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Jewell Ridge Coal Corp. v. Wright

Citations: 222 Va. 68; 278 S.E.2d 820; 1981 Va. LEXIS 276Docket: Record No. 801497

Court: Supreme Court of Virginia; June 12, 1981; Virginia; State Supreme Court

Narrative Opinion Summary

In this case, an employee of a coal corporation was injured in an industrial accident and initially awarded compensation for total incapacity. Upon returning to work, the employee was informed of his entitlement to a cost-of-living supplement for the period he received benefits, which the employer failed to pay. The employee contacted the Industrial Commission, leading to a hearing where the Commission awarded him the supplement and attorney's fees. The employer contested the decision, arguing that the total compensation exceeded state limits and that the cost-of-living provision required a formal application. The court, referencing a previous ruling, dismissed the employer's argument regarding compensation limits and found that the employee's communication with the Commission served as a sufficient application for the supplement. However, the court reversed the award of attorney's fees, agreeing with the employer that its defense was reasonable. Ultimately, the court affirmed the award of the cost-of-living supplement but reversed the award of attorney's fees, resulting in a partial affirmation and reversal of the Commission's decision.

Legal Issues Addressed

Application Requirement for Cost-of-Living Supplement

Application: The court found that the cost-of-living provision required an application but determined that Wright's communication with the Commission sufficed as such an application.

Reasoning: The court agreed that the provision is not self-executing but found that Wright’s letter to the Commission constituted a sufficient application, and his eligibility for the supplement was undisputed.

Attorney's Fees and Reasonable Grounds for Defense

Application: The court reversed the award of attorney's fees against Jewell Ridge, acknowledging that the company defended the claim with reasonable grounds.

Reasoning: Regarding the attorney's fees, the court agreed with Jewell Ridge that it should not be liable for these fees, as the Commission had determined Jewell Ridge defended the claim without reasonable grounds.

Workers' Compensation and Cost-of-Living Supplement

Application: The court confirmed that an employee is entitled to a cost-of-living supplement even if it was not initially paid, as long as the employee makes a sufficient application for it.

Reasoning: When Jewell Ridge failed to pay this supplement, Wright contacted the Industrial Commission, which subsequently held a hearing and awarded him the full amount, including counsel fees against Jewell Ridge.