Corporate Misconduct Accountability Project
GR Management, LLC d/b/a Mineral Palace Casino · Workers’ Compensation Appeal
Worker Denied Heart Benefits After Casino Electrocution Injury
Michael Arneson suffered electric shock at Mineral Palace Casino in Deadwood. His employer and insurer denied his heart condition was work-related, forcing him into years of legal battles to secure benefits.
HIGH SEVERITY
TL;DR
In July 2018, maintenance manager Michael Arneson received 300 amperes and 440 volts of electricity through his body while working at Mineral Palace Casino. Days later, he was diagnosed with atrial fibrillation and hand numbness. The employer and its insurer paid for immediate burn treatment but denied his ongoing heart and hand conditions were caused by the shock, forcing Arneson into years of appeals. The South Dakota Department of Labor eventually ruled the electric shock was a major contributing cause of both conditions and that Arneson qualified as permanently and totally disabled.
See how corporations use legal delays to avoid compensating injured workers.
440V
Voltage of electric shock received by worker
300A
Amperage that passed through worker’s body
12 days
Time between shock and hospitalization for heart condition
67 years
Worker’s age at Department of Labor hearing
The Allegations: A Breakdown
Core Allegations
What the company and insurer did to deny benefits · 8 points
| 01 | On July 18, 2018, a commercial exhaust fan shorted and sent 300 amperes and 440 volts of electricity through Arneson’s right hand and out his left foot, causing burns to four fingers and immediate numbness. | high |
| 02 | Within days of the shock, Arneson experienced heart palpitations that worsened until July 30, when he was hospitalized with atrial fibrillation at a heart rate of 195 beats per minute and dangerously low blood pressure. | high |
| 03 | The employer and insurer paid for emergency burn treatment but denied that the electric shock caused Arneson’s ongoing heart condition or hand numbness, refusing to cover related medical bills after July 20, 2018. | high |
| 04 | Arneson’s treating physician, Dr. Holloway, stated the electric shock clearly passed through Arneson’s heart and caused electrical instability that can persist long after the injury, triggering the atrial fibrillation. | high |
| 05 | The insurer argued that Arneson’s newly diagnosed hyperthyroidism, not the electric shock, caused his heart condition, despite medical testimony that only 10 percent of hyperthyroid patients develop atrial fibrillation. | medium |
| 06 | The employer’s medical expert testified that atrial fibrillation from electric shock is uncommon and that Arneson showed no heart damage on his electrocardiogram the day of the injury, ignoring that electrical damage can occur without structural heart injury. | medium |
| 07 | The insurer forced Arneson through multiple appeals spanning years, during which he could not work due to heart palpitations, dizziness, and hand numbness that made him unsafe around machinery. | high |
| 08 | The Department of Labor determined Arneson was permanently and totally disabled under the odd-lot category, but the employer appealed to circuit court, which reversed the heart condition finding before the South Dakota Supreme Court reversed again. | high |
Regulatory and Procedural Failures
How the system enabled years of denial · 7 points
| 01 | South Dakota workers’ compensation law requires injured workers to prove their workplace injury is a major contributing cause of their condition, placing the burden on the worker rather than the employer. | medium |
| 02 | The employer and insurer exploited this burden of proof by hiring competing medical experts to dispute causation, creating a battle of expert testimony that delayed resolution for years. | high |
| 03 | Even after the Department of Labor ruled in Arneson’s favor on March 21, 2023, the employer appealed to circuit court, which partially reversed the decision, forcing Arneson to appeal again to the state Supreme Court. | high |
| 04 | The vocational expert hired by the employer identified jobs Arneson allegedly could perform but failed to inform potential employers about Arneson’s need for unpredictable breaks due to atrial fibrillation episodes. | medium |
| 05 | The circuit court gave weight to the employer’s occupational medicine physician, Dr. Elkins, who does not treat cardiac or thyroid patients as part of his practice and based his opinions on a single examination. | medium |
| 06 | The Department of Labor hearing did not occur until September 14, 2022, more than four years after Arneson’s injury, during which time he had no income and mounting medical bills. | high |
| 07 | The legal process forced Arneson to navigate depositions, independent medical examinations, vocational assessments, and multiple rounds of appeals while suffering from a heart condition that caused frequent dizziness and fatigue. | high |
Profit Over Worker Safety
Corporate cost-cutting at the expense of health · 6 points
| 01 | The employer and insurer adopted a deny and delay strategy, gambling that Arneson would give up or accept a minimal settlement rather than endure years of litigation. | high |
| 02 | By disputing the causation of Arneson’s heart condition, the insurer reduced its short-term liability while Arneson bore the costs of ongoing medical treatment and lost wages. | high |
| 03 | The employer continued to contest Arneson’s claim even after multiple physicians testified that electric shocks commonly cause heart rhythm disturbances and that Arneson’s symptoms fit this pattern. | high |
| 04 | Rather than improving safety protocols or acknowledging the severity of the electrical hazard, the employer focused legal resources on minimizing its financial responsibility for the injury. | medium |
| 05 | The employer’s strategy externalized the costs of the workplace injury onto Arneson, his family, and potentially public health programs, rather than internalizing the full cost of the accident. | medium |
| 06 | The insurer’s approach sent a chilling message to other injured workers that even well-documented workplace injuries will be contested through lengthy and expensive legal battles. | high |
Economic Fallout for the Worker
The devastating financial impact on Arneson and his family · 7 points
| 01 | Arneson worked for approximately ten months after his injury without restrictions before retiring in 2019 because he could no longer lift, move things, or walk across the casino without breaks. | high |
| 02 | From June 2019 until February 2020, when Dr. Holloway imposed formal work restrictions, Arneson had no income and the Department determined he was not entitled to disability benefits for that period. | high |
| 03 | Arneson faced mounting medical bills for heart monitoring, medication, and treatment of his hand condition while the insurer refused to cover costs it deemed unrelated to the electric shock. | high |
| 04 | At age 67 when the Department hearing occurred, Arneson was beyond typical retirement age but had lost years of wages and benefits during the prime of his ability to save for retirement. | medium |
| 05 | The hand numbness in Arneson’s dominant right hand made him unable to perform his skilled maintenance work, eliminating his primary source of income and leaving him unable to detect hot and cold or safely operate equipment. | high |
| 06 | Arneson’s vocational expert testified that only one supervisor position was suitable for Arneson given his restrictions, and even that job would be problematic due to unpredictable atrial fibrillation episodes requiring him to withdraw from customer interactions. | medium |
| 07 | The economic losses extended beyond lost wages to include the intangible costs of physical and mental health deterioration, family stress, and the burden of navigating complex legal proceedings while ill. | medium |
Worker Exploitation Through Legal Tactics
How the employer used the system against an injured employee · 7 points
| 01 | The employer and insurer leveraged their superior financial resources to hire multiple medical experts and vocational specialists, creating a war of attrition that Arneson could barely sustain. | high |
| 02 | The insurer’s medical experts attempted to blame Arneson’s hyperthyroidism for his heart condition, even though the thyroid condition was undiagnosed and asymptomatic before the electric shock. | medium |
| 03 | The employer’s occupational medicine expert dismissed Arneson’s ongoing symptoms as subjective and noted that Arneson had calluses on his fingers, suggesting he was still using his hand despite claiming numbness. | medium |
| 04 | The vocational expert hired by the employer disregarded Dr. Holloway’s work restrictions, arguing that Arneson’s sitting limitations were inconsistent with his ability to drive and that his inability to perform simple grasping contradicted his ability to perform firm grasping. | medium |
| 05 | The employer’s experts focused on statistical improbability rather than Arneson’s actual medical condition, arguing that because atrial fibrillation from electric shock is rare in medical literature, it could not have happened to Arneson. | medium |
| 06 | Even after Dr. Holloway, an internist with nearly 30 years of cardiology experience, testified that the electric shock caused Arneson’s heart condition, the employer continued to dispute causation through multiple appeals. | high |
| 07 | The employer forced Arneson to prove not just that the electric shock injured him, but that it was the major contributing cause, a nearly impossible standard when multiple factors can contribute to a medical condition. | high |
Public Health and Safety Implications
The broader risks created by inadequate safety and compensation · 6 points
| 01 | Dr. Holloway testified that the electric shock caused permanent nerve damage to Arneson’s right hand, leaving him unable to sense hot, cold, or pain, making it dangerous for him to operate equipment or machinery. | high |
| 02 | Arneson’s atrial fibrillation caused heart rates as high as 195 beats per minute and dangerously low blood pressure, creating a risk of falling or collapse, which would be catastrophic in a maintenance role involving ladders and heights. | high |
| 03 | Dr. Holloway imposed work restrictions limiting Arneson to two hours per day of standing or walking and four hours of sitting, with limitations on using his right hand for grasping or detecting temperature. | medium |
| 04 | The treating physician testified that Arneson’s sensory loss meant he could sustain serious hand injuries while operating equipment because he would not immediately recognize when he was touching something in a dangerous way. | medium |
| 05 | When workers with serious medical conditions are forced to continue working due to denied benefits, public safety is compromised because they may oversee critical systems in tourist-heavy casino environments while physically impaired. | medium |
| 06 | Arneson’s untreated or under-treated heart condition during the period of disputed benefits likely created additional costs for local health systems and emergency services when his condition worsened. | medium |
Impact on Workers and Local Community
The ripple effects beyond one injured employee · 6 points
| 01 | In a tight-knit town like Deadwood, South Dakota, the loss of a longtime maintenance manager’s skills and income affects local economic activity and places strain on community support systems. | medium |
| 02 | Arneson’s injury transformed him from an active, skilled maintenance professional to someone unable to reliably grip objects, walk without breaks, or work without unpredictable episodes of dizziness and heart palpitations. | high |
| 03 | The visible struggle of a neighbor forced into legal battles after a workplace injury erodes community trust in corporate promises about worker safety and fair treatment. | medium |
| 04 | Arneson’s family likely faced mounting stress from his medical bills, lost income, and the emotional toll of years of litigation during a period when he should have been approaching retirement with financial security. | medium |
| 05 | When workers see that even well-documented electrocution injuries lead to years of denials and appeals, they may underreport future injuries or accept inadequate settlements out of fear of financial ruin. | high |
| 06 | The employer’s refusal to promptly compensate Arneson shifted costs onto social safety nets, family resources, and local charitable organizations that step in when injured workers fall through the cracks. | medium |
Corporate Accountability Failures
How the system enables corporations to avoid responsibility · 7 points
| 01 | The employer was able to dispute a clear electrocution injury for years without facing penalties for bad-faith denial of a valid workers’ compensation claim. | high |
| 02 | No evidence in the record suggests the employer implemented new safety measures, additional training, or equipment improvements to prevent future electrical accidents after Arneson’s injury. | medium |
| 03 | The legal system permitted the employer to appeal the Department of Labor’s decision to circuit court and then to the state Supreme Court, extending the process years beyond the initial injury. | high |
| 04 | The employer’s insurer was able to deny coverage for medical bills incurred after July 20, 2018, forcing Arneson to seek care without guarantee of payment during the period of disputed causation. | high |
| 05 | Even after the South Dakota Supreme Court affirmed that the electric shock caused both Arneson’s heart and hand conditions, there is no indication the employer faced consequences for years of improper denials. | high |
| 06 | The workers’ compensation system allowed the employer to shift the burden of proof onto an injured, elderly worker with limited resources rather than requiring the employer to demonstrate that the shock did not cause his conditions. | high |
| 07 | The employer’s strategy of disputing obvious causation sent a message to other workers that exercising their legal rights to compensation will result in lengthy, adversarial legal battles regardless of the strength of their claims. | high |
Exploiting Legal Delays
How corporations use time as a weapon against injured workers · 6 points
| 01 | The employer and insurer delayed full compensation by disputing causation from 2018 until the Supreme Court decision in October 2024, a span of more than six years. | high |
| 02 | Each level of appeal required Arneson to wait months or years while continuing to suffer from heart palpitations and hand numbness without guaranteed income or medical coverage. | high |
| 03 | The insurer’s strategy of hiring competing medical experts created procedural complexity that extended the timeline, knowing that Arneson’s limited resources made it difficult to sustain the fight. | high |
| 04 | By the time the Department of Labor held its hearing in September 2022, Arneson was 67 years old and had been without full benefits for four years, weakening his position to continue litigation. | high |
| 05 | The employer’s vocational expert conducted a labor market survey and identified positions for Arneson, but the Department noted these jobs either did not account for all his restrictions or were not truly available. | medium |
| 06 | The circuit court’s partial reversal of the Department’s findings forced yet another appeal to the Supreme Court, further delaying Arneson’s access to permanent total disability benefits he needed to survive. | high |
The Bottom Line
What this case reveals about worker protection in America · 6 points
| 01 | Arneson’s case demonstrates how corporations can use workers’ compensation laws to avoid responsibility for obvious workplace injuries by exploiting procedural complexity and superior resources. | high |
| 02 | The six-year battle from injury to final Supreme Court decision shows that even when the evidence strongly supports a worker, the system allows employers to impose a war of attrition. | high |
| 03 | The employer’s focus on disputing causation rather than improving safety reveals a corporate culture where minimizing liability takes precedence over protecting workers or preventing future accidents. | high |
| 04 | Arneson’s experience is not an isolated incident but part of a broader pattern in which injured workers must prove their cases to near-absolute certainty while employers face no penalties for bad-faith denials. | high |
| 05 | The case underscores the need for workers’ compensation reform, including stricter penalties for improper denials, faster dispute resolution, and shifting the burden of proof back toward employers in clear-cut injury cases. | medium |
| 06 | Until systemic changes address the power imbalance between corporations and workers, cases like Arneson’s will continue to devastate individuals while allowing companies to externalize the costs of workplace accidents. | high |
Timeline of Events
July 18, 2018
Arneson receives electric shock from commercial exhaust fan, causing burns and immediate numbness
July 20, 2018
Arneson visits orthopedic physician reporting numbness in thumb, index, and middle finger
July 30, 2018
Arneson hospitalized with atrial fibrillation, heart rate 195 bpm, diagnosed with hyperthyroidism
April 2019
Dr. Holloway opines that electric shock caused both hand numbness and atrial fibrillation
June 2019
Arneson retires from position, unable to continue working due to heart and hand conditions
June 28, 2019
Arneson files petition for hearing with South Dakota Department of Labor
February 3, 2020
Dr. Holloway signs off on formal work restrictions for Arneson
September 14, 2022
Department of Labor hearing held, more than four years after injury
March 21, 2023
Department issues decision finding Arneson permanently and totally disabled
June 5, 2024
South Dakota Supreme Court hears oral arguments on appeal
October 16, 2024
Supreme Court affirms Department finding that shock caused heart and hand conditions
Direct Quotes from the Legal Record
QUOTE 1
Treating physician connects shock to heart damage
allegations
“The electric shock wave clearly passed through his heart, as the entry point was his right hand and the exit point was his left foot. Electric shocks like this can lead to electrical instability of the heart [and] persist for some time beyond the shock itself, even if the shock itself was not immediately associated with the development of arrhythmias.”
💡 The treating physician directly contradicts the employer’s claim that the shock did not affect Arneson’s heart
QUOTE 2
Emergency room discharge sheet warned of heart risks
allegations
“A strong electric shock (high voltage) can harm the heart, muscles, and brain. Just 50 volts of electricity may be enough to disrupt the heart’s rhythm. Symptoms of electric shock injury included tingling and numbness, skin burns, chest pain, and very fast or irregular heartbeat (palpitations).”
💡 Medical professionals warned Arneson on day one that the voltage he received could cause exactly the heart problems he later developed
QUOTE 3
Physician states shock more likely than not caused AFib
allegations
“Absent the electrical shock, it is more likely than not that he would not have had atrial fibrillation.”
💡 This clear medical opinion meets the legal standard but the employer still denied the claim for years
QUOTE 4
Doctor explains why hyperthyroidism alone unlikely cause
profit
“Only about 10 percent of people with hyperthyroidism develop atrial fibrillation. He had an electrical shock which we know causes electrical instability, palpitations, extra beats, which can trigger atrial fibrillation.”
💡 The insurer’s attempt to blame hyperthyroidism ignored that 90 percent of hyperthyroid patients never develop AFib
QUOTE 5
Hand injury created permanent safety risk
health
“He can’t sense hot and cold well. He can’t necessarily sense pain well, meaning that if he were to be operating a piece of equipment and be touching it in a way that would cause an injury, whereas you and I would recognize that immediately, he won’t recognize it immediately and, therefore, you know, sustain a serious injury simply because of the lack of sensation.”
💡 The hand damage made it dangerous for Arneson to continue maintenance work, yet the employer disputed causation
QUOTE 6
Employer’s expert ignored documented early symptoms
workers
“His symptoms, when he went to the orthopedist the next day, in addition to the burns, included some numbness into what would be carpal tunnel distribution, which would include the thumb. I didn’t see any record that the thumb was burned.”
💡 The employer’s expert claimed symptoms changed over time, but medical records show Arneson reported thumb numbness from day two
QUOTE 7
Employer’s expert admitted shock can cause AFib
regulatory
“It’s been reported it happens. Oh, it does happen. Low-voltage electrocution may cause cardiac insult and it can cause myocardial necrosis with ventricle fibrillation and also arrhythmias.”
💡 Even the employer’s own expert admitted electric shock can cause the exact heart problem Arneson developed
QUOTE 8
Vocational expert found only one suitable job
economic
“When you factored in his residual functional capacity, I didn’t find that he could do those sedentary jobs. I don’t think he’s capable of earning at his workers’ compensation rate. I don’t think he’s employable.”
💡 Arneson’s expert testified he could not find work within his restrictions that paid his compensation rate
QUOTE 9
Employer’s vocational expert ignored critical limitations
workers
“When prospective employers were not informed of the nature of the limitations they needed to accommodate, there was no basis for the expert’s opinion in concluding that the employers were willing to make modifications to meet those limitations.”
💡 The Supreme Court found the employer’s job availability evidence flawed because it omitted key restrictions
QUOTE 10
Permanent disability finding based on multiple factors
conclusion
“Arneson has physical limitations that restrict what sorts of jobs he can do involving his hands, and he must take regular, unpredictable breaks of between 10 and 30 minutes. Arneson is within the age of retirement and would require training in a new position.”
💡 The Department found Arneson unemployable due to combined factors, not any single limitation
QUOTE 11
Heart condition creates unpredictable work interruptions
community
“If Arneson had customers standing there waiting to talk to him and they want his services and he goes into an AFib situation and has to retreat or withdraw from that situation and the customers are just sitting there kind of stranded wondering what’s going on and [Arneson] is not able to handle the situation or deal with it.”
💡 The unpredictable nature of AFib episodes made even sedentary customer service jobs impractical
QUOTE 12
Long-term effects of electrical injury persist
health
“Unfortunately, once you have an electrical injury, the predisposition to arrhythmias may persist for a long time and sometimes permanently if there’s damage to the electrical system of the heart that regulates rhythm.”
💡 The treating physician explained why Arneson’s heart problems did not resolve and would continue indefinitely
QUOTE 13
Supreme Court notes standard for obvious unemployability
conclusion
“An employee is permanently totally disabled if the employee’s physical condition, in combination with the employee’s age, training, and experience and the type of work available in the employee’s community, cause the employee to be unable to secure anything more than sporadic employment resulting in an insubstantial income.”
💡 This is the legal standard Arneson had to meet, considering all factors together rather than any single limitation
Frequently Asked Questions
What exactly happened to Michael Arneson at work?
In July 2018, Arneson was working as a maintenance manager at Mineral Palace Casino when a commercial exhaust fan shorted. He received 300 amperes and 440 volts of electricity through his right hand, exiting his left foot. He suffered immediate burns to four fingers and developed numbness. Days later, he was hospitalized with a dangerously fast and irregular heartbeat called atrial fibrillation.
Why did the employer deny his workers’ compensation claim?
The employer and its insurer paid for Arneson’s immediate emergency care for burns but denied that his ongoing heart condition and hand numbness were caused by the electric shock. They argued his heart problems were due to a newly diagnosed thyroid condition called hyperthyroidism, not the electrocution, despite medical testimony that the shock likely triggered the heart problems.
What did doctors say about the connection between the shock and his heart condition?
Arneson’s treating physician, Dr. Holloway, testified that the electric shock clearly passed through Arneson’s heart and caused electrical instability that can persist long after the injury. He stated it was more likely than not that Arneson would not have developed atrial fibrillation without the electrical shock. Another expert agreed that electric shocks commonly cause heart rhythm disturbances.
How long did Arneson have to fight for benefits?
Arneson filed his petition for a hearing with the South Dakota Department of Labor in June 2019. The hearing did not occur until September 2022, more than four years after his injury. The Department ruled in his favor in March 2023, but the employer appealed. The case did not reach final resolution at the South Dakota Supreme Court until October 2024, more than six years after the injury.
What were the long-term effects of the electric shock?
Arneson developed permanent numbness and loss of sensation in his right hand, making it difficult to grip objects safely or detect hot and cold temperatures. He also developed atrial fibrillation, a heart rhythm disorder that causes rapid heartbeat, dizziness, and fatigue. These conditions made it impossible for him to continue his maintenance work and required him to take frequent, unpredictable breaks.
Why is 440 volts considered dangerous?
Medical guidelines state that just 50 volts of electricity can disrupt the heart’s rhythm. Arneson received 440 volts, nearly nine times that threshold. The emergency room discharge papers he received the day of the injury specifically warned that strong electric shocks can harm the heart, muscles, and brain and cause irregular heartbeat.
Did Arneson continue working after the injury?
Yes, Arneson continued working for approximately ten months after the injury, but he eventually had to retire in 2019. He testified that it became too difficult to lift and move things, he could not walk across the casino without taking breaks, and he had to rely on coworkers to help him due to decreased strength and stamina from his heart condition.
What did the South Dakota Supreme Court ultimately decide?
The Supreme Court affirmed the Department of Labor’s determination that the electric shock was a major contributing cause of both Arneson’s heart condition and his hand numbness. The Court also affirmed that Arneson was permanently and totally disabled under the odd-lot category, meaning his physical condition combined with his age, training, and experience made him unable to secure more than sporadic employment.
What is the odd-lot disability category?
The odd-lot doctrine applies when an injured worker, though possibly able to work sporadically, cannot obtain regular employment and steady income due to the combination of physical limitations, age, education, and work experience. The worker is considered unemployable in the regular labor market. Arneson qualified because his heart and hand conditions, combined with his age and maintenance-focused work history, made him unable to find suitable employment.
What can workers do if their employer denies a legitimate workers’ compensation claim?
Workers should document all medical treatment, keep copies of all communications with the employer and insurer, and seek legal representation as early as possible. Many states have legal aid organizations or workers’ rights clinics that can help. It is important to file appeals within required deadlines and to obtain medical opinions from treating physicians who can testify about causation. Workers can also contact their state labor department for guidance on the appeals process.
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