WPCL PLvo:U 8e3M>EyJymT7BZ*P;C;Ⱦ&9r!@ǹ^&\l:CzX}~t2e4 'Tk_3j5"o]#L iFVadL_cgWXXv   Ad FILEDXvX>  December7,1998CecilW.CrowsonAppellateCourtClerkdAh ,cAZ"Arial Regular :  E $4=Xdd= 2XX   1    ݀ϭ 2Afterthechancellorsjudgment,thepartiesenteredapartialsatisfactionofjudgment  showingthatChampionhadpaid$37,091.51ofpermanenttotaldisability,$9,272.88inattorneysfeesontheuncontestedportionofthejudgment,and$1,187indiscretionarycoststoPlaintiffscounsel.# 2ϭ#(hH  Z 6Times New Roman Regular,cAZ"Arial Regular"#$&C<< C d(3$ !  (3$ !  ($$   1  ((' dxdP Pd!!!!'dxd !  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P.ALLENPHILLIPS     D WM.LANDISTURNER &# JACKSON  <      D HOHENWALD ' $ @ss)D ;XXvOPINION #XvX; #Ԉ d2\+0 TRIALCOURTAFFIRMEDASMODIFIED  CT$HOLDER,J.  f8^16(  @,D OPINION    Wegrantedthisappealtodeterminewhetheranemployerisentitledtoanoffsetoflongtermdisabilitypaymentsagainstaworkerscompensationawardforpermanenttotaldisability.A1996amendmenttoTenn.CodeAnn.50-6-114permitsoffsetsagainstworkerscompensationbenefitsforpaymentsmadetoanemployeeunderanemployerfundeddisabilityplan.Theplaintiffsinjurypredatedtheeffectivedateofthestatute.Weholdthattheamendmentisnotretroactiveandtheemployerisnotentitledtoanoffsetinthiscase.      BACKGROUND    C Thefactsarenotindispute.FayThomasNuttwasemployedbyChampionInternationalCorporationwhenhefellonNovember15,1990,injuringhimself.ThepartiesagreeMr.Nuttsustainedaworkrelatedinjuryleavinghimpermanentlydisabled.Thepartiesalsoagreethatheisentitledtothemaximumbenefitof$109,200pursuanttoTenn.CodeAnn.506102(a)(6)(A). FromthedateofinjurytoFebruary3,1993,Mr.Nuttreceived$31,550.61intemporarytotaldisabilitybenefitspursuanttotheWorkersCompensationAct.FromFebruary1993,throughtheNovember26,1996trial,hereceivedlongtermdisabilitybenefitstotaling$31,285underalongtermdisabilityplanofferedbyChampion. Thepartieshaveagreedthatthe$109,200inworkerscompensationbenefitsshouldbereducedby$31,550.61,theamountofthetemporarytotal disabilitybenefitsChampionhasalreadypaid.Championcontendsthatthe 5.4 benefitamountshouldbefurtherreducedby$31,285,theamountofbenefitspaidundertheemployerprovided,longtermdisabilityplan.  AtthetimeofMr.Nuttsinjury,heparticipatedinaunionnegotiated,longtermdisabilityplanofferedbyChampion.ThelongtermdisabilityplanwastheresultofanagreementreachedbetweentheLocal193U.P.I.U.andChampiononFebruary7,1990.Theplanwasoptionalforemployees;participatingemployeespaidonehalfofonepercentoftheirhourlybasepayintotheplan.Mr.Nuttchosetoparticipateintheprogramandhadregularsalarydeductions.Championdescribedtheemployeecontributionasanadministrativefeepaidinordertooperatetheprogram. OnMarch9,1993,Mr.NuttfiledanactioninWayneCountyChanceryCourtseekingdisabilitybenefits.Championarguedthata1996amendmenttoTenn.CodeAnn.506114(b)shouldapply,allowingasetoffagainsttheworkerscompensationbenefitsfortheamountChampionhasalreadypaid. AhearingwasheldonNovember26,1996.ThechancellorappliedTenn.CodeAnn.506114(b)andfoundthattheplanwasnotentirelyemployerfundedbecausetheparticipatingemployeespaidonehalfofonepercentofthecostsofthedisabilityplan.Accordingly,thechancellorfoundthatthecontractprovisionallowingtheoffsetviolatedpublicpolicyandheldthatChampionwasnotentitledtoanoffsetof$31,285.00.    #  1       H0@),   (2 +.  TheSpecialWorkersCompensationAppealsPaneloftheTennessee SupremeCourtreversed.Thepaneldeterminedthattheamendedstatutewasapplicableandheldthatthecollectivebargainingagreementcontrolled.Thepanelheldthattheemployerisentitledtoanoffsetforpaymentoflongtermdisabilitypaymentsagainstthecourtawardofworkerscompensationbenefits.Uponreview,wereverse.    RETROACTIVITYOFSTATUTE (    Wemustfirstdeterminewhethertheamendedstatute,Tenn.CodeAnn.506114(b),isapplicabletoMr.Nuttscase.Sincewearedealingexclusivelywithconclusionsoflaw,ourstandardofreviewonappealisdenovowithouta  presumptionofcorrectness.Presleyv.Bennett,860S.W.2d857,859(Tenn.  1993). TheamendedstatuteinquestiontookeffectJuly1,1996,aftertheinjuryoccurredinthiscase.Theprovisionstates:8 (b)However,anyemployermaysetofffromtemporarytotal,temporarypartial,andpermanentpartialandpermanenttotaldisabilitybenefitsanypaymentmadetoanemployeeunderanemployerfundeddisabilityplanforthesameinjury,providedthatthedisabilityplanpermitssuchanoffset.SuchanoffsetfromadisabilityplanmaynotresultinanemployeereceivinglessthantheemployeewouldotherwisereceiveundertheWorkersCompensationLaw.Intheeventthatacollectivebargainingagreementisineffect,thisprovisionshallbesubjecttotheagreementofbothparties.  ! ! sTenn.CodeAnn.506114(b).  6/3  ThisstatutewascodifiedinresponsetothisCourtsopinioninMcCalebv.   SaturnCorp.,910S.W.2d412(Tenn.1995).InMcCaleb,weheldthatan  employerwasnotentitledtoanoffsetbaseduponTenn.CodeAnn.50-6-114(a)whichstates:8  Supremacyofchapter Nocontractoragreement,writtenor h`  implied,orrule,regulationorotherdevice,shallinanymanneroperatetorelieveanyemployerinwholeorinpartofanyobligationcreatedbythischapterexceptashereinprovided.  ! ! !ThisCourtreasonedthatpublicpolicywouldnotsupport anyagreementwhichwouldreduceanemployersliabilityforpermanentdisabilitybenefitsundertheAct.McCalebId.,9010S.W.2dat416.   TheTennesseeConstitutionstates, Thatnoretrospectivelaw,orlawimpairingtheobligationsofcontracts,shallbemade.Tenn.Const.aArt.1,20.Statutesarepresumedtooperateprospectivelyunlessthelegislatureclearlyindicatesotherwise.Shellv.State,893S.W.2d416,419(Tenn.1995);Keev. $ ShelterIns.urance,852S.W.2d226,228(Tenn.1993);Statev.Defriece,937S.W.2d %! 954,957(Tenn.Ct.App.1996),per.app.denied(Tenn.1997).The1996 ' # amendmenttoTenn.CodeAnn.506114doesnotincludeaprovisionmakingsubsection(b)retroactive. Generally,thestatuteineffectatthedateoftheworkersinjurygovernstherightsofthepartiesunderworkers'compensationlawabsentanindicationofthelegislaturescontraryintent.Presley,860S.W.2dat860,n.2;Oliverv.State, 3,/ 762S.W.2d562,566(Tenn.1988).Anexceptiontotheprospectiveonlyapplicationexistsforstatuteswhichareremedialorproceduralinnature.Shell, 6/3 893S.W.2dat419;Kee,852S.W.2dat228;Defriece,937S.W.2dat95758. 815 Statutesdeemedremedialorproceduralapplyretrospectivelytocausesofactionarisingbeforesuchactsbecamelawandtosuitspendingwhenthelegislationtookeffect. Aproceduralorremedialstatuteisonethatdoesnotaffectthevestedrightsorliabilitiesoftheparties.Shell,893S.W.2dat416.Aproceduralstatute h`  isonethataddressesthemodeorproceedingbywhichalegalrightisenforced.Saylorsv.Riggsbee,544S.W.2d609,610(Tenn.1976)(citingJonesv.Garrett, (  192Kan.109,386P.2d194,198199(1963)).Remedialstatutesaredefinedas [l]egislationprovidingmeansormethodwherebycausesofactionmaybeeffectuated,wrongsredressedandreliefobtained....Defriece,937S.W.2dat  958(citationsomitted). Statutesthatcreateanewrightofrecoveryorchangetheamountofdamagesrecoverableare,however,deemedtohave alteredthe  partiesvestedrightandthusarenotconsideredremedial.Shell,893S.W.2dat h` 420(citingAndersonv.MemphisHous.Auth.,534S.W.2d125,12728(Tenn. H!@ Ct.App.1975)). WefindthattheamendmenttoTenn.CodeAnn.506114isneitherremedialnorprocedural.Theamendmentaffectsthesubstantiverightsoftheemployeebyallowingoffsetstotheworkerscompensationaward.Whiletheemployeemayreceivepaymentsfrombothdisabilityplansandworkers'compensation,theamendmentguaranteesthattheemployeewillnotreceivelessthanwhatisduehimundertheworkerscompensationlaw.Theamendmentalsoindicatesthatacollectivebargainingagreement,ifpresent,willcontrolthemannerofpayment.  5.2  Sincetheamendedstatuteisnotretroactive,theonlyprovisionineffectat thetimeofMr.Nuttsinjurywassubsection(a).Thatsectiondoesnotprovideforoffsets.Therefore,Championisnotentitledtoanoffsetof$31,285againstMr.Nuttsworkerscompensationaward. Therulingofthechancellorisaffirmedforthereasonsstated.   <      D T$T$MT$     <      D JANICEM.HOLDER,JUSTICE Panel:   Anderson,C.J.Drowota,Birch,andBarker,J.J.Birch,J.,NotParticipating