Coleman v Buehrle Engineering Co., 2006 ACO #301
At the time of his death, the employee was living with his mother and brother. The issues in this case were whether his mother, Carrie, and his brother, Charles, were partially dependent on the decedent and, if so, at what rate the partial dependents’ benefits should be paid.

The defendants argued that the Magistrate erred by finding Carrie and Charles partially dependent on the deceased based on errors in his calculations. The Commission held that in death cases, there is no requirement that it be shown the decedent contributed over 50% of the dependant’s support. All that must be shown in a death case is that the decedent contributed to their support. (Note: please contrast this with Sec. 353 of the WDCA. That section requires a showing that the worker contribute over 50% of the dependant’s support when calculating benefits in non-death cases).

Section 321 of the WDCA provides that death benefits equaling 80% of the decedent’s after-tax average weekly wage should be paid to wholly dependents. If there are no whole dependents, partial dependents should receive a proportional amount of the 80% after-tax average weekly wage that the decedent contributed to the partial dependents out of his annual earnings.

The Commission was now left with the daunting task of trying to calculate the decedent’s contribution to each dependent. It was determined that the controlling case law on this issue is Lesner v Liquid Disposal, Inc, 466 Mich 95 (2002). The Commission determined that the Magistrate erred by failing to consider the decedent’s contribution to the total household income. The Commission used their fact-finding authority to calculate the appropriate benefits.

The Commissioners used the following information contained in the trial record to calculate the decedent’s contribution:

HOUSEHOLD CONTRIBUTIONS
Mortgage: $1980.00/year
Home insurance: $128.00
Property taxes: $648.00
Property insurance: $264.00
Cable: $413.88
Telephone: $377.88
Electric: $420.00
Gas: $390.00
Water: $110.00
Stove: $700.00
Sink: $4000.00
Total: $9731.79/year x .66 = $6,487.84

Based on this information, the Commission found that the decedent contributed at least $9731.76 annually to the combined household. They also concluded that the three of them lived in a common household, with each benefiting equally. Therefore, of the $9731.76 contributed by the decedent, 2/3 (.66) of that amount was for the benefit of Carrie and Charles.

Individually, the Commission also found that the decedent contributed an additional $5688.00 to Charles for medicine and auto related expenses. To his mother, Carrie, he contributed an additional $7524.00 for hair, clothing, lawn and pet car, and spending money. Therefore, in total, the decedent’s contribution to his partial dependents was $19,699.84 annually.

To determine the total weekly benefit, the following formula is used:

Benefit = (decedent’s contribution)(.64)(decedents average weekly wage after taxes)
(decedent’s annual earnings)

The decedent’s average weekly wage was $477.60. His annual earnings were calculated at $32,188.00. Therefore:

Benefit = ($19,699.84)(.64)($477.60)
$32,188.00 = $187.00 week (rounded)

(Note: in the event there is a statutory minimum or maximum average weekly wage issue, that minimum or maximum is placed in the formula).

Because there are more than one partial dependent, Sec. 331(b) of the WDCA requires that the death benefit be divided among the partial dependents according to the “relative extent of their dependency.”

Carrie received from her son $7524 and $3243.92 (half of the decedent’s household contribution) totaling $10,767.92. This equaled 54.5% of the $19,699.84 total decedent contribution.

Charles’ $5688 and $3243.92 equaled $8931.92, or 45.5% of the total.

Therefore, of the $187.00 per week, Carrie was entitled to 54.5% of it ($101.92) and Charles was entitled to 45.5% of it ($85.08).