U. S. HOME CORPORATION AND NORTHWESTERN NATIONAL INSURANCE COMPANY, APPELLANTS,
v.
DONALD E. PARKER AND BRENT SCHOCH, APPELLEES

Fla. 1st DCA | 1981-09-29
No. WW-456
ROBERT P. SMITH, Jr., C. J., and JOA-NOS, J., concur.
404 So. 2d 170 Florida District Court of Appeal, First District (1981) Caution
Cited by 12 cases

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Synopsis

U.S. Home Corporation and its insurance carrier Northwestern National Insurance Company appealed a workers' compensation Deputy Commissioner's order requiring Northwestern to reimburse a subcontractor $10,500. The court reversed, holding that the Deputy lacked statutory authority to adjudicate disputes between an insurance carrier and a non-carrier third party.


Holding

No. The Deputy lacked authority under Florida Statute § 440.42(3) because that statute only permits the Deputy to determine responsibility between two or more 'carriers,' and Schoch was neither a carrier nor a qualified self-insured. The Deputy therefore had no power to construe the indemnity contract or order reimbursement.


Headnotes

[1] A Deputy Commissioner in a workers' compensation proceeding lacks statutory authority to adjudicate a controversy between a subcontractor and a contractor's insurance car…

[2] A Deputy Commissioner's authority in workers' compensation matters is limited to statutory grants, and they cannot adjudicate disputes outside of their prescribed jurisdi…

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Key Quotes

“There was no statutory authority for the Deputy to adjudicate the controversy between Northwestern and Mr. Schoch.”

Establishes the central holding that the Deputy lacked jurisdiction over the dispute between the insurance carrier and non-carrier subcontractor.

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Facts & Procedural History

U.S. Home hired subcontractor Brent Schoch, who was contractually required to obtain workers' compensation insurance and to indemnify U.S. Home. Schoc…

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Opinion of the Court
THOMPSON, Judge.

THOMPSON, Judge.

The appellants challenge a workers’ compensation Order, contending in part that the Deputy Commissioner (“the Deputy”) had no authority to adjudicate the controversy between themselves and the appellee Brent Schoch. We agree and reverse.

U. S. Home Corporation (“U. S. Home”) was the contractor for a building project, and it hired Mr. Schoch to perform work as a sub-contractor. The contract between U. S. Home and Mr. Schoch required Mr. Schoch to procure workers’ compensation insurance. The contract also provided that Mr. Schoch would indemnify U. S. Home against all claims, including injuries to persons, arising out of work performed by Mr. Schoch.

Mr. Schoch hired the appellee Donald Parker (“the claimant”) to perform work for the sub-contract. However, Mr. Schoch did not procure workers’ compensation insurance, nor was he a qualified self-insured. The claimant suffered an on-the-job injury, and Mr. Schoch paid him $10,500. The claimant later brought a workers’ compensation claim against Mr. Schoch who, in turn, filed with the Deputy a Petition for Contribution or Reimbursement from U. S. Home.

After a hearing, the Deputy found that pursuant to § 440.10(1), Fla.Stat. (1977), U.

S. Home was responsible for the payment of compensation benefits. The Deputy proceeded to adjudicate the merits of the claim, and then he ruled that U.

S. Home was entitled to take, as a credit against the compensation due, the $10,500 paid to the claimant by Mr. Schoch. As for the issues raised by Mr. Schoch’s Petition for Contribution or Reimbursement, the Deputy declined to rule on these issues, noting that “there has not yet been a determination by a court of competent jurisdiction as to the validity of the [contract between U.

S. Home and Mr. Schoch.]” No appeal was taken from this Order. Approximately five months after the Deputy entered his Order, Mr. Schoch filed an Amended Petition for Contribution or Reimbursement. At a hearing on this Petition, the Deputy determined that U.

S. Home’s insurance carrier, the appellant Northwestern National (“Northwestern”), was required to reimburse Mr. Schoch the sum of $10,500. The Deputy found that Northwestern was not entitled to rely on the indemnity provision of the contract between U.

S. Home and Mr. Schoch, because it was not a party to that agreement.

Initially, we note that in the Deputy’s first Order, he specifically withheld ruling on the Petition for Contribution or Reimbursement until a court of competent jurisdiction ruled upon the validity of the contract. The Deputy then entered a second, contradictory Order, whereby he decided to determine the validity of the contract. This procedure was unorthodox, and in this case, erroneous.

There was no statutory authority for the Deputy to adjudicate the controversy between Northwestern and Mr. Schoch. We recognize that § 440.42(3), Fla.Stat. (1977), permits the Deputy to determine the responsibility of two or more carriers for the payment of workers’ compensation benefits, in addition to ordering appropriate reimbursements by one carrier to another.

However, the application of that statute would clearly require that Mr. Schoch be a “carrier,” which is an entity or person who is authorized to insure an employer, or alternatively, a qualified self-insured. See § 440.02(7), Fla.Stat. (1977). No evidence was presented showing that Mr. Schoch is a carrier.

Therefore, § 440.42(3), Fla.Stat. (1977) is inapplicable, and accordingly, the Deputy had no power to construe the contract in question. See, e. g., Total Appliance Repairs v. Nelson, 382 So. 2d 1333, 1334 (Fla. 1st DCA 1980). The Deputy had no authority to enter his second Order, and that Order is reversed.

ROBERT P. SMITH, Jr., C. J., and JOA-NOS, J., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Travelers Ins. Co. v. Sitko, 496 So. 2d 920 (Fla. 1st DCA 1986)
    …n 440.24. Disputes of this type have generally been held to be outside the deputy’s statutory jurisdiction. See TRW, Inc. v. Betts, 407 So. 2d 377 (Fla. 1st DCA 1981), petition for review denied, 417 So. 2d 328 (Fla.1982); U.S. Home Corp. v. Parker, 404 So. 2d 170 (Fla. 1st DCA 1981). The deputy did, however, have jurisdiction to advise Feuer to pay the $78,-759.82 to the unpaid medical care providers. Section 440.13(3) provides that “[t]he health care provider or health care facility providing services purs…
  • TRW, Inc. v. Betts, 407 So. 2d 377 (Fla. 1st DCA 1981)
    …he issue involved interpretation of a provision in the group insurance contract providing that the insurance was to cover non-work related injuries. The deputy was without statutory authority to construe this contract. Cf. U.S. Home Corp. v. Parker, 404 So. 2d 170 (Fla. 1st DCA 1981), and Total Appliance Repairs v. Nelson, 382 So. 2d 1333 (Fla. 1st DCA 1980). Therefore, we reverse the order of the deputy commissioner for lack of jurisdiction, without prejudice to the claimant to continue to assert her entitle…
  • Kent Ins. Co. v. Hobbs, 421 So. 2d 658 (Fla. 1st DCA 1982)
    …w York v. Scott, 390 So. 2d 820 (Fla. 1st DCA 1980). That authority would include construction of contracts. Total Appliance Repairs v. Nelson, 382 So. 2d 1333, 1334 (Fla. 1st DCA 1980). This case is distinguishable from U.S. Home Corp. v. Parker, 404 So. 2d 170 (Fla. 1st DCA 1981), and TRW, Inc. v. Betts, 407 So. 2d 377 (Fla. 1st DCA 1981), cited by Kent. In Parker, the deputy adjudicated an independent indemnification controversy between the carrier and the employer. In Betts, the deputy resolved an issue…

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