Sprayberry v. Commercial Union Insurance

232 S.E.2d 111, 140 Ga. App. 758, 1976 Ga. App. LEXIS 1624
Court of Appeals of Georgia·Decided November 22, 1976·No. 52529·Published·Cited by 7 cases

Opinions

Marshall, Judge.

The question presented in this workmen’s compensation case is whether an insurer may receive credit for payments made to an injured employee pursuant to the laws of another state which state did not have jurisdiction to authorize such payments.

Claimant was injured while working as an employee of Steadman Heating & Air Conditioning Company. Steadman’s place of business is in Georgia and it does most of its work in Georgia, but it has a Tennessee mailing address and does work in Tennessee. The claimant is a [759] Georgia resident and the injury occurred in Chickamauga, Georgia, near the Tennessee state line. Claimant had worked for Steadman in Tennessee. Following his injury claimant was treated hy physicians in Tennessee. Claimant began receiving weekly checks in the amount of $70 from Steadman’s workmen’s compensation insurer. The checks were sent pursuant to Tennessee’s workmen’s compensation laws (which benefits were less than claimant could have received under Georgia law). Claimant received and cashed these checks for nearly a year before he began to question the amount he was receiving. Just before the running of the one year limitation for filing a claim in Georgia, he retained counsel and made demand against the insurer, and, upon its being denied, filed ,a^ workmen’s compensation claim under Georgia law. Claimant had received $3,570 in benefits up to that time.

The administrative law judge awarded the claimant full benefits under Georgia’s workmen’s compensation laws and denied the insurer’s request for credit for the payments it had already made under Tennessee law. On appeal to the full board, the insurer was awarded credit for such payments. The board found that the payments were made in accordance with Tennessee law, were not gratuities, and were made in good faith; that the absence of jurisdiction in Tennessee was not known until the administrative law judge adjudicated that fact; that insurer was entitled to credit for monies already paid; and that insurer should not be assessed attorney fees for the reasons aforesaid. The superior court affirmed, and claimant appeals to this court.

Claimant contends that the board erred in finding that the insurer’s payments were made "in accordance with Tennessee law” and in finding they were made in "good faith since it was not known that Tennessee did not have jurisdiction until the administrative law judge adjudicated that fact.” Claimant further contends that the payments made were gratuities because made without any agreement or approved award, and that claimant was entitled to attorney fees because of the bad faith shown by the insurer. Held:

1. The board’s finding that the claimant received [760] payments "in accordance with Tennessee law” is supported by evidence in the record in the form of a stipulation made by claimant’s counsel that claimant had been receiving payments of $70 per week under the provisions of Tennessee law. Such evidence is competent and is sufficient to support the board’s finding. Code § 114-710. See Fox v. Hartford Acc. &c. Co., 130 Ga. App. 104 (1) (202 SE2d 568).

2. The finding of the board that the payments were made "in good faith” was made relative to the board’s determination that claimant’s attorney fees should not be assessed against the insurer. This finding is also supported by the record, for it is reasonable or at least arguable that Tennessee had jurisdiction over the claim. See Tenn. Code Ann. § 50-917 (which provides extraterritorial jurisdiction as to injuries occurring outside the state under certain circumstances). There is no evidence that the payments were made by the insurer to avoid paying the higher Georgia benefits, or to "lull” claimant into letting the one year statute run. An award of attorney fees may not rest upon pure speculation and conjecture. Frith v. Liberty Mut. Ins. Co., 107 Ga. App. 285, 289 (129 SE2d 812). The issue contested by the insurer is not whether claimant is entitled to payments under Georgia law, but whether it is entitled to a credit for previous payments made. This issue is by no means a settled one. See Division 3, infra. "Attorney fees may not be awarded where the matter was closely contested on reasonable grounds. Gulf Life Ins. Co. v. Moore, 90 Ga. App. 791, 798 (84 SE2d 696).” Pacific Employers Ins. Co. v. Peck, 129 Ga. App. 439, 442 (200 SE2d 151). Attorney fees were properly denied in this case.

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Sprayberry v. Commercial Union Insurance, 232 S.E.2d 111, 140 Ga. App. 758, 1976 Ga. App. LEXIS 1624 (Ga. Ct. App. 1976).

232 S.E.2d 111 (Sprayberry v. Commercial Union Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Sprayberry v. Commercial Union Insurance
232 S.E.2d 111 (Court of Appeals of Georgia, 1976)