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Philip Electronics North America v. Wright12/12/1997
We are called upon in this case to interpret the Workers' Compensation Act, Maryland Code (1991 Repl.Vol., 1997 Supp.), Title 9 of the Labor and Employment Article (hereinafter "Act"). We must determine whether, after an award to a claimant is reduced pursuant to a petition for judicial review, the employer is entitled to a credit for the total amount of money paid to the claimant before the reduction of the original award, or whether the appropriate credit is the number of weeks the employer paid benefits prior to the reduction. We shall hold that a credit based upon the number of weeks the employer has paid benefits is proper.
I.
This case arose out of a knee injury suffered by claimant Patricia Wright ("Wright") on February 7, 1990 during the course of her employment. Subsequently, while attempting to rehabilitate her injured left knee, Wright developed an adverse psychological condition related to her physical injury. Pursuant to those injuries, Wright filed a claim for compensation with the Maryland Workers' Compensation Commission ("Commission") against her employer, Philip Electronics North America, and its insurer, Travelers Indemnity Company of Illinois (collectively "Philip Electronics").
On November 19, 1992, the Commission conducted a hearing to determine the amount of compensation due Wright under the Act. By written order, on November 30, 1992, the Commission found that Wright had suffered a permanent partial disability loss of 50% of the use of her body as a whole, under "other cases," due to the injury to her knee and the resulting psychological condition. See Section(s) 9-627(k). Accordingly, the Commission ordered Philip Electronics to pay Wright permanent partial disability benefits at the rate of $178 per week for 333 weeks pursuant to Section(s) 9-630.
Both Philip Electronics and Wright filed a petition for judicial review in the Circuit Court for Dorchester County. After hearing the evidence, on November 23, 1993, a jury returned a verdict finding that Wright had sustained a 40% loss of the use of her body as a whole as a consequence of the injuries arising out of her employment. Upon remand, on November 17, 1994, the Commission recalculated Wright's benefits, and found that she was entitled to $144 per week for 200 weeks. Significantly, the Commission also gave Philip Electronics a credit for the amount of the monetary payments made under the Commission's original order of November 30, 1992.
Aggrieved by the Commission's decision to allow Philip Electronics a credit for the total amount of monetary benefits paid under the Commission's original order, Wright filed a second petition for judicial review in the Circuit Court for Dorchester County. On September 22, 1995, the circuit court granted Philip Electronics' motion for summary judgment, also concluding that Philip Electronics was entitled to a credit for the total amount of monetary benefits already paid. Wright subsequently filed a timely notice of appeal to the Court of Special Appeals.
Rejecting the "total monetary" credit approach advocated by Philip Electronics, the intermediate appellate court reversed the judgment of the circuit court. See Wright v. Philip Electronics, 112 Md. App. 642, 685 A.2d 1216 (1996). This Court then granted Philip Electronics' petition for writ of certiorari to resolve the primary legal issue presented by this case. We now affirm.
II.
Before this Court, Philip Electronics argues that the Court of Special Appeals erred by holding that an employer is entitled only to credit for the number of weeks of benefits paid, rather than a credit for the total monetary sum expended, after an initial award by the
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