Brown v. State

900 A.2d 628, 2006 Del. LEXIS 228, 2006 WL 1210957
Procedural entryThis page is a short order in Brown v. State. Read the opinion of the Court — 2006 Del. LEXIS 163
Supreme Court of Delaware·Decided May 3, 2006·No. No. 521,2005·Published

Opinions

RIDGELY, Justice,

for the Majority:

Claimant-Appellant Gloria M. Brown contends that the Superior Court erred by affirming a decision of the Industrial Accident Board (“LAB”) denying her petition for additional compensation based on the statute of limitations. Claimant makes two arguments on appeal. First, she argues that she was not notified of the applicable five year statute of limitations governing her claims. Second, she argues that the IAB erred in holding that even in the absence of written notice, her claim was barred. We find that sufficient written notice was given in this case, and that it is unnecessary to address the IAB’s alternative rationale. Accordingly, we affirm.

I.

Claimant was injured on March 26, 1998. She received workers’ compensation benefits between the time of her injury and June 7, 1998. On that date, Claimant signed a one-page, single-sided form created by the Office of Workers’ Compensation and completed by her Employer’s representative, The PMA Group. The three-line title of the form was in all capital letters, “STATE OF DELAWARE; OFFICE OF WORKERS’ COMPENSATION; RECEIPT FOR COMPENSATION PAID.” The center of the form contained the following language:

Received of THE PMA GROUP ON BEHALF OF STOCKLEY CENTER/STATE OF DELAWARE the sum of $126.86, making in all the total sum of $3,086,96 in settlement of compensation due for the TOTAL disability of GLORIA BROWN which began on MARCH 27, 1998, and terminated on JUNE 7, 1998.

Below this language was a space for “Employee Signature” and two spaces for “Address.”

An explanation and notice appears next on the page below the signature line as follows:

Your signature on this receipt will terminate your rights to receive the workers’ compensation benefits specified above on the date indicated. This form is not a release of the employers’ or the insurance carrier’s workers’ compensation liability. It is merely a receipt of compensation paid. The claimant has the right within five years after the date of the last payment to petition the Office of Workers’ Compensation for additional benefits.

It is undisputed that Claimant read and signed this form. No evidence was produced at the hearing to show that Claimant retained a copy.

Six and a half years later, on December 8, 2004, Claimant filed a petition to determine additional compensation arising from her March 26, 1998 injury. Specifically, Claimant petitioned for benefits for total disability between May 21 and September 27, 2004. The Board barred her claim based upon the applicable statute of limitations and the Superior Court affirmed. This appeal followed.

II.

Claimant first argues that the final receipt she signed did not give her proper [631]*631notice of the applicable statute of limitations. She argues that without proper notice the bar of the statute of limitations does not apply.

The Delaware Code limits the time period for claims after a receipt has been filed by Section 2361(b) of Title 19.

Where payments of compensation have been made in any case under an agreement approved by the Board or by an award of the Board, no statute of limitations shall take effect until the expiration of 5 years from the time of the making of the last payment for which a proper receipt has been filed with the Department.1

This provision establishes a five year statute of limitations for additional claims that generally runs from the last payment of compensation for which a receipt has been filed. Notice of the statute of limitations is a prerequisite for a statute of limitations defense. Under Section 3914 of Title 18:

An insurer shall be required during the pendency of any claim received pursuant to a casualty insurance policy to give prompt and timely written notice to claimant informing claimant of the applicable state statute of limitations regarding action for his/her damages.2

“Section 3914 is an expression of legislative will to toll otherwise applicable time limitations with respect to claims made against insurers.”3 It is reversible error to allow an insurer to raise the statute of limitations as a defense when it has not provided notice to a claimant.4 Self-insured entities are not distinguished from insurers for purposes of Section 3914.5

Section 3914 operates to require notice for the statute of limitations in section 2361(b).6 Without notice to claimants, the statute of limitations does not toll.7 Only when a claimant receives notice does section 2361(b) place “the burden on claimants to pursue the payment of them medical bills within five years from any order or Board-approved agreement directing the employer to pay such expenses.”8

Whether Claimant received the notice required by Section 3914 is a mixed question of law and fact. Whether Claim[632]*632ant read and signed the form at issue in this case is a question of fact. We review the Board’s factual findings to determine whether they are supported by substantial evidence.9 The legal sufficiency of the language on the form provided to Claimant is a question of law. We review questions of law de novo.10

The Board found that Ms. Brown signed an agreement and receipt for workers’ compensation benefits received and that the benefits terminated in June 1998. Ms. Brown admitted at the Board hearing that she reviewed, read, and signed these documents. Nothing in the record suggests she did not understand the documents she signed. There is substantial evidence to support the Board’s finding that the notice on the form was given to Claimant.

The Board next concluded that the language and context of the notice was sufficient to allow the Employer to raise the statute of limitations defense. The notice informed Ms. Brown of her “right within five years after the date of the last payment to petition the Office of Worker’s Compensation for additional benefits.” The Board said:

Certainly, the phrase “statute of limitations” is not contained in the language, but the Board is satisfied that the wording in the receipt gave Claimant the essential information in clear, plain language free of legal jargon. The receipt’s language informed her that, even after signing the receipt, she had “the right within five years after the date of the last payment to petition the Office of Workers’ Compensation for additional benefits.” The necessary and natural implication is that, after those five years, she no longer would have that right. This is the core meaning of a statute of limitations.11

The Superior Court determined on appeal that the language of the receipt informed Claimant that any additional claims must be filed within five years. The Superior Court further concluded that the written notice was “prompt and timely” as required by Section 3914 because it was given on the date the five-year statute of limitations began to run.

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Brown v. State, 900 A.2d 628, 2006 Del. LEXIS 228, 2006 WL 1210957 (Del. 2006).

900 A.2d 628 (Brown v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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