HR-Law_Bio_Head_AndrewRBorah

Put it in Practice May 2022: Monthly Tips for Florida WC Professionals

Firm News

DON’T LET FEES ON COSTS SINK YOUR SHIP!

Like a hairline crack in the hull of an ocean liner, seemingly insignificant costs related to workers’ compensation benefits can sink your ship.  Don’t let them!

The First DCA held in Jennings v. Habana Health Care Center (2015) that a claimant is entitled to be reimbursed for their prevailing party costs if a good faith effort is made prior to the filing of the petition AND the E/C provides the requested benefit(s) in response to the petition. Unlike fees, with costs, there is no 30-day grace period to avoid entitlement.

Two other DCA decisions found there is attorney’s fee entitlement for obtaining prevailing party costs more than 30 days after the filing of the petition  (Valle v. American Airlines, 2020 and Ali v. American Airlines, 2021).

The most common cost incurred in association with filing a petition is the certified mail cost to send it to the employer. While that cost is nominal ($10 or less), if the E/C does not agree to be responsible for such within 30 days of receipt of the petition, the hourly attorney’s fee the claimant’s attorney may be entitled to is significant…and that is what they’re truly looking for.  

AVOIDING FEES ON COSTS

  • The days of responding ”No PICA due or owing” are over if a benefit is being provided in response to a petition.
  • If a good faith effort is made before filing the petition and you are providing the requested benefit/s in response, you should agree to reimburse the claimant for all reasonable costs incurred for obtaining the benefit/s.
  • If there is cost entitlement and the petition includes both the amount and evidence of the incurred cost (i.e.., copy of the receipt/s), it is best practice to agree to be responsible for such cost AND to issue payment within 30 days of the filing of the petition.   

If there is ever a question, please feel free to reach out to one of us at HR Law and we will guide you through the issue so you can avoid unnecessary fees.

This month’s author is Andy Borah.  aborah@hrlawflorida.com