Shehan v. Taylor Togs, Inc.
Melanie Y. Shehan, Employee v. Taylor Togs, Inc., Employer, First Comp Insurance Company, Carrier
Attorneys
APPEARANCES Plaintiff: Law Offices of Brian Peterson, Asheville, North Carolina; Brian L. Peterson, appearing. Defendants: McAngus Goudelock Courie, L.L.C., Charlotte, North Carolina; Adrienne H. Gilman, appearing.
Procedural Posture
The Full Commission reviewed this matter on November 3, 2009, upon appeal of Plaintiff and Defendants from an Opinion and Award by Deputy Commissioner J. Brad Donovan, filed June 9, 2009. Following the hearing before the Deputy Commissioner, the parties took no depositions.
Full Opinion (html_with_citations)
2. An employment relationship existed between the parties on November 14, 2005.
3. Defendant-Carrier provided workers' compensation insurance coverage to Defendant-Employer during Plaintiff's employment with Defendant-Employer, including November 14, 2005.
4. All North Carolina Industrial Commission forms and filings are submitted as a stipulated exhibit.
5. Pursuant to a Form 60, Plaintiff injured her left arm on November 14, 2005.
6. On July 27, 2006, Defendants filed a Form 60.
7. On January 31, 2006, Defendants filed a Form 22. However, Plaintiff contests the accuracy of the Form 22.
8. On or about June 13, 2007, Defendants retained Jeanne Murphy, M.S., C.R.C., C.V.E., a vocational case manager. On June 21, 2007, Defendants filed a Form 25C, and Ms. Murphy began working with Plaintiff.
9. On or about March 2, 2008, Defendants retained John McGregor, M.S., C.D.M.S., C.V.E., a vocational case manager.
10. The parties stipulated to the following documents being admitted into evidence as stipulated exhibits:
*Page 3a. Stipulated Exhibit One (1) — North Carolina Industrial Commission forms and filings, as well as miscellaneous payment records and correspondence;
b. Defendants' Exhibit One (1) — Defendants' claims payment records, submitted following the hearing before the Deputy Commissioner.
1. What was Plaintiff's average weekly wage and compensation rate at all times relevant to these proceedings?
2. Whether Plaintiff is entitled to additional workers' compensation benefits, and/or whether Defendants are entitled to a credit for overpayment of temporary total disability compensation to Plaintiff?
3. Whether Plaintiff is entitled to mileage payments? (The parties settled this issue following the hearing before the Deputy Commissioner via a Consent Order approved by the Deputy Commissioner on February 19, 2009.)
4. Whether Defendants defended this claim without reasonable grounds?
2. On November 14, 2005, Plaintiff was working for Defendant-Employer as a sewing machine operator when she injured her left arm and shoulder while lifting a heavy bundle *Page 4 of blue jeans. At the time of Plaintiff's November 14, 2005 work injury, she earned $14.23 per hour. Defendants accepted the compensability of Plaintiff's November 14, 2005 work injury via a Form 60 dated July 27, 2006, which lists Plaintiff's average weekly wage as $504.99, yielding a compensation rate of $336.66.
3. Shortly after February 10, 2006, Defendants began paying Plaintiff temporary total disability compensation. The initial check for temporary total disability compensation that Plaintiff received from Defendants was in the amount of $704.73, representing two (2) weeks of compensation at a rate of $352.36 per week. The next four (4) temporary total disability compensation checks that Plaintiff received from Defendants were in the amount of $379.47. On March 13, 2006, Defendants again adjusted Plaintiff's compensation rate, this time to $336.66. Defendants paid Plaintiff temporary total disability compensation in the amount of $336.66 from March 13, 2006 through March 28, 2008. On April 4, 2008, Defendants adjusted Plaintiff's compensation rate again, this time to $366.66, and Plaintiff has been receiving temporary total disability compensation in that amount ever since.
4. On January 31, 2006, Defendants completed a Form 22, which indicated that Plaintiff earned $20,704.70 for the pay periods included on it. However, the January 31, 2006 Form 22 does not cover Plaintiff's 52 weeks of employment immediately preceding her November 14, 2005 work injury, but rather, begins on November 1, 2004 and ends on October 13, 2005. Plaintiff's corresponding pay stubs, stipulated into evidence at the hearing before the Deputy Commissioner, indicated that Plaintiff earned a total of $21,152.98, which includes all weeks except one (1) pay period for which there was no pay stub. However, Plaintiff stated that she likely earned her average income of $512.28 for the period for which the pay stub was not available. The Full Commission finds, based upon the greater weight of the evidence, that *Page 5 Plaintiff earned a total of $21,665.26 during the 52 weeks of employment preceding her November 14, 2005 work injury.
5. The January 31, 2006 Form 22 and Plaintiff's pay stubs further indicate that there were five (5) separate occasions during the 52 weeks prior to the date of Plaintiff's November 14, 2005 work injury in which she did not work for Defendant-Employer due to plant shut-downs, including the following:
• December 17, 2004 through January 2, 2005 — 17 days;
• July 1, 2005 through July 11, 2005 — 11 days;
• July 15, 2005 through August 2, 2005 — 19 days;
• August 16, 2005 through September 5, 2005 — 20 days;
• October 14, 2005 through November 6, 2005 — 24 days.
6. During each of these five (5) separate occasions of Defendant-Employer's plant shut-downs, Plaintiff's time out of work included more than seven (7) consecutive days and some fractions of weeks. Including the fractions of weeks in which Plaintiff did not work for Defendant-Employer due to plant shut-downs during the 52 weeks of employment preceding her November 14, 2005 work injury, she was out of work for a total of 13 weeks. According to documents stipulated into evidence, Plaintiff received a total of $4,472.00 in unemployment benefits during the 52 weeks of employment preceding her November 14, 2005 work injury as a result of Defendant-Employer's plant shut-downs.
7. The Full Commission finds, based upon the greater weight of the evidence, that during the 52 weeks of employment preceding Plaintiff's November 14, 2005 work injury, she did not work for Defendant-Employer for more than seven (7) consecutive calendar days on five (5) separate occasions, for a total of 13 weeks. The Full Commission further finds that it would *Page 6
be unfair to Plaintiff to use method one (1) under N.C. Gen. Stat. §
8. Using method two (2) under N.C. Gen. Stat. §
9. Since February 10, 2006, Defendants paid temporary total disability compensation to Plaintiff at varying rates, including amounts less than that required and amounts greater than that required by her average weekly wage. The Full Commission finds, based upon the greater weight of the evidence, that to the extent there were errors in the amount of temporary total disability compensation that Defendants paid to Plaintiff since February 10, 2006, these errors were due to circumstances under Defendants' control, and thus Defendants should not be allowed a credit for any overpayments made.
10. The Full Commission finds, based upon the greater weight of the evidence, that Defendants underpaid Plaintiff by $33.71 per week for the 107 weeks that Defendants paid Plaintiff temporary total disability compensation at a rate of $336.66 per week, and that Defendants have been underpaying Plaintiff by $3.71 per week from April 4, 2008 through the *Page 7 present. The Full Commission further finds that Plaintiff is entitled to have Defendants compensate her for these underpayments.
11. The Full Commission also finds, based upon the greater weight of the evidence, that Defendants' defense of this claim was reasonable.
12. The parties settled the issue of whether Plaintiff is entitled to mileage payments following the hearing before the Deputy Commissioner via a Consent Order approved by the Deputy Commissioner on February 19, 2009.
2. N.C. Gen. Stat. §
3. In the case at bar, method one (1) under N.C. Gen. Stat. §
4. Because the January 31, 2006 Form 22 does not cover Plaintiff's 52 weeks of employment immediately preceding her November 14, 2005 work injury, but rather, begins on November 1, 2004 and ends on October 13, 2005, it cannot be used to determine the average weekly wage. N.C. Gen. Stat. §
5. The unemployment benefits that Plaintiff received during the 52 weeks of employment preceding her November 14, 2005 work injury as a result of Defendant-Employer's plant shut-downs cannot be included in the computation of her average weekly wage. None of the methods of computing such wages under N.C. Gen. Stat. §
6. The North Carolina Industrial Commission rules provide that "[i]n all cases involving a fractional part of a week, the daily wage shall be computed on the basis of one-seventh of the average weekly wage." North Carolina Industrial Commission Rule 402. Thus, the fractions of weeks in which Plaintiff did not work for Defendant-Employer due to plant shut-downs during the 52 weeks of employment preceding her November 14, 2005 work injury "shall be computed on the basis of one-seventh of the average weekly wage."Id. Including the fractions of weeks with the whole weeks in which Plaintiff did not work for Defendant-Employer due to plant shut-downs during the 52 weeks of employment preceding her November 14, 2005 work injury, she was out of work for a total of 13 weeks.
7. Using method two (2) under N.C. Gen. Stat. §
8. Plaintiff is entitled to temporary total disability compensation from November 14, 2005 through the present and continuing until further order of the North Carolina Industrial Commission. N.C. Gen. Stat. §
9. To the extent there were any errors in the amount of temporary total disability compensation that Defendants paid to Plaintiff since February 10, 2006, these errors were due to circumstances under Defendants' control, and thus Defendants are not entitled to a credit for any overpayments made. N.C. Gen. Stat. §
10. Defendants underpaid Plaintiff by $33.71 per week for the 107 weeks that Defendants paid Plaintiff temporary total disability compensation at a rate of $336.66 per week, and Defendants have been underpaying Plaintiff by $3.71 per week from April 4, 2008 through the present. Plaintiff is entitled to have Defendants compensate her for these underpayments.
11. Plaintiff is entitled to have Defendants pay for all medical treatment reasonably related to her November 14, 2005 work injury. N.C. Gen. Stat. §§
12. Defendants' defense of this claim was reasonable. N.C. Gen. Stat. §
2. Defendants shall pay all medical expenses incurred or to be incurred as a result of Plaintiff's November 14, 2005 work injury, for so long as such evaluations, examinations, and treatments may reasonably be required to effect a cure, to give relief, and/or to lessen her period of disability, in accordance with the provisions of the North Carolina Workers' Compensation Act.
3. A reasonable attorney's fee of 25 percent is hereby approved for Plaintiff's counsel from the sums due Plaintiff under paragraph one (1), above. Defendants shall deduct and pay directly to Plaintiff's counsel 25 percent of the accrued compensation owed to Plaintiff and every fourth check thereafter.
4. Defendants shall pay the costs of these proceedings.
This the ___ day of December 2009.
S/___________________ BERNADINE S. BALLANCE COMMISSIONER
CONCURRING:
S/___________________ DANNY LEE McDONALD COMMISSIONER
S/___________________ STACI T. MEYER COMMISSIONER