Columbia County Commissioners v. K. Rospendowski (WCAB)

CourtCommonwealth Court of Pennsylvania
DecidedDecember 1, 2022
Docket723 C.D. 2021
StatusPublished

This text of Columbia County Commissioners v. K. Rospendowski (WCAB) (Columbia County Commissioners v. K. Rospendowski (WCAB)) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia County Commissioners v. K. Rospendowski (WCAB), (Pa. Ct. App. 2022).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Columbia County Commissioners, : Petitioner : : v. : No. 723 C.D. 2021 : Argued: September 12, 2022 Kristie Rospendowski (Workers’ : Compensation Appeal Board), : Respondent :

BEFORE: HONORABLE RENÉE COHN JUBELIRER, President Judge HONORABLE PATRICIA A. McCULLOUGH, Judge HONORABLE BONNIE BRIGANCE LEADBETTER, Senior Judge

OPINION BY PRESIDENT JUDGE COHN JUBELIRER FILED: December 1, 2022

At issue in this case is whether an employer can offset an overpayment of workers’ compensation (WC) benefits paid for one work-related injury through a credit against an award of benefits for a subsequent work-related injury. Both the Workers’ Compensation Judge (WCJ) and the Workers’ Compensation Appeal Board (Board) determined that while, in some instances recoupment has been authorized to avoid unjust enrichment in WC proceedings, there is nothing in the Workers’ Compensation Act (Act),1 its associated regulations, or precedent, that permits an employer to recoup an overpayment of WC benefits for one injury through a credit against an award of benefits for a different injury. In so holding, the Board noted that this Court, in Mino v. Workers’ Compensation Appeal Board (Crime Prevention Association), 990 A.2d 832 (Pa. Cmwlth. 2010), recognized that there was an open issue regarding how an employer would recoup an overpayment

1 Act of June 2, 1915, P.L. 736, as amended, 77 P.S. §§ 1 - 1041.4, 2501-2710. of WC benefits through an offset if those benefits were terminated before full recoupment could be made. (Board Opinion (Op.) at 8 n.1.)2 The Court is now tasked with resolving this open issue, as well as determining whether, as Columbia County Commissioners (Employer) argue, the WCJ erred in finding that Kristie Rospendowski (Claimant) used sick and vacation time for the relevant period in 2019.

I. BACKGROUND A. Claimant’s Past Injury and Overpayment Except as noted, the facts in this matter are not disputed. Claimant is a full- time deputy sheriff for Employer. On January 7, 2011, Claimant sustained a work- related broken right ankle, described in a supplemental agreement as right ankle injury, when she slipped on ice (2011 Injury). Claimant was off work for that injury off and on over a period of four years because the Sheriff did not offer light-duty work. In a modification petition filed by Employer and resolved by WCJ Karl Baldys (WCJ Baldys) related to the 2011 Injury, Employer sought to modify a supplemental agreement based on its overpaying Claimant $14,233.88 in wage loss benefits. This overpayment was due to Claimant’s failure to disclose income from other employment and/or provide earnings data as required by the supplemental agreement. (December 7, 2015 WCJ Decision (2015 WCJ Decision), Finding of Fact (2015 FOF) ¶¶ 6, 25; Conclusion of Law (2015 COL) ¶ 9;3 see also July 6, 2020 WCJ Decision (2020 WCJ Decision), FOF (2020 FOF) ¶ 5.)4 WCJ Baldys held that

2 The Board’s Opinion is Item 10 in the Certified Record and is found at pages 197a-209a of the Reproduced Record. 3 The 2015 WCJ Decision is Item 18 of the Certified Record and is found at pages 126a- 34a of the Reproduced Record. 4 The 2020 WCJ Decision is Item 5 of the Certified Record and is found at pages 180a-87a of the Reproduced Record.

2 Claimant had been unjustly enriched by the overpayment and that Employer was entitled to a recoupment of benefits. The offset was reduced from $192.00 to $100.00 per week,5 taking into account hardship on Claimant, but the full amount of the overpayment was to be recouped. (Id. ¶ 11.) The 2015 WCJ Decision was issued without prejudice to Employer to seek reimbursement from the Supersedeas Fund as appropriate. Ultimately, Claimant returned to full-duty work without wage loss in 2016, her wage loss benefits for the 2011 Injury ended, and $10,333.88 of the overpayment amount remained unpaid.

B. Claimant’s Current Work Injury and the 2020 WCJ Decision Claimant subsequently sustained a different work-related injury “in the nature of a low back L5-S1 disc extrusion impinging on the SI nerve root” on January 22, 2019, (2019 Injury) and filed the Claim Petition seeking medical benefits, wage loss benefits beginning February 20, 2019, and counsel fees. (2020 FOF ¶ 2.) After initially denying the allegations, Employer stipulated that it would accept the injury as a L5-S1 disc herniation as a medical-only claim, notwithstanding Claimant’s undisputed 27-day wage loss, because it wanted to recoup part of the overpayment from the 2011 Injury as a credit against the benefits owed for the 2019 Injury. (Id. ¶ 4.) During the hearings, Claimant testified6 as to how the 2019 Injury occurred, and that she advised Employer of the injury, sought medical treatment, and was removed from and eventually returned to her position as a Deputy Sheriff. Claimant

5 WCJ Baldys had granted recoupment in the amount of $192.00 per week which Claimant requested be reduced due to economic hardship. 6 Claimant’s testimony, which is summarized in Findings of Fact 7-14 in the 2020 WCJ Decision, is found in the August 7, 2019 Hearing Transcript, Item 13 of the Certified Record, and at pages 38a-74a of the Reproduced Record.

3 testified that her vacation and sick time were used for the 27 days she was off work for the 2019 Injury. (Id. ¶ 12.) In addition to asserting the credit based on the overpayment, Employer introduced the affidavit of its HR Director,7 which “indicate[d] that Claimant received her full wages for all time that was reported as missing work for the injury” and “that Claimant did not report that any personal, sick, or vacation time used since January 23, 2019, was for the work injury.” (Id. ¶¶ 18-19.) WCJ Susan Caravaggio (WCJ Caravaggio) credited Claimant’s testimony and found the affidavit not credible as to the use of vacation and sick time for the work injury based on Claimant’s contrary testimony. (Id. ¶¶ 7, 12, 19.) On this point, WCJ Caravaggio concluded that there was no evidence that the wages paid to Claimant were in lieu of WC payments and, therefore, this did not preclude Claimant’s receipt of temporary total disability benefits. (2020 WCJ Decision, COL (2020 COL) ¶ 9.) WCJ Caravaggio found that Claimant sustained a work-related injury on January 22, 2019, suffered a wage loss between February 20, 2019, and March 17, 2019, and returned to work without wage loss on March 18, 2019. Accordingly, WCJ Caravaggio granted the Claim Petition. On the issue of the payment of wage loss benefits for this period, Employer argued that because the parties are the same in both the 2011 and 2019 Injuries, to deny its requested credit “would perpetuate the unjust enrichment from the 2011 [I]njury.” (2020 COL ¶ 4.) WCJ Caravaggio considered Employer’s arguments and several court decisions on the issue of the recoupment of an overpayment against a claimant’s benefits based on unjust enrichment. WCJ Caravaggio opined that “[e]mployers have been awarded recoupment of benefits due to unjust enrichment of the [c]laimant, as [WCJ] Baldys

7 HR Director’s affidavit is Item 19 of the Certified Record and is found at pages 135a-36a of the Reproduced Record.

4 ordered here in [the 2015 WCJ Decision] related to Claimant’s . . . 2011[ I]njury . . . [;] however, nothing in the Act or regulations or appellate decisions [ ] allows for recoupment of benefits due to unjust enrichment related to one injury through a credit on benefits for a different injury.” (2020 COL ¶¶ 4-5.) Therefore, WCJ Caravaggio held that Employer was not entitled to the requested credit against the wage loss benefits for the 2019 Injury and directed Employer to pay Claimant.8 (Id. ¶¶ 6-8.)

C.

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Columbia County Commissioners v. K. Rospendowski (WCAB), Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-county-commissioners-v-k-rospendowski-wcab-pacommwct-2022.