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MARCHAND v. EASTERN WELDING CO.

5/5/1994

This consolidated appeal requires us to decide whether totally incapacitated employees receiving workers' compensation benefits at the maximum rate are entitled to an annual adjustment of weekly compensation payments during the first three years following their injuries. Because we conclude that the three-year delay in the annual adjustment does not affect employees whose otherwise entitled-to benefits are limited by the maximum benefit level, those employees are entitled to receive annual adjustments to the maximum benefit level without waiting until the expiration of the first three years following their injuries. Accordingly, we vacate the decision of the Workers' Compensation board denying an annual adjustment to Gilles Marchand, and we affirm the decision of the Workers' Compensation Board awarding an annual adjustment to Pasquale Napolitano.


Under the provisions of the Workers' Compensation Act, employees incapacitated for work as a result of work-related injuries, are entitled to compensation, with totally incapacitated employees entitled to receive two-thirds of the employee's average weekly wages. 39 M.R.S.A. § 54-B (1989), repealed by P.L. 1991, ch. 885, § A-7 (effective Jan. 1, 1993), codified as 39-A M.R.S.A. § 212. There is, however, a maximum benefit level determined by 39 M.R.S.A. § 53-B (1989), repealed by P.L. 1991, ch. 885, § A-7 (effective Jan. 1, 1993), codified as 39-A M.R.S.A. § 211. This maximum benefit level limits the benefits payable to an incapacitated, high wage earning employee to an amount less than two-thirds of that employee's average weekly wages. The law also generally provides for inflation and deflation adjustments to these benefits. In 1987, the law was amended to provide for a three-year delay from the date of injury before incapacitated employees are entitled to the inflation adjustments.


In the first of the consolidated cases, the employee, Gilles Marchand, suffered a compensable injury on November 19, 1990. Because two-thirds of his average weekly wage ($984.43) exceeded the maximum allowable benefit level, the parties agreed that Marchand was entitled to compensation at the maximum benefit level of ($493.28) per week, established pursuant to 39 M.R.S.A. § 53-B. On December 24, 1992, Marchand filed a
In the second of the consolidated cases, the employee, Pasquale Napolitano, received total incapacity benefits as a result of a May 7, 1991 injury. Because two-thirds of the employee's average weekly wage ($1666.60) exceeded the maximum allowable benefit level established pursuant to section 53-B, the employer, Bechtel Construction, paid compensation to Napolitano at the maximum benefit level ($493.28). The
The relevant provisions of 39 M.R.S.A. § 53-B and 54-B are as follows:


53-B Maximum Benefit Levels


    The maximum weekly benefits payable under section 54-B, 55-B
  or 58-A is $447.92. Beginning on July 1st, 1989, this maximum
  benefit level shall be adjusted annually so that it continues
  to bear the same percentage relationship to the state average
  weekly wage, as determined by the Bureau of Employment Security
  on July 1, 1988.

(Emphasis added.)


54-B Compensation for Total Incapacity


    While the incapacity for work resulting from the injury is
  total, the employer shall pay the injured employee a weekly
  compensation equal to 2/3 his average gross weekly wages,
  earnings or salary, but not more than the maximum benefits
  under section 53-B. . . .

    1.  Annual adjustments. Beginning on the 3rd anniversary of
  the injury, weekly compensation under this section shall be
  adjusted annually. The adjustment shall be 

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