Tyree v. Banner/Banner - Memorandum Decision - Arizona Court of Appeals - May 22, 2025

Christopher S. Norton, Esq.
Jul 5
2 min read

Facts: James Tyree, a physical therapist employed by Banner Health, sustained an industrial injury in October 2020 after receiving a mandatory flu shot that caused Guillain-Barre Syndrome (GBS). Tyree received temporary benefits and medical treatment until his claim was closed in October 2022. The Industrial Commission of Arizona (ICA) initially awarded Tyree 100% loss of earning capacity (LEC) due to permanent partial disability. Banner Health protested the award, arguing Tyree had not lost earning capacity due to the injury. During the ICA hearing, Tyree presented testimony from himself and two medical experts, while Banner relied on a labor market expert report and surveillance video. The ALJ found Tyree failed to prove his injury caused LEC, citing inconsistencies in his testimony, surveillance footage, and expert opinions that Tyree was malingering and had no work restrictions attributable to GBS. Tyree appealed the decision.

Issue(s):

Did Tyree establish a prima facie case that his industrial injury caused a loss of earning capacity?
Were there procedural errors in the ICA hearing process that denied Tyree substantial justice?

Holding: The Arizona Court of Appeals affirmed the ICA’s award and decision, concluding Tyree failed to make a prima facie case that his injury caused LEC. The court found no procedural errors that denied substantial justice.

Key Takeaways:

Burden of Proof for LEC: Claimants must demonstrate an inability to return to their pre-injury work, make a good-faith effort to find suitable employment, or provide testimony from a labor market expert to establish earning capacity loss. Tyree failed to meet these requirements.
Credibility and Evidence: The ALJ is empowered to assess witness credibility and resolve conflicts in evidence. Surveillance footage and expert testimony undermined Tyree’s claims of disability.
Procedural Standards: ICA hearings are exempt from formal rules of evidence and procedure but must achieve substantial justice. The court found no procedural errors affecting the fairness of the hearing.
Medical and Labor Market Expert Testimony: Medical experts can opine on physical restrictions, but labor market experts are necessary to establish earning capacity in the open labor market. Tyree did not present such testimony.