Seaboard Fire & Marine Insurance v. Smith

247 S.E.2d 607, 146 Ga. App. 893, 1978 Ga. App. LEXIS 2584
CourtCourt of Appeals of Georgia
DecidedJuly 14, 1978
Docket55483
StatusPublished
Cited by6 cases

This text of 247 S.E.2d 607 (Seaboard Fire & Marine Insurance v. Smith) 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
Seaboard Fire & Marine Insurance v. Smith, 247 S.E.2d 607, 146 Ga. App. 893, 1978 Ga. App. LEXIS 2584 (Ga. Ct. App. 1978).

Opinions

Banke, Judge.

The appellant, Seaboard Fire & Marine Insurance Company, sued the appellee, Roger M. Smith, to recover alleged overpayments of workmen’s compensation benefits. The trial judge found that the appellant had [894]*894failed to state a claim upon which relief could be granted and entered judgment for the appellee.

The appellant applied to the workmen’s compensation board for a change in condition hearing, alleging that the appellee had resumed (self) employment as a truck driver on January 10, 1975. The hearing was held on March 24,1975, at which time the board, based on its finding that the appellee had undergone a change in condition on January 10, 1975, entered its interlocutory order that the appellant "suspend compensation payments previously agreed to or ordered by the Board pending issuance of the formal award, effective January 10, 1975.” The board’s final award was entered on April 30,1975. The appellant then filed this suit in the superior court to recover the $637 in workmen’s compensation benefits paid to the appellee between January 10 and March 24, 1975. The judge, sitting without a jury, found that the appellant had not stated a claim upon which relief could be granted and entered judgment for the appellee.

Included in the transcript, but not relevant to decision of the issue here on appeal, was evidence that the appellant had wrongfully discontinued payments to the appellee between November 20, 1974, and February 6, 1975. Upon request by appellee’s attorney it resumed the payments as of February 6. Because of this violation, the board assessed a $100 penalty against the appellant in its April 30th award, which fine was paid. The appellee testified at trial that the appellant had paid him in one lump sum the benefits due him between November 20, 1974, and February 6, 1975.

Pacific Employers Ins. Co. v. King, 133 Ga. App. 458 (2) (211 SE2d 396)(1974), is cited as controlling resolution of this case. In that case the court ruled that the board lacks authority to direct an employee to repay his former employer and/or insurer upon finding a retroactive change in condition. The decision was primarily based on the court’s earlier ruling in Fireman’s Fund Ins. Co. v. Crowder, 125 Ga. App. 469 (181 SE2d 530) (1971), that the board, as an administrative agency, has no jurisdiction to adjudicate the rights and liabilities of the parties involved and can merely determine the amount of compensation [895]*895and the time of payment and change the award it previously made. See Fireman’s Fund Ins. Co. v. Crowder, at pp. 475, 476.

The ancillary premise of the Pacific Employers decision, supra, was our interpretation of Code Ann. § 114-709. The court suggested that the provision in the statute that compensation continue at the rate specified in the previous award until the new award was entered affirmed the res judicata effect of the first award. The court then said that the earlier provision that the "new award shall be effective as of the time the change in condition actuálly occurred as found by the board, notwithstanding the retroactive effect of such award” referred to the board’s jurisdiction to make an evi-dentially correct finding of fact.

There was considerable confusion at trial as to the effect on Pacific Employers of a 1973 amendment to the statute. We have reviewed the various legislative changes and have determined that the decision was, in fact, decided on the basis of the statute as amended in 1973. The decision, on page 459, should have read: "Ga. L. 1972, pp. 149, 150, deleted this language but Ga. L. 1973, pp. 232, 244 added the proviso above quoted that compensation under a prior order 'shall continue until terminated or suspended by award or order of the board.’”

In tracing the statute through its various amendments, the court has also discovered an error in its construction of section 114-709 in Pacific Employers Ins. Co. v. King, supra, in that we considered out of context the provision directing compensation to be continued at the prior rate. In reality, the 1973 amendment added to the statute a complex procedure to be followed whenever an employee refuses to enter into an agreement with his employer or the insurer based on the employee’s return or ability to return to work. If upon notification by the board, the employee agrees or fails to respond to the employer’s contentions, the board is authorized to issue a new award reducing or terminating compensation. The employee then has 30 days to have the award set aside and a hearing scheduled, but in the intervening time before the board’s decision is announced, compensation continues at the [896]*896reduced rate set forth in the new award.

If the employee disputes the employer’s contentions from the outset, a hearing is scheduled but the employee in this situation is permitted to receive compensation at the rate specified in the previous award, pending announcement of the new award. It now seems clear that the purpose of this last provision was to protect an objecting employee in the event the employer’s contentions were proved unfounded at the hearing, and that no legislative intent regarding the disposition of excess funds paid to the employee under this provision can be drawn. Furthermore, the court finds that it is not barred by Williams v. Ray, 146 Ga. App. 333 (1978), from entering a corrected interpretation of Code Ann. § 114-709 at this time. This is because the import of our decision on the merits in Pacific Employers Ins. Co. v. King, supra, was obfuscated by our error in identifying the amended status of the statute and because the gravamen of our decision there was the board’s lack of jurisdiction rather than our construction of the statute. Accordingly, Pacific Employers Ins. Co. v. King, supra, will no longer be followed insofar as it conflicts with this decision.

Disregarding inaccuracies in the Pacific Employers decision, the appellant contends that its suit to recover overpayment is not barred by our ruling in Pacific Employers, since it has simply asked the superior court, which does have jurisdiction to declare the rights and liabilities between the parties, to implement the board’s prior evidentiary ruling. See Pacific Employers Ins. Co. v. King, supra, at 460. The appellant also argues that the ruling of the trial court has a windfall effect with regard to the employee as it permits him to retain benefits to which he was not entitled. See generally Code Ann. § 114-415; General Motors Corp. v. Dover, 239 Ga. 611 (238 SE2d 403) (1977) (board has discretion to credit employer-insurer’s gratuitous payments to employee to compensation benefits employee later adjudged entitled to receive).

We hold that by virtue of its jurisdiction, the superior court is authorized to enter judgment for the appellant on its claim. We emphasize that the superior court is not usurping the function of the board by making an [897]*897independent determination as to when the change in condition occurred, but rather is giving effect to the board’s finding. We rely on the Supreme Court’s recent decision in Woods v. Delta Airlines, Inc., 237 Ga. 332 (227 SE2d 376) (1976), and its express approval in that case of this court’s decision in Hayes v. Layton, 125 Ga. App. 433 (188 SE2d 149) (1972).

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Seaboard Fire & Marine Insurance v. Smith
247 S.E.2d 607 (Court of Appeals of Georgia, 1978)

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Bluebook (online)
247 S.E.2d 607, 146 Ga. App. 893, 1978 Ga. App. LEXIS 2584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seaboard-fire-marine-insurance-v-smith-gactapp-1978.