William J. Donovan Sheet Metal v. Workers' Compensation Appeal Board (McCollum)

789 A.2d 344, 2001 Pa. Commw. LEXIS 874
CourtCommonwealth Court of Pennsylvania
DecidedDecember 4, 2001
StatusPublished

This text of 789 A.2d 344 (William J. Donovan Sheet Metal v. Workers' Compensation Appeal Board (McCollum)) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William J. Donovan Sheet Metal v. Workers' Compensation Appeal Board (McCollum), 789 A.2d 344, 2001 Pa. Commw. LEXIS 874 (Pa. Ct. App. 2001).

Opinion

FLAHERTY, Senior Judge.

William J. Donovan Sheet Metal Company (Employer) petitions for review of an order of the Workers’ Compensation Appeal Board (Board) which affirmed the decision of a Workers’ Compensation Judge (WCJ) granting the Claim Petition filed by Terrence McCollum (Claimant). We affirm.

On January 14, 1999, Claimant filed a Claim Petition alleging that he sustained an “injury to neck, upper back, left shoulder, right arm, left arm and numbness in both hands” on October 23, 1998 while working for Employer and that this injury forced him to stop working on November 10, 1998. Claimant further alleged that “as a result of the cumulative effects of my work duties, I developed bilateral carpal tunnel syndrome with neck and upper back injuries” and asserted that he was seeking total disability benefits from the date of the alleged injury to “ongoin [sic].” 1 The Claim Petition listed the insurance carrier as “unknown.” On March 29, 1999, the Claim Petition was assigned to the WCJ. On May 21, 1999, Employer filed a late Answer denying the allegations set forth in Claimant’s Claim Petition.

A hearing was held before the WCJ on May 12, 1999. However, Employer’s attorney was not present. The only evidence admitted into the record by Claimant’s attorney was the contingent fee agreement.

By decision and order dated June 4, 1999, the WCJ found that because Employer failed to file a timely Answer, all the material allegations in Claimant’s Claim Petition were admitted by Employer. Accordingly, the WCJ granted Claimant’s Claim Petition. Employer appealed to the Board, which affirmed the decision of the WCJ. This appeal followed. 2

Employer argues that: 1) the WCJ erred by granting the Claim Petition when *346 no evidence was admitted on behalf of Claimant except for the contingent fee agreement; 2) the WCJ failed to issue a reasoned decision; 3) it failed to file a timely Answer or appear at the hearing because its insurance carrier was not named on the “Assignment of Petition(s) to a Workers’ Compensation Judge” (Notice of Assignment) or Notice of Hearing even though Claimant’s attorney knew that Employer’s insurance carrier was the PMA Insurance Group when he filed the Claim Petition; 4) the averments in Claimant’s Claim Petition cannot support an award of benefits because Claimant was not employed by Employer on November 10, 1998, which is the day Claimant alleges in the Claim Petition that his injury forced him to stop working.

With regard to Employer’s argument that its insurance carrier was not named on the Notice of Assignment, it is well settled that the failure to file an answer to a claim petition within twenty days constitutes an admission of the facts alleged in that petition. In Manolovich v. Workers’ Compensation Appeal Board (Kay Jewelers, Inc.), 694 A.2d 405, 407-408 (Pa.Cmwlth.1997), this Court held that “[a]n employer, which has been properly notified of a claim, cannot ignore that claim and its duty to defend merely because the employer assumes that its insurance carrier has been properly served; such a result would produce unwarranted multiple, inconsistent litigation and appeals within the Board’s jurisdiction. This type of tactical advantage and gamesmanship by employers and insurance carriers would frustrate the intent of our General Assembly to establish an efficient system of processing and adjudicating Workers’ Compensation claims.” Therefore, the fact that an employer’s insurance carrier was not served with a petition is not an “adequate excuse” for failing to file an answer within twenty days as required by Section 416 of the Act, because once the employer is properly served by the Department of Labor and Industry, Bureau of Workers’ Compensation, the insurance carrier cannot claim that it was not notified of the claim. Id. See also Heraeus Electro Nite Company v. Workmen’s Compensation Appeal Board (Ulrich), 697 A.2d 603 (Pa. Cmwlth.1997).

Therefore, we reject Employer’s argument that the WCJ erred by granting the Claim Petition when the insurance carrier was not listed on the Notice of Assignment. Pursuant to Manolovich and Her-aeus, notice to Employer was sufficient. As to Employer’s argument that Claimant’s attorney knew that PMA was Employer’s insurance carrier, Employer has presented no evidence to support this allegation.

Next, Employer argues that there is no evidence of record to support the grant of Claimant’s Claim Petition because Claimant failed to offer the Claim Petition into evidence. In a claim petition proceeding, the claimant bears the burden of proving that he suffers from a work-related injury that occurred in the course and scope of his employment and that the injury results in a loss of earning power. Inglis House v. Workmen’s Compensation Appeal Board (Reedy) 535 Pa. 135, 634 A.2d 592 (1993).

Section 416 of the Workers’ Compensation Act (Act) 3 provides that;

Within twenty days after a copy of any claim petition or other petition has been served upon an adverse party, he may file with the department or its workers’ compensation judge an answer in the form prescribed by the department. *347 Every fact alleged in a claim petition not specifically denied by an answer so filed by any adverse party shall be deemed to be admitted by him. But the failure of any party or of all of them to deny a fact alleged in any other petition shall not preclude the workers’ compensation judge before whom the petition is heard from requiring, of his own motion, proof of such fact. If a party fails to file an answer and/or fails to appear in person or by counsel at the hearing without adequate excuse, the workers’ compensation judge hearing the petition shall decide the matter on the basis of the petition and evidence presented.

77 P.S. § 821 (emphasis added). See also Yellow Freight System, Inc. v. Workmen’s Compensation Appeal Board, 56 Pa. Cmwlth. 1, 423 A.2d 1125 (1981).

Initially, we note that in Heraeus, this Court interpreted the claimant’s allegation of disability from “3-23-92 to present” as alleging an ongoing disability and held that “Employer’s failure to file a timely answer only admitted facts, such as the work injury and the resultant disability alleged, up to the last day the answer could have been timely filed. Employer had every opportunity to prove events that may have occurred after the period when the late answer should have been filed, such as, changes in disability.” Id. at 609. In the case sub judice, Claimant also alleged that he was seeking ongoing disability benefits.

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Related

Miller v. Workers' Compensation Appeal Board
737 A.2d 830 (Commonwealth Court of Pennsylvania, 1999)
Republic Steel Corp. v. Workmen's Compensation Appeal Board
640 A.2d 1266 (Supreme Court of Pennsylvania, 1994)
Sanders v. Workers' Compensation Appeal Board
756 A.2d 129 (Commonwealth Court of Pennsylvania, 2000)
House v. Workmen's Compensation Appeal Board
634 A.2d 592 (Supreme Court of Pennsylvania, 1993)
Manolovich v. Workers' Compensation Appeal Board
694 A.2d 405 (Commonwealth Court of Pennsylvania, 1997)
Heraeus Electro Nite Co. v. Workmen's Compensation Appeal Board
697 A.2d 603 (Commonwealth Court of Pennsylvania, 1997)
Yellow Freight System, Inc. v. Commonwealth
423 A.2d 1125 (Commonwealth Court of Pennsylvania, 1981)

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789 A.2d 344, 2001 Pa. Commw. LEXIS 874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-j-donovan-sheet-metal-v-workers-compensation-appeal-board-pacommwct-2001.