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National Union Fire Insurance Company of Pittsburgh

6/6/2005

Submitted: April 20, 2005


Before STEELE, Chief Justice, HOLLAND, BERGER, JACOBS and NOBLE, Vice Chancellor, constituting the Court en Banc.


Upon appeal from the Superior Court. AFFIRMED.


This is an appeal from a final judgment entered by the Superior Court. The plaintiff-appellee, William S. McDougall ("McDougall"), filed a civil action for the payment of workers' compensation benefits and for related liquidated damages, attorney's fees and costs against the defendant-appellant, National Union Fire Insurance Company of Pittsburgh ("National Union"), as a result of awards made to McDougall by the Industrial Accident Board ("IAB"). The Superior Court granted McDougall's motion for summary judgment and entered a final judgment in favor of McDougall and against National Union.


National Union has raised one issue in this direct appeal. National Union contends that McDougall's civil action was time barred, and that the Superior Court erred in concluding otherwise, because the correct statute of limitations for his lawsuit was one year, as opposed to the five year statute of limitations that the Superior Court found to be applicable. We have concluded that National Union's argument is without merit. Accordingly, the judgment of the Superior Court is affirmed.


Facts


In November 1991, McDougall began receiving workers' compensation disability payments for a work-related injury. Those payments were made pursuant to an agreement between McDougall and his employer, Air Products & Chemicals, Inc. ("Air Products"). Those payments have continued without interruption by National Union, the employer's workers' compensation insurance carrier, ever since they were awarded.


On November 23, 1998, the IAB awarded McDougall additional benefits in the amount of $32,187.47 for medical expenses, plus attorney's fees of $2,250 and medical witness fees of $1,724. Air Products appealed the IAB's award of additional benefits to the Superior Court. By stipulation of the parties dated August 3, 1998, that appeal was dismissed. By letter dated July 30, 1999, McDougall demanded that the amount awarded by the IAB on November 23, 1998 be paid by National Union within thirty days under Del. Code Ann. tit. 19, § 2357. The attorney's fees and the medical witness fees were apparently paid, albeit in an untimely manner. The medical expenses of $32,187.47 were not paid, however, as reflected in Count I of the complaint filed by McDougall in the Superior Court.


In 1999, McDougall filed a separate successive petition with the IAB seeking additional compensation. On September 15, 1999, the parties entered into a settlement under which National Union, on behalf of Air Products, agreed to pay additional compensation of $32,019.98 for permanent partial disability, plus $2,250 in attorney's fees and $1,600 in medical witness fees. By letter dated November 2, 1999, McDougall demanded that this amount be paid within thirty days. National Union paid the attorney's fees and medical witness fees but did not pay the additional award of $32,019.98 for permanent partial disability benefits, as reflected in Count II of the complaint that McDougall filed in the Superior Court.


On July 17, 2001, McDougall filed this civil action in the Superior Court seeking to recover the additional benefits awarded in 1998 and the additional compensation awarded in 1999, plus liquidated damages, costs and attorney's fees. The basis for McDougall's request for liquidated damages, costs and attorney's fees is Huffman v. C.C. Oliphant & Son, Inc.


In Huffman, this Court held that under Del. Code Ann. tit. 19, § 2357, the remedies available for recov

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