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Allen v. Treasure State Plumbing12/19/1990
he event the insurer denies the claim for compensation or terminates compensation benefits, and the claim is later adjudged compensable, by the division or on appeal, the insurer shall pay reasonable costs and attorneys' fees as established by the division. However, under rules adopted by the division and in the discretion of the division, an insurer may suspend compensation payments for not more than thirty (30) days pending the receipt of medical information."
ECU maintains that it did not deny "the claim for compensation or terminate compensation benefits." Rather, it merely contested the extent of its obligation to Mr. Allen. Therefore, it maintains that § 92-616 RCM does not provide any authority to support the lower court's award of attorney's fees and costs.
We disagree. ECU paid medical costs, and disability benefits up until September 12, 1977, the date of Mr. Allen's second injury . It refused, however, to pay any benefits due after that date. We hold that this refusal was tantamount to a "termination of compensation benefits." Therefore, the lower court's award of attorney's fees and costs is clearly justified under § 92-616 RCM.
Affirmed.
CHIEF JUSTICE TURNAGE and JUSTICES HARRISON, WEBER, HUNT, BARZ and SHEEHY concur.
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