Court Opinion

ID: 9648641
Source: CourtListenerOpinion
Date Created: 2023-08-23 14:31:22.484854+00
Date Added: 2024-06-11T09:07:42.506635
License: Public Domain

DANA, J„
with whom SAUFLEY, C.J., joins, dissenting.
[¶ 18] I respectfully dissent. I agree with the Court that we must give great deference to rules promulgated by the Workers’ Compensation Board that carry out the purposes of the Act and fill in the “gray areas” that were intentionally left in the Act. See, e.g., Russell v. Russell’s Appliance Serv., 2001 ME 32, ¶ 10 n. 3, 766 A.2d 67, 71; Bureau v. Staffing Network, Inc., 678 A.2d 583, 588 n. 2 (Me.1996). Nevertheless, because Me. W.C.B. Rule, ch. 1, § 1.25 provides a penalty for an employer’s failure to controvert a claim that conflicts with both the statute and the *967intent of the Legislature, I conclude that the rule in this case is ultra vires. See, e.g., Lydon v. Sprinkler Servs., 2004 ME 16, ¶¶ 12, 15, 841 A.2d 798, 797-98 (holding Board rule invalid that would permit section 207 examinations by independent medical examiners who have performed exams on behalf of employers in the preceding fifty-two weeks); Beaulieu v. Me. Med. Ctr., 675 A.2d 110, 111 (Me.1996) (holding Board rule invalid to the extent that it conflicts with the statutory language regarding the inclusion of fringe benefits in the average weekly wage).
[¶ 19] The language of section 2056 should not be read in a vacuum, but should be read in the context of the legislative history of employer penalties for failure to controvert a claim. In the early 1980s, the Legislature adopted the controversial “early pay system,” whereby the failure of an employer to file a notice of controversy within rigid statutory time frames created a “compensation payment scheme,” in which the employer was deemed to accept the employee’s claim of injury. See 39 M.R.S.A. § 51-B(7) (1989), repealed by P.L. 1991, ch. 885, § A-7. The purpose of the “early pay system” was to encourage informal acceptance of claims and reduce attorney involvement. See Wentworth v. Manpower Temp. Servs., 589 A.2d 934, 938 (Me.1991); Stickles v. United Parcel Serv., 554 A.2d 1176, 1178 (Me.1989); L.D. 1322, Statement of Fact (111th Legis. 1983).
[¶ 20] After its adoption, the “early pay system” was a frequent subject of legislative debate and some of the more draconian aspects of the early pay system were mitigated even before its ultimate repeal. For instance, in 1989 the statute was amended to remove the requirement that the employer must file a memorandum of payment when paying medical expenses, see P.L. 1989, ch. 256, §§ 2, 3 (114th Legis. 1989) (codified as amended at 39 M.R.S.A. § 51-B(5), (7) (Supp.1989), repealed by P.L. 1991, ch. 885, § A-7), and then was amended again in 1991 to permit employers to pay benefits without prejudice, P.L. 1991, ch. 615, § C-3 (115th Legis. 1991) (codified as amended at 39 M.R.S.A. § 51-B(8) (Supp.1991), repealed by P.L. 1991, ch. 885, § A-7). The early pay system was repealed in its entirety by the Workers’ Compensation Act of 1992, P.L. 1991, ch. 885, § A-7. See generally Statements of Sen. Gauvreau, Legis. Rec. S-47 (3d Spec. Sess. 1992) (discussing history of early pay system).
[¶ 21] The minutes of the Board meetings prior to the adoption of Me. W.C.B. *968Rule, ch. 1, § 1.2 suggest that the rule was precipitated by the decisions of at least two hearing officers that the failure to pay benefits within fourteen days created a “compensation scheme.” The term “compensation scheme” appears to be a throwback to the former title 39 early pay system.
[¶22] Section 205, however, does not mandate that an employer controvert a claim within fourteen days. The statute expressly requires that the employer file a memorandum of payment upon making the first payment of compensation, 39-A M.R.S.A. § 205(7) (2001), but does not require the employer to file a notice of controversy within fourteen days or at any time. The plain language also does not compel the conclusion that an employer who files an untimely notice of controversy must pay benefits that have accrued up to that time. Section 205 provides that payment must be made within fourteen days if there is no ongoing dispute. The statute does not state that the filing of a notice of controversy is required to memorialize an ongoing dispute.
[¶ 23] In light of the clear legislative intent to repeal the former “early pay system,” I conclude that the Board exceeded its authority in promulgating Me. W.C.B. Rule, ch. 1, § 1.2 creating a substantive penalty for failing to controvert a claim that is not contemplated in the Act. I see no authority in the Act for the Board to order employers to pay total incapacity benefits in cases when benefits are otherwise not legally due, simply because the employer failed to notify the Board in writing that it was controverting the claim.
[¶ 24] Further, because the rule expressly requires that an employer who fails to controvert a claim in writing within fourteen days must retroactively pay benefits back to “the date of incapacity,” an employer can be required to pay benefits for a period of time beginning long before any formal claim was actually made. Because I conclude that the Board rule makes a significant substantive change in the law that contravenes the legislative intent, I would vacate the hearing officer’s decision in this case.

. Board Rule, ch. 1, § 1, provides, in pertinent part:
§ 1. Claims for Incapacity and Death Benefits
1. Within 14 days of notice or knowledge of a claim for incapacity or death benefits for a work-related injury, the employer or insurer will:
A. Accept the claim and file a Memorandum of Payment checking "Accepted” in Box 18; or
B. Pay without prejudice and file a Memorandum of Payment checking "Voluntary Payment Pending Investigation” in Box 18; or
C. Deny the claim and file a Notice of Controversy.
2. If the employer fails to comply with the provisions of Rule 1.1, the employee must *967be paid total benefits, with credit for earnings and other statutory offsets, from the date of incapacity in accordance with 39-A M.R.S.A. § 205(2) and in compliance with 39-A M.R.S.A. § 204. The requirement for payment of benefits under this subsection automatically ceases upon the filing of a Notice of Controversy and the payment of any accrued benefits.
Me. W.C.B. Rule, ch. 1, § 1.

. Section 205 provides, in pertinent part:
2. Time for payment. The first payment of compensation for incapacity under section 212 or 213 is due and payable within 14 days after the employer has notice or knowledge of the injury or death, on which date all compensation then accrued must be paid. Subsequent incapacity payments must be made weekly and in a timely fashion. Every insurance carrier, self-insured and group self-insurer shall keep a record of all payments made under this Act and of the time and manner of making the payments and shall furnish reports, based upon these records, to the board as it may reasonably require.
3. Penalty for delay. When there is not an ongoing dispute, if weekly compensation benefits or accrued weekly benefits are not paid within 30 days after becoming due and payable, $50 per day must be added and paid to the worker for each day over 30 days in which benefits are not paid. Not more than $1,500 in total may be added pursuant to this subsection....
39-A M.R.S.A. § 205 (2001).