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GUIGGEY v. GREAT NORTHERN PAPER12/17/1997
[ 1] Daniel Guiggey appeals from a decision of the Workers' Compensation Board concluding that his employer is not required to pay him pre-decree interest pursuant to 39-A M.R.S.A. § 205(6) (Supp. 1997). Because we agree with Guiggey that, pursuant to the plain language of subsection 205(6), employees are entitled to pre-decree interest accruing from the date that each payment would have been due if voluntarily and timely paid, we vacate the decision of the Board.
[ 2] Guiggey suffered a work-related injury on March 12, 1994, while employed by Great Northern. Great Northern contested liability, and Guiggey petitioned for an award of benefits. The Board granted Guiggey's petition and awarded him continuing total incapacity benefits retroactive to the date of injury. Great Northern promptly paid Guiggey his past due benefits in a lump sum without interest. Guiggey then filed a second petition seeking interest at the rate of 10% per annum from the date that each payment would have been due if timely paid, totalling approximately $900. 39-A M.R.S.A. § 205(6). The Board denied Guiggey's petition for interest, and we granted his petition for appellate review pursuant to 39-A M.R.S.A. § 322 (Supp. 1997).
[ 3] Two provisions of the Act require an employer to pay interest to an employee on an award of benefits: 39-A M.R.S.A. § 205(6) & (9)(F). Subsection 205(6), at issue in this appeal, provides:
When weekly compensation is paid pursuant to an award, interest
on the compensation must be paid at the rate of 10% per annum
from the date each payment was due, until paid.
39-A M.R.S.A. § 205(6) (emphasis added). Subsection 205(9)(F), relating to an employer's right to terminate unilaterally or to discontinue benefits, provides:
If benefits have been discontinued or reduced pursuant to
paragraph A or B and the board, after hearing, determines that
benefits have been wrongfully withheld, the board shall order
payment of all benefits withheld together with interest at the
rate of 6% a year. The employer shall pay this amount within 10
days of the order.
39-A M.R.S.A. § 205(9)(F) (Supp. 1997).
[ 4] The parties agree that, because Great Northern contested its initial liability for the injury and did not terminate benefits pursuant to subsection (9)(A) or (9)(B), the applicable provision is subsection 205(6), not 205(9)(F). The Board concluded, however, that because an employer is liable for 6% interest pursuant to subsection (9)(F) for withholding benefits after liability is established, interpreting subsection 205(6) as providing a higher interest rate (10%) on pre-decree interest when an employer disputes its initial liability in good faith would be incongruous. Accordingly, the Board concluded that the phrase "the date each payment was due" in 39-A M.R.S.A. § 205(6) (emphasis added), is not triggered until there is a Board decree ordering payment of benefits.
[ 5] We do not agree with the Board's interpretation of the plain language of the statute. Pursuant to subsection 205(2), payment of workers' compensation benefits may be "due" without a Board decree. See 39-A M.R.S.A. § 205(2) (Supp. 1997) ("The first payment of compensation
[ 6] As we have stated, our interpretation of a statute is controlled by the statute's plain meaning, unless that plain meaning leads to "absurd results." See Folsom v. New England Tel. & Tel. Co., 606 A.2d 1035, 1042 (Me. 1992). Although the existence of different interest rates in subsection 205(6) and in subsection 205(9(F) might appear illogical, we do not agree that the result is incongruous or absurd. Moreover, it does not necessarily follow
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