Kelley v. ILC Dover, Inc.

787 A.2d 751, 2001 Del. Super. LEXIS 125, 2001 WL 392484
CourtSuperior Court of Delaware
DecidedMarch 16, 2001
DocketC.A. No. 98C-12-020 HDR
StatusPublished
Cited by3 cases

This text of 787 A.2d 751 (Kelley v. ILC Dover, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelley v. ILC Dover, Inc., 787 A.2d 751, 2001 Del. Super. LEXIS 125, 2001 WL 392484 (Del. Ct. App. 2001).

Opinion

OPINION

RIDGELY, President Judge.

This case involves a claim for recovery of unpaid workers’ compensation benefits. Presently before the Court is Plaintiff William Kelley’s (“Kelley”) motion for summary judgment. For the reasons which follow, summary judgment is granted in favor of the plaintiff pursuant to Huffman v. C.C. Oliphant & Son, Inc.1 (“Huffman”).

I. BACKGROUND

On April 29, 1988, Mr. Kelley was injured in an industrial accident while in the employ of ILC Dover, Inc. (“ILC”) as a maintenance man. Following Kelley’s injury, he received workers’ compensation benefits from ILC’s insurance carrier, Liberty Mutual Insurance Company (“Liberty”) in the form of temporary total disability benefits. Subsequently, Liberty filed a petition to terminate with the Industrial Accident Board (“IAB”); Kelly also filed a petition with the IAB seeking an increase in permanent partial disability.

On November 9, 1995, the IAB granted Liberty’s petition to terminate and reduced Kelley’s benefits from $242.13 per week in temporary total disability to $82.13 per week in temporary partial disability. The IAB also awarded Kelley a medical witness fee and attorney’s fees.2

Subsequently, Kelley took a limited appeal of the IAB’s decision reducing compensation to the Superior Court. On October 31, 1997, the Superior Court reversed the decision of the IAB, reinstating Kel[753]*753ley’s benefits at $242.13.3 The Supreme Court affirmed this decision on June 25, 1998.4

Following the Supreme Court’s decision, Kelley, through his counsel, issued a letter dated July 18, 1998, demanding payment of all workers’ compensation benefits due. Plaintiffs counsel received payment for the reinstated total disability benefits on August 27, 1998. The medical witness fees and attorney’s fees are still unpaid.

Plaintiff filed this action seeking liquidated damages for late payment of the total disability benefits, as well as the unpaid medical witness fees, unpaid attorney’s fees, plus liquidated damages. Plaintiff has moved for summary judgment.

II.PARTIES’ARGUMENTS

In support of his motion for summary judgment, the plaintiff argues that no genuine issues of material fact exist regarding the award of total disability benefits, medical witness fees and attorney’s fees. Kelley argues that he is entitled to judgment as a matter of law pursuant to Huffman because defendants failed to make timely payment of amounts owed upon proper demand.

Defendants argue that (a) plaintiffs Huffman demand was insufficient and vague; (b) the defendants had a reasonable justification to deny payments; (c) the reversal by the Superior Court negated defendants’ obligation to pay the medical witness and attorney’s fees, and (d) plaintiffs acceptance of the check for back total disability benefits constituted an accord and satisfaction of the entire debt owed.

III.SUMMARY JUDGMENT STANDARD

Summary judgment will only be granted if, after reviewing the record in the light most favorable to the non-moving party, there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.5 The moving party has the burden of demonstrating that no issue of material fact exists.6 The non-moving party “may not rest upon the mere allegations or denials of [its] pleading,” but must set forth in its response, by affidavit or otherwise, specific facts demonstrating the existence of a material issue for trial.7

IV.DISCUSSION

A civil action “to recover unpaid wages and liquidated damages may be maintained in any court of competent jurisdiction.”8 Plaintiff moves for summary judgment under 19 Del. C. § 2357, which provides, “[i]f default is made by the employer for 30 days after demand in the payment of any amount due under this chapter, the amount may be recovered in the same manner as claims for wages are collectible.”9 Claims for “wages” against one’s employer may be made pursuant to the Wage Payment and Collection Act CWPCA”).10 To give effect to provisions [754]*754in Section 2357, the reference to “wages” in Section 1113(a) must be construed to “include claims based on unpaid workers’ compensation benefits due after proper demand therefor has been made.”11 In other words, if a default is made by the employer thirty days after demand in the “payment of any amounts due under the Workers’ Compensation statute, the amount due may be recovered in the same manner as claims made pursuant to the Wage Payment and Collection Act.”12

The plaintiff further seeks liquidated damages under 19 Del. C. § 1103(b), which provides, “[i]f an employer, without any reasonable grounds for dispute, fails to pay an employee wages as required under this Chapter, the employer shall in addition be liable to the employee for liquidated damages in the amount of 10% of the unpaid wages for each day, except Sunday and legal holidays, upon which such failure continues after the day upon which payment is required or in an amount equal to the unpaid wages, whichever is smaller....”13

Defendants contend that Kelley’s Huffman demand is unenforceable because it was not specific as to what compensation was being sought. Kelley’s letter demanded “payment of all workers’ compensation benefits due” because the “Board award has not been paid.” The language used in Kelley’s Huffman demand letter is almost identical to the demand language in MacDonald v. Smalls Insurance Co.14 In MacDonald, the Court held that defendants’ vagueness argument was “without merit” and that the language in the demand letter provided adequate notice because “both parties knew that payments were due.”15 Similarly in this case, the original IAB award and subsequent appellate decisions provided proper notice of what was due to the plaintiff. The purpose behind the demand requirements of Section 2357 is to put defendants on notice of their default and permit them to cure their deficiency within thirty days in order to avoid incurring liquidated damages under the WPCA. The defendants’ obligation to pay benefits did not arise as a result of the demand letter; the obligation arose as a result of the Superior Court’s reversal of the IAB’s termination order. The demand letter merely provided notice of the default to the defendants. Therefore, the plaintiffs demand letter need not specifically reiterate the relief sought because both parties knew what payments were due the plaintiff upon conclusion of the appellate process.

In Holden v. Gaico,16 the Supreme Court recently interpreted a demand letter requesting payment of “all workers’ compensation benefits due” as a timely demand. The Court reversed and remanded the case, thereby granting Holden the right to pursue his Huffman claim based on his demand letter.17 The defendants argue that the Holden

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Cite This Page — Counsel Stack

Bluebook (online)
787 A.2d 751, 2001 Del. Super. LEXIS 125, 2001 WL 392484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelley-v-ilc-dover-inc-delsuperct-2001.