Ametek, Inc. v. O'Connor

771 A.2d 1072, 364 Md. 143, 2001 Md. LEXIS 201
Court of Appeals of Maryland·Decided May 10, 2001·No. 63, Sept. Term, 1999·Published·Cited by 14 cases

Opinions

BELL, Chief Judge.

In Philip Electronics North America v. Wright, 348 Md. 209, 212, 703 A.2d 150, 151 (1997), in which the worker’s compensation award to a claimant was reduced on judicial review, this Court held proper, “a credit based upon the number of weeks the employer has paid benefits,” rather than one for the total amount of money paid to the claimant before the reduction of the original award. In a footnote, we observed:

“Philip Electronics also argues at length that affirming the judgment of the Court of Special Appeals would be detrimental to claimants if the reasoning of the intermediate appellate court were applied to cases where an award is increased after the filing of a petition for judicial review, and the Commission must then determine whether to retroactively increase the award based on the number of weeks of benefits previously paid by the employer, or based on the total amount of monetary benefits previously received by the claimant. The issue is not presented in this case, and we express no opinion on that scenario.”

Id. at 215 n. 4, 703 A.2d at 153 n. 4. This case presents that issue, namely, whether, after a claimant’s workers’ compensation award is increased on judicial review, the employer and insurer are entitled to a credit for the total amount paid to the [145] claimant pursuant to the award or just a credit for the number of weeks the employer/insurer paid benefits. The Circuit Court for Anne Arundel County held that the employer and insurer are entitled to a credit for the total amount paid. The Court of Special Appeals affirmed. We shall hold that the proper credit is for the number of weeks the award was paid, and, so, we reverse.

I.

The respondent, Susan O’Connor, filed a claim for workers’ compensation benefits against Ametek, Inc., her employer, and Home Indemnity, its insurer (collectively the “petitioners”), pursuant to Title 9 of the Labor and Employment Article, Maryland Code (1999 Repl.Vol., 2000 Cum.Supp.), the Workers’ Compensation Act (the “Act”). After a hearing, the Workers’ Compensation Commission awarded the respondent permanent partial disability benefits for 10% loss of use of her body and ordered the petitioners to pay 50 weeks of benefits at a weekly rate of $81.00 per week. Those benefits were paid pursuant to the Commission’s order.

Dissatisfied with the award, the respondent filed a Petition for Judicial Review of the Commission’s Order in the Circuit Court for Anne Arundel County. There, a jury increased the respondent’s permanent partial disability to 70% loss of use of the body as a whole. On remand, the Commission determined that the respondent was entitled to permanent partial disability benefits for 467 weeks, payable at the rate of $134.00 per week, which award it ordered the petitioners to pay. Ultimately, however, persuaded by the motion for reconsideration filed by the petitioners, in which they urged their entitlement to a credit for the 50 weeks of compensation already paid, the Commission issued an order directing the petitioners to pay the respondent $134.00 per week for 417 weeks.

Again dissatisfied with the Commission’s order, once again the respondent challenged it in the Circuit Court, by seeking judicial review. Faced with cross-motions for summary judgment, the trial court granted the respondent’s and denied the petitioners’. It reasoned:

[146] “I do believe that the [A]ct, as indicated in the Wright versus Philips case, should be liberally construed in favor of the claimant. And I do appreciate and acknowledge the arguments of counsel with regard to comparison of the facts in Wright versus Philips as opposed to the facts here. “I do find that the claimant is being compensated at the rate of $134 per week for a period of 417 weeks and she was previously compensated 50 weeks at $81 per week. That 50-week period was adjusted by the Commission in reducing the award from 467 to 417 weeks. And I believe and find that the claimant should be compensated for the difference and would therefore award a dollar judgment of $2,650 to accomplish that purpose, 50 weeks at $53 per week the difference, for a total of $2,650 to be paid to her.”

The Court of Special Appeals agreed. Ametek, Inc. v. O’Connor, 126 Md.App. 109, 727 A.2d 437 (1999). After an extensive discussion of Philip Electronics, in which it stressed the remedial nature of the Workers’ Compensation Act, the intermediate appellate court, although noting this Court’s reliance on “[t]he “weekly credit’ approach [as being] consistent with the Act’s benefit structure,” id., at 118, 727 A.2d at 441, concluded that crediting the petitioners with the number of weeks they paid benefits to the respondent, without adjusting for the fact that each of the weekly payments under the prior order was less than the weekly payments under the present order, “would contravene the purpose of the Act, as elucidated by the Court in Philip Electronics, 348 Md. at 226, 703 A.2d [at 158], and numerous other cases,” as it would result in the respondent being underpaid by $ 2650.00. Ametek at 116, 727 A.2d at 440. Further explaining its holding, the intermediate appellate court stated:

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Ametek, Inc. v. O'Connor, 771 A.2d 1072, 364 Md. 143, 2001 Md. LEXIS 201 (Md. 2001).

771 A.2d 1072 (Ametek, Inc. v. O'Connor) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Ametek, Inc. v. O'Connor
771 A.2d 1072 (Court of Appeals of Maryland, 2001)