Claim of Williams v. Lloyd Gunther Elevator Service, Inc.
Claimant, who established a compensable workers' compensation claim in 2003, also pursued a third-party personal injury action, which settled for $35,000 on September 16, 2010, with claimant receiving the funds on October 5, 2010. The employer's workers' compensation carrier then suspended payments, arguing its credit against the third-party recovery should begin on the settlement consent date (September 16, 2010), while the Workers' Compensation Law Judge and Board ruled it began on the date claimant received the settlement (October 5, 2010). The Board based its decision on the distinction that the workers' compensation carrier was not the third-party carrier, citing Employer: Icon Routing, a precedent the appellate court found did not support this premise. Reviewing prior Board decisions, the court noted that carriers were permitted to take credit from the consent date if explicitly stated in the consent letter, irrespective of whether the workers' compensation carrier and the third-party carrier were the same. As the Board failed to provide a rational explanation for departing from its established precedent, the appellate court reversed the decision and remitted the matter for further proceedings.