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Smart Summary

Factual and Procedural Background

The claim, filed September 1980, arises from claimant Michael F. Cerami's employment as a cosmetology instructor during the 1966-1967 academic year. Claimant contends work conditions precipitated a mental breakdown. The Workers' Compensation Board concluded claimant was mentally capable of filing a claim within the two-year statutory period (Workers' Compensation Law § 28) and thus not entitled to tolling under Workers' Compensation Law § 115. A Workers' Compensation Law Judge (WCLJ) found no causal relationship between employment and claimant's condition; the Board affirmed. The Appellate Division reviewed the Board's conclusions and the medical record.

Legal Issues Presented

  1. Whether the two-year filing period of Workers' Compensation Law § 28 was tolled under Workers' Compensation Law § 115 because claimant was mentally incompetent to file a claim.
  2. Whether claimant sustained a compensable employment-induced psychological injury—i.e., whether claimant's psychiatric condition was causally related to his employment.

Arguments of the Parties

Appellant's Arguments

  • Claimant argued the two-year filing period was tolled by his mental incompetency under Workers' Compensation Law § 115.
  • Claimant argued that his employment with the Rochester City School District precipitated or contributed to his psychiatric illness and thus constituted a compensable injury.

Respondents' / Board's Position

  • The Board concluded claimant was mentally capable of filing a workers' compensation claim in the relevant period and therefore not entitled to tolling under § 115.
  • The WCLJ found claimant's condition was not causally related to his employment; the Board affirmed that determination.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
People v. Cerami, 33 N.Y.2d 243 Reference to claimant's prior criminal proceedings and assertion of an "insanity" defense. Used to note claimant's prior criminal case where an insanity defense was asserted; the court observed such proceedings do not negate claimant's incapacity to acknowledge his mental illness for tolling purposes.
Matter of Rackley v. County of Rensselaer, 141 A.D.2d 232 Establishes that employment-induced psychological injury is compensable and addresses the distinction between capacity to file and capacity to recognize the basis for a claim. Applied to confirm that psychological injury from employment can be compensable and to frame the critical distinction that competence to file is different from competence to appreciate that work caused the psychiatric condition.
Matter of Middleton v. Coxsackie Correctional Facility, 38 N.Y.2d 130, 132-133 Referenced in connection with preservation of issues for appellate review. Compared on the preservation point; the court found the causation issue was timely raised and preserved for appellate review.

Court's Reasoning and Analysis

The court first addressed tolling under Workers' Compensation Law § 115. It found the Board mischaracterized the testimony of treating psychiatrists (Drs. Howard Leve and Melvin Pisetzner). Although those doctors testified claimant could, in some respects, file legal claims, their testimony also indicated claimant could not acknowledge or recognize his mental illness. Dr. Leve stated claimant "has never been aware of his mental illness" and saw no need to file for mental illness; Dr. Pisetzner cautioned claimant was incapable of acknowledging his illness; Dr. William Libertson opined claimant had been in a florid state of paranoid schizophrenia for three years prior to a 1970 violent incident and was unable to comprehend his illness. The court emphasized the legal distinction between the physical or procedural ability to file a claim and the cognitive ability to comprehend the premise of a psychiatric claim (i.e., that work caused the illness). Because medical evidence overwhelmingly showed claimant could not acknowledge his psychiatric condition, the court concluded the tolling provision of § 115 applied and the claim was timely filed.

On causation, the court recognized that employment-induced psychological injury is compensable (citing Matter of Rackley). The WCLJ's finding of no causal relation was reviewed and found unsupported by substantial evidence: the record contained abundant and virtually unanimous medical testimony (including from Leve, Joseph Marion, and Pisetzner) that claimant's experiences with the Rochester City School District contributed to or precipitated his florid psychiatric state. The court therefore concluded claimant sustained a compensable injury and remitted the matter to the Board for proper assessment of benefits.

Holding and Implications

Decision reversed; claim for compensation benefits granted; matter remitted to the Workers' Compensation Board for further proceedings.

Direct consequences: the Appellate Division reversed the Board's decision, awarded costs against the employer, granted the claim for compensation benefits, and remitted the case to the Board for assessment consistent with this opinion. The opinion does not announce a novel rule of law beyond applying existing precedent on compensability of employment-induced psychological injury and tolling under Workers' Compensation Law § 115.

In the Matter of the Claim of MICHAEL F. CERAMI, Appellant, v. ROCHESTER CITY SCHOOL DISTRICT et al., Respondents. WORKERS' COMPENSATION BOARD, Respondent.

Weiss, J.

The instant claim, filed in September 1980, emanates from claimant's employment as a cosmetology instructor during the 1966-1967 academic year. Essentially, claimant maintains that conditions at work precipitated a mental breakdown. Workers' Compensation Law § 28 requires that a claim for compensation benefits be filed within two years after the accident. Claimant maintains that this two-year period was tolled by virtue of his mental incompetency, as provided by Workers' Compensation Law § 115. The Workers' Compensation Board, however, concluded that claimant was mentally capable of filing a claim during the relevant time frame, and thus had no recourse to the tolling provisions of section 115. In so ruling, the Board specifically emphasized the testimony of Dr. Howard Leve and Dr. Melvin Pisetzner. While ordinarily the Board's assessment of the medical evidence controls, a serious question exists here as to how the Board construed the testimony of these two psychiatrists. Specifically, the Board found Leve "felt claimant was competent to file a workers' compensation claim in 1967". As to Pisetzner, the Board concluded that "he felt claimant had been aware of his legal rights and could pursue them". A close reading of the transcripts confirms that the Board's conclusions do not comport with the testimony cited.

The record firmly establishes that claimant has long suffered from a condition of mental illness, generally diagnosed as paranoid schizophrenia (see, People v. Cerami, 33 N.Y.2d 243). The consensus of medical testimony indicates that this condition did not prevent claimant from filing a claim for workers' compensation. This conclusion, however, is not determinative. The question is not simply whether claimant was capable of filing a claim, but whether claimant was able to comprehend the premise for his claim, i.e., that the conditions at work occasioned or contributed to his psychiatric problems (see, Matter of Rackley v. County of Rensselaer, 141 A.D.2d 232). On this distinction, the Board's assessment of the medical testimony is misleading. Pisetzner testified that claimant was capable of filing a claim, but cautioned that he was incapable of acknowledging his illness. According to Leve, claimant was capable of filing legal claims in 1967, but has never been aware of his mental illness. Leve explained "[a]s far as [claimant] is concerned, there is no mental illness, and there is no need to file any claim for mental illness". Notably, Dr. William Libertson, who examined claimant in 1970 only days after he fatally shot his former supervisor, opined that claimant had been in a florid state of paranoid schizophrenia for three years prior to the shooting and was unable to comprehend his illness. These seemingly incongruous conclusions are consistent with a condition of paranoia, and beg the question as to how claimant could have filed a timely claim for psychological injury if he was mentally incapable of recognizing the existence of such a condition.

In the final analysis, the medical evidence is overwhelming that claimant was not mentally capable of filing a workers' compensation claim to recover for employment-induced mental illness. To the extent the Board relied on Pisetzner and Leve for medical confirmation of competency, its reliance was misplaced. These witnesses may have confirmed that claimant was able to file a claim, but not one for mental illness. We recognize that the Board also based its determination "on the entire record". In this sense, it is important to recognize that claimant did pursue other legal remedies during the relevant two-year time frame. He also asserted an "insanity" defense in the criminal proceeding (People v. Cerami, 33 N.Y.2d 243, supra). These actions, however, do not alter the fact that claimant was mentally incapable of acknowledging his own mental illness. In view of claimant's continuing mental incapacity, we find that the claim was timely presented (see, Workers' Compensation Law § 115).

The question thus becomes whether claimant sustained a compensable injury. Employment-induced psychological injury is unquestionably compensable (Matter of Rackley v. County of Rensselaer, supra). The Workers' Compensation Law Judge (hereinafter WCLJ), however, found that claimant's condition was not causally related to his employment. While the Board affirmed the WCLJ's decision without discussing the question of causation, we observe that claimant properly raised this issue in his application for review by the Board, thus preserving it for our consideration (see, Workers' Compensation Law § 23; compare, Matter of Middleton v. Coxsackie Correctional Facility, 38 N.Y.2d 130, 132-133). On our review of the record, we find abundant, virtually unanimous medical testimony confirming that claimant's work experience was a contributing cause of his mental illness. The WCLJ's determination to the contrary is simply not supported by substantial evidence in the record. Accordingly, we find that claimant is entitled to compensation benefits and remit the matter to the Board for a proper assessment.

In requesting Board review of the September 19, 1984 WCLJ's decision, claimant's attorney, by letter of October 3, 1984, specifically addressed the issue of causation, i.e., "the psychological injury [claimant] sustained during his employment with the City School District". Moreover, in his preliminary remarks to the Board during the February 27, 1986 hearing, claimant's attorney specifically requested review, inter alia, "on a finding of no causally related disability". The Board's March 27, 1987 decision further confirms that the causation issue was preserved for review.

We particularly emphasize the following testimony as to the causal relationship between claimant's mental illness and his employment experience with the Rochester City School District. Leve testified, "I believe that his experiences with the City School District have contributed to the development of the illness." Dr. Joseph Marion testified, "I say it [claimant's personality disorder] was related to the City School District incident." Pisetzner testified that claimant's work experience "was one of the factors that precipitated the onset of the florid state". He further explained "it is clear to me that the stress at work was indeed one of the factors that precipitated the florid episode".

Decision reversed, with costs against the employer, claim for compensation benefits granted and matter remitted to the Workers' Compensation Board for further proceedings not inconsistent with this court's decision. Mahoney, P.J., Kane, Casey, Weiss and Levine, JJ., concur.

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MATTER OF CERAMI v. ROCHESTER CITY SCH. DIST
(Mar 9, 1989)