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Gerald-Singleton v. U of L Healthcare University Hospital4/1/2005
AFFIRMING
On December 2, 1997, while working for the University of Louisville's School of Allied Health Services, Brenda Gerald-Singleton suffered a work-related back injury due to an elevator accident. U of L paid Gerald-Singleton temporary total disability (TTD) benefits from December 3, 1997, to January 6, 1998. However, when U of L terminated the benefits, it failed to timely notify the Commissioner of the Department of Workers' Claims as required by Kentucky Revised Statutes (KRS) 342.040(1). After Gerald-Singleton underwent back surgery on January 26, 2000, U of L resumed payment of TTD benefits and did not terminate them until June 13, 2000, when Gerald-Singleton returned to work. When U of L terminated this second period of TTD benefits, it timely notified the Commissioner. On September 12, 2000, Gerald-Singleton received a WC-3 letter from the Commissioner informing her that U of L had terminated the second period of TTD benefits and that she had two years from June 13, 2000, in which to file a claim.
In January 2003, U of L dismissed Gerald-Singleton when it closed its School of Allied Health Sciences. On May 16, 2003, Gerald-Singleton filed an injury claim against U of L, although nearly a year had passed since the two-year statute of limitations set forth in KRS 342.185 had run. Gerald-Singleton insisted that the statute of limitations had been tolled because U of L had refused to pay her additional TTD benefits for 22 hours of work she missed in February 2002, allegedly due to work-related back pain, and had failed to notify the Commissioner as required by KRS 342.040(1).
Despite the question of timeliness, Gerald-Singleton's claim proceeded to a final hearing on November 25, 2003. On January 16, 2004, the ALJ dismissed Gerald-Singleton's injury claim because she had filed it after the two-year statute of limitations had expired. When Gerald-Singleton's subsequent appeal to the Workers' Compensation Board was unsuccessful, she petitioned this Court seeking review of its decision.
In her petition, Gerald-Singleton argues that the Board misconstrued KRS 342.040(1) which provides, in pertinent part, that:
If the employer's insurance carrier or other party responsible for the payment of workers' compensation benefits should terminate or fail to make payments when due, that party shall notify the commissioner of the termination or failure to make payments and the commissioner shall, in writing, advise the employee or known dependent of right to prosecute a claim under this chapter. The Board acknowledged that KRS 342.040 provides exceptions to the two-year statute of limitations set forth in KRS 342.185. According to the Board, the statute of limitations may be tolled under the following circumstances: (1) where an employer has refused to pay TTD benefits immediately after its employee has been injured and has failed to notify the Commissioner, or (2) where an employer has terminated the voluntary payment of TTD benefits and has failed to notify the Commissioner. The Board went on to say that:
The whole purpose of requiring an employer to report the failure to initiate voluntary payments immediately following an injury, or for that matter the termination of voluntarily benefits previously paid, is to enable the Commissioner to comply with the balance of the provision by notifying the worker in writing of the need to timely file a potential claim. The prime objective of inducing notice is the generation of a WC-3 letter. It is that letter, which is the safeguard to the employee guaranteed by KRS 342.040(1). It is the letter to the claimant and not the employer's failure to make payments that is significant. For that reason,
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