Drake University And Employers Mutual Casualty Company Vs. Angela Davis ( 2009 )


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  •                IN THE SUPREME COURT OF IOWA
    No. 08–0639
    Filed July 17, 2009
    DRAKE UNIVERSITY and EMPLOYERS
    MUTUAL CASUALTY COMPANY,
    Appellants,
    vs.
    ANGELA DAVIS,
    Appellee.
    Appeal from the Iowa District Court for Polk County, Don C.
    Nickerson, Judge.
    An employer and its insurance carrier appeal a decision of the
    district court affirming an award of benefits made by the workers’
    compensation commissioner.          AFFIRMED IN PART, REVERSED IN
    PART, AND REMANDED WITH INSTRUCTIONS.
    David L. Jenkins of Bradshaw, Fowler, Proctor & Fairgrave, P.C.,
    Des Moines, for appellants.
    Thomas J. Reilly and Kyle T. Reilly of Thomas J. Reilly Law Firm,
    P.C., Des Moines, for appellee.
    2
    WIGGINS, Justice.
    The workers’ compensation commissioner awarded an employee
    benefits for three separate injury dates. The employer and its insurance
    carrier sought judicial review of the agency action. The district court not
    only affirmed the decision of the agency, but also found the employer and
    its insurance carrier were not entitled to a credit for benefits paid by a
    group plan under Iowa Code section 85.38(2) (2005). 1 In this appeal, we
    find the employer and its insurance carrier were not deprived of
    procedural due process, substantial evidence supports the agency’s
    decision, the permanent total disability benefits are not subject to
    apportionment under the workers’ compensation statutes, the agency
    misapportioned the benefits due for the March 16, 2001, and July 31,
    2002, injuries, and the district court should not have considered the
    credit for benefits issue. Therefore, we affirm in part the decision of the
    district court affirming the decision of the workers’ compensation
    commissioner.        However, we reverse that part of the district court
    judgment dealing with the apportionment of benefits for the March 16,
    2001, and the July 31, 2002, injuries. Additionally, we vacate that part
    of the district court judgment dealing with the credit for benefits issue
    because the commissioner did not consider the issue at the agency level.
    I. Background Facts and Proceedings.
    A. Employment History. Angela Davis began working at Drake
    University 2 in the facility management area in May 1982. She worked at
    Drake moving up in pay scale and job title for twenty-two and one-half
    1All references in this opinion will be to the 2005 edition of the Iowa Code unless
    otherwise noted.
    2Drake  University’s insurance carrier, Employers Mutual Casualty Company, is
    also a party to this action. For the sake of brevity, we will refer to both parties as
    “Drake.”
    3
    years until her termination on November 3, 2004. Davis started out as
    Facility Maintainer IV, the lowest position on the scale, doing custodial
    work in residence halls. Drake promoted her to Facility Maintainer III
    sometime in 1983.       Drake promoted her again in 1985 to Facility
    Maintainer II in which position she trained new employees.        Finally,
    Davis was promoted in 1990 to Facility Maintainer I, the top
    classification in the custodial field at Drake.       Her responsibilities
    included answering the phone, arranging work schedules, training new
    employees, supervising student employees, and performing manual
    custodial work.
    Although the university continued to promote her, it did have
    problems with her performance. Her employment records contained five
    disciplinary reports. Davis also had many run-ins with her boss, John
    Selin, the director of residential services throughout her time at Drake.
    Another supervisor claimed Davis did not respect her supervisors. Some
    of the complaints in Davis’s employee file dealt with her job performance,
    but many more dealt with her interpersonal skills. At one point, Drake
    demoted her from Facility Maintainer I to Facility Maintainer II for
    creating a hostile work environment. Drake later bumped her back up to
    Facility Maintainer I status.
    In September 2004, Drake claimed Davis left work early without
    finishing her work.    Drake informed Davis that any further incident
    would result in disciplinary action against her. Drake terminated Davis
    on November 3 citing inflammatory and racist comments to coworkers as
    well as an ongoing pattern of inappropriate behavior toward supervisors
    and coworkers as the justification for the termination.
    B.   March 16, 2001, Injury.       Davis’s first injury occurred on
    March 16, 2001. She was shoveling snow outside a residential hall and
    4
    felt a sharp pain down her back and leg. The doctors diagnosed a left
    L5-S1     herniated   nucleus   pulposus     and   performed   a   left   L5-S1
    diskectomy.     After her recovery, the doctors gave Davis a ten percent
    permanent partial impairment rating and a permanent lift restriction of
    thirty-five pounds.    Drake voluntarily paid her seventy-five weeks of
    permanent disability for this injury.
    C. July 31, 2002, Injury. On July 31, 2002, while performing
    her duties vacuuming in the law school, Davis felt queasiness in her
    stomach and weakness in her leg.            An MRI scan revealed left L5-S1
    epidural fibrosis plus a small recurrent herniated nucleus pulposus. She
    received three epidural steroid injections for her injury.         The doctor
    assented to Davis’s return to work with a twenty-pound lift restriction
    and allowed her to do only lightweight vacuuming on an occasional
    basis.    He also gave her a two percent permanent partial impairment
    rating. Drake voluntarily paid her ten weeks of permanent disability for
    this injury.
    D. September 14, 2004, Injury. Davis alleges her third injury
    occurred on September 14, 2004. Davis was working in the field house
    that day and was pulling trash across the floor when she felt queasy.
    She filled out an incident report of the injury.        The incident report
    contained no statement as to the specifics of her injury, but she thought
    she told her supervisor how the injury occurred.         The incident report
    stated Davis was going to Concentra Medical Center, but also said her
    disability was ongoing and began on March 16, 2001. Davis’s supervisor
    filled out the incident report and Davis signed it.
    At Concentra, Davis reported that her injury occurred around
    8 a.m. and was from repetitive use of the vacuum and lifting more than
    twenty pounds of trash. Concentra referred her to her previous doctor.
    5
    She reported to this doctor that the onset of pain had increased on
    September 14, 2004. She denied a specific injury. The doctor diagnosed
    her with having a herniated nucleus pulposus and spondylolisthesis.
    The doctor opined the spondylolisthesis was not work-related, but the
    herniated nucleus was related to her work activities. He recommended
    surgical intervention.
    Davis decided on November 2 to proceed with surgery. Drake fired
    her the next day. Drake sought a second opinion before authorizing any
    surgery.   Davis told the doctor retained by Drake about the specific
    incident of dragging trash in the field house and the pain she felt after
    that point. On November 17 the second doctor opined Davis’s current
    complaints related back to the original injury in March 2001.         The
    second doctor acknowledged his opinion was based on his review of a
    July 2002 MRI and he did not have her recent MRI to study.
    Based on this report, Drake would not authorize her surgery.
    Additionally, Drake informed Davis that Drake had no notice of increased
    back pain or the specific September 14 incident; therefore, it would be
    denying her claim for the surgery and any other subsequent treatment.
    Without Drake’s authorization, Davis had the surgery on November 22.
    Davis also had a permanent implantation of a dorsal column stimulator
    on August 15, 2005.      A third physician rated Davis’s injury.   He gave
    Davis an impairment rating of twenty-six percent for the September 14,
    2004, injury, which includes a three percent impairment based on the
    pain from the dorsal stimulator.
    Davis also saw a psychologist. The psychologist diagnosed Davis
    with major depression disorder and opined her depression was related to
    her work injury. He further opined Davis’s depression limited her ability
    6
    to function in a normal society, and that she would likely require
    indefinite psychological care in the future.
    Again, Drake referred Davis to a psychiatrist for a second opinion.
    He found Davis had a twenty-plus year history of interpersonal
    relationship problems. Further, he opined the idea that her depression
    stemmed from injuries lacked credence because she did not seek
    treatment and no psychiatric diagnosis indicated Davis was unable to
    work.
    E.      Proceedings before the Iowa Workers’ Compensation
    Commissioner.        Davis filed her petitions in September 2004 as files
    5012800, 5012801, and 5012802.               File number 5012800 alleges an
    injury date of March 16, 2001, with shoveling snow as the cause of the
    injury. File number 5012801 lists the injury date as July 31, 2002, and
    alleges vacuuming as the cause of the injury.              File number 5012802
    alleges repetitive use of back at work as the cause with an injury date of
    September 14, 2004.
    Davis    amended    her   petition    in   file   number     5012802      on
    November 22.        In   that   amended      petition     Davis   stated   that   on
    September 14, 2004, as she “carried out her work duties ‘dragging a bag
    of trash,’ her back and leg pain was intensified and thus she reported her
    injury.”     Davis asked to amend the “petition to reflect the cumulative
    process by which her injury occurred culminating with the intensified
    pain she felt on 9/14/04 when she was dragging a bag of trash.” She
    also amended her petition to include a claim for penalty benefits under
    Iowa Code section 86.13 stating Drake failed to provide reasonable
    justification for refusing to commence weekly and medical benefits.
    Prior to the hearing, the parties filed hearing reports in each of the
    files. The deputy commissioner approved each hearing report by signing
    7
    an order. The orders confirmed the parties’ stipulation that the injuries
    of March 16, 2001, and July 31, 2002, arose out of and were in the
    course of employment. The orders also confirmed the March 16, 2001,
    injury caused a permanent disability and the commencement date for the
    permanent partial disability benefits for this injury would be July 21,
    2001.      The orders further confirmed the parties did not dispute that
    Drake paid Davis seventy-five weeks of compensation for this injury.
    Finally,    the   orders   confirmed   the   parties’   stipulation   that   the
    commencement date for the permanent partial disability benefits for the
    July 31, 2002, injury would be August 21, 2002, and that Drake had
    paid Davis ten weeks of compensation.
    The orders indicated the following issues relevant to this appeal
    were in dispute: (1) whether the July 31, 2002, injury caused a
    temporary or permanent disability; (2) whether Davis suffered an injury
    on September 14, 2004, arising out of and in the course of her
    employment; (3) the amount of benefits, if any, due from the three
    injuries; (4) the apportionment of benefits among the three injuries; and
    (5) the payment of medical expenses for the September 14 injury. The
    parties reserved the issue of credit for benefits paid for by a group plan
    for another day.
    The deputy workers’ compensation commissioner issued the
    arbitration decision.      The deputy found Davis to be credible.            He
    determined Davis suffered a low back injury on September 14, 2004,
    when dragging trash bags and performing other duties at work.                The
    deputy also found Davis did have mental health problems causally
    related to her work injuries. The deputy further determined the medical
    expenses submitted for this injury were fair and reasonable.
    8
    Additionally, the deputy determined the work injury on March 16,
    2001, caused a fifteen percent permanent partial disability entitling
    Davis to seventy-five weeks of benefits.    He found the July 31, 2002,
    injuries caused a thirty percent permanent partial disability entitling
    Davis to 150 weeks of benefits.     Finally, he found the September 14,
    2004, injury caused a one hundred percent loss of earning capacity
    entitling Davis to permanent total disability benefits during her period of
    disability and continuing throughout her lifetime, absent improvement.
    He also determined the benefits for this injury would begin on
    November 3, 2004.
    The deputy recognized the overlap in benefits regarding the first
    two injuries. He stated the overlap was from August 21, 2002, through
    December 3, 2002, based on the stipulated commencement dates of each
    benefit.    Under Iowa Code section 85.36(9)(c) (2003), the deputy
    apportioned the benefits between the first and second injury.
    The deputy also recognized an overlap in benefits regarding the
    second and third injuries. He did not apportion these benefits because
    the legislature repealed section 85.36(9)(c), effective September 7, 2004.
    2004 First Extraordinary Session Iowa Acts ch. 1001, §§ 12, 18. In its
    place, the legislature enacted section 85.34(7).   Id. § 11.    This section
    was effective September 7, 2004, and applied to all injuries occurring
    after its effective date. Id. § 18. The deputy held section 85.34(7)(b) does
    not apply to a permanent total disability when the same employer is
    involved.
    Drake filed for reconsideration before the deputy.        The deputy
    corrected a typographical error and reaffirmed his decision.          Drake
    appealed the decision to the commissioner. The commissioner affirmed
    and adopted the deputy’s decision as the final agency action. Drake then
    9
    requested judicial review by the district court. The district court affirmed
    the decision of the workers’ compensation commissioner.          The district
    court also ruled Drake was not entitled to a credit for benefits under a
    group plan.      Drake appealed the decision of the district court to this
    court.
    II. Issues.
    Drake appeals claiming: (1) the agency violated its due process
    rights when the commissioner found an injury date of September 14,
    2004; (2) substantial evidence did not support the commissioner’s
    findings; (3) the commissioner miscalculated the apportionment between
    the March 16, 2001, injury and the July 31, 2002, injury; (4) the
    commissioner misapplied the apportionment of benefit statute to the
    September 14, 2004, injury; and (5) the agency failed to provide a credit
    for benefits under a group plan.
    III. Analysis.
    A. Due Process. Drake claims the agency violated its due process
    rights when the agency found Davis suffered a low back injury on
    September 14, 2004, when dragging trash bags and performing other
    duties at work. Drake bases this claim on the belief that Davis did not
    allege a specific injury occurring on September 14.         Therefore, Drake
    claims its procedural due process rights were violated because Drake did
    not have notice and an opportunity to defend the claim.
    We can reverse, modify, or grant other relief if the agency action is
    unconstitutional as applied to a party. Iowa Code § 17A.19(10)(a). We
    review constitutional issues raised in an agency proceeding de novo.
    Insituform Techs., Inc. v. Employment Appeal Bd., 
    728 N.W.2d 781
    , 788
    (Iowa 2007).     The Fourteenth Amendment requires that a party to an
    agency proceeding have notice and an opportunity to defend.           Carr v.
    10
    Iowa Employment Sec. Comm’n, 
    256 N.W.2d 211
    , 214 (Iowa 1977). Our
    review of the record reveals Drake had notice and an opportunity to
    defend Davis’s claim that she suffered a low back injury on September
    14, 2004, when dragging trash bags and performing other duties at
    work.
    Davis filed her petition on September 16, 2004. The petition stated
    the cause of injury was the “[r]epetitive use of back at work.” Although
    Drake may not have recognized it as a specific injury, Davis had filed an
    incident report with the school on that date. In that incident report, her
    supervisor acknowledged she was going to seek medical care at
    Concentra Medical Center. Davis told the physicians at Concentra her
    injury occurred around 8 a.m. and was from repetitive use of the vacuum
    and lifting more than twenty pounds of trash.
    After Drake received a medical report from the physician it retained
    to give an opinion as to whether Davis’s surgery was work-related,
    Drake’s attorney sent a letter to Davis’s attorney stating that Drake did
    not know of any incident that increased the lower back pain. The history
    Davis gave to the physician retained by Drake states, “she was dragging
    trash in the field house and apparently was hung up in a doorway. She
    felt sharp pain in her back . . . .” The physician sent his report to Drake
    on November 17.       On November 22 Davis amended her petition and
    stated that on September 14, 2004, as she “carried out her work duties
    ‘dragging a bag of trash,’ ” she suffered intensified pain in her left leg and
    back. Additionally, Drake signed a hearing report indicating it disputed
    whether Davis suffered an injury on September 14.
    As early as November 2004, Drake knew the cause of Davis’s
    September 14 injury was an issue in this case. It was at this time Davis
    claimed the injury occurred when the trash she was dragging hung up in
    11
    a doorway. The hearing took place in April 2006. This information and
    its timing gave Drake ample notice and opportunity to defend the claim.
    Drake’s claim of a due process violation is meritless.
    B. Substantial Evidence. Drake makes multiple claims alleging
    substantial evidence did not support the commissioner’s findings.
    Specifically, Drake claims substantial evidence does not support the
    agency decision: (1) finding Davis sustained a work-related injury on
    September 14, 2004; (2) awarding Davis permanent partial disability
    benefits for the July 31, 2002, injury; (3) declaring Davis permanently
    and totally disabled; and (4) awarding medical expenses.
    The legislature vested the determination of facts with the Iowa
    Workers’ Compensation Commissioner.            
    Iowa Code §§ 86.14
    –.24.
    Therefore, we review the record as a whole for substantial evidence. 
    Id.
    § 17A.19(10)(f) (stating we review an agency’s “determination of fact
    clearly vested by a provision of law in the discretion of the agency” for
    substantial evidence). Substantial evidence is:
    [T]he quantity and quality of evidence that would be
    deemed sufficient by a neutral, detached, and reasonable
    person, to establish the fact at issue when the consequences
    resulting from the establishment of that fact are understood
    to be serious and of great importance.
    Id. § 17A.19(10)(f)(1). Viewing the record as a whole means:
    that the adequacy of the evidence in the record before the
    court to support a particular finding of fact must be judged
    in light of all the relevant evidence in the record cited by any
    party that detracts from that finding as well as all of the
    relevant evidence in the record cited by any party that
    supports it, including any determinations of veracity by the
    presiding officer who personally observed the demeanor of
    the witnesses and the agency’s explanation of why the
    relevant evidence in the record supports its material findings
    of fact.
    12
    Id. § 17A.19(10)(f)(3).
    A decision of an agency does not lack substantial evidence merely
    because the interpretation of the evidence is open to a fair difference of
    opinion. Myers v. F.C.A. Servs., Inc., 
    592 N.W.2d 354
    , 356 (Iowa 1999).
    Even if we can draw different conclusions from the evidence, we must
    decide whether the evidence supports the actual finding made by the
    agency, not whether the evidence would support a different finding.
    Raper v. State, 
    688 N.W.2d 29
    , 36 (Iowa 2004). It is not the job of the
    district court or the appellate court to determine what “evidence ‘trumps’
    other evidence or whether one piece of evidence is ‘qualitatively weaker’
    than another piece of evidence” when it conducts a substantial evidence
    review of an agency decision. Arndt v. City of Le Claire, 
    728 N.W.2d 389
    ,
    394 (Iowa 2007). The legislature left those determinations to the agency.
    The agency found Davis to be a credible witness. It also weighed
    the testimony of the various physicians who testified as to Davis’s
    physical and mental conditions. Although the record contains conflicting
    evidence as to (1) whether Davis sustained a work-related injury on
    September 14, 2004; (2) whether she suffered a permanent partial
    disability from the July 31, 2002, injury; (3) whether Davis suffered a
    permanent total disability due to the September 14, 2004, injury; and
    (4) whether Davis was entitled to the medical benefits awarded by the
    agency, our review of the record reveals substantial evidence supports
    the agency’s findings as to these issues. Consequently, Drake’s claims
    regarding the lack of substantial evidence are also without merit.
    C.    Apportionment of Benefits.       Drake makes two separate
    arguments concerning the apportionment of benefits. First, it claims the
    commissioner wrongly apportioned the benefits paid due to the
    March 16, 2001, injury and the July 31, 2002, injury. Second, it argues
    13
    the commissioner should have apportioned the benefits paid due to the
    July 31, 2002, injury and the September 14, 2004, injury.
    1.   Apportionment between March 16, 2001, and July 31, 2002,
    injuries.    Drake argues the overlap in permanent partial disability
    benefits for the March 16, 2001, injury and the benefits from the
    July 31, 2002, injury should have been apportioned under Iowa Code
    section 85.36(9)(c) (2003). Although, the agency apportioned the benefits
    between the March 16, 2001, and July 31, 2002, injuries under section
    85.36(9)(c), Drake argues the agency did not compute the correct overlap
    time.
    The resolution of this issue involves the agency’s application of law
    to the facts.      The legislature clearly vested the agency with the
    application of the law to the facts.       
    Iowa Code §§ 86.14
    –.24.   We are
    required to give the agency appropriate deference because the legislature
    vested the application of the law to the facts with the agency.          
    Id.
     §
    17A.19(11)(c).    We give the agency the appropriate deference by only
    reversing or modifying the agency action “upon an irrational, illogical, or
    wholly unjustifiable application of law to fact.” Id. § 17A.19(10)(m).
    The agency determined the March 16, 2001, injury caused a fifteen
    percent permanent partial disability and the July 31, 2002, injury
    caused a thirty percent permanent partial disability.         The March 16
    injury entitled Davis to seventy-five weeks of permanent partial disability
    benefits.    Drake paid seventy-five weeks of disability compensation for
    this injury at the rate of $287.18 per week. The starting date for these
    payments was July 21, 2001.
    For the July 31 injury, Drake was required to pay 150 weeks of
    disability compensation at the rate of $305.52 per week beginning on
    August 21, 2002. The agency calculated that the overlap time extended
    14
    from August 21, 2002, through December 3, 2002. During the overlap
    period, the agency ordered Drake to pay $18.34 per week on the second
    injury, the difference between the rates for these two injuries. Starting
    on December 4, 2002, the agency ordered Drake to start paying $305.52
    per week, the rate due on the July 31 injury.
    The agency miscalculated the period of overlap.                 The agency
    ordered Drake to pay benefits for seventy-five weeks due to the March 16
    injury.     If the payments started on July 21, 2001, they would end on
    December 27, 2002, not December 3, as calculated by the agency. This
    miscalculation by the agency is an illogical application of law to fact.
    Therefore,        Drake   should     have    paid   $18.34    per     week   through
    December 27, 2002, for the July 31 injury and started paying the
    $305.52 per week for this injury on December 28, 2002.
    2. Apportionment between July 31, 2002, and September 14, 2004,
    injuries.     Drake claims the commissioner erred by not apportioning
    Davis’s permanent total disability benefits.                 We generally do not
    apportion the benefits from two successive work-related injuries without
    a statute allowing us to do so.            Mycogen Seeds v. Sands, 
    686 N.W.2d 457
    , 465 (Iowa 2004).           Therefore, the workers’ compensation statutes
    control the apportionment of benefits.
    Presently, Iowa Code section 85.34(7) governs the apportionment of
    benefits.     Section 85.34(7) became effective September 7, 2004, and
    applied to all injuries occurring on or after its effective date. 2004 First
    Extraordinary Session Iowa Acts ch. 1001, § 18. The injury that caused
    Davis’s permanent total disability occurred on September 14, 2004.
    Thus,       the    resolution   of   the    apportionment     issue    requires   an
    interpretation of section 85.34(7).
    15
    It is well settled in Iowa that “ ‘ “[t]he interpretation of workers’
    compensation statutes and related case law has not been clearly vested
    by a provision of law in the discretion of the agency.” ’ ” Schadendorf v.
    Snap-On Tools Corp., 
    757 N.W.2d 330
    , 334 (Iowa 2008) (quoting Lakeside
    Casino v. Blue, 
    743 N.W.2d 169
    , 173 (Iowa 2007)).              Because the
    legislature has not clearly vested the agency with the interpretation of
    the law, we do not give the agency’s view of the law any deference and
    can substitute our own judgment.             Iowa Code § 17A.19(11)(b);
    Schadendorf, 
    757 N.W.2d at 334
    . Accordingly, our review is for errors at
    law. Iowa Code § 17A.19(10)(c).
    Section 85.34(7)(b) applies to successive injuries at the same place
    of employment with the same employer. It provides in relevant part:
    If an injured employee has a preexisting disability that
    was caused by a prior injury arising out of and in the course
    of employment with the same employer, and the preexisting
    disability was compensable under the same paragraph of
    section 85.34, subsection 2, as the employee’s present injury,
    the employer is liable for the combined disability that is
    caused by the injuries, measured in relation to the
    employee’s condition immediately prior to the first injury. In
    this instance, the employer’s liability for the combined
    disability shall be considered to be already partially satisfied
    to the extent of the percentage of disability for which the
    employee was previously compensated by the employer.
    If, however, an employer is liable to an employee for a
    combined disability that is payable under section 85.34,
    subsection 2, paragraph “u”, and the employee has a
    preexisting disability that causes the employee’s earnings to
    be less at the time of the present injury than if the prior
    injury had not occurred, the employer’s liability for the
    combined disability shall be considered to be already
    partially satisfied to the extent of the percentage of disability
    for which the employee was previously compensated by the
    employer minus the percentage that the employee’s earnings
    are less at the time of the present injury than if the prior
    injury had not occurred.
    16
    
    Iowa Code § 85.34
    (7)(b) (emphasis added).
    In interpreting section 85.34(7)(b), we must determine legislative
    intent.     Auen v. Alcoholic Beverages Div., 
    679 N.W.2d 586
    , 590 (Iowa
    2004). We look to the words the legislature chose to determine legislative
    intent rather than what the legislature should or might have said. State
    v. Dohlman, 
    725 N.W.2d 428
    , 431 (Iowa 2006).        We “may not extend,
    enlarge or otherwise change the meaning of a statute” under the guise of
    construction. Auen, 
    679 N.W.2d at 590
    .
    The plain and unambiguous language of section 85.34(7)(b)
    indicates the only benefits subject to apportionment are those awarded
    under section 85.34(2).     Section 85.34(2) benefits include scheduled
    benefits and permanent partial disability of the body as a whole. The
    agency awarded Davis permanent total disability benefits under section
    85.34(3).      Permanent total disability benefits are not subject to
    apportionment under section 85.34(7).
    This interpretation is consistent with section 85.34(7)’s legislative
    history. The legislature stated when it enacted the new apportionment
    statute that it was intended to avoid “all double recoveries and all double
    reductions in workers’ compensation benefits for permanent partial
    disability.” 2004 First Extraordinary Session Iowa Acts, ch. 1001, § 20
    (emphasis added). Without an apportionment statute that applies to an
    award of permanent total disability benefits, there is no basis for the
    agency to apportion the award. See Celotex Corp. v. Auten, 
    541 N.W.2d 252
    , 256 (Iowa 1995) (holding the industrial commissioner could not
    apportion benefits without a statute authorizing him to do so; therefore,
    the full responsibility rule was applicable).   Therefore, the agency was
    correct when it refused to apportion Davis’s permanent total disability
    benefits.
    17
    D. Credit for Benefits Under a Group Plan. An employer may be
    entitled to a credit against an award of workers’ compensation benefits
    for the benefits an employee received under a group plan. 
    Iowa Code § 85.38
    (2). The district court addressed the credit for benefits issue and
    found Drake was not entitled to a credit.
    The agency did not address the credit for benefits issue in its final
    decision. We believe the agency did not address this issue because the
    parties stipulated in the hearing report that any credit to which the
    employer may be entitled under section 85.38(2) was “to be determined.”
    When the deputy signed the order approving the hearing report, he
    entered a hand-written note next to the section dealing with section
    85.38(2). The notation stated the “parties [are] not asking for this [to be]
    determined now.”
    Iowa Code section 17A.19 governs judicial review of agency action.
    “A person or party who has exhausted all adequate administrative
    remedies and who is aggrieved or adversely affected by any final agency
    action is entitled to judicial review . . . .” Iowa Code § 17A.19(1). Drake
    is not aggrieved or adversely affected by a decision of the agency
    regarding the credit for benefits issue because the agency never ruled on
    the issue. Thus, the district court should not have considered the issue.
    IV. Disposition.
    We affirm in part the decision of the district court affirming the
    judgment of the workers’ compensation commissioner.                However, we
    must reverse that part of the district court judgment dealing with the
    apportionment of benefits for the March 16, 2001, and the July 31,
    2002, injuries.    Additionally, we must vacate that part of the district
    court judgment dealing with the credit for benefits issue because the
    commissioner      did   not   consider    the   issue   at   the   agency   level.
    18
    Accordingly, we remand the case to the district court to enter judgment
    consistent with this opinion and then the district court should remand
    the matter to the agency for entry of a decision consistent with this
    opinion.
    AFFIRMED IN PART, REVERSED IN PART, AND REMANDED
    WITH INSTRUCTIONS.