Michigan Supreme Court decides Cain

The Supreme Court has released its decision in Cain v Waste Management, Inc./Second Injury Fund. The decision was released May 3, 2005. This case deals exclusively with specific losses and total & permanent disabilities. These types of disabilities are for catastrophic injuries such as the loss of a hand, arm, both legs, and the like. The practical significance of being deemed entitled to specific loss benefits or total & permanent disability benefits is twofold: (1) any wages earned during the period of specific loss or total & permanent disability cannot be offset against the weekly benefits owing; and, (2) specific loss and total & permanent disability benefits cannot be coordinated with other employer-provided benefits.

In Cain, with respect to specific loss benefits, the Supreme Court says that an amputation is not necessary to qualify for specific loss benefits. Where the limb or body part in question has "no practical usefulness," then there is a specific loss. This holding does not represent a change in the law because the law has been this way for decades. The determination of the "practical usefulness" of the leg is to be made without reference to corrective devices, such as braces.

With respect to total & permanent disability benefits, the Court says there can be a total & permanent disability recovery for loss of both legs where one leg is amputated and the other leg has been deemed of no practical usefulness. Where the employee makes such a "no practical usefulness" total and permanent disabilitly claim, the assessment of the employee's condition is to be made without taking into account corrective aides.