Opinion ID: 1189901
Heading Depth: 1
Heading Rank: 3

Heading: as to the assessment of a 10 per cent penalty

Text: In its Findings and Award the Board ordered that:    a penalty of 10% be added to all payments due after June 22, 1961, the date of Dr. Frank Serena's letter to Earnest L. Josem, at which time defendant had notice that applicant's disability had continued and had notice that compensation was due. The superior court affirmed the Board's imposition of a 10 per cent penalty but concluded that the penalty should commence from October 17, 1960. In its Memorandum Opinion, the superior court stated: A.S. 23.30.155(d) and (e) places a duty upon the employer to controvert the right to compensation. A letter in the file indicates the insurer was going to pay compensation. After October 17, 1960 the plaintiffs should either pay or controvert. The 10% penalty is supported by substantial evidence. AS 23.30.155(e) of our compensation act provides: If any installment of compensation payable without an award is not paid within 14 days after it becomes due, as provided in (b) of this section, there shall be added to the unpaid installment an amount equal to 10 per cent of it, which shall be paid at the same time as, but in addition to, the installment, unless notice is filed under (d) of this section or unless the nonpayment is excused by the board after a showing by the employer that owing to conditions over which he had no control the installment could not be paid within the period prescribed for the payment. [21] Claimant was released by Dr. Haggland on October 15, 1960, as able to resume work. The record does not substantiate a finding that appellants received a copy of Dr. Serena's report of June 22, 1961. Nor does the record support the superior court's conclusion that compensation was payable from October 17, 1960. In short, we are of the opinion that the record adduced below does not support the Board's imposition of a 10 per cent penalty pursuant to AS 23.30.155(e). Claimant's employer under the circumstances had the right to rely upon Dr. Haggland's October 15, 1960, medical report and certification of claimant's fitness for work and to thereafter controvert claimant's application for compensation. For the reasons expressed herein the Board's assessment of a 10 per cent penalty and the superior court's affirmance thereof is reversed. In all other respects the Board's compensation order and the superior court's affirmance thereof is affirmed.