Roe v. Yarmouth Lumber, Inc.

2001 ME 159, 785 A.2d 334, 2001 Me. LEXIS 162
CourtSupreme Judicial Court of Maine
DecidedNovember 20, 2001
StatusPublished

This text of 2001 ME 159 (Roe v. Yarmouth Lumber, Inc.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roe v. Yarmouth Lumber, Inc., 2001 ME 159, 785 A.2d 334, 2001 Me. LEXIS 162 (Me. 2001).

Opinion

CLIFFORD, J.

[¶ 1] The employee, John A. Roe, appeals from a decision of a hearing officer of the Workers’ Compensation Board granting Roe’s petitions for award, but denying incapacity benefits pursuant to 39-A M.R.S.A. § 214(1)(A) (2001). The hearing officer found that Roe refused an offer of reinstatement without good and reasonable cause, and, accordingly, was disqualified from receiving benefits during the period of the refusal. Roe contends that the hearing officer’s decision is contrary to a Board rule providing that section 214 is not applicable when the employer is paying benefits “without prejudice.” Me. W.C.B. Rule Ch. 1, § 2. We disagree and we affirm the decision.

[¶ 2] The hearing officer made the following findings that are undisputed by the parties: Roe suffered a work-related low-back injury on October 16, 1994, while working as a truck driver for Yarmouth Lumber, Inc. His condition gradually deteriorated until early 1997, when he temporarily left work as a result of his injury. Roe was given medical clearance to return to work in the spring of 1997, but, as the hearing officer concluded in this case, “for the most part, medical providers ... recommended that he not return to long haul truck driving.” Yarmouth voluntarily paid incapacity benefits “without prejudice,” i.e., without formally accepting liability. See Me. W.C.B. Rule Ch. 1, § 2.

[¶ 3] In April 1997 Yarmouth sent Roe a written offer of reinstatement employment that “involved short distance driving with no loading and unloading.” The written job offer stated, in pertinent part:

[336]*336According to the most recent Practitioner’s Report, you are now able to lift up to 50 pounds on a frequent basis. This should allow you to perform driving duties on a local assignment basis. Duties would involve driving and delivery in the Maine, New Hampshire, Massachusetts area, and would allow you to be back home every evening. We would coordinate this to be sure it does not include any hand unloading of products.

Roe refused the offer and Yarmouth terminated payment of benefits. Roe found sporadic employment from 1997 through 1999. In May 2000 he obtained ongoing part-time employment as a “night auditor” at the Tugboat Inn.

[¶ 4] Roe filed petitions for award of benefits, seeking benefits for his 1994 and 1997 injuries.1 Although the hearing officer found that Roe suffered work-related injuries in 1994 and 1997, the hearing officer also found that the short-haul truck driving job offered to Roe in April 1997 “conformed with Mr. Roe’s restrictions by his treating physician at that time.” The hearing officer concluded that Roe refused a good faith, bona fide offer of reinstatement employment without good or reasonable cause, and would therefore not be entitled to incapacity benefits during the period of the refusal. See 39-A M.R.S.A. § 214(1)(A). The hearing officer denied the employee’s motion for further findings of fact and conclusions of law, and we granted Roe’s petition for appellate review pursuant to 39-A M.R.S.A. § 322 (2001).

I.

[¶ 5] Section 214 provides, in pertinent part:

1. Benefit determination. While the incapacity is partial, the employer shall pay the injured employee benefits as follows.
A. If an employee receives a bona fide offer of reasonable employment from the previous employer or another employer or through the Bureau of Employment Services and the employee refuses that employment without good and reasonable cause, the employee is considered to have voluntarily withdrawn from the work force and is no longer entitled to any wage loss benefits under this Act during the period of the refusal.
5. Reasonable employment defined. “Reasonable employment,” as used in this section, means any work that is within the employee’s capacity to perform that poses no clear and proximate threat to the employee’s health and safety and that is within a reasonable distance from that employee’s residence. The employee’s capacity to perform may not be limited to jobs in work suitable to the employee’s qualification and training.

39-A M.R.S.A. §§ 214(1)(A) & (5) (2001).

[¶ 6] Pursuant to section 205 of the Act, employers can voluntarily pay benefits in the absence of a decree or an approved agreement, without accepting liability for the work-injury. 39-A M.R.S.A. § 205 (2001). This procedure is sometimes referred to as “payment without prejudice.”2 See, e.g., Goff v. Cent. Maine Power Co., 1998 ME 269, ¶ 1, 721 A.2d 182, 183; Libby v. Boise Cascade Corp., 1998 [337]*337ME 89, ¶ 1, 709 A.2d 737, 738. Employers paying benefits “without prejudice,” may terminate those benefits after providing 21-day written notice to the Board and the employee. 39-A M.R.S.A. § 205(9)(B)(1) (2001).3 By contrast, when there is a Board decree or formal agreement establishing liability for an injury and the employer is paying benefits “unth prejudice,” the employer may not terminate or reduce benefits without first filing a petition with the Board and waiting until a final resolution of the dispute. 39-A M.R.S.A. § 205(9)(B)(2) (2001).

[¶ 7] The Board has promulgated rules governing procedures for payment of incapacity or death benefits with or without prejudice. The rule provides, in pertinent part:

Claims for Incapacity and Death Benefits
1. Within 14 days of notice or knowledge of a claim for incapacity or death benefits for a work-related injury, the employer will:
A. Accept the claim and file a Memorandum of Payment checking “Accepted” in Box 18; or
B. Pay without prejudice and file a Memorandum of Payment checking “Voluntary Payment Pending Investigation” in Box 18; or
C. Deny the claim and file a Notice of Controversy.
§ 2. Payment without prejudice
1. Payment without prejudice does not constitute a payment scheme.
2. If no payment scheme exists, the employer may reduce or suspend the payment of benefits pursuant to 39-A M.R.S.A. § 205(9)(B)(1). The provisions of 39-A M.R.S.A. § 21 j. do not apply to compensation payments that are made without prejudice.

Me. W.C.B. Rule eh. 1, §§ 1, 2 (emphasis added).

[IT 8] Relying on Board rule ch. 1, § 2, Roe contends that section 214 does [338]*338not apply when compensation payments are made without prejudice. Roe contends that because he had been receiving benefits “without prejudice” at the time of the April 1997 offer, the subsection 214(1) penalty for refusal of a bona fide reinstatement offer without good and reasonable cause does not apply. We disagree.

[¶ 9] The Board did not construe its rule as precluding the application of § 214(1)(A) to the facts extant in this case,4 and we similarly decline to accept the employee’s interpretation of that rule. Section 214(1)(A), by its plain language, is not contingent on the type of employer payment, nor is its application dependent on there being any employer payment at all.

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Related

Goff v. Central Maine Power Co.
1998 ME 269 (Supreme Judicial Court of Maine, 1998)
Loud v. Kezar Falls Woolen Co.
1999 ME 118 (Supreme Judicial Court of Maine, 1999)
Libby v. Boise Cascade Corp.
1998 ME 89 (Supreme Judicial Court of Maine, 1998)
Holt v. School Administrative District No. 6
2001 ME 146 (Supreme Judicial Court of Maine, 2001)

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Bluebook (online)
2001 ME 159, 785 A.2d 334, 2001 Me. LEXIS 162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roe-v-yarmouth-lumber-inc-me-2001.