 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Fort James Operating Co. v. Crump12/17/2004
ability plan, retirement plan, or other plan providing for sick pay by the amount of compensation paid, if and only if the employer provided the benefits or paid for the plan or plans providing the benefits deducted."
In Ex parte Fort James Operating Co., [Ms. 1030607, June 4, 2004] __ So. 2d __ (Ala. 2004), a case involving the same short-term disability program at issue in this case, our supreme court held that Fort James was entitled to a credit pursuant to § 25-5-57(c)(1) for benefits paid to an employee where Fort James established that the benefit program was funded by Fort James and the employee failed to establish that he funded the program. Likewise, in this case the short-term disability program is funded by Fort James, and, therefore, it was entitled to a credit for the short-term disability benefits paid to Crump. Additionally, we note that upon remand, the trial court should calculate the attorney fee before giving Fort James credit for its setoff in accordance with this court's decision in Bruno's, Inc. v. Killingsworth, 879 So. 2d 561 (Ala. Civ. App. 2002).
Finally, Fort James argues that the trial court erred in failing to give it a credit for disability-retirement benefits received by Crump. As mentioned above, Crump applied for disability-retirement benefits through the Pace Industry Union-Management Pension Fund. This retirement plan is fully funded by Fort James with the employees making no contribution to the fund. The retirement plan contains three types of pension: (1) the regular pension for employees who have reached 65 years of age with at least 5 years of service; (2) the early retirement pension for employees who have reached the age of 55 with at least 10 years of service; and (3) the disability-retirement pension for employees at any age with at least 10 years of service who have become permanently and totally disabled while working in covered employment.
Crump began receiving $972 per month in disability-retirement benefits from the retirement fund beginning on January 1, 2000. Her monthly benefit is the same monthly benefit she would have received if she had retired pursuant to the regular retirement at age 65. Because she was declared disabled and had 10 years of service, Crump was able to immediately draw her full monthly retirement benefit of $972 without having to wait until she reached age 65.
In Ex parte Taylor, 728 So. 2d 635 (Ala. 1998), our supreme court determined that an employer was not allowed to set off, pursuant to § 25-5-57(c)(1), retirement benefits paid pursuant to a "normal" retirement plan, i.e., one based solely on the employee's age and length of service. However, in Cross v. Goodyear Tire & Rubber Corp., 793 So. 2d 791 (Ala. Civ. App. 2000), a case involving a similar retirement plan as the one at issue in this case, this court determined that an employer is entitled to a setoff pursuant to § 25-5-57(c)(1) for disability-retirement benefits paid as the result of a disability arising from a job -related injury, rather than solely based on the employee's age and length of service.
Here, Crump received her disability-retirement benefits based on her work-related injury that rendered her permanently and totally disabled rather than solely based on her age and length of service. Accordingly, we conclude that the trial court erred in failing to allow Fort James a credit to the workers' compensation benefits it must pay based on the disability-retirement benefits received by Crump. Additionally, as stated above, any attorney fee owed should be calculated in accordance with Bruno's v. Killingsworth, supra.
AFFIRMED IN PART; REVERSED IN PART; AND REMANDED WITH INSTRUCTIONS.
Crawl
Page 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Alabama Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|