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Washington Metropolitan Area Transit Authority v. Hewitt10/31/2003
In this appeal, we are called upon to construe the language of a Workers' Compensation Commission rule governing the payment of approved fees to attorneys for successful claimants. Appellant, Washington Metropolitan Area Transit Authority ("WMATA"), noted an appeal from an order entered by the Maryland Workers' Compensation Commission ("the Commission") awarding a penalty, as a sanction for the late payment of attorney's fees, to counsel for Kenneth D. Hewitt, appellee. The entitlement to fees arose from an order of the Commission of May 25, 2001, ordering benefits to be paid to appellee as a result of a compensable injury.
Because neither party sought judicial review of the Commission's order, the provisions of the Commission's rules, as promulgated in the Code of Maryland Regulations ("COMAR") 14.09.01.24A(4), came into play. Appellant issued a check for attorney's fees sixteen days after the time for appeal expired, which appellee deemed to be late and in violation of the Commission rule. As a result, appellee's counsel requested that the Commission assess late payment penalties.
Following a hearing before the Commission on September 24, 2001, WMATA was assessed a fine in the amount of 20% of the fee awarded by the Commission. WMATA sought judicial review of that order in the Circuit Court for Prince George's County. Appellee responded by filing a motion for summary judgment. A motions hearing was held on August 23, 2002, at the conclusion of which the court granted summary judgment in favor of appellee and remanded the matter to the Commission for issuance of an Order affirming its September 24, 2001 Order. WMATA noted a timely appeal to this court on September 23, 2002.
WMATA presents two questions for review, as recast:
I. Whether as a matter of law WMATA is entitled to fifteen (15) days following the expiration of the appeal period of a Maryland workers' compensation award of benefits to make timely payment of attorneys fees?
II. Whether the Commission erred in awarding sanctions where the employer established good cause for the delay in payment and the claimant suffered no prejudice by reason of the payments?
We answer both questions in the negative, and shall affirm.
FACTUAL and PROCEDURAL HISTORY
On August 13, 1998, appellee sustained an injury arising out of, and in the course of, his employment with WMATA. Appellee filed a workers' compensation claim and a hearing was held on May 18, 2001, before the Commission. The Commission issued its Order on May 25, 2001, awarding appellee both temporary total disability and permanent partial disability. Additionally, the Commission awarded appellee's counsel attorney's fees in the amount of $3,365, plus $96.92 in advanced costs, to be paid out of the final weeks of appellee's compensation.
When the time in which to seek judicial review of the Commission's order expired on June 25, 2001, neither party had filed a notice of judicial review. The checks satisfying the Commission's order for attorney's fees were issued and mailed on July 10, 2001, and received by appellee's counsel on July 11, 2001. As a result of the delay, appellee filed issues with the Commission requesting a hearing on whether a penalty for late payments of attorney's fees should be assessed against WMATA.
On September 20, 2001, the Commission held a hearing on the issue of late payment of attorney's fees. Appellee argued that attorney's fees should have been paid immediately after the expiration of the appeal period, as required by COMAR 14.09.01.24A(4). At the hearing, the Commissioner inquired into the exact date the che
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