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Goff v. Central Maine Power Co.12/14/1998
Argued: November 2, 1998
[ ] Everett Goff appeals, and his employer, Central Maine Power , cross-appeals, from a decision of the Workers' Compensation Board granting the employee's petition for an award relating to a 1981 injury, but allowing CMP to offset benefits due to Goff by the amount of severance pay CMP paid to him. We disagree with CMP's contention that, because it has voluntarily paid benefits without prejudice for a 1994 injury, the Board should not have awarded any benefits pursuant to the law in effect at the time of Goff's earlier injury in 1981. We agree with Goff's contention that it was error for the Board to permit the offset. Accordingly, we affirm in part and vacate in part, the decision of the Board.
[ ] Goff suffered a work-related ankle-injury on July 9, 1981 and CMP voluntarily accepted responsibility for that injury. In 1994 Goff lost time from work after suffering an injury to his tailbone resulting from a slip-and-fall in the CMP parking lot. Goff's employment was terminated in July of 1994 for economic reasons unrelated to his injury. Pursuant to Goff's employment contract, Goff was entitled to receive forty-two weeks of earned severance pay, calculated according to the length of his employment with CMP. CMP paid Goff total incapacity benefits for the 1994 injury, without prejudice, but unilaterally offset those benefits by the forty-two weeks of severance pay received by Goff upon his termination.
[ ] Goff filed petitions with the Board seeking incapacity benefits for the 1981 injury, and in addition, he sought reimbursement for his medical expenses related to the 1994 injury. CMP did not concede responsibility for the 1994 injury, but paid benefits for the 1994 injury without prejudice. Goff subsequently withdrew his petition related to that injury. The Board granted Goff's petition for award for the 1981 injury, finding that " lthough [Goff] also suffers from chronic back pain, I am persuaded by his testimony that it is his ankle problems which prevent him from working." The Board awarded benefits based on the law and Goff's average weekly wage at the time of his 1981 injury. The Board rejected CMP's argument that CMP's payment of full benefits for the 1994 injury, without prejudice, precluded an award of benefits for the 1981 injury. The Board stated further that " ecause there is no petition pending on the 1994 date of injury, . . . no findings have been made with respect to that date of injury."
[ ] The Board agreed with CMP, however, that the employer is entitled to an offset in the amount of Goff's earned severance pay, stating:
The employer maintains that it has a right to offset the benefits owed by the amount of severance paid after termination. I agree. I find that severance pay is a substitute for earnings. It would be inconsistent with the purpose of the Workers' Compensation Laws in effect on the date of injury to allow the employee what would amount to a double recovery for loss of earnings. . . .
We granted both parties' petitions for appellate review pursuant to 39-A M.R.S.A. § 322 (Supp. 1998).
I. CMP'S APPEAL
[ ] CMP contends that its payment of benefits for the 1994 injury bars a petition for award for the 1981 injury even though that payment for the 1994 injury was without prejudice. We disagree. Title 39-A M.R.S.A. § 305 (Supp. 1998) provides, in pertinent part, that " n the event of a controversy as to the responsibility of an employer for the payment of compensation, any party in interest may file in the office of the board a petition for award of compensation. . . ." (emphasis added). In Libby v. Boise Cascade Corp., 1998 ME 89, 4-8, 709 A.2d 737, 738-3
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