U. S. ELECTRIC COMPANY AND LIBERTY MUTUAL INSURANCE COMPANY, APPELLANTS,
v.
SISK ELECTRIC SERVICE, INC. AND ST. PAUL INSURANCE COMPANY, APPELLEES
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U.S. Electric and its insurer appeal a workers' compensation reimbursement order requiring them to reimburse a competing carrier for benefits paid at a higher rate. The court reverses, holding that a carrier bearing primary responsibility for an injury need only reimburse the amount of compensation it actually owes, not voluntary payments by another carrier exceeding that amount.
A carrier need only reimburse the amount of compensation it is statutorily obligated to pay; any compensation voluntarily paid by another carrier in excess of that amount is a gratuity and need not be reimbursed. Here, because the second injury was an exacerbation of the first, U.S. Electric/Liberty Mutual owed only $130/week, so reimbursement to St. Paul is limited to that amount.
[1] A workers' compensation carrier that voluntarily pays benefits exceeding the statutory liability of another carrier is only entitled to reimbursement for the amount of co…
[2] Compensation paid by a second workers' compensation carrier in excess of the primary carrier's statutory liability is considered a gratuity.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the carrier bearing primary responsibility must make reimbursement for only that amount of compensation it owes to the claimant. Any compensation exceeding that amount voluntarily paid to the claimant by the second carrier is merely a gratuity.”
Establishes the core holding that reimbursement is limited to statutory liability, not voluntary payments.
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Join FLexlaw to unlock all legal intelligenceA claimant sustained two compensable work injuries—first while employed by U.S. Electric Company (for which Liberty Mutual paid $130/week) and second …
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WIGGINTON, Justice.
Appellants, U. S. Electric Company and Liberty Mutual Insurance Company, appeal from a workers’ compensation order in which they were directed to reimburse appellees, Sisk Electric Service, Inc. and St. Paul Insurance Company, for all benefits paid by that employer/carrier. We reverse.
The pertinent facts are that claimant sustained two compensable injuries, one while in the employ of U. S. Electric Company, and the other while in the employ of Sisk Electric Service, Inc. Regarding the first injury, Liberty Mutual compensated the claimant at the rate of $130.00 per week. Shortly thereafter, claimant began working for Sisk Electric Service, Inc., where he was injured a second time. St. Paul voluntarily compensated claimant, pursuant to Section 440.42, Florida Statutes, at the rate of $190.00 per week, based on claimant’s higher average weekly wage, but sought reimbursement under that section against Liberty Mutual at the subsequent hearing brought by the claimant. At that hearing, although the deputy found the second injury compensable, he determined it to be merely an exacerbation of the first injury. Accordingly, the deputy ruled that appellants were solely responsible for the payment of “all benefits” due claimant and ordered reimbursement of those payments made by St. Paul under the provisions of Section 440.42(3). Appellants appealed that order and this Court affirmed.
Pursuant to the mandate, Liberty Mutual reimbursed St. Paul, but only at the rate of $130.00 per week as computed for the first accident. St. Paul subsequently filed a Motion to Determine Amount of Reimbursement and the deputy ruled that Liberty Mutual was required to reimburse St. Paul for the full amount of $190.00 per week. This appeal followed.
Appellants argue that the deputy’s order imposes liability in excess of the statutory liability and that appellees’ payments in excess of the statutory liability of appellant were gratuitous. We agree.
The deputy’s order was premised on this Court’s affirmance of his previous order but reflects his misinterpretation of that mandate. The previous order awarded reimbursement pursuant to Section 440.-42(3). That section, however, does not require all benefits voluntarily paid by one carrier must be reimbursed to it by the other carrier. Rather, the carrier bearing primary responsibility must make reimbursement for only that amount of compensation it owes to the claimant. Any compensation exceeding that amount voluntarily paid to the claimant by the second carrier is merely a gratuity. Belam Florida Corporation v. Dardy, 397 So. 2d 756 (Fla. 1st DCA 1981).
The determinative factor in placing liability under Section 440.42(3) is whether the second compensable accident causes injury which is independent from or an exacerbation of that from the first compensable accident. Section 440.42(3) thereafter allows the deputy to divide liability according to each carrier’s responsibility. Seasons From Sarasota v. O'Day, 379 So. 2d 1024 (Fla. 1st DCA 1980); Rowe & Mitchell v. Rodgers, 378 So. 2d 1281 (Fla. 1st DCA 1980).
In the instant case, although the deputy found that the claimant sustained a compensable accident, he also specifically found that the second accident “did not result in any additional permanent disability, permanent aggravation, or any treatment related to said accident,” and that appellants were solely responsible for payment of compensation. Accordingly, appellants were only responsible for compensation computed on the basis of the first injury, i.e. $130.00 weekly. That is the amount for which appellees are to be reimbursed. This cause is therefore reversed and remanded for recalculation in accordance with this opinion.
BOOTH and WENTWORTH, JJ., concur.
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Pearson v. Paradise Ford & Comp Options Ins., 951 So. 2d 12 (Fla. 1st DCA 2007)…ury which is independent from or an exacerbation of the first compensable accident. Section 440.42(3) thereafter allows the deputy [JCC] to divide liability according to each carrier’s responsibility.” See U.S. Elec. Co. v. Sisk Elec. Service, Inc., 417 So. 2d 738 (Fla. 1st DCA 1982). A causal connection must exist between the claimant’s employment and second industrial injury in order to justify apportionment of liability among carriers. See Custom Architectural Metals v. Bradshaw, 623 So. 2d 804, 806 (Fla.…
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Structural Sys., Inc. v. Worthen, 463 So. 2d 502 (Fla. 1st DCA 1985)…quiring the employer to take the employee as he finds him remains valid — assuming that the last injury was caused by a new accident, which independently caused the final disability. As we stated in U.S. Electric Co. v. Sisk Electric Service, Inc., 417 So. 2d 738, 739 [*507] (Fla. 1st DCA 1982): “The determinative factor in placing liability under Section 440.42(3) [the statute permitting apportionment of medical benefits between carriers], is whether the second compensable accident causes injury which is in…
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Fla. Ins. Guar. Ass'n v. Fibercon Indus., Inc., 491 So. 2d 566 (Fla. 1st DCA 1986)…d 828 (Fla. 1st DCA 1985); Hayward Trucking, Inc. v. Aetna Insurance Co., 466 So. 2d 437 (Fla. 1st DCA 1985); Deseret Ranches v. Crosby, 461 So. 2d 295 (Fla. 1st DCA 1985). As this court said in U.S. Electric Company v. Sisk Electric Services, Inc., 417 So. 2d 738, 739 (Fla. 1st DCA 1982), The determinative factor in placing liability under Section 440.42(3) is whether the second compensable accident causes injury which is independent from or an exacerbation of that from the first compensa-ble accident. Sect…
Previewing 3 of 10 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Belam v. Dardy, 397 So. 2d 756 (Fla. 1st DCA 1981)
- Rowe & Mitchell & Shelby Mut. Ins. Co. v. Rodgers, 378 So. 2d 1281 (Fla. 1st DCA 1979)
- The Seasons From Sarasota (Four Seasons Apts.) & Cont'l Nat'l Am. Grp. v. O'Day, 379 So. 2d 1024 (Fla. 1st DCA 1980)