Iowa Workers' Compensation

Claimant's estate in this matter argued that settlement of claimant's partial commutation case had been reached before claimant died.  The agency granted summary judgment to the employer and in Estate of Ed Albaugh v. UPS Freight , No. 20-0070 (Iowa App. April 14, 2021), the court of appeals affirmed the grant of summary judgment to defendant.  Claimant had been injured at work and was found to be permanently and totally disabled by the agency in 2014.  Claimant petitioned for partial commutation of benefits in March 2017. In June, defendant's attorney indicated that his client would agree to partial commutation if claimant agreed to an MSA, with a reversionary interest to Gallagher Bassett/UPS.  Plaintiff's attorney responded he was willing to consider the idea. By November, no further progress had been reached, but shortly before the May 1, 2018 hearing, defendant's attorney indicated that UPS would agree to commutation and run a new MSA.  She indicated that i...

 In United Fire and Casualty v. Hessenius , No. 19-1929 (Iowa App. Dec. 16, 2020), the court considered the commissioner’s award of a partial commutation following a PTD award under the old (pre- 7/1/17j law.   The deputy had awarded only $100,000 of the partial commutation, but the commissioner reversed and awarded a partial commutation of over $1 million.  Defendants appeal. Defendants argued that the commissioner’s decision was not supported by substantial evidence, specifically alleging that claimant had not demonstrated how he would make up for the stream of income lost due to the partial commutation.  The court notes that claimant had testified that he planned to invest the amounts very conservatively to provide a stream of income.  The court also notes that claimant’s financial advisor was fully in support of the commutation.  The court finds that claimant’s testimony and evidence was substantial evidence supporting the commissioner’s decision.

In July of 2017, the partial commutation statute was amended to permit commutations only if both parties agreed.  Prior to the effective date of the statute on 7/1/17, cases were filed throughout Iowa seeking partial commutations despite the fact that no administrative decision had been issued setting the amount of benefits owed to the claimant.  These cases were uniformly denied by the commissioner and in Vangetson v. Aero Concrete, Ltd.  and Fasig Snitker v. Birdnow Enterprises, Inc ., No. 19-0738 (Iowa App. July 22, 2020), the Court of Appeals affirms the decision of the district court which had, in turn, affirmed the decision of the commissioner. The court focused on the language in section 85.45(1) of the Code which stated that a commutation was possible when "the period during which compensation is payable can be definitely determined" and when the commutation was in the "best interest" of the claimant.  The court noted, in reviewing the claim, that the c...

In Pilgrim's Pride v. Eakins , No. 12-0901 (Iowa App Jan. 24, 2013), the court of appeals addressed the issue of partial commutation, an issue that does not come before the appellate courts frequently.  Two issues were presented - whether claimant was entitled to the partial commutation (i.e. whether the commutation was in claimant's best interests) and whether the amount of the commutation should be based on the amounts due at the time of filing (including the discount amount) or at some later date. On the issue of commutation, the court concluded that the issue was largely one of substantial interest.  The court noted that the "best interests" test of Dameron v. Newmann Bros. , 339 N.W.2d 160, 164 (Iowa 1983) was the governing standard.  Under this test, the agency is to consider the workers' age, education, mental and physical condition, life expectancy, family circumstances and living arrangements, and the reasonableness of the investment plan in determining...