50% Penalties and Attorney Fees Awarded for Late Check Payment of TPD and TTD Benefits

January 20, 2015

Samuel Newton (name changed for this summary) was injured in the course of his employment in Waynesboro, PA. Mr. Newton testified that he had been receiving both total temporary disability (TTD) benefits and total partial disability (TPD) benefits per the Pennslyvania Workers’ Compensation Act based upon a Supplemental Agreement dated November 5, 2013. On January 29, 2014, Neil P. O’Malley, M.D., placed Mr. Newton off from work. Mr. Newton testified that he contacted the insurance adjuster to receive his workers’ compensation check but did not receive it until the second week of March 2014. We filed a Penalty Petition against Underwriters Safety & Claims, the workers’ compensation insurance carrier for their violation of the Act in failing to pay workers’ compensation checks on a timely basis. The payment history revealed that Mr. Newton’s payment for TTD benefits for the time period January 29, 2014 through March 9, 2014 was issued on March 5, 2014 and that his payment for TPD benefits for the time period January 20, 2014 to January 28, 2014 was issued on March 7, 2014. The Penalty Petition was heard by a Workers’ Compensation Judge in State College, PA. Due to the insurance company’s untimely late payments of Mr. Newton’s TPD and TTD benefits, the Judge assessed penalties of 50% on the amount of compensation due to Mr. Newton that was over 30 days late and assessed penalties of 10% on the amount of compensation due to him which was less than 30 days late. The Judge also ordered that the Insurer pay Mr. Newton’s attorney’s fees for unreasonable contest because they did not have a reasonable basis to contest the Penalty Petition.