Ex Parte Crean
Ex Parte Crean
Opinion
Paula Crean sued Michelin North America, Inc., for workers' compensation benefits for on-the-job injuries. Constantly lifting and fixing defective tires while working for Michelin, Crean developed bilateral carpal tunnel syndrome and bilateral *Page 299 ulnar nerve neuropathy in her hands and wrists. On June 12, 1997, the trial court entered a final judgment in favor of Crean. The trial court found that Crean had suffered a permanent and partial disability to the body as a whole and had suffered an 80% loss of capacity or ability to work. The trial court awarded Crean temporary total disability benefits in the sum of $15,084 and permanent partial disability benefits in the sum of $23,760. Further, the trial court ordered Michelin to pay for Crean's necessary medical and surgical treatment, her rehabilitation, her medicine, and her medical and surgical supplies. On July 11, 1997, Crean filed a motion to alter, amend, or vacate the judgment, or, in the alternative, for a new trial. (The record does not contain this motion.) On August 25, 1997, the trial court denied Crean's postjudgment motion, but awarded her $217 in travel expenses for her medical treatment. (The trial court did not issue a written order, but the court recorded its ruling on the case action summary.)
On October 27, 1997, the trial court amended the final judgment to apportion the compensation award between the two compensation carriers which insured Michelin during the time Crean sustained her injuries. The trial court found that the evidence admitted during Crean's workers' compensation trial proved that, when Crean suffered the injuries to her right hand and wrist, for which she received the most medical treatment, The Hartford Insurance Company was Michelin's compensation carrier and, when Crean suffered the injuries to her left hand and wrist, Cigna Property and Casualty Insurance Company was Michelin's compensation carrier. The trial court apportioned the compensation award as follows:
"The Hartford should be responsible for the payment of all temporary total disability benefits through February 5, 1995. Therefore, the Plaintiff is to have and recover of The Hartford, the sum of $15,084.00 as compensation due and payable for temporary total disability through February 9, 1995.
"Of the $23,760.00 awarded as permanent partial disability through March 14, 1997, the Court finds that The Hartford should be responsible for 70% of said sum and Cigna should be responsible for 30% of said sum. The Plaintiff shall have and recover of The Hartford the sum of $16,632.00 for permanent partial disability through March 14, 1997. The Plaintiff shall have and recover of Cigna the sum of $7,128.00 as permanent partial disability through March 14, 1997.
"The Plaintiff shall have and recover from The Hartford the sum of $220.00 per week as weekly compensation benefits for 109.2 weeks. The Plaintiff shall have and recover from Cigna the sum of $220.00 per week as weekly compensation benefits for 46.8 weeks.
"The plaintiff shall have and recover of The Hartford, the sum of $233.80 which is 70% of the filing fee of this case of $117.00 and the Plaintiff's mileage to and from the doctor at $217.00. The Plaintiff shall recover from Cigna, the sum of $100.20, which represents 30% of the filing fee and the Plaintiff's mileage."
(R. 7-8.)
On December 11, 1997, pursuant to §
On January 22, 1998, Crean appealed the trial court's order denying her interest on the judgment and the 15% penalty fee for Michelin's failure to pay as prescribed by §
Crean petitioned this Court for certiorari review, which we granted to determine whether a dispute between two compensation carriers, who are not defendants to the workers' compensation action, can constitute "good cause," as provided in §
Section
"(b) Compensation shall begin with the fourth day after disability, and if the disability from the injury exists for a period as much as 21 days, compensation for the first three days after the injury shall be added to and payable with the first installment due the employee after the expiration of the 21 days. If any installment of compensation payable is not paid without good cause within 30 days after it becomes due, there shall be added to the unpaid installment an amount equal to 15 percent thereof, which shall be paid at the *Page 301 same time as, but in addition to, the installment. (Emphasis added.)
Section
"(1) If the award, order, or settlement agreement is payable in installments and default has been made in the payment of an installment, the owner or interested party may, upon the expiration of 30 days from the default and upon five days' notice to the defaulting employer or defendant, move for a modification of the award or settlement agreement by ascertaining the present value of the case, including the 15 percent penalty provision of Section
25-5-59 , under the rule of computation contained in Section25-5-85 , and upon which execution may issue. The defaulting employer may relieve itself of the execution by entering into a good and sufficient bond, to be approved by the judge, securing the payment of all future installments, and forthwith paying all past due installments with interest and penalty thereon since due. The bond shall be recorded upon the minutes of the court." (Emphasis added.)
Noteworthily, §
Although, in its brief, Michelin says, "Contrary to the findings of the Court of Civil Appeals, the trial court did not find that Michelin was in default," (Brief, p. 7), Michelin, in other places in its brief, admits that it had been in default in paying Crean the compensation installments required by the trial court's June 12, 1997, order (finally effective on August 25, 1997, the date of denial of Crean's postjudgment motion). Michelin's admissions in its brief read:
"[O]n October 27, 1997, the attorney for Michelin received all of the accrued benefits due Crean and notified the attorney for Crean.
". . . .
"It was simply a matter of not knowing what to pay, not a matter of not wanting to pay.
". . . .
"In this case the delay was minimal."
(Brief, pp. 2 6.) Moreover, the Court of Civil Appeals recites in its opinion:
"[I]t does appear from the documents that were before the court on Crean's motion that Michelin's defense for not having paid Crean's benefits when they came due was the dispute between the two insurance companies as to who owed what. . . .
"Although the court denied Crean's motion to modify the judgment pursuant to §
25-5-86 to add the penalty, it did grant her a lump-sum settlement. Under §25-5-86 , to award a party a lump-sum settlement necessarily requires a finding that the employer is in default in paying the benefits."
Section
The case before us is distinguishable from Stevison and Crown
in that, in this case, Michelin does not dispute either its liability for Crean's work-related injuries or the quantum of her compensation. The only dispute in this case is the allocation dispute between Michelin's two compensation carriers. The trial court settled this dispute on October 27, 1997, when it apportioned the benefits owed to Crean between the two compensation carriers. Although the trial court apportioned the benefits between the two compensation carriers, the primary liability and responsibility for the payment of the benefits awarded have lain with the defendant Michelin, against which the judgment was entered, ever since it became final. See §
A 15% penalty should be assessed against Michelin for its failure to pay the court-ordered benefits within 30 days following August 25, 1997. Furthermore, Crean is entitled to postjudgment interest on her workers' compensation award. Ex parte Stanton,
Therefore, we affirm the portion of the Court of Civil Appeals' judgment instructing the trial court to award Crean postjudgment interest on her compensation award, and we reverse the portion of the Court of Civil Appeals' judgment holding Crean not entitled to the 15% penalty. We remand the cause to the Court of Civil Appeals for that court to instruct the trial court to award Crean the 15% penalty on those installments of benefits which have accrued and shall accrue since August 25, 1997, and which have or shall become over 30 days delinquent and further to instruct the trial court to grant Crean that relief ordered by the Court of Civil Appeals for the lump-sum payment and interest. *Page 303
AFFIRMED IN PART; REVERSED IN PART; AND REMANDED WITH INSTRUCTIONS.
Hooper, C.J., and Maddox, Houston, Cook, See, Lyons, Brown, and England, JJ., concur.
Reference
- Full Case Name
- Ex Parte Paula Crean. (In Re: Paula Crean v. Michelin North America, Inc.)
- Cited By
- 5 cases
- Status
- Published