367 N.C. 120
N.C.2013Background
- Plaintiff injured left knee at work in 2007, developed reflex sympathetic dystrophy (RSD), required extensive assistance at home; plaintiff’s wife provided attendant care (increasing to ~16 hours/day after Aug 2008).
- Medical providers recommended attendant care; Commission nurse consultant and physicians recommended substantial attendant-care hours; plaintiff sought compensation under N.C.G.S. §§ 97-2(19), 97-25.
- Industrial Commission awarded retroactive and ongoing compensation to plaintiff’s wife for attendant care despite Section 14 of the Commission’s Medical Fee Schedule requiring preapproval for family-provided practical nursing services.
- Court of Appeals reversed, relying on Hatchett v. Hitchcock Corp., which upheld the Fee Schedule preapproval requirement and denied retroactive payment absent prior Commission approval.
- North Carolina Supreme Court granted review to decide whether the Commission exceeded statutory authority by treating its Fee Schedule as a bar to retroactive compensation; remanded for findings on whether plaintiff sought Commission approval within a reasonable time.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Commission may bar retroactive compensation to family caregivers by requiring prior written authorization in its Medical Fee Schedule | Mehaffey: Commission lacks statutory authority to impose a preapproval prerequisite that prevents retroactive payment for family-provided attendant care | Employer/Burger King: Fee Schedule preapproval requirement valid and necessary to control costs; Hatchett controls | The Fee Schedule’s preapproval prerequisite exceeds the Commission’s statutory authority and cannot bar retroactive compensation (reversing Court of Appeals on that point) |
| Whether plaintiff must obtain Commission approval within a reasonable time to recover medical compensation for services rendered | Mehaffey: Wife’s services are compensable medical care under § 97-2(19) and § 97-25; retroactive recovery appropriate | Defendants: Plaintiff delayed unreasonably in seeking approval such that retroactive recovery can be denied | Court: Plaintiff must seek approval within a reasonable time; because Commission’s findings did not address reasonableness of delay, case remanded for the Commission to make findings on that issue |
Key Cases Cited
- Hatchett v. Hitchcock Corp., 240 N.C. 591, 83 S.E.2d 539 (1954) (upheld Commission fee-schedule preapproval requirement and denied retroactive payment for family-provided nursing)
- Charlotte-Mecklenburg Hosp. Auth. v. N.C. Indus. Comm’n, 336 N.C. 200, 443 S.E.2d 716 (1994) (discussing Act’s trade-off of swift compensation and limited employer liability)
- Schofield v. Great Atl. & Pac. Tea Co., 299 N.C. 582, 264 S.E.2d 56 (1980) (requiring Commission approval within a reasonable time after selecting a medical provider for reimbursement)
- Forrest v. Pitt Cnty. Bd. of Educ., 100 N.C. App. 119, 394 S.E.2d 659 (1990) (agency rules inconsistent with statute are without effect)
- High Rock Lake Partners, LLC v. N.C. DOT, 366 N.C. 315, 735 S.E.2d 300 (2012) (agencies may act only as authorized by the legislature)
