Appeal of the Hartford Insurance Company

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Petitioner Hartford Insurance Company (Hartford) appealed orders of the Compensation Appeals Board (CAB) that denied it recovery from the State Special Fund for Second Injuries for injuries to Claire Hamel and John Rygiel. Ms. Hamel worked as an assembly person for a motor manufacturing company. She was temporarily disabled for psychiatric reasons. She continued to work until her second injury for degenerative disc disease. Mr. Rygiel worked as a truck driver for a mobile MRI unit. Mr. Rygiel had Type II diabetes that required medication. Mr. Rygiel sustained an employment-related injury to his wrist. In both Ms. Hamel and Mr. Rygiel's cases, Hartford applied for and was denied reimbursement from the second injury fund. Hartford appealed both the Hamel and Rygiel decisions by CAB. The issue from both cases centered on whether state law allowed the CAB to consider an employee's past job performance as evidence that his or her preexisting impairment would not be a hindrance to obtaining employment if that employee became unemployed. The Supreme Court concluded that the employee's ability to perform his or her existing job is not determinative of whether the preexisting impairment was a hindrance to obtaining employment. The Court found that the CAB erroneously relied on the employee's ability when it denied Hartford's claims for reimbursement. Accordingly, the Court vacated the CAB's decisions in both the Hamel and Rygiel cases and remanded the cases for further proceedings.