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Willis v. Grand Strand Sandwich Shop11/18/2005
Submitted September 1, 2005
REVERSED
In this workers' compensation case, the North Carolina Guaranty Association (N.C. Guaranty) appeals the circuit court's order reversing the Appellate Panel of the South Carolina Workers' Compensation Commission (Full Commission) and reinstating the Single Commissioner's findings. The Full Commission held N.C. Guaranty was not bound by the Single Commissioner's order, which was issued during a stay mandated by the South Carolina Property and Casualty Insurance Guaranty Association Act. We reverse.
FACTS
On March 19, 2001, Willis filed a form 50 seeking benefits for a back injury sustained in the scope and course of his employment and requesting a hearing on the matter. At the time of Willis's hearing request, Reliance National Indemnity Company (Reliance) was the insurance carrier. Although the Single Commissioner timely notified Reliance that a hearing was scheduled for September 4, 2001, Reliance failed to respond by filing a form 51 or by appearing at the hearing. Therefore, the Single Commissioner admitted Willis's Administrative Procedures Act submissions and heard Willis's testimony in Reliance's absence.
On October 2, 2001, the State of Pennsylvania issued an order declaring Reliance insolvent. At that time, all claims were turned over to the South Carolina Property and Casualty Insurance Guaranty Association (S.C. Guaranty) for handling. On November 6, 2001, the Workers' Compensation Commission notified Willis's attorney that section 38-31-160 of the South Carolina Code (2002) mandated a 90-day stay for all suits and proceedings involving Reliance due to its insolvency.
The Single Commissioner issued an order on November 19, 2001 and made the following findings of fact: Willis sustained a back injury in the course and scope of his employment on April 9, 1999, Reliance was responsible for payment of medical care and temporary total disability benefits from April 12, 1999 until September 6, 1999, and Willis sustained 51% permanent disability.
Thereafter, Willis's attorney forwarded a copy of the Single Commissioner's order to S.C. Guaranty and requested payment. On March 14, 2002 Willis sent a letter to S.C. Guaranty indicating he was informed that because Willis was a North Carolina resident, his claim would be referred to N.C. Guaranty and requesting contact information for N.C. Guaranty. S.C. forwarded Willis's letter to N.C. Guaranty. N.C. Guaranty contacted Willis's attorney to obtain information after it received notice of the claim on March 22, 2002. Willis's attorney sent a copy of Willis's file on April 17, 2002 and a copy of the complete workers' compensation package on May 7, 2002.
On August 30, 2002, N.C. Guaranty filed a motion to reconsider or vacate the Single Commissioner's order, arguing it could not be legally bound by the Single Commissioner's decision. By order dated September 20, 2002, the Single Commissioner denied the motion. N.C. Guaranty requested review by the Full Commission. By an order dated March 21, 2003, the Full Commission set aside the Single Commissioner's order and substituted its findings of fact. The Full Commission found Willis was entitled to payment of 21 weeks of temporary total disability benefits and all related medical bills, but that the matter would be remanded to a jurisdictional commissioner for a hearing on the extent of Willis's permanent partial disability.
Thereafter, Willis appealed to the circuit court, which reversed the order of the Full Commission and reinstated the Single Commissioner's order. This appeal followed.
STANDARD OF REVIEW
The South Carolina Admin
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