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Southern Cotton Oil Co. v. Friar

Citations: 247 Ark. 98; 444 S.W.2d 556; 1969 Ark. LEXIS 1069Docket: 5-5004

Court: Supreme Court of Arkansas; September 15, 1969; Arkansas; State Supreme Court

Narrative Opinion Summary

The case involves a laborer who suffered a severe hand injury while employed by a company, resulting in amputation and subsequent claims for compensation under the Workmen’s Compensation Act. Initially, the company provided medical expenses and compensation, including lump sum payments. The claimant later sought additional compensation for total and permanent disability due to a neuroma, which the company contested, citing the statute of limitations and arguing the existence of a joint settlement. The referee and full commission ruled in favor of the claimant, finding the claim not barred by limitations and that the claimant remained totally disabled. The commission's decision was upheld by the Jackson County Circuit Court. The company's appeal focused on the statute of limitations and the sufficiency of evidence for temporary total disability. The court affirmed the lower decisions, concluding that the statute of limitations begins from the date the last installment would have been due, not from the lump sum payment date. The case was remanded for further proceedings on the issue of temporary total disability, requiring additional evidence on the onset of the claimant's current disability. The decision underscores the interpretation of lump sum payments and statutory limitations, aiming to provide claimants adequate time to assess compensation claims.

Legal Issues Addressed

Effect of Lump Sum Payments on Limitations Period

Application: Lump sum payments do not constitute the last payment for statutory limitations purposes; they are considered advances.

Reasoning: Most courts agree that a lump sum payment made upon commutation does not qualify as a 'last' payment for the purpose of initiating the statutory period for review applications under the Workmen’s Compensation Act.

Statute of Limitations under Workmen’s Compensation Act

Application: The statute of limitations for filing a claim begins from the date the last installment payment would have been due, not the date of a lump sum payment.

Reasoning: The conclusion reached is that the statute of limitations commences from the date the last payment would have been due, affirming the decisions of both the commission and the Jackson County Circuit Court.

Temporary Total Disability Determination

Application: The determination of temporary total disability requires sufficient evidence, particularly regarding the onset of disabling conditions.

Reasoning: The evidence is insufficient to determine whether the award of temporary total disability from October 29, 1963, should be upheld.