Paula Smith-Adams v. Fairfax County School Board
67 Va. App. 584
| Va. Ct. App. | 2017Background
- Paula Smith‑Adams, a Fairfax County schools guidance counselor, was injured in a compensable car accident on Feb. 23, 2005; a June 17, 2005 award provided temporary total disability and lifetime medical benefits.
- On Jan. 9, 2006 the parties filed two fully executed forms with the Commission: a Supplemental Agreement for temporary partial benefits (May–Aug 2005) and a Termination of Wage Loss Award effective Aug. 8, 2005 (claimant returned to work Aug. 9, 2005); both forms were stamped received by the Commission.
- The same day the Commission received an unrelated claim for medical equipment; the Commission did not act on the two agreement forms and therefore did not approve or reject them.
- The parties proceeded for years treating the award as terminated; claimant worked after 2005 and did not seek additional wage loss benefits until she attempted to withdraw the 2006 agreements in Oct. 2013 and pursue benefits under the original award.
- After a hearing the deputy commissioner and then the full Commission found the Commission’s failure to act was a mistake, declined to reinstate the original award under equitable powers, and enforced the parties’ termination agreement; this appeal followed.
Issues
| Issue | Smith‑Adams' Argument | Fairfax County School Board's Argument | Held |
|---|---|---|---|
| Whether the Commission erred by treating its 2006 inaction as a "mistake" and enforcing the unapproved termination agreements | The Commission’s failure to approve made the agreements void under Va. Code §65.2‑701; claimant revoked consent and is entitled to the original award | The parties had executed and filed termination agreements; the Commission’s oversight — not the parties’ conduct — caused lack of approval, and equity permits enforcement to avoid unjust enrichment | Enforcement upheld: credible evidence supported finding of Commission mistake and proper exercise of equitable power to prevent unjust enrichment |
| Whether enforcement violated claimant’s due process or vested property rights | Claimant had a vested right in the outstanding award and was denied a proper hearing when the Commission later enforced the agreements | Employer acted to terminate via signed, filed forms; claimant received full notice, discovery, hearing and opportunity to respond | Due process not violated; claimant had a full hearing and opportunity to litigate defenses |
| Whether employer was required to file a change‑of‑condition application under Va. Code §65.2‑708 instead of submitting settlement/termination forms | Claimant: employer must file application to modify/terminate open award | Employer: §65.2‑701 permits settlements filed with the Commission to terminate awards without §65.2‑708 application | Held that filing the executed termination forms complied with §65.2‑701; a §65.2‑708 application was not required when the parties agreed and filed settlement forms |
| Whether the Commission improperly assigned a duty to claimant to monitor filing/entry of the agreements | Claimant contends she should not be required to police the Commission’s docket for entry | Employer/Commission: error was the Commission’s oversight; neither party failed statutory duties | Commission did not assign such a duty; it found the lapse was its oversight and acted equitably |
Key Cases Cited
- Lam v. Kawneer Co., 38 Va. App. 515, 566 S.E.2d 874 (2002) (Commission may deny compensation under equitable powers to avoid unjust enrichment where employee received benefits while not suffering wage loss)
- Genesis Health Ventures, Inc. v. Pugh, 42 Va. App. 297, 591 S.E.2d 706 (2004) (distinguishes situations where employer had constructive notice of return‑to‑work and failed to seek termination)
- Harris v. Diamond Constr. Co., 184 Va. 711, 36 S.E.2d 573 (1946) (Commission has implied equitable power to vacate or set aside awards procured through fraud or mistake)
- Damewood v. Lanford Bros. Co., 29 Va. App. 43, 509 S.E.2d 530 (1999) (agreements are not binding until Commission approval and may be withdrawn prior to approval)
- United Airlines v. Kozel, 33 Va. App. 695, 536 S.E.2d 473 (2000) (Workers’ Compensation Act aims to compensate lost wages, not unjust enrichment)