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Reese v. Sewell Hardware Co., Inc.

Citation: 407 So. 2d 965Docket: AB-71

Court: District Court of Appeal of Florida; December 8, 1981; Florida; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by an employee, Reese, against a deputy commissioner's order denying him an increase in his workers' compensation rate and penalties for past due compensation. Initially, Reese received temporary total disability benefits, but the insurer reduced these payments, citing overpayments due to continued employer-paid group insurance premiums. Reese argued that these premiums and his pension benefits should factor into his average weekly wage calculation. The deputy agreed to include them but did not adjust the compensation rate or impose penalties. On appeal, the court reversed both decisions, referencing Section 440.15(2)(a) of the Florida Statutes, which requires 60% of the average weekly wage to be paid during temporary total disability. The court criticized the insurer's lack of authority to support its actions. Additionally, the court found no justification for the delay in payments and remanded the case for further proceedings, instructing the deputy to calculate penalties based on the pension benefits and assess whether the oversight regarding insurance premiums was excusable. The case was reversed and remanded for these purposes.

Legal Issues Addressed

Calculation of Average Weekly Wage in Workers' Compensation

Application: The court ruled that group insurance premiums and vested pension benefits should be included in calculating the average weekly wage for workers' compensation benefits.

Reasoning: The deputy commissioner agreed that the premiums and pension benefits should be included in Reese's average weekly wage.

Imposition of Penalties for Late Workers' Compensation Payments

Application: The court reversed the denial of penalties for late payments, as the insurance carrier failed to justify its delay, and remanded for the calculation of appropriate penalties.

Reasoning: Additionally, the court reversed the decision on penalties, as the carrier did not justify its delay in payment.

Workers' Compensation Rate under Florida Statutes

Application: The appellate court applied Section 440.15(2)(a) of the Florida Statutes to determine that 60% of the average weekly wages must be paid during temporary total disability, rejecting the insurance carrier's reduction of benefits.

Reasoning: The appellate court found this ruling incorrect, citing Section 440.15(2)(a) of the Florida Statutes, which mandates that 60% of the average weekly wages be paid during temporary total disability.