Cartersville Ready Mix Co. v. Hamby

479 S.E.2d 767, 224 Ga. App. 116, 96 Fulton County D. Rep. 4320, 1996 Ga. App. LEXIS 1312
CourtCourt of Appeals of Georgia
DecidedDecember 5, 1996
DocketA96A0951
StatusPublished
Cited by16 cases

This text of 479 S.E.2d 767 (Cartersville Ready Mix Co. v. Hamby) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cartersville Ready Mix Co. v. Hamby, 479 S.E.2d 767, 224 Ga. App. 116, 96 Fulton County D. Rep. 4320, 1996 Ga. App. LEXIS 1312 (Ga. Ct. App. 1996).

Opinions

Smith, Judge.

Terry Hamby filed a claim for workers’ compensation, contending he sustained a back injury at work. Although his employer, Cartersville Ready Mix Company, knew or suspected within a short time after Hamby’s injury that it was not job-related, the employer did not controvert the claim within 21 days after learning of the injury. Instead, after a number of weeks it voluntarily commenced payment of workers’ compensation benefits, paying a lump sum for five weeks but paying no penalty. Subsequently, although it had filed no penalty, the employer filed a notice to controvert payment pursuant to OCGA § 34-9-221 (h) within 60 days of the date first payment of compensation was due. In conjunction with the notice to controvert, the employer also suspended payments on the basis that the injury did not arise out of and in the course of employment. At the hearing before the trial division of the State Board of Workers’ Compensation, Hamby sought payment of the suspended benefits through the date he returned to work, along with benefits for a ten percent permanent partial disability resulting from the back injury. He argued [117]*117that these benefits were due because the employer had not paid an increased benefit in the amount of $160 pursuant to OCGA § 34-9-221 (e), and that under Southeastern Aluminum Recycling v. Rayburn, 172 Ga. App. 648 (324 SE2d 194) (1984), the employer was not entitled to file a notice to controvert payments under OCGA § 34-9-221 (h) before paying the increased benefit. He also contended the back injury arose out of and in the course of his employment.

The administrative law judge (ALJ) denied Hamby’s claim, concluding that: (1) the employer’s failure to pay the penalty due under OCGA § 34-9-221 (e) did not prevent the employer from controverting payment, but subjected the employer to imposition of further attorney fee sanctions under OCGA § 34-9-108 (b) (2); and (2) the credible evidence showed the injury at issue did not arise out of and in the course of Hamby’s employment. The appellate division of the Board adopted the ALJ’s decision.

On further appeal, the superior court reversed the appellate division. The superior court reasoned that because the employer failed to pay the increased amount due under OCGA § 34-9-221 (e) prior to filing the notice to controvert pursuant to OCGA § 34-9-221 (h), the notice to controvert was invalid under Rayburn, supra, and the employer had no right to controvert payment. The superior court therefore concluded that because the claim was not validly controverted, Hamby was entitled to the compensation he sought regardless of whether the injury arose out of and in the course of his employment. We granted the application for a discretionary appeal filed by the employer. Upon further review, we conclude that the decision of the superior court was correct, and we affirm.

1. The contention of the employer, Cartersville Ready Mix Company, that no evidence was presented showing that the penalty owed was not paid, is belied by the record.

2. Cartersville Ready Mix contends the superior court erred in finding that the notice to controvert was invalid and in determining its effect. Under normal circumstances, if an employer wishes to controvert a claim for workers’ compensation without paying benefits, a notice to controvert must be filed within 21 days after learning of the alleged compensable injury. OCGA § 34-9-221 (d). If no change of condition or new evidence is involved, however, and if the employer voluntarily pays benefits without an award, the claim may be controverted within 60 days of the due date of the first payment of benefits. OCGA § 34-9-221 (h). This provision affords an employer another opportunity to controvert a claim if the employer changes its mind about controverting a claim, provided that the employer also voluntarily pays compensation to the employee without an award. Clearly, the provisions of OCGA § 34-9-221 require that unless an employer quickly controverts payment pursuant to subsection (d), it must com[118]*118menee compensation payments without an award and continue to make all payments due under the statute until the employer controverts and suspends payments under subsection (h).

In Rayburn, supra, we found that “the legislative intent behind OCGA § 34-9-221 was to minimize the hardship on the injured worker by requiring the employer either to act quickly when it knows a claim is controvertible, so as to expedite final resolution of the matter, or to pay compensation while investigating the matter more closely.” Id. at 649 (1). Consistent with this view, we have also stated that subsection (h) of the statute “is clearly intended to provide some form of protection to the employee’s right to continued receipt of the compensation.” (Emphasis in original.) Carpet Transport v. Pittman, 187 Ga. App. 463, 467 (370 SE2d 651) (1988).

This case turns on the question of what is included in the term “compensation.” We held in Rayburn that the term “compensation” encompasses “all of the accrued income benefits . . ., including penalties provided for any late payment.” (Emphasis supplied.) Id. at 649 (1). The amendment of the Workers’ Compensation Act in 1994 offers no reason for modifying that holding. OCGA § 34-9-23 was added to the Act in 1994. It provides that the Act should “be liberally construed only for the purpose of bringing employers and employees within [its] provisions” and providing protection for both, and that its “provisions . . . shall be construed and applied impartially to both employers and employees.” OCGA § 34-9-23. Given the legislative purpose set forth in Rayburn, it is apparent that the legislature sought to minimize the hardship on the claiming employee and to require swift decisions from the employer regarding whether the claim will be controverted. Requiring both parties to comply with the procedure set forth in the Act satisfies the need for impartiality demanded in OCGA § 34-9-23 without sacrificing the legislative purpose set forth in Rayburn.

The solution proposed by the dissent, requiring resolution of the issue of whether a penalty is due, is unnecessary.

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Cartersville Ready Mix Co. v. Hamby
479 S.E.2d 767 (Court of Appeals of Georgia, 1996)

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Bluebook (online)
479 S.E.2d 767, 224 Ga. App. 116, 96 Fulton County D. Rep. 4320, 1996 Ga. App. LEXIS 1312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cartersville-ready-mix-co-v-hamby-gactapp-1996.