Court: District Court of Appeal of Florida; June 17, 1988; Florida; State Appellate Court
On February 14, 1981, a claimant, who was an insulin-dependent diabetic, sustained a compensable injury when he dropped a case of soda on his right foot and knee. Workers’ compensation benefits were initiated by the employer/carrier (E/C) following the injury. Despite receiving immediate medical attention, the claimant's health deteriorated due to complications from diabetes, leading to his death on June 3, 1983. An endocrinologist confirmed that the claimant's death was accelerated by the industrial injury's impact on his diabetes. The E/C covered all medical expenses and paid $1,000 for funeral costs but did not provide additional death benefits as the claimant had no dependents. Under Florida Statutes section 440.49(2)(d), the E/C received a 75% reimbursement for funeral expenses from the Special Disability Trust Fund (Fund). However, the Fund denied reimbursement for temporary disability and medical benefits paid to the claimant prior to his death. Consequently, the E/C filed for a hearing regarding this reimbursement.
The deputy commissioner (DC) ruled on September 18, 1987, that the E/C was entitled to reimbursement for funeral expenses under section 440.49(2)(d), but was not entitled to reimbursement for temporary disability and medical benefits under section 440.49(2)(e) because they had not paid compensation for death as defined by the statute. The DC clarified that funeral expenses do not qualify as "compensation for death," which is reserved for death benefits, as determined by the Florida Supreme Court in a precedent case. The court emphasized that the legislative intent was to distinguish between funeral expenses and death benefits, thus supporting the DC's denial of the reimbursement claim for temporary disability and medical benefits.
Prior to 1974, the statute did not allow for reimbursement of funeral expenses, as established in the Southland case, which clarified that funeral expenses and death benefits are distinct. The E/C argue that section 440.49(2)(b)3 indicates that payment of funeral expenses activates the Fund's obligation for temporary disability and medical benefits, as it defines 'excess permanent compensation' to include death benefits for which reimbursement is possible from the Special Disability Trust Fund. However, they overlook section 440.49(2)(d), which makes a clear distinction between funeral expenses and death benefits. The Florida Supreme Court's ruling in Southland confirmed that 'death benefits' do not encompass funeral expenses. Thus, funeral expenses cannot be classified as 'excess permanent compensation' since they are not 'death benefits' eligible for reimbursement. Consequently, the court upheld the determination that funeral expenses do not qualify as 'compensation paid for death' under section 440.49(2)(e), thereby not triggering the Fund’s reimbursement obligations. The ruling was affirmed, with a note that while section 440.49(2)(a) was amended in 1979 to allow for a liberal interpretation for eligibility, this does not extend to creating a reimbursement right not recognized by law.
