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United Cerebral Palsey & Motorist Mutual Insurance Co. v. Workmen's Compensation Appeal Board

Citations: 649 A.2d 169; 168 Pa. Commw. 92

Court: Commonwealth Court of Pennsylvania; October 12, 1994; Pennsylvania; State Appellate Court

Narrative Opinion Summary

The case involves a dispute between an employer and a claimant regarding the modification of workers' compensation benefits. The claimant, having sustained a work-related injury, received job referrals upon being released to work. However, she failed to pursue most of them. The Referee initially suspended her benefits based on a referral to a job with wages exceeding her pre-injury earnings. The Workers’ Compensation Appeal Board altered this decision, asserting that modification should be based on the first job referral wage rate due to the claimant's lack of good faith in pursuing it. The employer challenges this, arguing that benefits should be based on the subsequent Valleybrook job, which offered higher wages. The court, referencing Kachinski and Castro precedents, concluded that the Board misapplied legal standards by limiting modification to the first referral. The court vacated the Board's order and remanded the case for further proceedings, affirming that modifications should reflect the date a job becomes available and that suspensions should be based on jobs offering equal or better wages.

Legal Issues Addressed

Effective Date for Modification and Suspension of Benefits

Application: Modifications should be effective from the date a job becomes available to the claimant, and suspensions should reflect the dates those jobs were accessible.

Reasoning: Modifications should be effective from the date of the job available to the claimant, and any suspension based on later jobs should also reflect the date those jobs were accessible.

Modification of Workers' Compensation Benefits

Application: The Workers’ Compensation Appeal Board can modify benefits based on the wage rate of the first job referral if the claimant fails to pursue it in good faith.

Reasoning: The Board determined that benefits should be adjusted based on the wage rate of the first job referral, as Claimant did not pursue it in good faith, reversing the Referee’s decision that suspended benefits based on a later job referral with higher wages.

Requirements for Employer to Modify Benefits

Application: An employer must demonstrate a change in the claimant's condition and provide evidence of suitable job referrals to modify benefits.

Reasoning: Under Kachinski v. Workmen’s Compensation Appeal Board, an employer must present medical evidence of a change in the claimant’s condition and demonstrate that suitable job referrals were made.

Suspension of Benefits Due to Non-Pursuit of Job Referrals

Application: A claimant's failure to pursue job referrals in good faith can justify the suspension of benefits based on subsequent job offers with equal or better wages.

Reasoning: A claimant's failure to pursue job referrals in good faith allows the employer to modify benefits. The Referee was justified in suspending benefits based on the Valleybrook job, but incorrectly used the date of the Sears job referral for suspension.