Breuer v. Industrial Commission of Arizona, Bombardier Svc Corp., ACE American Ins. Co., Special Fund Division - Memorandum Decision - Arizona Court of Appeals - May 6, 2026

Facts

Robert Breuer, an aviation quality inspector for Bombardier, injured his knee at work in 2020, requiring surgery. Unable to return to his original position due to physical restrictions, he was reassigned to a quality researcher role, which was less physically demanding but involved climbing stairs and significant stress. Breuer experienced panic attacks in the new role, took medical leave, and was eventually terminated for not returning to work by Bombardier. In July 2023, Bombardier’s insurer notified the Industrial Commission of Arizona (ICA) of Breuer’s unscheduled permanent partial disability and requested a determination of compensation. The ICA denied further compensation, finding no reduction in Breuer’s earning capacity. Breuer challenged this decision, leading to a hearing and subsequent appeal.

Issue(s)

Does a claimant’s demonstration of lost earning capacity rebut the presumption that post-injury earnings from a higher-paid position reflect increased earning capacity?Was it error for the Administrative Law Judge (ALJ) to apply the presumption of no lost earning capacity despite evidence of Breuer’s reduced earning capacity?

Holding

The Arizona Court of Appeals set aside the ICA’s award and remanded for further proceedings. The Court held that once a claimant demonstrates lost earning capacity—whether through labor market evidence or unsuccessful job search—the presumption that post-injury earnings reflect earning capacity is rebutted. The ALJ erred by applying the presumption after finding Breuer had established a loss in earning capacity. The burden then shifts to the employer to show suitable employment is available or that the injury did not cause the loss. The evidence did not support that the quality researcher position was reasonably available to Breuer, even if it was suitable.

Key Takeaways

Demonstrating lost earning capacity (by labor market evidence or job search) rebuts the presumption that post-injury earnings reflect earning capacity.The reason for termination from a post-injury job is only relevant if it shows the inability to secure work is unrelated to the industrial injury.Employers must show suitable employment is available or that the injury did not cause the loss once the presumption is rebutted.A position is only representative of earning capacity if it is both suitable and reasonably available; mere suitability is insufficient.The award was set aside because the ALJ’s findings were not supported by competent evidence regarding the reasonable availability of the quality researcher position.