Summary
The Nebraska Supreme Court held that 2018 Neb. Laws, L.B. 953, amending the workers’ compensation lump-sum settlement procedure, was procedural and applied to the pending appeal. Because the employer paid the settlement more than 30 days after the verified release was filed, the employee was entitled to a 50-percent late-payment penalty under Neb. Rev. Stat. § 48-139(4). The court held that the reasonable controversy doctrine did not excuse the late-payment penalty, but affirmed denial of attorney fees because the record lacked supporting evidence.
Topics
Practice areas
Questions Presented
- Whether 2018 Neb. Laws, L.B. 953, which amended Neb. Rev. Stat. § 48-139(4), was procedural and therefore applicable to this pending appeal.
- Whether Dragon was entitled to the statutory late-payment penalty because the verified release did not become effective until payment was made and the Workers’ Compensation Court entered an order of dismissal with prejudice.
- Whether the reasonable controversy doctrine excused the employer from the late-payment penalty under § 48-139(4).
- Whether Dragon was entitled to attorney fees under § 48-125 on the record presented.
Holdings
- L.B. 953 is a procedural amendment to Neb. Rev. Stat. § 48-139(4) and applies to this pending appeal.
- Dragon was entitled as a matter of law to the 50-percent late-payment penalty under Neb. Rev. Stat. § 48-139(4).
- The reasonable controversy doctrine does not apply to late-payment penalties for lump-sum settlement payments under Neb. Rev. Stat. § 48-139(4).
- The Workers’ Compensation Court did not abuse its discretion in denying attorney fees because Dragon supplied no evidentiary record supporting the request.
Key quotations
“Unlike the amendment considered in Jackson, the provisions of L.B. 953 changed neither the nature of the late payment penalty under § 48-139(4) nor the manner in which such a penalty is calculated.” (558)
“We therefore conclude that L.B. 953 is a procedural amendment to § 48-139(4) and is applicable to this pending appeal.” (559)
“But once an employer and an employee reach a lump-sum settlement agreement, there is no remaining factual or legal dispute over the claim and thus no reason to refuse to pay the agreed-upon settlement amount.” (561)
Factual background
Keith T. Dragon, a dishwasher for The Cheesecake Factory in Omaha, alleged a work-related injury and agreed with the employer to settle his claim for a $5,000 lump-sum payment. The employer filed a verified release on May 1, 2017, triggering a 30-day payment period, but mailed the settlement check on June 8. The employer attributed the delay to issues involving child-support liens, while Dragon sought a 50-percent late-payment penalty and attorney fees.
Procedural history
Dragon and the employer reached a $5,000 lump-sum workers’ compensation settlement using the verified-release procedure under Neb. Rev. Stat. § 48-139(3). The employer paid more than 30 days after the release was filed. The Workers’ Compensation Court concluded that the release discharged Dragon’s claims for late-payment penalties and attorney fees, overruled his motion, and dismissed his petition with prejudice. The Nebraska Supreme Court moved the appeal to its docket, applied a 2018 procedural amendment to § 48-139(4), vacated the dismissal in part, reversed the denial of the late-payment penalty, and remanded with directions while affirming the remainder.
Remand instructions
Vacate the order of dismissal with prejudice in part, reverse the finding that Dragon waived his right to late-payment penalties under § 48-139(4), and award the statutory late-payment penalty based on the existing record. Affirm the decision in all other respects.