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Galetti v. Montana Power Company12/5/2001
SUMMARY AND FINAL JUDGMENT
Summary:
Claimant was injured in 1983 while working for Montana Power Company (MPC), which was self-insured. MPC accepted liability and paid benefits, however, at the time of the injury the claimant had been certified as disabled under the subsequent injury provisions of the Montana Workers' Compensation Act. Those provisions limit the insurer's liability for compensation benefits to 104 weeks and impose liability for benefits beyond the 104 weeks upon the Subsequent Injury Fund (SIF). The benefits paid claimant in the 1980s were less than the 104 weeks. In 1999 claimant made a demand for permanent partial disability benefits exceeding the 104 weeks. MPC denied the demand and the petitioner filed a petition with the Court. At the time of the petition, MPC had paid claimant 101 1/6 weeks of the 104 weeks. Two years after the demand, MPC moved to join the SIF and the motion was granted. SIF then paid $41,000 to claimant, while MPC paid an additional 2 6/7 weeks of benefits. The parties have agreed to the dismissal of the substantive claims, however, claimant seeks a penalty and attorney fees against MPC.
Held:
MPC is liable for attorney fees and a penalty not only with respect to the 2 6/7 weeks of additional benefits it paid after the filing of this action but also with respect to the $41,000 paid by the SIF. By failing to give the SIF notice of the claim and denying further liability, MPC substituted itself for the SIF. It is liable for attorney fees on the SIF payments since the amount ultimately obtained by settlement with the SIF was greater than the amounts tendered by MPC. Its failure to involve the SIF also unreasonably delayed the SIF settlement, rendering it liable for a penalty.
Topics:
Constitutions, Statutes, Regulations, and Rules: Montana Code Annotated: sections 39-71-907 to 39-71-911, MCA (1983). Under Subsequent Injury Fund statutes, the Montana Subsequent Injury Fund is liable for compensation benefits in excess of 104 weeks which are payable to an injured worker who was previously certified as disabled.
Constitutions, Statutes, Regulations, and Rules: Montana Code Annotated: sections 39-71-908, MCA (1983). Under Subsequent Injury Fund statutes, the insurer or self-insurer is required to give the Subsequent Injury Fund notice of its potential liability prior to the expiration of 104 weeks following a work-related injury of a worker who has been certified as disabled.
Constitutions, Statutes, Regulations, and Rules: Montana Code Annotated: sections 39-71-908, MCA (1983). An insurer or self-insurer which fails to provide the notice required by section 39-71-908, MCA (1983), and denies a claim for further benefits, is liable for attorney fees and a penalty where the claim is subsequently submitted to the Subsequent Injury Fund and accepted by it.
Subsequent Injury Fund. Under Subsequent Injury Fund statutes, the Montana Subsequent Injury Fund is liable for compensation benefits in excess of 104 weeks which are payable to an injured worker who was previously certified as disabled.
Subsequent Injury Fund. Under Subsequent Injury Fund statutes, the insurer or self-insurer is required to give the Subsequent Injury Fund notice of its potential liability prior to the expiration of 104 weeks following a work-related injury of a worker who has been certified as disabled.
Subsequent Injury Fund. An insurer or self-insurer which fails to provide the notice required by section 39-71-908, MCA (1983), and denies a claim for further benefits, is liable for attorney fees and a penalty where the claim is subsequently submitted to the Subseq
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