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Daley v. Spinnaker Industries8/15/2002
Reporter of Decisions
Argued: June 12, 2002
The employer and employee cross-appeal from a decision of a hearing officer of the Workers' Compensation Board granting the employee's petition by awarding varying rates partial incapacity compensation with an offset to the employer in the amount of severance payments received by the employee after the injury. Because we conclude that the employer failed to meet its burden of proof to show that the severance pay in this case is a "wage continuation plan" pursuant to 39-A M.R.S.A. § 221 (2001), we vacate the hearing officer's decision to authorize an offset for those payments. We also conclude that the hearing officer made insufficient findings of fact and conclusions of law to support her award of varying rates partial incapacity benefits. Accordingly, we also vacate the hearing officer's varying rates award.
I. BACKGROUND
Michael Daley suffered his first work-related injury in 1997 after twenty-one years of employment at S.D. Warren Co. Spinnaker Industries, Inc. purchased the portion of S.D. Warren's production facility in 1998 that employed Daley, and Daley suffered a second back injury in 1999, while employed by Spinnaker.
Daley was terminated from his employment at Spinnaker in February 2000, when his job was eliminated. Daley was paid 22.5 weeks of severance pay at a rate of $1118 a week. Under the terms of the severance agreement, Daley was entitled to the full 22.5 weeks of severance payments regardless of whether he returned to work during that period. There is no evidence in the record concerning the purpose of the payments or the method of calculation.
Two weeks after being discharged, Daley began working for D & G Machine, earning less than his pre-injury wage. The record reflects that Daley has consistent and regular work hours at D & G, that he earns $810 a week, and that he receives fringe benefits valued at $69.86 a week.
Daley filed petitions for an award with the Workers' Compensation Board against S.D. Warren and Spinnaker for his 1997 and 1999 injuries. The hearing officer denied the petition against S.D. Warren, concluding that the petition was time-barred. The hearing officer granted the petition against Spinnaker and awarded varying rates partial benefits based on the difference between the employee's pre-injury and post-injury earnings, with an offset for 22.5 weeks of severance pay paid to the employee.
Both parties moved for further findings of fact and conclusions of law and submitted proposed findings. The hearing officer denied the parties' motions, stating that the original opinion "provides an adequate foundation for appellate review" and that " o further or more detailed findings are necessary in the circumstances of this case." We granted both parties' petitions for appellate review, pursuant to 39-A M.R.S.A. § 322 (2001), and consolidated the appeals.
II. DISCUSSION
A. The Employee's Appeal
Daley contends that it was error for the hearing officer to permit the employer to take an offset for severance pay pursuant to 39-A M.R.S.A. § 221. Section 221 provides, in pertinent part:
§ 221. Coordination of benefits
1. Application.
This section applies when either weekly or lump sum payments are made to an employee as a result of liability pursuant to section 212 or 213 with respect to the same time period for which the employee is also receiving or has received payments for:
B. Payments under a self-insurance plan, a wage continuation plan or a disability insurance policy provided by the employer . . . .
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