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Baltimore County v. Thiergartner
88 A.3d 844
Md. Ct. Spec. App.
2014
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Background

  • Carroll Thiergartner, a retired Baltimore County firefighter, participated in the County’s DROP and elected a lump-sum of $189,346.90 (2005) plus reduced weekly retirement payments of $847.40 instead of higher weekly retirement of $946.15.
  • In 2010 Thiergartner developed coronary artery disease; the Workers’ Compensation Commission found it compensable under L.E. § 9-503 and awarded permanent partial disability (25% industrial loss).
  • The Commission calculated an offset using the higher hypothetical weekly retirement ($946.15) and awarded workers’ compensation of $272.03/week for 125 weeks so that combined weekly benefits did not exceed pre-retirement salary of $1,213.80.
  • Baltimore County sought judicial review, arguing the DROP lump sum should fully offset workers’ compensation by dividing the lump sum by the statutory maximum weekly compensation ($307) to derive 617 weeks, producing a total offset.
  • Thiergartner argued the lump sum cannot be used to offset because it was not paid concurrently with the workers’ compensation award; alternatively, if considered, the offset should use the actual weekly retirement paid ($847.40), as the Commission did not use the lump sum in weekly-offset form.
  • The circuit court denied the County’s summary judgment and granted Thiergartner’s cross-motion; this appeal followed.

Issues

Issue Plaintiff's Argument (County) Defendant's Argument (Thiergartner) Held
Whether the DROP lump-sum payment may be used to fully offset workers’ compensation under L.E. § 9-503(e)(2) The lump sum should be converted to equivalent weeks by dividing by the statutory max weekly comp ($307) to offset comp benefits (617 weeks), producing a complete offset Lump sum was paid years before comp; offset statute applies only to weekly retirement benefits payable concurrently with comp and thus lump sum should not offset The court held the statute limits offsets to weekly retirement benefits payable concurrently; lump-sum DROP not usable to fully offset comp
If lump sum cannot be used, which weekly retirement amount controls for the offset calculation? N/A (County sought full offset using lump sum conversion) Commission and Thiergartner used the actual weekly retirement he would have received had he not chosen the lump sum; Thiergartner argues the Commission’s approach is correct Court held calculation must be based on the weekly retirement actually received ($847.40); remanded for recalculation
Whether L.E. § 9-503(e)(2) is ambiguous as to treatment of non-concurrent retirement benefits County contended broader reading should allow accounting for lump-sum retirement Thiergartner argued plain meaning limits offset to weekly concurrent benefits Court found the statute unambiguous and limited to weekly benefits payable concurrently; no need to consult legislative history
Whether accepting a lump-sum years earlier constitutes improper manipulation to avoid offsets County implicitly suggested the lump sum should reduce comp Thiergartner elected DROP years before any compensable condition existed and took a lower weekly benefit in exchange for the lump sum Court found no evidence of gaming; election was made without knowledge of future comp claim and decreased his weekly retirement payments

Key Cases Cited

  • Heat & Power Corp. v. Air Prods. & Chem., Inc., 320 Md. 584 (trial court review of summary judgment principles)
  • D’Aoust v. Diamond, 424 Md. 549 (2012) (appellate scope of review on legal issues at summary judgment)
  • Messing v. Bank of America, N.A., 373 Md. 672 (2003) (standard for reviewing trial court legal rulings)
  • Polomski v. Mayor & City Council of Baltimore, 344 Md. 70 (1996) (interpreting L.E. § 9-503 offset language)
  • Barbre v. Pope, 402 Md. 157 (statutory construction principles and legislative purpose)
  • Blevins v. Baltimore County, 352 Md. 620 (1999) (offsets apply only where benefits are concurrent)
Read the full case

Case Details

Case Name: Baltimore County v. Thiergartner
Court Name: Court of Special Appeals of Maryland
Date Published: Mar 26, 2014
Citation: 88 A.3d 844
Docket Number: 2053/12
Court Abbreviation: Md. Ct. Spec. App.