National Airlines, Inc. v. Wikle

451 So. 2d 908
CourtDistrict Court of Appeal of Florida
DecidedJune 1, 1984
DocketAO-470
StatusPublished
Cited by5 cases

This text of 451 So. 2d 908 (National Airlines, Inc. v. Wikle) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Airlines, Inc. v. Wikle, 451 So. 2d 908 (Fla. Ct. App. 1984).

Opinion

451 So.2d 908 (1984)

NATIONAL AIRLINES, INC., Employer, and Travelers Insurance Company, Carrier, Appellants,
v.
James H. WIKLE, Employee, and Division of Workers' Compensation, Appellees.

No. AO-470.

District Court of Appeal of Florida, First District.

June 1, 1984.
Rehearing Denied July 17, 1984.

H. George Kagan of Miller, Hodges & Kagan, Miami, for appellants.

Joseph C. Segor, Miami, for appellee.

ZEHMER, Judge.

The employer and carrier appeal the deputy commissioner's order separately assessing two fees for the services of claimant's attorney under section 440.34, Florida Statutes (1977). The first fee, $2,154, was awarded on the ground that the employer and carrier did not timely pay, within twenty-one days after notice, claimant's claim for permanent partial disability benefits. The second fee, $5,642, was awarded on the ground that the carrier unsuccessfully resisted the payment of compensation by pursuing, in claimant's circuit court damages suit against a third party involving the same accidental injury, its claim of lien for *909 benefits paid and to be paid.[1] We affirm the first fee and reverse the second.

Two bones in claimant's leg were badly fractured in December 1977 when a fellow employee of National Airlines ran into him while operating a small motor vehicle called a "tug." The carrier accepted the injury as compensable and provided appropriate benefits, in a timely fashion, down to the point of this controversy. Sometime in 1980, claimant reached maximum medical improvement and was entitled to permanent partial disability benefits under chapter 440. The benefits paid included medical and hospitalization costs for an open reduction and internal fixation of the tibia, with bone grafting, and for surgical removal of the plate in January 1980. The carrier also paid temporary total disability benefits intermittently when National Airlines was not paying claimant his regular salary either for actual work or pursuant to National's policy of continuing the salaries of injured workers. Temporary total disability benefits were last paid in April 1979. After the fixation plate was removed, claimant returned to work on January 30, 1980, and the carrier was so advised. As far as this record shows, claimant has worked since then without interruption on account of his injury.

The deputy predicated the first fee awarded, $2,154, on a finding that the carrier did not timely begin payment of permanent disability benefits "within twenty-one (21) days after the Claimant reached maximum medical improvement." The deputy was undoubtedly relying upon section 440.34(1), Florida Statutes (1977), which states:

If the employer or carrier ... shall decline to pay a claim on or before the 21st day after they have notice of same ... and the claimant shall have employed an attorney at law in the successful prosecution of the claim, there shall, in addition to the award for compensation, be awarded a reasonable attorney's fee... .

The only claim form actually filed in this case is of little consequence in our review of the award. The claim form itself is not a part of this record, but it is characterized in the record without objection as being of the "shotgun" variety, which we interpret as meaning that it claimed, in general terms, permanent disability benefits along with various other benefits. Moreover, that claim form was filed sometime in 1978, two years before claimant conceivably became entitled to the permanent disability benefits which the carrier began paying July 28, 1980, retroactively to June 7, 1980.

Nor is there an issue here of whether, in the language of section 440.34(1), "claimant ... employed an attorney at law in the successful prosecution of the claim." Appellants do not here argue that, as a predicate for a fee award under the 1977 statute, claimant must show that his claim for permanent disability benefits unpaid for twenty-one days after "notice" was thereafter "successfully prosecuted" or paid in consequence of claimant's employment of an attorney. See, City of Miami Beach v. Schiffman, 144 So.2d 799, 803-804 (Fla. 1962); Paul Smith Construction Co. v. Florida Industrial Commission, 93 So.2d 735 (Fla. 1957); Sue Ann's Capri Lounge v. Harhalos, 377 So.2d 989 (Fla. 1st DCA 1979), cert. denied, 386 So.2d 637 (Fla. 1980). We intimate no view on that question.

The question here is simply whether the carrier's commencement of 40% permanent partial disability benefits on July 28, 1980, was more than twenty-one days late. That is to be determined not by reference to the 1978 filing of a form which no one argues claimed permanent disability benefits contemporaneously thought to be due, but by reference to some subsequent notice or event of which the carrier had or should have had knowledge, indicating that the claim was then considered mature. See, Massey v. North American Biologicals, 397 So.2d 341, 343 (Fla. 1st DCA 1981); Latt Maxcy Corp. v. Mann, 393 So.2d 1128, 1131 (Fla. 1st DCA 1981); Roberts v. Georgia-Pacific Corp., 394 So.2d 1093 (Fla. 1st DCA 1981). In Latt Maxcy Corp. v. *910 Mann, supra, the purpose of the twenty-one day period was described in the following language:

The mere filing of a claim will not operate as notice, however, if the claim itself does not contain sufficient information to enable the employer to initiate an investigation. Gulfstar, Inc. v. Gordon, IRC Order 2-3267 (1977); Central Heating & Air Conditioning v. Harrison, IRC Order 2-3242 (1977). This result follows logically from the recognition that during the 21 day period provided by the statute, the employer has both the right and the duty to make a reasonable investigation regarding the validity of the claim. Davis v. Edwin M. Green, Inc., 240 So.2d 4 (Fla. 1970); Thompson v. W.T. Edwards Tuberculosis Hospital, 164 So.2d 13 (Fla. 1964); Smith v. Dixie Packers, Inc., 384 So.2d 709, 1980 FLW 1067 (Fla. 1st DCA 1980). Under a reasonable interpretation of Section 440.34(1), the right to investigate must be read in conjunction with the statutory requirement that the employer receive "notice" of a claim. Certainly the legislature intended to give employers a 21 day decision-making period which could be used constructively to arrive at an informed decision. In order for the employer's right to investigate to have any substance, the employer must know enough about the claim to be able to independently evaluate its validity. Thus, `notice' of a claim for statutory purposes occurs when the employer first receives sufficient information on which it may begin an investigation.

393 So.2d at 1131. The critical consideration is, therefore, to be centered on evidence showing when the employer had sufficient knowledge to begin its investigation.

The twenty-one day period cannot, under the deputy's findings, have commenced running adversely to the carrier upon the carrier's actual receipt of Dr. Nadler's written report that claimant had recovered to a condition of "approximately 35-40% of this extremity." That report, dated June 6, 1980, and based upon the doctor's examination of claimant on that date, was not received by the carrier until July 24, and the carrier's payments began four days later.

The deputy appears to have considered that the twenty-one day period began running no later than June 6, 1980, the date on which Dr.

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