Lesner v. Liquid Disposal, Inc

Court: Michigan Supreme Court
Date filed: 2002-05-07
Citations: 643 N.W.2d 553, 466 Mich. 95, 643 N.W.2d 553, 466 Mich. 95, 643 N.W.2d 553, 466 Mich. 95
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18 Citing Cases

                                                                       Michigan Supreme Court
                                                                       Lansing, Michigan 48909
____________________________________________________________________________________________
                                                                C hief Justice                   Justices
                                                                Maura D. Cor rigan	              Michael F. Cavanagh




O pinion
                                                                                                 Elizabeth A. Weaver
                                                                                                 Marilyn Kelly
                                                                                                 Clifford W. Taylor
                                                                                                 Robert P. Young, Jr.
                                                                                                 Stephen J. Markman

____________________________________________________________________________________________________________________________

                                                                                      FILED MAY 7, 2002





                ROBERT C. LESNER, Father of

                Randy Lee Lesner, Deceased,


                        Plaintiff-Appellee,


                v                                                                                No. 116205


                LIQUID DISPOSAL, INC., and

                HARTFORD ACCIDENT AND INDEMNITY, 


                     Defendants-Appellants.

                ________________________________

                BEFORE THE ENTIRE BENCH


                YOUNG, J.


                        The plaintiff’s son was fatally injured in the course of


                employment.          Plaintiff, a partial dependent of the decedent,


                sought      worker’s        compensation          benefits.           Through         extended


                proceedings, there has been uncertainty with regard to the


                proper amount of the benefits to be paid to plaintiff under


                the formula established by this Court in Weems v Chrysler


                Corp, 448 Mich 679; 533 NW2d 287 (1995). 

     We   hold       that   the     formula    for   calculating      worker’s


compensation death benefits for surviving partial dependents


established     in    Weems    is    inconsistent     with     the    governing


statute, MCL 418.321.          Accordingly, we overrule that portion


of the Weems opinion. However, the portion of this opinion


that overrules Weems is to have limited retroactive effect. 


     We further hold that Weems correctly held that the


minimum   and    maximum      limits    in    MCL    418.355    (2)    and   MCL


418.356(2) do not require an alteration after the partial


dependent benefits calculation. In addition, we hold that the


500-week limitation on benefits applies to benefits for a


partially dependent person.


     Set forth in this opinion is the proper method for


determining partial dependent benefits in keeping with the


controlling statutory language.               Accordingly, we remand this


case to the Worker’s Compensation Appellate Commission for


further proceedings consistent with this opinion.


                       I.     Facts and Proceedings


     In January 1982, plaintiff lived with his wife and two


adult sons. All four individuals made financial contributions


to the household as plaintiff drew a small pension and the


others earned money from employment. Plaintiff, then 57 years


old and disabled from employment since 1978, was partially


dependent on the contributions of his sons and wife.                     One of


the plaintiff’s sons died as the result of a work-related


accident in mid-January 1982. 


                                        2

      The following month, plaintiff, as a survivor and partial


dependent of the deceased son, sought benefits pursuant to §


321 of the Worker’s Disability Compensation Act, MCL 418.321.


A   hearing   referee     found     that   plaintiff     was    a   partial


dependent, and ordered a weekly benefit of $170.21 until


further order of the bureau.


      After   both    sides   appealed      to    the    former     Worker’s


Compensation Appeal Board, a two-member panel affirmed the


referee’s decision, with some modification.1


      The   Court    of   Appeals    granted     leave   to    appeal2   and


affirmed in part and reversed in part.3


      While defendants’ application for leave to appeal was


pending in this Court, we decided Weems, supra, which provided


a formula for calculating benefits for a partial dependent.


Then, in lieu of granting leave to appeal in the present case,




     1
       The WCAB ordered compensation “at the rate of $170.23

per week from January 13, 1982 [in accordance with MCL

418.356(2)] for a period not to exceed 500 weeks from the date

of the employee’s death” and further ordered a reduction of

that benefit amount, in accordance with the formula set forth

in Franges v General Motors Corp, 404 Mich 590; 274 NW2d 392

(1979). Franges concerned allocation of the cost of obtaining

a third-party tort recovery.

     2

       Unpublished order, entered July 6, 1993 (Docket No.

136338).

     3

       The Court of Appeals remanded for application of a

formula it had employed in LePalm v Revco DS, Inc, 202 Mich

App 33, 43-46; 507 NW2d 771 (1993). The Court directed that

the plaintiff receive “the greater of the amount calculated

under the LePalm formula or fifty percent of the average

weekly wage in 1982" and that the award “be reduced

appropriately pursuant to Franges.”


                                     3

we directed the WCAC to recalculate death benefits using the


formula set forth in Weems.           449 Mich 901 (1995).


      On remand, the WCAC once again recalculated the benefit


amount.     A further recalculation occurred when the case


returned to the Court of Appeals.4


      We granted leave to appeal in order to clarify this area


of   the   law    and   consider      whether   the   formula    for    the


calculation      of   worker’s    compensation    death    benefits     for


surviving     partial        dependents    established    in    Weems    is


consistent with the governing statute, MCL 418.321.


                        II.    Standard of Review


      This case presents an issue of statutory interpretation,


which we review de novo as a question of law.             Levy v Martin,


463 Mich 478, 482, n 12; 620 NW2d 292 (2001); Donajkowski v


Alpena Power Co, 460 Mich 243, 248; 596 NW2d 574 (1999). 


                               III.   Analysis


                        A.    The Statute at Issue


      Death benefits for a dependent are governed by MCL


418.321.    In 1982, when the plaintiff’s decedent died, the


language for this section, drawn from 1980 PA 357, read:





     4
       The Court of Appeals initially denied leave to appeal

for lack of merit in the grounds presented.        Unpublished

order, entered June 5, 1997 (Docket No. 199205). In lieu of

granting leave to appeal, we remanded the case to the Court of

Appeals for consideration as on leave granted. 457 Mich 856

(1998). The Court of Appeals then decided this matter in an

unpublished opinion per curiam, entered December 28, 1999

(Docket No. 211230).


                                      4

          If death results from the personal injury of

     an employee, the employer shall pay, or cause to be

     paid, subject to [MCL 418.375], in 1 of the methods

     provided in this section, to the dependents of the

     employee who were wholly dependent upon the

     employee's earnings for support at the time of the

     injury, a weekly payment equal to 80% of the

     employee's after-tax average weekly wage, subject

     to the maximum and minimum rates of compensation

     under this act, for a period of 500 weeks from the

     date of death.     If at the expiration of the

     500-week period any such wholly or partially

     dependent person is less than 21 years of age, a

     hearing referee may order the employer to continue

     to pay the weekly compensation or some portion

     thereof until the wholly or partially dependent

     person reaches the age of 21.      If the employee

     leaves dependents only partially dependent upon his

     or her earnings for support at the time of injury,

     the weekly compensation to be paid shall be equal

     to the same proportion of the weekly payments for

     the benefit of persons wholly dependent as the

     amount contributed by the employee to such partial

     dependents bears to the annual earnings of the

     deceased at the time of injury.


     Later, the section was amended by 1985 PA 103 and 1994 PA


271. One significant change was made to the final sentence of


the section to provide an eighty-percent multiplier in the


formula for the calculation of benefits.5



    5
        The current language, as enacted in 1994 PA 271, reads:


         If death results from the personal injury of

    an employee, the employer shall pay, or cause to be

    paid, subject to [MCL 418.375], in 1 of the methods

    provided in this section, to the dependents of the

    employee who were wholly dependent upon the

    employee's earnings for support at the time of the

    injury, a weekly payment equal to 80% of the

    employee's after-tax average weekly wage, subject

    to the maximum and minimum rates of compensation

    under this act, for a period of 500 weeks from the

    date of death.     If at the expiration of the

    500-week period any such wholly or partially

    dependent person is less than 21 years of age, a

    worker's compensation magistrate may order the


                               5

   B. The Weems Formula is Inconsistent with the Formula

       Provided by the Plain Language of the Statute


     As we have indicated with great frequency, our duty is to


apply   the   language   of   the   statute   as   enacted,   without


addition, subtraction, or modification.        See, e.g., Helder v


Sruba, 462 Mich 92, 99; 611 NW2d 309 (2000); Robinson v


Detroit, 462 Mich 439, 459; 613 NW2d 307 (2000).         We may not


read anything into an unambiguous statute that is not within


the manifest intent of the Legislature as derived from the


words of the statute itself.         Omne Financial, Inc v Shacks,


Inc, 460 Mich 305, 311; 596 NW2d 591 (1999).         In other words,


the role of the judiciary is not to engage in legislation.


Tyler v Livonia Public Schools, 459 Mich 382, 392-393, n 10;


590 NW2d 560 (1999).


     Interpreting the plain language of MCL 418.321 at the


time of the work related death of the plaintiff’s son in 1982,


that statute provided that the weekly benefit to be paid to a


partially dependent person (BPD) was calculated by multiplying


the benefit that would be paid if the person were wholly




     employer to continue to pay the weekly compensation

     or some portion thereof until the wholly or

     partially dependent person reaches the age of 21.

     If the employee leaves dependents only partially

     dependent upon his or her earnings for support at

     the time of injury, the weekly compensation to be

     paid shall be equal to the same proportion of the

     weekly payments for the benefit of persons wholly

     dependent as 80% of the amount contributed by the

     employee to the partial dependents bears to the

     annual earnings of the deceased at the time of

     injury.


                                    6

dependent (BWD) by a percentage figure (“the proportion”). The


benefit for a wholly dependent person (BWD) was eighty percent


of the decedent’s after-tax average weekly wage (WWAT)6.               The


proportion (P) was calculated by dividing the amount the


decedent contributed to the partial dependent (C)7 by the


decedent’s annual earnings (AE).           Thus:


                         BPD = (BWD)(P), where

                            P = (C/AE), and

                           BWD = (.80)(WWAT).


Accordingly,


                    BPD = (C)(.80)(WWAT)/(AE), or

Benefit = (decedent’s contribution)(.80)(decedent’s weekly wage after taxes)

                        (decedent’s annual earnings)


      This equation is the proper one; it is directly based on


the plain language of MCL 418.321 as it was in force in 1982.8



      6
      MCL 418.321 calls for “a weekly payment equal to 80% of

the employee's after-tax average weekly wage, subject to the

maximum and minimum rates of compensation under this act, for

a period of 500 weeks from the date of death.”           These

limitations, to which the weekly payment is “subject,” are

respectively the maximum benefit of MCL 418.355(2), the

minimum benefit of MCL 418.356(2), and the 500-week limitation

that is expressly stated in MCL 418.321.           When these

limitations are applicable, they can be substituted into the

formula for (BWD). We will discuss these limitations later in

the opinion.

      7
       The “amount” of a contribution must be computed with

respect to a period and, given the ratio being described by

the Legislature, it surely meant an annual amount.

      8
       As indicated above, the Legislature added, in 1985 PA

103, a second .80 multiplier that remained in effect after

1994 PA 271. See the final lines of the statutory language

quoted   in   footnote   5   and  Justice   BOYLE ’s partial

concurrence/partial dissent in Weems, 448 Mich 719.


      With that change, P = (.80)(C)/(AE), so that:


                                     7

       In our view, the statute on its face requires a factual


determination of “the amount contributed by the employee” to


the    partial     dependent,         that     is,    the        amount     actually


contributed by that deceased worker, in order to calculate the


amount of benefits to which the partial dependent is entitled.


       However, in Weems, supra at 695-697, this Court created


its own formula for determining benefits payable to a partial


dependent under MCL 418.321, despite the plain language of the


statute.9        Rather    than      merely    examining,        as   the    statute


directed, “the amount contributed by the employee” to the


partial dependent, the Weems Court substituted other factors


to    determine    the    level      of   benefits.         In    particular,     it


concluded that the partial dependent would receive the amount


obtained by dividing the deceased employee’s annual after-tax


earnings    by    the     sum   of    those    earnings      and      the    partial





                  BPD = (.80)(C)(.80)(WWAT)/(AE), or

Benefit = (decedent’s contribution)(.64)(decedent’s weekly wage after taxes)

                        (decedent’s annual earnings)


     This modified formulation, currently applicable, would

have been appropriately applied in Weems, where the fatal

accident occurred in March 1986, well after the effective date

of 1985 PA 103. In the present case, however, the accident

occurred in 1982, so the statutory modification is not

applicable.

       9

        While we recognize that MCL 418.321 requires

significant study to parse, we also recognize that the

complexity and density of a statute does not in itself cause

the statute to be ambiguous and thus warrant construction of

the statute.


                                          8

dependent’s regular and substantial annual income.10                    See


Weems, supra at 696.        The problem with this calculation is


that it is not derived from the language of the statute.               MCL


418.321   includes   no   mention    of   the    income    of   a   partial


dependent as a factor in the calculation of the benefits due


that partial dependent.11


     As explained by Justice CAVANAGH in his partial dissent in


Weems, in order to determine the benefits due a partial


dependent,   a   faithful    application    of    MCL     418.321    “would




     10
       Like the present case, Weems involved a situation with

only one partial dependent. In a footnote, the Weems majority

seemed to indicate that the formula it adopted should be

modified in a case involving multiple partial dependents. See

Weems, supra at 697, n 22 (discussing treatment of a situation

with multiple partial dependents). Because we are overruling

the Weems formula and the present case involves only one

partial dependent, this opinion does not address situations

involving multiple partial dependents.

     11
        Moreover, the Weems formula distorts the evident

legislative goal of allowing different levels of benefits on

the basis of the different circumstances of otherwise

similarly situated partial dependents. This is illustrated by

considering that the Weems formula, by eschewing any

determination of the amount that the deceased employee

actually contributed to the partial dependent’s support, would

provide the same benefit level to a partial dependent in each

of the following two hypothetical cases. Assume that in both

cases A and B, the deceased employees had exactly the same

after-tax earnings and had a partial dependent who had the

same regular and substantial income. Now consider that in

case A, the partial dependent had substantial medical or

educational expenses that the partial dependent in case B did

not and that these expenses were paid for by the deceased.

This would mean that the employee in case A contributed more

to the partial dependent’s support than in case B. That no

allowance for the difference in the level of support actually

contributed by the deceased employee to the partial dependent

is made by the Weems formula demonstrates its inconsistency

with the language of MCL 418.321.


                                    9

require a factual determination by the trier of fact” to


establish the amount contributed by the employee to the


partial dependent.        Id. at 709.       We agree.       This is necessary


for the simple reason that the amount contributed by the


deceased employee to the partial dependent will vary from case


to case and cannot be determined by any blanket formula.


       The Weems majority rejected such a factual inquiry,


apparently primarily on the basis of the view that such a


factual determination would be “unworkable”:


            Such a determination is absolutely unworkable

       in practice. It would be impossible in most cases

       to even roughly estimate which portion of the

       decedent’s income was used for the sole support of

       the dependent. [Weems, supra at 698.]


       We acknowledge that, in many cases, the factfinder will


be presented with a difficult task in determining what amount


of   money   to    consider     as   having    been   contributed      by    the


deceased employee to the partial dependent.                   In large part,


this    is   because     household     expenses       are    often    paid    in


essentially a lump sum for items that benefit multiple members


of the household.12       Yet the difficulty of an administrative


tribunal in making a factual determination called for by a


statute is not a justification for ignoring the statute.                      The


reason is that the Legislature, the policy-making arm of our


government,       in   taking   up   this     matter,   is     held   to     have



       12
        For example, a rental payment might allow both an

employee and a partial dependent to live in the same

apartment.   Similarly, groceries might be purchased for a

household with all of its members sharing in the food.


                                      10

considered this issue and settled on this approach. It is not


within our authority to disregard that choice.                  See, e.g.,


Helder, supra at 99 (when a statute is clear on its face, the


judicial role is to apply the statute in accord with its plain


language, not to articulate its view of “policy”).


     Accordingly, we overrule Weems to the extent that it is


inconsistent with this opinion.             In particular, we overrule


the Weems formula for calculating benefits due a partial


dependent because it is inconsistent with the plain language


of MCL 418.321.13


                       C.    Statutory Limitations


     In     deducing        the   proper    formula   to   be    employed,


consideration must also be given to the limitations stated in


the opening sentence of MCL 418.321.14


                1.     Maximum and Minimum Benefits


     Recall that an element of the calculation for a partial


dependent is the benefit that would be paid if the survivor


had been wholly dependent on the decedent (BWD).                If one were


determining the benefit for a wholly dependent person, the


first sentence of MCL 418.321 instructs that it might be


necessary to reduce the benefit in light of the maximum


benefit of MCL 418.355(2) or to raise it to reach the minimum




     13
       Specifically, we note that we have not overruled the

Weems analysis regarding determining whether a person is

partially dependent.

     14
          See n 6.


                                      11

benefit specified by MCL 418.356(2).


     The majority in Weems held that no separate adjustment


should be made after the benefits for a partially dependent


person are calculated.      The majority said that “a partially


dependent person’s weekly benefits are inherently subject to


the maximum and minimum rates of compensation because the


calculation of a wholly dependent person’s weekly benefit is


included in the partially dependent person’s calculation.”


448 Mich 684-685.     We agree. 


     The minimum or maximum benefit language in MCL 418.321 is


located   in   the   sentence   discussing   benefits    for   wholly


dependent persons, not the calculation for partially dependent


persons.15     Therefore,   where   the   maximum   or   minimum   is


applicable, it is to be inserted at the step where (BWD) is


determined. 


     For that reason, when (BWD) is more than the maximum or


less than the minimum, it will be necessary to substitute the


minimum or maximum for (BWD), which is calculated using the




     15
         Unlike our concurring colleague, we do not believe

that MCL 418.321 is ambiguous concerning the introduction of

the minimum or maximum benefit rate into a partially dependent

person’s benefit calculation. The maximum or minimum benefit

clause is directed solely at the calculation for a wholly

dependent individual and is the only reference to the minimum

or maximum benefit rate in the statute.      Since, under the

plain language of the statute, a partial dependent’s benefit

calculation first requires the calculation of the benefit that

the partial dependent would have received if wholly dependent,

we conclude there is no ambiguity about the point of

introduction of a minimum or maximum benefit rate into the

calculation of a partial dependent’s weekly compensation. 


                                 12

formula stated ante at page 7.           That change would mean that


the usual value of (BWD), which is (.80)(WWAT) or 80% of the


decedent’s weekly wage after taxes, would be replaced by the


statutory maximum or minimum (SM) under MCL 418.355(2) or MCL


418.356(2).     This change would be necessary because in such


cases the benefit level of a partial dependent is tied by the


language of MCL 418.321 to the benefits that would be provided


a wholly dependent person.          Ordinarily, a wholly dependent


person would be entitled to 80% of the deceased employee’s


after-tax earnings, but that is not the case in situations in


which such a wholly dependent person’s benefits would be


subject to the maximum or minimum benefit restrictions.


     Thus, where the minimum or maximum applies, as the law


existed in 1982, the statutory formula would be:


                       BPD = (C)(SM)/(AE), or

    Benefit = (decedent’s contribution)(statutory maximum or minimum)

                        (decedent’s annual earnings)


     In a case arising under the amended language of 1985 PA


103 and currently applicable, it would be:


                    BPD = (.80)(C)(SM)/(AE), or

  Benefit = (.80)(decedent’s contribution)(statutory maximum or minimum)

                         (decedent’s annual earnings)


                      2.   500-Week Limitation


     The first sentence of MCL 418.321 also states a 500-week


limitation of benefits for a wholly dependent person.                This


limitation also applies to benefits for a partially dependent


person.     The   second   sentence      of   MCL   418.321   provides      a



                                   13

specific means for partially (and wholly) dependent persons to


seek an extension of benefits beyond 500 weeks.           In light of


the entire structure of MCL 418.321--
                                    --in which the benefit for


a partially dependent person is derived arithmetically from


the benefit that would be paid if the person were wholly


dependent--
          --the second sentence communicates the Legislature’s


intent that the 500-week limitation is likewise applicable to


partially dependent persons.


                         V.   Retroactivity


     The general rule is that judicial decisions are given


complete retroactive effect.        Michigan Ed Emp Mut Ins Co v


Morris, 460 Mich 180, 189; 596 NW2d 142 (1999).              However,


recognition of the effect of changing settled law has led this


Court to consider limited retroactivity when overruling prior


case law.      In examining the potential effect of a retroactive


decision, this Court gauges (1) the purpose served by the new


rule, (2) the extent of reliance on the old rule, and (3) the


effect of retroactivity on the administration of justice. Id.


at 190. 


     The purpose of the rule adopted in this opinion is to


correct what we believe to be the flawed construction of MCL


418.321   in    Weems.   However,   Weems    has   been   controlling


authority for over six and one-half years.         Thus, it appears


that there has been widespread reliance on the Weems formula


in calculating worker’s compensation benefits for partial


dependents of deceased employees.           Further, attempting to


                                 14

revisit the benefit levels finally determined or agreed upon


during the period that Weems was controlling authority could


have a detrimental effect on the administration of justice by


imposing an enormous burden on the worker’s compensation


system, not to mention the reliance of the beneficiaries on


the benefits previously awarded under Weems. 


     For these reasons, we hold that the present opinion is to


be given only limited retroactive effect.     The interpretation


of MCL 418.321 articulated in this opinion is to be applied


only to the present case; to other cases pending decision by


a worker’s compensation magistrate or on appeal, to either the


WCAC or the Court of Appeals, in which the determination of


the level of benefits to be paid a partial dependent is in


issue; and to future cases in which the level of benefits due


a partial dependent under MCL 418.321 needs to be initially


determined.


                        VI.   Conclusion


     In the present case, the WCAC and the Court of Appeals,


as they were bound to do, attempted to apply Weems as binding


precedent from this Court. However, for the above reasons, we


overrule the portion of Weems that provides a formula for


calculating worker’s compensation death benefits for surviving


partial   dependents.   The   portions   of   this   opinion   that


overrule the Weems opinion are to have limited retroactive


effect. 




                               15

       We further hold that the minimum and maximum benefit


limits    do    not   require   an   alteration    after   the    partial


dependent benefits are calculated, but rather are to be


inserted before that calculation.           In addition, we hold that


the 500-week limitation on benefits applies to partially


dependent persons.


       For these reasons, it is necessary to again remand this


case to the WCAC.        On remand, the commission shall calculate


the plaintiff’s benefits as a partial dependent in accordance


with   MCL     418.321   as   explained    in   this   opinion,   and   in


accordance with other provisions of law, including those


stated in Franges, supra.        MCR 7.302(F)(1).


       CORRIGAN , C.J., and TAYLOR and MARKMAN , JJ., concurred with


YOUNG , J.





                                     16

                 S T A T E    O F   M I C H I G A N


                             SUPREME COURT





ROBERT C. LESNER, father of

Randy Lee Lesner, deceased,


     Plaintiff-Appellee,


v                                                      No. 116205


LIQUID DISPOSAL, INC., and

HARTFORD ACCIDENT AND INDEMNITY,


     Defendants-Appellants.

___________________________________

KELLY, J. (concurring).


     I agree with the formula that the majority has adopted to


be used for determining death benefits of a partial dependent.


However, it is obvious to me that § 321 of the Worker's


Disability Compensation Act1 is ambiguous.      Consequently, the


majority's plain meaning analysis is inadequate to determine


the Legislature's intentions in writing it.


     The majority has adopted the formula proposed in Justice



     1

          MCL 418.321.

Cavanagh's dissent in Weems v Chrysler Corp,2 except that it


retains the Weems majority's application of the maximum and


minimum rates of compensation for injuries.                      Sometimes, the


formula yields a benefit for a whole dependent that falls


above the maximum rate or below the minimum rate.                        In those


cases the statutory maximum or minimum is substituted for the


figure representing eighty percent of the decedent's after-tax


weekly wage in the formula.3


       When the maximum and minimum amounts do not apply, the


majority's formula for a partial dependent is as follows:4


Benefit =(.80)(decedent's annual contribution)(.80)(decedent's after-tax weekly wage)


                          (decedent's annual earnings)


Whenever the maximum or minimum is substituted, the benefit


for a partial dependent is computed as follows:5


 Benefit = (.80)(decedent's annual contribution)(statutory maximum or minimum)


                         (decedent's annual earnings)


      Justice Cavanagh's formula in Weems differs in this




      2
           448 Mich 679; 533 NW2d 287 (1995).

      3

        In 2002, the minimum is $357.56 per week and the

m a x i m u m    i s     $ 6 4 4 . 0 0  p e r    w e e k . 

Http://www.cis.state.mi.us/wkrcomp/82_

now.htm, on April 19, 2002.

      4

       There are two 80% multipliers in this formula. The

first is the multiplier in the whole dependent's benefit,

which is 80% of the after-tax weekly wage of the decedent.

The second 80% multiplier, which was added by a 1985 amendment

of the act, is found in the partial dependent's formula. Slip

op at 7, n 8.

       5
       The 80% multiplier in this formula is the one found in

the formula for a partial dependent's benefit.


                                         2

respect:    The   death   benefit    for   a   partial    dependent   is


calculated without regard to the maximum and minimum rates.


Then, whenever the resulting death benefit falls outside the


maximum-minimum benefit range, the benefit is adjusted upward


to the minimum or downward to the maximum, as the case may be.


     Both interpretations are reasonably derived from the


language   of   the   statute.      Section    321   of   the   Worker's


Disability Compensation Act states that a wholly dependent


survivor's benefit is calculated as follows:


          If death results . . . the employer shall pay

     . . . a weekly payment equal to 80% of the

     employee's after-tax average weekly wage, subject

     to the maximum and minimum rates of compensation

     under this act, for a period of 500 weeks from the

     date of death. [MCL 418.321.]


     Another part of the same section then directs how the


benefit is adjusted for a partially dependent survivor:


          If the employee leaves dependents only

     partially dependent upon his or her earnings for

     support at the time of injury, the weekly

     compensation to be paid shall be equal to the same

     proportion of the weekly payment for the benefit of

     persons wholly dependent as 80% of the amount

     contributed by the employee bears to the annual

     earnings of the deceased at the time of injury.

     [MCL 418.321.]


The majority reasons that, because the clause "subject to the


maximum and minimum rates of compensation" appears only in the


whole dependents part of § 321, it refers only to the benefit


paid to a whole dependent.          On the other hand, the Weems


dissent rejects that logic because the 500-week limitation of



                                 3

§ 321 appears in the whole dependents part.              Yet it applies to


partial    dependents    and     is   not    repeated    in     the    partial


dependents part.       Also, the partial dependents part does not


state that the partial benefit is subject to the maximum and


minimum rates of compensation, whereas the fact that it is so


subject is undisputed. 


     Both    constructions        are      antagonized     by     additional


ambiguity in the wording of §§ 355 and 356.               Section 355(2),


which defines the maximum rate of compensation, states:


          [T]he maximum weekly rate of compensation for

     injuries within the year shall be established as

     90% of the state average weekly wage . . . .


Proponents of the Weems dissent can rely on the fact that the


rate referred to is called the maximum rate of compensation.


That suggests that they should adjust the result of all


benefit calculations, whole or partial.              On the other hand,


the statutory language can reasonably be read to mean that


placement of the maximum rate within the formula is determined


by § 321.


     The    language    of   §   356(3)     also   can   be     read   in   two


different manners.       It states: 


          The minimum weekly benefit for death under

     section 321 shall be 50% of the state average

     weekly wage as determined under section 355.


Proponents of the Weems dissent argue that, because the


minimum weekly benefit is referred to as the minimum "for


death under section 321," it should replace any death benefit


                                      4

calculated under § 321 that is lower than it.               It should be


the smallest sum that a partial or whole dependent could


possibly receive.    On the other hand, one can again point to


the   minimum   benefit   as   only    one   factor    in   the   partial


dependent's benefit calculation. 


      I find that both are reasonable interpretations of the


language of §§ 321, 355 and 356.               Therefore, § 321 is


ambiguous as regards application of the maximum and minimum


benefit rates, and rules of statutory construction must be


applied to determine the Legislature's intent. 


      It is undisputed that the overarching intention of the


Legislature was to award a death benefit that is less than the


amount that the employee contributed to the dependent. If the


Weems dissent formula reflected legislative intent, it would


yield that result.    However, the contrary is true.           Using it,


in cases where an employee contributed a small but not de


minimus amount before his death, a partial dependent would


receive the minimum rate of compensation.             Thus, the benefit


could be significantly higher than the amount the decedent


contributed to the dependent during his lifetime.6



      6

       This is demonstrated by an example from the Weems

dissent:


           . . .[I]f, for instance, twenty percent of Mr.

      Weems' after-tax earnings were contributed to Mrs.

      Weems, the formula yields:


                                                        (continued...)


                                  5

     By    contrast     with     the   Weems   dissent's     formula,   the


majority's formula yields a death benefit that is normally


eighty percent of the amount that the employee contributed to


the dependent.


     Because       it   satisfies      the   Legislature's    purpose    of


compensating part, but not one hundred percent or more, of the


dependent's loss, I agree with the majority's formula. Of the


possible interpretations of § 321, it alone conforms with the


legislative intent to calculate a death benefit that is


normally    less    than   the    decedent     employee's    contribution.


Therefore, I concur in the result of the majority opinion. 





     6
         (...continued)

            80% X $ 8,558 X $822.91 = $131.66

                  $42,791


          However, applying § 356, which sets the

     statutory minimum for death benefits, the payable

     death benefit would be $207.35, the applicable

     minimum rate for these parties. [Id. at 718, n 17

     (Cavanagh, J. dissenting).]


In this example, the calculated benefit of $131.66 was raised

to $207.35 a week, which was the minimum rate for death

benefits in 1986. However, the employee had contributed only

$8,558 annually before death. Hence, under the Weems dissent

formula, the dependent received only $164.57 a week from the

decedent and would receive $207.35 a week after. 


                                       6

              S T A T E        O F   M I C H I G A N


                          SUPREME COURT





ROBERT C. LESNER, Father of

Randy Lee Lesner, Deceased,


      Plaintiff-Appellee,


v                                                        No. 116205


LIQUID DISPOSAL, INC., and

HARTFORD ACCIDENT AND INDEMNITY,


     Defendants-Appellants.

___________________________________

CAVANAGH, J. (concurring in part and dissenting in part).


      While I agree that the formula the majority adopts today


for   calculating   worker’s    compensation   death   benefits   for


surviving partial dependents is the correct formula under MCL


418.321, I do not agree with the majority’s interpretation of


the minimum and maximum benefit language located in MCL


418.321.    Also, I write separately because I believe that


leave was improvidently granted in this case. 


      The procedural history of this case is substantial.


Plaintiff first sought benefits in connection with his son’s


death in 1982.      In 1995, after this Court decided Weems v

Chrysler Corp, 448 Mich 679; 533 NW2d 287 (1995), this case


was remanded to the Worker’s Compensation Appellate Commission


to recalculate death benefits using the formula set forth in


Weems.     449 Mich 901 (1995).    Today, the majority overrules


the Weems formula and remands for yet another recalculation


using a new formula. 


     This case has been up and down the worker’s compensation


and appellate court systems for over twenty years and has been


remanded once already to calculate benefits under the now


abandoned Weems formula.     While I remain committed to the


formula set forth in my partial dissent to Weems, which this


Court adopts today, I believe that it is time to put this case


to rest.    Leave was improvidently granted.   Further, I remain


committed to the interpretation of the application of the


minimum and maximum benefits as expressed in my partial


dissent to Weems.    Weems, 448 Mich 711-712, 716-717 (1995).





                                  2

                   S T A T E    O F      M I C H I G A N


                               SUPREME COURT





ROBERT C. LESNER, Father of

Randy Lee Lesner, Deceased,


     Plaintiff-Appellee,


v                                                           No.    116205


LIQUID DISPOSAL, INC., and

HARTFORD ACCIDENT AND INDEMNITY,


     Defendant-Appellants.

____________________________________

WEAVER, J. (dissenting).


     I dissent from the majority’s decision to overrule the


formula established by this Court in Weems v Chrysler Corp,


448 Mich 679; 533 NW2d 287 (1995).              As noted by the Weems


majority,     in    most   instances      it   is   difficult,    if   not


impossible,    to     calculate    the   amount     contributed   by   the


decedent solely to the support of the partial dependent.               Id.


at 698.     The formula articulated in Weems, which takes into


consideration the dependent person’s regular and substantial


income, represents a practical, workable formula that gives


effect to the statute, MCL 418.321, and is faithful to its

intent.1   Therefore, I would not overrule this aspect of the


Weems opinion. 





     1

         At oral argument, counsel for both plaintiff and

defendants agreed that the formula established in Weems has

proven workable since the decision was made over six years

ago.


                              2



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