Plaintiff sought leave to appeal to this Court from an order of the Workers’ Compensation Appeal Board (WCAB) denying him recovery of a penalty payment. This Court denied plaintiffs application in an order dated September 24, 1982, Docket No. 65611, and plaintiff sought leave to appeal in the Supreme Court. On June 21, 1983, the Supreme Court entered an order remanding the instant case to this Court for consideration of whether the "no ongoing dispute” exception to the penalty provision of MCL 418.801; MSA 17.237(801) should be interpreted as requiring a good-faith dispute,
Plaintiff was injured during the course of his employment with Collavino Brothers (hereinafter defendant) on January 23, 1980. Plaintiff was initially treated by a medical doctor and defendant began paying worker’s compensation benefits. On February 5, 1980, plaintiff sought treatment with a chiropractor because he felt the medical doctor’s treatment was "hurting worse than it was helping”. Although plaintiff thereafter missed two sessions with the medical doctor, he saw him on March 3, 1980. On March 4, 1980, the medical doctor sent a report to defendant indicating that plaintiff was "disabled indefinitely”. Nevertheless, on March 21, 1980, plaintiffs benefits were discontinued by defendant.
On April 7, 1980, plaintiff filed a petition for a hearing with the Bureau of Workers’ Disability *234 Compensation. On April 25, 1980, defendant filed a notice of dispute form stating that because it had not received medical verification of disability from plaintiffs chiropractor it had ceased making payments. Defendant resumed paying benefits on May 22, 1980.
On March 11, 1981, a hearing was held on plaintiff’s claim that he was entitled to receive various late payment penalties because of the temporary suspension of his benefits in April and May of 1980. The hearing referee denied plaintiff’s claim for a penalty payment. The referee’s decision was affirmed by the appeal board which concluded that although defendant was not justified in terminating plaintiff’s benefits, an "ongoing” dispute within the meaning of MCL 418.801(2); MSA 17.237(801X2) existed between the parties and prevented plaintiff from recovering a penalty payment.
MCL 418.861; MSA 17.237(861) provides this Court authority to review questions of law involved in any final order of the WCAB.
Aquilina v General Motors Corp,
Benefits are due and payable on the 14th day after the employer has notice of the employee’s injury. MCL 418.801(1); MSA 17.237(801)(1). An employer who disputes an employee’s claim, however, has the right to apply to the bureau for a
*235
hearing before a referee. MCL 418.847; MSA 17.237(847). An award is to be considered "in dispute” while review or appeal is pending and during the time periods permitted for filing a claim for review or of appeal.
Charpentier v Canteen Corp,
105 Mich app 700, 705;
Plaintiff urges this Court to interpret MCL 418.801(2); MSA 17.237(801X2) as requiring a "good faith” dispute in order to stay application of the penalty. This identical issue was before this Court in
Couture v General Motors Corp,
We agree with the
Couture
Court’s interpretation of the penalty provision. The cardinal rule of statutory construction is to ascertain and effectuate the intent of the Legislature.
Melia v Employment Security Comm,
The cases cited by plaintiff from other jurisdictions are inapposite. In each case where the penalty was enforced, the foreign court was guided by specific statutory language regarding the unreasonableness, vexatiousness, or frivolousness of the employer’s position. See 3 Larson, Workmen’s Compensation Law, § 83.40. No such terms modify the "ongoing dispute” provision in the Michigan statute.
Plaintiff argues that implying a bad faith exception furthers the policies of the Worker’s Disability Compensation Act. However, other provisions of the act explicitly reveal the Legislature’s desire to further its purposes by imposing a "reasonable” or "good faith” condition. MCL 418.319; MSA 17.237(319) provides that if an employee’s refusal to accept rehabilitation is "unjustified]”, then the employee will be subject to a loss or reduction of compensation. As noted by this Court in Couture, supra, p 178, the Legislature expressed in explicit terms its intention to deter bad faith refusals to pay meritorious claims in no-fault insurance legislation. See MCL 500.2006(4); MSA 24.12006(4).
From our reading of similar statutes, we infer that the Legislature was aware that prompt payment of compensation benefits could be encouraged by imposing a penalty for the bad faith denial of payments. In the absence of such an express provision in MCL 418.801(2); MSA 17.237(801X2), we hold that the board’s finding that an employer *237 disputed a claim in bad faith will not justify the assessing of a penalty against the employer.
Although the WCAB found the defendant’s position to have been "untenable”, the board made a factual determination that a dispute did exist. This determination involved review of conflicting testimony and evaluations of credibility. The finding of the existence of a dispute was based on defendant’s filing of a notice of dispute and testimony that defendant failed to receive, though requested, medical substantiation of a continuing disability from plaintiffs chiropractor. In the absence of fraud, this Court will not overturn the board’s factual findings where they are supported by some competent evidence. Const 1963, art 6, § 28; MCL 418.861; MSA 17.237(861); Aquilina v General Motors, supra, p 213. Accordingly, the board’s order denying plaintiff recovery of a penalty payment is affirmed.
Affirmed.