be disappointing Mr. Triplett and the rest
    of the mud run team. He testified that he viewed Mr. Triplett as a “father figure” and did
    not want to let him down. However, while he stated he felt pressured to participate, he
    did not fear any negative consequences to his job had he declined to participate. Nor was
    he told by anyone that he was obligated to participate.
    Employee also acknowledged that the reason he was asked to join the team was
    because he was physically fit and Mr. Mason needed someone who could complete the
    course. Other dealership employees declined to participate and suffered no adverse
    employment actions. According to Employee, no one was “shamed,” “fired,” or “in any
    way disciplined” for failing to participate so far as he knew. Although Employee may
    have felt peer pressure to participate, such pressure is an inherent part of most
    competitive events of this nature. Whether Employee felt peer pressure to participate is
    not the determinative issue. Rather, the question is whether pressure was applied by the
    employer amounting to an express or implied requirement to participate. Based on this
    record, it did not.
    Furthermore, while Employer was associated with a vendor tent at the event, the
    evidence was unrefuted that no employees were required to staff the tent. Also, the team
    did not wear any clothing identifying them as being associated with Employer. In
    addition, Employee was not on the clock while at the event, and Mr. Triplett used his
    influence to obtain an earlier start time so the employees could get back to the dealership
    and work. The proof was unrefuted that no employee was paid to participate and there
    were no prizes or incentives to do so.
    Considering these circumstances as a whole, we conclude that the evidence does
    not support the trial court’s finding that Employee’s participation in the mud run was
    “impliedly required” within the meaning of section 50-6-110(a)(6)(A).
    Part of Employee’s Work-Related Duties
    The trial court also found that section 50-6-110(a)(6)(C) applied, determining that
    participation in the mud run occurred during working hours and was a part of Employee’s
    work duties. This finding is likewise not supported by the weight of the evidence.
    While it is undisputed that the mud run occurred during normal working hours, a
    Saturday morning, the record is devoid of evidence to support a finding that it was part of
    Employee’s work duties. Employee was not paid for his time away from the dealership
    to participate in the event, which was one of his central reasons for initially declining to
    be on the team. He was not required to attempt to sell vehicles or network, was not
    required to staff Employer’s tent, and did not wear any clothing to identify him as an
    10
    employee of Employer. Employee did not identify any work duty he was expected to
    perform at the mud run. Instead, he merely expressed his opinion that participation was
    part of his work duties and that he was there in a representative capacity. However, it is
    unclear how he could have been representing Employer, as it was not readily apparent to
    anyone attending the event that he worked for Employer.
    In short, the preponderance of the evidence establishes that Employee’s
    participation in the mud run, while perhaps the product of peer pressure, was in no way
    required by Employer. The proof is clear and uncontradicted that, had Employee refused
    to participate altogether, he would have faced no adverse employment consequences.
    Moreover, there is no evidence that Employee was performing any work duties while at
    the mud run. In fact, the proof is to the contrary, as Employee did not staff Employer’s
    tent, did not wear anything to identify him as an employee of Employer, and he wanted to
    complete the course quickly so he could get to work. Accordingly, the trial court’s
    decision is reversed.
    C.
    The second issue presented for our review concerns the trial court’s decision
    regarding attorney’s fees. Initially, the trial court declined to award attorney’s fees based
    on the amount of medical expenses Employer was required to pay, more than $19,000
    and, instead, awarded fees based only on Employee’s out-of-pocket expenses of
    approximately five hundred dollars. However, upon reconsideration, the trial court
    determined Employee’s attorney was entitled to a fee based upon both the out-of-pocket
    expenses and the medical bills Employer was ordered to pay.
    Employer asserts that the pertinent statute, Tennessee Code Annotated section 50-
    6-226, does not contemplate including the cost of medical care in the calculation of
    attorney’s fees.3 Employer maintains that recent changes to this statute, which were not
    in effect on the date of the injury in this case, contemplate such payments and that, had
    the legislature intended an employee’s attorney recover a fee on the basis of medical
    expenses, such an amendment would have been unnecessary.4 Employee responds that,
    in a case such as this where all benefits were denied, the medical expenses are properly
    3
    See Tenn. Code Ann. § 50-6-226(a)(2)(A) (2015) (“Medical costs that have been voluntarily paid by the
    employer or its insurer shall not be included in determining the award for purposes of calculating the
    attorney’s fees.”).
    4
    Tennessee Code Annotated section 50-6-226(d)(1)(B) provides that the trial court may award reasonable
    attorney’s fees and costs when an employer “[w]rongfully denies a claim by filing a timely notice of
    denial, or fails to timely initiate any of the benefits to which the employee is entitled under this chapter,
    including medical benefits under § 50-6-204 or temporary or permanent disability benefits under § 50-6-
    207, if the workers’ compensation judge makes a finding that such benefits were owed at an expedited
    hearing or compensation hearing.” Although referenced by the parties in their briefs and at oral
    argument, this statute applies only to claims for injuries occurring on or after July 1, 2016.
    11
    considered part of an employee’s award and, thus, his attorney is entitled to fees
    associated with the payment of those benefits. See Tenn. Code Ann. § 50-6-226(a)(1)
    (“[N]o attorney’s fees to be charged employees shall be in excess of twenty percent
    (20%) of the amount of the recovery or award to be paid by the party employing the
    attorney. The [Bureau of Worker’s Compensation] shall deem the attorney’s fee to be
    reasonable if the fee does not exceed twenty percent (20%) of the award to the injured
    worker . . . .”) (Emphasis added.).
    However, because we have determined that the trial court erred in finding
    Employee suffered a compensable injury, the issue of whether the trial court properly
    calculated attorney’s fees is pretermitted.
    Conclusion
    For the foregoing reasons, we hold that the evidence preponderates against the
    trial court’s decision and violates section 50-6-217(a)(3)(A) and (E). Accordingly, the
    trial court’s decision is reversed and the case is dismissed. The trial court’s order, as
    reversed, is certified as final.5
    5
    See Tenn. Code Ann. § 50-6-217(a)(2)(B) (2015) (“If a compensation order is timely appealed to the
    appeals board, the order issued by the workers’ compensation judge shall not become final . . . until the
    workers’ compensation appeals board issues a written decision certifying the order as a final order.”).
    12
    TENNESSEE BUREAU OF WORKERS’ COMPENSATION
    WORKERS’ COMPENSATION APPEALS BOARD
    Gregory E. Pope                                           )   Docket No. 2015-01-0010
    )
    v.                                                        )
    )   State File No. 65681-2014
    Nebco of Cleveland, Inc., d/b/a                           )
    Toyota of Cleveland, et al.                               )
    CERTIFICATE OF SERVICE
    I hereby certify that a true and correct copy of the Appeals Board’s decision in the
    referenced case was sent to the following recipients by the following methods of service
    on this the 28th day of November, 2016.
    Name                     Certified   First Class   Via   Fax      Via     Email Address
    Mail        Mail          Fax   Number   Email
    William J. Brown                                                     X    wjb@vollaw.com
    Jennifer Orr Locklin                                                 X    jennifer.locklin@farrar-bates.com
    Thomas Wyatt, Judge                                                  X    Via Electronic Mail
    Kenneth M. Switzer,                                                  X    Via Electronic Mail
    Chief Judge
    Penny Shrum, Clerk,                                                  X    Penny.Patterson-Shrum@tn.gov
    Court of Workers’
    Compensation Claims
    Matthew Salyer
    Clerk, Workers’ Compensation Appeals Board
    220 French Landing Dr., Ste. 1-B
    Nashville, TN 37243
    Telephone: 615-253-1606
    Electronic Mail: Matthew.Salyer@tn.gov
    

Document Info

Docket Number: 2015-01-0010

Citation Numbers: 2016 TN WC App. 65

Judges: Marshall L. Davidson III, David F. Hensley, Timothy W. Conner

Filed Date: 11/28/2016

Precedential Status: Precedential

Modified Date: 1/10/2021