W.R. Grace & Co. v. Swedo
439 Md. 441
Md.2014Background
- Three consolidated appeals (Swedo; Florida Rock v. Owens; Coffee v. Rent‑A‑Center) address how employers/insurers are credited for prior workers’ compensation payments when a permanent partial disability award is modified on appeal.
- In each case an initial award was paid (measured in weeks × weekly rate), then a court/jury increased the award on judicial review and the Commission entered an amended award.
- Dispute: whether the employer/insurer receives credit for (a) the number of weeks previously paid, or (b) the total dollars previously paid.
- Lower tribunals were split: some applied a weeks‑paid credit (consistent with earlier Maryland case law), others applied a dollars‑paid credit pursuant to LE § 9‑633.
- The Court of Appeals reviewed statutory language and legislative history and held that LE § 9‑633 requires credit measured by total dollars paid when an award is reversed or modified on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| How to compute credit when an award is reversed/modified on appeal | Workers: LE § 9‑633 uses “compensation,” defined as money; credit must be total dollars paid | Employers: Act frames benefits in weekly durations; precedent (Philip, Ametek, Del Marr) supports credit by weeks paid | Held: Credit is for total dollars previously paid when award is reversed or modified on appeal (LE § 9‑633 governs) |
| Whether prior case law (weeks approach) controls after § 9‑633 | Workers: statute’s definition of “compensation” supersedes prior common‑law/decisional rules | Employers: Philip/Ametek/Del Marr show a consistent weekly framework; statute should be read with Act’s weekly structure | Held: § 9‑633 (effective Oct. 1, 2001) abrogates Philip and Ametek for appeal‑modifications; Del Marr (a reopening case) is distinguishable |
| Whether Del Marr requires weeks credit for all modifications | Employers: Del Marr language endorses weekly credit for modifications generally | Workers: Del Marr dealt with reopenings (LE § 9‑736), not appellate modifications under § 9‑633; not controlling here | Held: Del Marr applies to reopenings (worsening condition); it does not control § 9‑633 situations governing appellate modification |
| Role of statutory definitions and legislative history in interpretation | Workers: statutory definition of “compensation” (LE § 9‑101) and legislative materials show intent to credit dollars | Employers: Act’s overall weekly structure argues against switching units to dollars | Held: The statutory definition is unambiguous—"compensation" means money—so courts apply the plain meaning; legislative history supports dollar crediting |
Key Cases Cited
- Philip Electronics North America v. Wright, 348 Md. 209 (decided rule favoring weeks‑paid credit under pre‑statute law)
- Ametek, Inc. v. O’Connor, 364 Md. 143 (applied weeks‑paid rule to increases under pre‑§ 9‑633 law)
- Del Marr v. Montgomery County, 397 Md. 308 (addressed crediting in reopening context; weekly credit affirmed for reopenings)
- Stachowski v. Sysco Food Servs. of Baltimore, Inc., 402 Md. 506 (discussed use of ordinary meaning in statutory interpretation)
- Board of Physician Quality Assurance v. Banks, 354 Md. 59 (explained appellate review/deference to administrative agency interpretation)
