Supreme Court Decision in IBP, Inc. v. Burress

The Burress case involved a claimant with brucellosis, which was contracted by exposure to hog blood. The Supreme Court concluded that brucellosis, despite being specifically mentioned in Chapter 85A, was an injury under Chapter 85 in Mr. Burress' case. IBP, Inc. v. Burress, 779 NW2d 210 (Iowa 2010). According to the court, an injury has its origin in a specific identifiable trauma or series of such occurrences. A disease, which is compensable under Chapter 85A, originates from a source that is neither traumatic nor physical.

The court engaged in an extensive discussion of the types of diseases that are occupational diseases and not injuries. They noted that in other states, the contraction of brucellosis had been found to be "an accidental injury rather than an occupational disease. The court relied on the findings of the hearing deputy that Mr. Burress' exposures were most likely due to a cut on his hands and exposure to blood that was "sudden, traumatic and of a brief duration." It rejected the contention that because brucellosis was mentioned in section 85A.11, it could not be an injury.

IBP also argued that claimant had not brought his petition within the two year statute of limitations, and had failed to notify the employer of his injury within 90 days. The agency had found that claimant was not aware of the potential compensability for the injury until December 8, 2004, the date on which a doctor had written a letter to the employer finding a causal link between work and brucellosis. Claimant, however, had notified the employer of the injury some months earlier in April of 2004. The court concluded that claimant may have become aware of the probable compensable character of his injury in March or April, and thus the notification of the employer in April would have been within the 90 day limits of section 85.23. Because no factual findings had been made concerning this earlier knowledge of the compensability of the injury, however, the court remanded the case to the commissioner for further factual findings.

In a finding concerning procedural issues, the court found that the fact that the extent of disability was changed from 80% at the arbitration level to permanent total disability on appeal would be affirmed, despite the fact that claimant had not filed a cross appeal urging an increase in the extent of disability. The court noted that IBP had appealed from "each and every" finding made in the arbitration decision, and also noted that claimant had clearly addressed the increase in disability in his brief. The court found that in this situation, the employer had not been deprived of fundamental fairness because they knew of claimant's argument to increase the award of benefits because it was noted in claimant's brief. Permanent total disability was affirmed on substantial evidence grounds.

Finally, the court reversed a penalty award made by the agency. Because there was an express reference to brucellosis in chapter 85A, the court found the employer had a reasonable basis to believe that brucellosis would be treated as an occupational disease.