260 Conn. 21 | Conn. | 2002
Opinion
The principal issue in this appeal is whether the defendant second injury fund (fund) maybe assessed
The record reveals the following undisputed facts and procedural histoiy. On February 25, 1986, the plaintiff sustained an injury to his lower back in an accident that occurred during the course of his employment with the defendant Bliss Exterminating Company (company). Thereafter, the plaintiff and the company entered into a voluntary agreement establishing a base compensation rate for the plaintiffs disability and a dependency allowance, which the commissioner approved on June 6, 1986. On August 12, 1988, liability was transferred from the company’s insurer, Aetna Life and Casualty Company, to the fund, pursuant to General Statutes § 31-349. On April 13,1989, the commissioner approved a second voluntary agreement that established that the plaintiff had a 50 percent permanent partial disability of his back, which entitled him to 260 weeks of compensation at the same base rate as the prior agreement. The agreement further established that specific payments
On February 7, 1992, the plaintiff received a check for $3286.70 from the fund. On February 23, 1992, the
In 1995, after still having failed to receive payment for those benefits, the plaintiff filed another request with the commissioner for an award of such payment, along with a claim, pursuant to § 31-303, for a 20 percent penalty on the award due to the late payments. See footnote 1 of this opinion. On April 8,1996, the commissioner issued his findings and award, concluding that the plaintiff was owed temporary total disability payments in the amount of $53,859.29, dating back to October 15, 1989. He further found that the fund’s failure to make the payment s “was an undue delay in adjustments of compensation and [accordingly] the [plaintiff] is entitled to a reasonable attorney’s fee in the amount of $25,000” pursuant to § 31-300. Finally, the commissioner awarded to the plaintiff the interest due on the award, but denied the plaintiff’s request for the assessment of a 20 percent penalty on the award against the fund.
The fund appealed from the commissioner’s decision to the review board, claiming, inter alia, that the commissioner had abused his discretion in ordering the fund to pay the attorney’s fees and in not allowing the fund to submit endorsed checks as evidence that it had made certain payments to the plaintiff.
At a hearing before the commissioner in January, 1999, the fund claimed that it was not subject to the penalty provision because it was not an “employer” within the meaning of § 31-303. In July, 1999, prior to the commissioner’s decision on the plaintiffs penalty claim, this court issued its decision in Casey v. Northeast Utilities, 249 Conn. 365, 377, 731 A.2d 294 (1999), wherein we held “that § 31-303 imposes a time limitation upon the fund, as well as upon employers, for making payments pursuant to an award.” Moreover, we concluded therein that, “[bjecause the fund essentially
The plaintiff then filed a petition for review with the review board, claiming that the commissioner: (1) lacked jurisdiction to render his August, 1999 decision; and (2) improperly had determined that the plaintiff was not required, pursuant to § 31-303, to assess a 20 percent penalty against the fund for its late payment of the attorney’s fees. The review board rejected the plaintiffs first claim, but agreed that the commissioner was required, pursuant to the statute, to assess the penalty on the attorney’s fees. The review board determined that any late “[payment] due under an award,” regardless of whether it was a payment of disability benefits or payment of attorney’s fees, fell within the plain language of the penalty provision of § 31-303. Although the review board noted that it “would be sur
I
Before considering the principal issue in this appeal, we first address the jurisdictional question raised in the plaintiffs cross appeal. Specifically, the plaintiff claims that the commissioner should have granted the aforementioned motions because the plaintiff had notified the commissioner before he issued his decision that the claim had been rendered moot.
The following additional facts are relevant to our resolution of the plaintiffs cross appeal. As we previously have noted, the fund’s position before the commissioner was that it was not subject to the penalty provision because it was not an employer within the meaning of § 31-303. At a January, 1999 formal hearing held prior to the commissioner’s decision, the parties agreed that the decision in Casey, then pending before this court, would resolve the issue. After our decision in Casey was released, the plaintiffs attorney notified the fund that it was responsible for additional payments of $17,269.93, an amount equivalent to a 20 percent penalty on the entire award, that is, the disability compensation payment, the attorney’s fees and the interest. Thereafter, the fund issued a check to the plaintiff, dated July 19, 1999, in that amount.
The plaintiff then filed with the commissisoner motions to reargue and to vacate the decision. He also submitted a letter to the commissioner indicating that, in addition to the August 5, 1999 letter, he previously had informed the commissioner’s paralegal “that the matter had been settled.”
The review board determined that the claim had not been rendered moot and, therefore, that the commissioner had jurisdiction to decide whether the fund was required to pay the penalty on the attorney’s fees pursu
We agree with the well reasoned analysis of the review board. See Muldoon v. Homestead Insulation Co., 231 Conn. 469, 480, 650 A.2d 1240 (1994) (“[a]s in the case of a voluntary agreement, no stipulation is binding until it has been approved by the commissioner”); see also General Statutes § 31-296 (requiring commissioner’s approval of voluntary agreements); General Statutes § 31-296a (requiring commissioner’s approval prior to employer’s discontinuance or reduction of payments under oral agreement if employee claims continuing disability)- Moreover, although the plaintiff may have considered the claim settled upon receipt of the fund’s payment, the fund apparently did not view the payment in the same manner. At oral argument before this court, the fund represented that it had
II
We next address the principal issue in this appeal, namely, whether the review board properly determined that the commissioner was required, pursuant to § 31-303, to assess a 20 percent penalty on the attorney’s fees the fund paid after the prescribed time limitation for payments due under an award when the fees were included in an award pursuant to § 31-300. The fund claims that the fees are excluded from the ambit of the penalty provision because they already were assessed as a penalty for an earlier delay of payments to the plaintiff. The threshold issue we must decide, however, is whether attorney’s fees included in an award pursuant to § 31-300 constitute a “payment due under an award” as set forth in § 31-303. We conclude that attorney’s fees are not encompassed within the meaning of that phrase. Accordingly, the timing of the fund’s payment of the attorney’s fees did not trigger the penalty provision of § 31-303.
We begin by setting forth the relevant standard of review. “[A]n agency’s factual and discretionary determinations are to be accorded considerable weight by the courts. . . . Cases that present pure questions of law, however, invoke a broader standard of review than is ordinarily involved in deciding whether, in light of the evidence, the agency has acted unreasonably, arbitrarily, illegally or in abuse of its discretion. . . . We
We approach this question according to well established principles of statutory construction. “The process of statutory interpretation involves a reasoned search for the intention of the legislature. Frillici v. Westport, 231 Conn. 418, 431, 650 A.2d 557 (1994). In other words, we seek to determine, in a reasoned manner, the meaning of the statutory language as applied to the facts of this case, including the question of whether the language actually does apply. In seeking to determine that meaning, we look to the words of the statute itself, to the legislative history and circumstances surrounding its enactment, to the legislative policy it was designed to implement, and to its relationship to existing legislation and common law principles governing the same general subject matter.” (Internal quotation marks omitted.) Bender v. Bender, 258 Conn. 733, 741, 785 A.2d 197 (2001).
Section 31-303 is comprised, in essence, of two parts: the first part, which prescribes due dates for payments (due date provision) and a second part, which imposes a penalty on payments made after the due date (penalty provision). The statute provides in relevant part: “Pay-
In addition, another provision in the act provides support for the proposition that attorney’s fees may be a payment due under an award. General Statutes § 31-327 (a) provides in relevant part: “Whenever any fees or expenses are, under the provisions of this chapter, to be paid by the employer or insurer and not by the employee, the commissioner may make an award directly in favor of the person entitled to the fees or expenses .... The award may be combined with an award for compensation in favor of or against the injured employee or the dependent or dependents of a
Our inquiry to determine legislative intent, however, does not end with the language of the statute. “In resolving this dispute over the proper construction of the statute, our fundamental objective ... is to ascertain and give effect to the apparent intent of the legislature .... [W]e will not undertake an examination of [§ 31-303] with blinders on regarding what the legislature intended [it] to mean. . . . Accordingly, our analysis of [§ 31-303] is not limited solely to the words of the statute.” (Citations omitted; internal quotation marks omitted.) Sweetman v. State Elections Enforcement Commission, 249 Conn. 296, 306, 732 A.2d 144 (1999).
The legislative genealogy of § 31-303 and related provisions of the act indicate that, although attorney’s fees may be included in an award, the legislature did not intend for those fees to be encompassed within the meaning of the phrase “payments due under an award,” such that the late payment of those fees would trigger the penalty provision. The original version of § 31-303, enacted in 1959, prescribed only a due date for payments and did not contain a penally provision. See Public Acts 1959, No. 580, § 21. That statute provided in relevant part: “Any other provisions notwithstanding, any compensation payable under the terms of an award or voluntary agreement shall be paid within ten days after it becomes due. ...” (Emphasis added.) General Statutes (Sup. 1959) § 31-163a. At that time, the statute
In 1961, the state act was repealed in its entirety and replaced with new provisions. The legislature replaced what was then a single sentence prescribing the due dates with what are currently the first two sentences of § 31-303: “Payments agreed to under a voluntary agreement shall commence on or before the tenth day from the date of agreement. Payments due under an
In 1993, the legislature added the last sentence of § 31-303, the penalty provision. Public Acts 1993, No. 93-228, § 14. The legislative history of the bill underlying Public Act 93-228 indicates the legislature’s continued intention to maintain the scope of the due date provision as limited to payments of compensation. Both the fiscal impact statement and the summary included with the bill referred to the penalty as addressing “Late Payment of Worker’s Compensation Benefits.”
Representative Lawlor’s reference to “late payments of doctor bills” raises the question of whether the bill was intended to expand the meaning of “payments” beyond payments of compensation owed to the claimant. Reference back to the definition of compensation, however, which includes payments due for medical expenses, readily explains the impetus for this comment. See footnote 12 of this opinion. Therefore, for example, an employer may be liable for medical expenses that the employee has incurred due to the employer’s delay or neglect in providing services and, as such, may be ordered to compensate an employee for such expenses. See General Statutes § 31-294d (e);
Moreover, the policy considerations motivating the 1993 amendments indicate that the legislature did not intend to expand the scope of payments subject to the due date provision to include payments made directly to doctors or attorneys. The bill underlying those amendments proposed sweeping reforms in an effort to reduce the cost of the workers’ compensation system after businesses complained that excessive costs were driving businesses out of the state and to ensure that the system worked as effectively as possible. See 36 H.R. Proc., supra, pp. 6142-46, remarks of Representative Lawlor. As part of those reforms, the legislature included a provision authorizing the commissioner to promulgate a maximum fee schedule for practitioners, including doctors and attorneys. See General Statutes § 31-280 (b) (11) (added by Public Acts 1993, No. 93-228, § 4).
It seems evident, therefore, that the legislature intended for the word “payments” as used in § 31-303 to mean payments of compensation. There is nothing in the legislative history during the forty years since that section was enacted that evinces an affirmative intent by the legislature to expand the meaning of the term beyond its original scope. In determining the meaning of a statute, however, we look not only at the provision at issue, but also to the broader statutory scheme to ensure the coherency of our construction. See Schroeder v. Triangulum Associates, 259 Conn. 325, 339, 789 A.2d 459 (2002) (“[w]e have previously recognized that our construction of the [act] should make every part operative and harmonious with every other part insofar as is possible”); Sweetman v. State Elections Enforcement Commission, supra, 249 Conn. 307 (“[w]e consider the statute as a whole with a view toward reconciling its parts in order to obtain a sensible and rational overall inteipretation”).
The other provisions in the act that refer to the awarding of fees indicate that the legislature did not intend for its use of the phrase “include in [an] award” in § 31-300 to trigger the due date provision and, hence, the penalty provision of § 31-303. There are several provisions in the act that authorize the commissioner to order an employer or insurer to pay attorney’s fees.
Indeed, from a policy perspective, there is no reason to distinguish between attorney’s fees included in an award due to an employer’s undue delay of payments and attorney’s fees allowed due to an employer’s unreasonable contesting of liability. “[T]he general policies advanced by our workers’ compensation system and the penalty provision of § 31-303 are aligned to achieve an important goal: to provide the injured employee with prompt access to compensation.” Casey v. Northeast Utilities, supra, 249 Conn. 383. There is no difference in the delay of compensation payments, and, accordingly, no difference in harm to a claimant, regardless of whether an employer causes the delay by unduly delaying payments or by unreasonably contesting liability.
Moreover, ascribing special import to the legislature’s use of the phrase “include in [an] award” in § 31-300 is inconsistent with the meaning of the word “award” under the act. Any time the commissioner orders an employer or insurer to make payments, that order takes the form of an award, as noted by the review board in the present case, which held that the term award “refers to orders that require [an employer or insurer] to assume liability for costs incurred by the claimant as a result of his compensable injury and the subsequent maintenance of his claim.” As we have noted previously, § 31-327 (a) provides that whenever the commissioner may order an employer or insurer to pay attorney’s fees, he or she may make an award of such fees. “[I]n the absence of persuasive evidence to the contrary, we may presume that a word used in different parts of the same statutory scheme has the same meaning.” State v.
In sum, we recognize that the plain language of §§ 31-300 and 31-303 read together suggests that the late payment of attorney’s fees included in an award pursuant to § 31-300 is subject to a 20 percent penalty under § 31-303. Our fundamental objective, however, is to ascertain and give effect to the apparent intent of the legislature. Hartford v. Hartford Municipal Employees Assn., supra, 259 Conn. 263. “We have long followed the guideline that [t]he intent of the lawmakers is the soul of the statute, and the search for this intent we have held to be the guiding star of the court. It must prevail over the literal sense and the precise letter of the language of the statute. . . . Bridgeman v. Derby, 104 Conn. 1, 8, 132 A. 25 (1926).” (Internal quotation marks omitted.) Sweetman v. State Elections Enforcement Commission, supra, 249 Conn. 307. The legislative history of § 31-303 and the language of other provisions of the act relating to the commissioner’s authority to make an award of fees constitutes compelling evidence that, despite the statutory language, the legislature did not intend for attorney’s fees to be subject to the penalty provided for in § 31-303. We conclude, therefore, that the phrase “payments due under an award” is limited to payments of compensation due under an award. Accordingly, the fund’s payment of attorney’s fees was not subject to the due date provision of § 31-303 and, therefore, cannot be subject to the 20 percent penalty in that section.
The decision of the review board is reversed and the case is remanded with direction to affirm the commissioner’s decision.
In this opinion the other justices concurred.
General Statutes § 31-303 provides: “Payments agreed to under a voluntary agreement shall commence on or before the tenth day from the date of agreement. Payments due under an award shall commence on or before the tenth day from the date of such award. Payments due from the Second Injury Fund shall be payable on or before the tenth business day after receipt of a fully executed agreement. Any employer who fails to pay within the prescribed time limitations of this section shall pay a penalty for each late payment, in the amount of twenty per cent of such payment, in addition to any other interest or penalty imposed pursuant to the provisions of this chapter.”
General Statutes § 31-300 provides: “As soon as may be after the conclusion of any hearing, but no later than one hundred twenty days after such conclusion, the commissioner shall send to each party a written copy of his findings and award. The commissioner shall, as part of the written award, inform the employee or his dependent, as the case may be, of any rights the individual may have to an annual cost-of-living adjustment or to participate in a rehabilitation program under the provisions of this chapter. He shall retain the original findings and award in his office. If no appeal from his decision is taken by either party within ten days thereafter, such award shall be final and may be enforced in the same manner as a judgment of the Superior Court. The court may issue execution upon any uncontested or final award of a commissioner in the same manner as in cases of judgments rendered in the Superior Court; and, upon the filing of an application to the court for an execution, the commissioner in whose office the award is on file shall, upon the request of the clerk of said court, send to him a certified copy of such findings and award. In cases where, through the fault or neglect of the employer or insurer, adjustments of compensation have been unduly delayed, or where through such fault or neglect, payments have been unduly delayed, the commissioner may include in his award interest at the rate prescribed in section 37-3a and a reasonable attorney’s fee in the case of undue delay in adjustments of compensation and may include in his award in the case of undue delay in payments of compensation, interest at twelve per cent per annum and a reasonable attorney’s fee. Payments not commenced within thirty-five days after the filing of a written notice of claim shall be presumed to be unduly delayed unless a notice to contest the claim is filed in accordance with section 31-297. In cases where there has been delay in either adjustment or payment, which delay has not been due to the fault or neglect of the employer or insurer, whether such delay was caused by appeals or otherwise, the commissioner may allow interest at such rate, not to exceed the rate prescribed in section 37-3a, as may be fair and
Section 31-300 was amended in 2001 to reflect gender neutral language and a minor substantive change that is not relevant for purposes of this appeal. See Public Acts 2001, No. 01-22, § 3. References herein are to the 2001 revision of the statute.
The fund appealed from the review board’s decision to the Appellate Court pursuant to General Statutes § 31-30 lb. We then transferred the appeal to this corut pursuant to Practice Book § 65-1 and General Statutes § 51-199 (c).
Specific payments refer to compensation relating to a permanent partial disability. See generally A. Sevarino, Connecticut Workers’ Compensation After Reforms (2d Ed. 1999) § 3.54. “Specific benefits are benefits for the loss or loss of the use of specific body parts. . . . These [specific] benefits . . . are not paid as compensation for loss of earning power but to compensate the injured employee for the incapacity through life because of the loss or loss of use of the body member in question.” (Citation omitted; internal quotation marks omitted.) Morgan v. East Haven, 208 Conn. 576, 584, 546 A.2d 243 (1988).
The record indicates that the fund’s nonpayment of specific disability payments was due to an agreement that had been executed with the plaintiff after he had received $30,000 in settlement of a third party action related to his back injury. Some time prior to the transfer of liability from the company’s insurer to the fund in August, 1988, the plaintiff and his wife initiated that action, claiming that the third party’s negligence had caused the plaintiffs injuries and, in turn, caused the wife to suffer a loss of consortium. The fund and the company intervened in that action. An agreement executed with the plaintiff entitled the fund to a moratorium on the payment of benefits for 108 weeks of specific disability benefits, which was equivalent to the plaintiffs $30,000 settlement. The fund did not know until the plaintiff sought additional compensation in 1991 that he was totally disabled as of October, 1989. Disagreements between the plaintiff and the fund regarding the effect of the moratorium agreement ultimately were resolved in the fund’s favor. See Schiano v. Bliss Exterminating Co., 57 Conn. App. 406, 750 A.2d 1098 (2000). That issue, however, has no bearing on the present appeal.
Tho fund also claimed that the plaintiffs attorney had failed to meet his burden of proof to substantiate the amount of the lees and that the commissioner improperly had refused to allow the fund to introduce endorsed checks as evidence to impeach the plaintiffs credibility. In addi
In addition, the plaintiff claimed that the commissioner improperly had calculated the interest due on the temporary total disability benefits by using a simple interest rate of 10 percent per year and improperly had determined that the plaintiff was not entitled to reimbursement for expert accountant fees that he had incurred.
The commissioner determined, however, that the penalty should be assessed only on the principal amount, and not on the interest
The commissioner himself, fo whom the letter was addressed, received the letter four days later at the district office to which he then was assigned.
The plaintiff claimed before the review board that he had telephoned the commissioner’s paralegal to apprise the commissioner of the settlement on August 5, 1999, the same day on which he had mailed the letter to the commissioner. The review board noted, however, that there was no documentation of the telephone call in the record.
It does not appear from the record that the plaintiff ever contended before the commissioner that he was entitled to receive the 20 percent penalty on the interest awarded. The plaintiff limited his appeal to the review board to the issues of whether the commissioner had jurisdiction to render his decision and whether he improperly had determined that the plaintiff was not entitled to the penalty on the attorney’s fees.
The term “compensation” was not defined in the act until 1991; see Public Acts 1991, No. 91-32, § 1; and, after undergoing a few alterations; see Public Acts 1991, No. 91-339, § 1; Public Acts 1992, No. 92-31, § 1; was first codified in the 1993 revision of the General Statutes. Compensation presently is defined as “benefits or payments mandated by the provisions of this chapter, including, but not limited to, indemnity, medical and surgical aid or hospital and nursing service required under section 31-294d and any type of payment for disability . . . death benefit [or] funeral expense . . . .” General Statutes § 31-275 (4).
The definition of compensation under the federal act has remained unchanged since the act’s inception in 1927. See Longshoremen’s and Harbor Workers’ Compensation Act of 1927, c. 509, § 2, 44 Stat. 1424.
Although the commissioner has had the authority to approve attorney’s fee agreements between claimants and their attorneys since the state act’s inception; see General Statutes (1949 Rev.) § 7457; the commissioner did not have authority to assess attorney’s fees until 1967. See Public Acts 1967, No. 842, § 10 (authorizing commissioner to “allow to the claimant a reasonable attorney’s fee” upon determination that employer or insurer unreasonably contested liability).
The bill introducing the 1961 amendment contained the following notation: “This provides what it is thought the first sentence of Sec. 31-163a [the 1959 version of the statute] was intended to provide.” House Bill No. 2391, 1961 Sess., § 26, p. 26. The only explanation of the change during legislative debates was the following remarks by Representative John A. Rand: “There was a great ambiguity in the present act because the word due was used when the—due—when the award was due. Nobody can . . . say when they are due legally. That has been clarified on page 15, Section 26 ... . That is a whole new section, to qualify when payments become due.” 9 H.R. Proc., Pt. 7, 1961 Sess., p. 3463.
The fiscal impact statement contained the following explanation: “The bill also increases penalties for failure to carry workers’ compensation coverage, intentional underpayment of insurance premiums, and late payment of benefits." (Emphasis added.) House Bill No. 7172, 1993 Sess., p. 69. The summary of the bill provided: "Late Payment of Workers’ Compensation Benefits. The law requires that workers’ compensation payments begin within 10 days after a voluntary agreement or award (the Second Injury Fund has 10 business days). This bill imposes a 20 [percent] penalty, over
General Statutes § 31-294d (e) provides: “If the employer fails to promptly provide a physician or surgeon or any medical and surgical aid or hospital and nursing service as required by this section, the injured employee may obtain a physician or surgeon, selected from the approved list prepared by the chairman, or such medical and surgical aid or hospital and nursing service at the expense of the employer.”
It is noteworthy that, pursuant to this authority, the commissioner enacted guidelines that require interest to be paid on doctor’s fees paid more than sixty days after they become due; see Connecticut Practitioner Fee Schedule (2001), General Guidelines, § II (E), p. 6; not after the ten day period prescribed under § 31-303.
See General Statutes § 31-290a (b) (employee “shall be awarded” attorney’s fees in cases of retaliatory discharge or other discrimination action); General Statutes § 31-296 (employer “shall be required to pay” attorney’s fees when employer has discontinued or reduced payments under voluntary agreement without commissioner’s approval); General Statutes § 31-300 (commissioner “may allow” attorney’s fees when employer has unreasonably contested liability and “shall allow” attorney’s fees when employer has
A simple hypothetical illustrates this point. Claimant A and claimant B suffer a compensable irvjury on January 1, 2000. On July 1, 2000, claimant A and her employer enter into a voluntary agreement regarding compensation. Claimant A’s employer, however, does not make the payments. Claimant B’s employer contests liability for compensation payments and also fails to make payments. Claimant A and claimant B both file claims with the commissioner. On July 1, 2001, a workers’ compensation commissioner makes an award of compensation to claimant A and includes in the award attorney’s fees due to the employer’s undue delay in making payments of compensation. On that same date, the commissioner makes an award of compensation to claimant B and allows attorney’s fees because her employer unreasonably contested liability. Thus, regardless of the reason for the employer’s delay, the harm to the claimant is the same.
In this regard, we note that, although the commissioner has promulgated regulations setting forth a due date for the payment of doctor’s bills; see footnote 18 of this opinion; the commissioner has not promulgated a similar provision regarding attorney’s fees. Finally, we appreciate that an attorney plays an important role in ensuring that a claimant receives Hie full measure of any compensation owed, including penalties owed for late payments of benefits. Although the resolution of a penalty claim is likely to be a pro forma matter, in many instances, an injured claimant will not seek a penalty pursuant to § 31-303 without the assistance of the attorney on whom the claimant has relied throughout the benefits process. With that in mind, we note that an attorney who petitions on behalf of a claimant, pursuant to § 31-303, for penalties due to late payments of compensation may request additional reasonable fees from the commissioner pursuant to § 31-300.