Decision  Charles Johnson v. Washington Park Corp.

Date:	12/29/2005
Organization:	Department of Industrial Accidents
Docket Number:	DIA Board No. 022981-00
Location:	Boston

• Employee: Charles Johnson
• Employer: Washington Park Corp.
• Insurer: T.I.G. Insurance Company

COSTIGAN, J. The insurer appeals from an administrative judge's decision ordering it to pay the employee a $10,000 penalty pursuant to G. L. c.152, § 8(1),¹ for failing to timely pay § 50²  interest due on a prior award of weekly benefits, but not explicitly ordered by the prior hearing decision. Following our decision in Megazzini v. Bell Atlantic, 19 Mass. Workers' Comp. Rep. 167 (2005), we reverse the judge's decision as contrary to law and vacate the § 8(1) penalty award.

 

¹ General Laws c. 152, § 8(1), as amended by St. 1991, c. 398, § 23, provides for escalating penalties if the insurer fails to make "all payments due an employee under the terms of an order, decision, arbitrator's decision, approved lump sum or other agreement . . . within certain time frames of the insurer's receipt of such document. . . ." (Emphasis added.) If the insurer fails to make payments within ninety days of its receipt of such document, the § 8(1) penalty is $10,000.

 

² General Laws c. 152, § 50, as amended by St. 1991, c. 398, § 77, provides, in pertinent part:

Whenever payments of any kind are not made within sixty days of being claimed by an employee . . . and an order or decision requires that such payments be made, interest at the rate of ten percent per annum of [sic] all sums due from the date of receipt of the notice of claim by the department to the date of payment shall be required by such order or decision. . . .

(Emphasis added.)