# Victor S. Urrutia v. Interstate Brands International

> Supreme Judicial Court of Maine · February 8, 2018 · 179 A.3d 312

URL: https://www.frixlaw.com/law-library/cases/4243402

## Case

- **Full name:** Victor S. URRUTIA v. INTERSTATE BRANDS INTERNATIONAL Et Al.
- **Court:** Supreme Judicial Court of Maine
- **Decided:** February 8, 2018
- **Citations:** 179 A.3d 312; 2018 ME 24
- **Precedential status:** Published
- **Opinion:** Opinion by Hjelm
- **Judges:** Saufley, Alexander, Mead, Gorman, Jabar, Hjelm, Humphrey
- **Cited by:** 13 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/4243402

## Opinion text

MAINE	SUPREME	JUDICIAL	COURT Reporter	of	Decisions
Decision: 2018	ME	24
Docket: WCB-16-524
Argued: September	13,	2017
Decided: February	8,	2018

Panel: SAUFLEY,	C.J.,	and	ALEXANDER,	MEAD,	GORMAN,	JABAR,	HJELM,	and	HUMPHREY,	JJ.
Majority: SAUFLEY,	C.J.,	and	MEAD,	GORMAN,	HJELM,	and	HUMPHREY,	JJ.
Dissent: JABAR	and	ALEXANDER,	JJ.

VICTOR	S.	URRUTIA

v.

INTERSTATE	BRANDS	INTERNATIONAL	et	al.

HJELM,	J.

[¶1] After	sustaining	injuries	in	an	industrial	workplace	accident,	Victor

S. Urrutia was paid total incapacity workers’ compensation benefits by his

employer, Interstate Brands International. For more than three years, he

received	the	full	amount	of	those	benefits	while	also	collecting	Social	Security

retirement	benefits. When	Interstate	learned	that	Urrutia	was	receiving	Social

Security benefits, it sought a credit, by way of a payment holiday, against

ongoing	incapacity	payments	pursuant	to	a	statutory	provision	that	reduces	the

amount of incapacity benefit payments by half of the amount of retirement

benefits	the	employee	is	also	receiving. See 39-A	M.R.S.	§	221	(2017).
2

[¶2] A	hearing	officer	(Stovall,	HO)1	ordered	that	Interstate	was	entitled

to a credit of $24,131.38, but the Workers’ Compensation Appellate Division

decided the issue differently, determining that section 221 does not allow a

reduction	based	on	incapacity	overpayments	made	in	the	past. On	this	appeal

by	Interstate	and	ACE	American	Insurance	Company	(collectively,	Interstate),

we conclude that section 221 entitles an employer to a credit for workers’

compensation	benefits	previously	paid	for	the	same	liability	period	when	the

employee	also	was	receiving	Social	Security	retirement	benefits. We	therefore

vacate	the	decision	of	the	Appellate	Division.

I. BACKGROUND

[¶3] The	following	facts	are	undisputed	by	the	parties	and	established

by	the	record.

[¶4] In	2001,	Victor	Urrutia	began	working	for	Interstate	as	a	production

mechanic. In	July	2009,	when	he	was	62	years	old,	Urrutia	slipped	on	a	catwalk

in	the	workplace	and	grabbed	a	railing	to	catch	himself,	resulting	in	injuries	to

his	spine	and	extremities.

[¶5] Interstate began paying Urrutia total incapacity workers’

compensation benefits in December 2010. Unbeknownst to Interstate,

1 The	hearing	occurred	on	April	11,	2014,	prior	to	the	change	in	title	from	“hearing	officer”	to

“administrative	law	judge.” See	P.L.	2015	ch.	297	(effective	Oct.	15,	2015).
3

however, Urrutia had started receiving Social Security retirement benefits in

August	2010.2 In	May 2013,	Interstate	sent	Urrutia	a	Certificate	Authorizing

Release	of	Benefit	Information	for	him	to	sign	so	that	Interstate	could	obtain

his	Social	Security	records. In	August	2013,	Interstate	was	informed	by	Urrutia

that he had been and was currently receiving Social Security retirement

benefits.

[¶6] In	a	petition	filed	with	the	Workers’	Compensation	Board,	Interstate

sought	a	determination	that	pursuant	to	section	221	it	was	entitled	to	reduce

Urrutia’s	ongoing	workers’	compensation	benefits	by	half	of	the	amount	of	his

Social	Security	retirement	benefits—a	reduction	that	Urrutia	ultimately	did	not

contest. Interstate also sought a credit	pursuant to section 221, by way of a

payment	holiday,	for	amounts	it	had	overpaid	Urrutia	before	learning	that	he

had	been	receiving	retirement	benefits.

[¶7] After	a	contested	hearing	held	on the	latter	issue	in	April	2014, a

hearing officer granted Interstate’s petition, concluding that section 221

entitled	Interstate	to	“a	credit	for	all	periods	for	which	the	employee	received

old-age	[S]ocial	[S]ecurity	benefits	and	workers’	compensation	benefits.” For

2 Interstate	disclaims	any	contention	that	Urrutia	acted	in	bad	faith	by	not	advising	Interstate	that

he was collecting Social Security retirement benefits while also receiving the	full amount of total
incapacity	benefits.
4

that reason, the hearing officer ordered that Interstate “may cease lost wage

benefits payment	until	such	time as	it exhausts	its	credit	of $24,141.38”	that

accrued between December 2010 and November 2013—the period when

Urrutia was receiving both Social Security retirement benefits and the full

amount	of	incapacity	benefits.

[¶8] Urrutia appealed the hearing officer’s decree to the Appellate

Division,	see	39-A	M.R.S.	§	321-B	(2017),	which	vacated	the	decree,	concluding

that	the	plain	language	of	section	221	does	not	permit	a	credit	for	incapacity

overpayments already made to the employee when the employee was also

receiving Social Security benefits, and that the section 221 credit may be

applied only against ongoing incapacity benefits that are being paid for the

“same	time period”	as	the	Social	Security	retirement	benefits. The	Appellate

Division	concluded	that	Interstate	therefore	was	not	entitled	to	a	credit	based

on Urrutia’s past receipt of retirement benefits. Interstate filed a timely

petition	for	appellate	review,	which	we	granted. See	39-A	M.R.S.	§	322	(2017);

M.R.	App.	P.	23	(Tower	2016).3

3 The	restyled	Maine	Rules	of	Appellate	Procedure do	not	apply	because	this	appeal	was	filed

prior	to	September	1,	2017. See	M.R.	App.	P.	1	(restyled	Rules).
5

II. DISCUSSION

[¶9] This	case	calls	for	us	to	address	an	issue	we	have	not	previously	had

occasion to consider: whether the “coordination of benefits” statute in the

Workers’ Compensation Act, 39-A M.R.S. § 221(1), entitles an employer to a

credit	against	ongoing	incapacity	benefit	payments	for	overpayments	made	in

the	past	while	the	employee	was	also	receiving	“old-age”	Social	Security	benefit

payments	(i.e.,	retirement	benefit	payments).

[¶10] Section 221(1) provides for an adjustment of the amount of

workers’	compensation	benefits	when

either	weekly	or	lump	sum	payments	are	made	to	an	employee	as
a	result	of	liability	pursuant	to	section	212	or	213	with	respect	to
the	same	time	period	for	which	the	employee	is	also	receiving	or	has
received	payments	for:

A. Old-age insurance benefit payments under the United States
Social	Security	Act,	42	United	States	Code,	Sections	301	to	1397f.

(Emphasis	added.) The	amount	of	the	adjustment	is	determined	pursuant	to

section	221(3),	which	provides,	in	pertinent	part:

Benefit payments subject to this section must be reduced in
accordance	with	the	following	provisions.

A. The employer’s obligation to pay or cause to be paid weekly
[incapacity]	benefits	.	.	.	is	reduced	by	the	following	amounts:

6

(1) Fifty percent of the amount of the old-age insurance
benefits	received	or	being	received	under	the	United	States
Social	Security	Act.

(Emphasis	added.)

[¶11] The	question presented	here is whether	the	“same	time period”

identified in section 221(1) means the period when the employee is actually

receiving	both	the	retirement	benefit	and	the	incapacity	benefit	that	is	subject

to the adjustment, or the period when the employer is—or was—liable for

incapacity benefits and the employee is—or was—receiving retirement

benefits. If the phrase in section 221(1), “the same time period,” modifies

“payments”—the	construction	urged	by	Urrutia—then	an	employer	would	be

entitled	to a	reduction	only	of	those payments	made	during	the	same period

when	the	employee	contemporaneously	received	old-age	retirement	benefits,

and Interstate would not be entitled to a retroactive credit on account of

Urrutia’s receipt of retirement benefits from December 2010 through

November	2013. If,	however—as	Interstate	asserts—“the	same	time	period”

modifies	“liability,”	then	an	employer	would	be	entitled	to	a	credit	for	the	same

period	when	the	employer	was	liable	for	incapacity	benefits	and	for	which	the

employee received retirement benefits, regardless of when the incapacity
7

payments	were	actually	made,	thereby	entitling	the	employer	to	a	retroactive

credit.

[¶12] The resolution of this dispute is entirely a matter of statutory

construction. See Beaulieu v. Maine Med. Ctr., 675 A.2d 110, 112 (Me.	1996)

(“‘[T]he law of workers’ compensation is uniquely statutory.’”) (quoting

Wentzell v. Timberlands, Inc., 412 A.2d 1213, 1215 (Me. 1980)). “Statutory

interpretation	is	a	question	of	law	that	we	review	de	novo.” Darling’s	v.	Ford

Motor	Co.,	2003	ME	21,	¶	7,	825	A.2d	344;	see	also	Freeman	v.	NewPage	Corp.,

2016	ME	45,	¶	5,	135	A.3d	340. “‘Our	main	objective	in	statutory	interpretation

is	to	give	effect	to	the	Legislature’s	intent.’” City	of	Bangor	v.	Penobscot	County,

2005	ME	35,	¶	9,	868	A.2d	177	(quoting	Town	of	Eagle	Lake	v.	Comm’r,	Dep’t	of

Educ.,	2003	ME	37,	¶	7,	818	A.2d	1034). “[W]e	look	first	to	the	plain	meaning

of the statutory language” in order to determine that intent. Jordan v. Sears,

Roebuck	&	Co.,	651	A.2d	358,	360	(Me.	1994). In	doing	so,	we	“construe	that

language	to	avoid	absurd,	illogical	or	inconsistent	results,”	and	we	consider	“the

whole statutory scheme of which the section at issue forms a part so that a

harmonious	result,	presumably	the	intent	of	the	Legislature,	may	be	achieved.”

Id. (citations omitted) (quotation marks omitted); accord Ford Motor Co. v.

Darling’s,	2014	ME	7,	¶	25,	86	A.3d	35;	Town	of	Eagle	Lake,	2003	ME	37,	¶	7,
8

818 A.2d 1034; Hallissey v. School Admin. Dist. No.	77, 2000	ME 143, ¶ 14,

755	A.2d	1068. If	a	statute	is	unambiguous,	we	will	not	defer	to	an agency’s

interpretation	of	that	statute. See	Workers’	Comp.	Bd.	Abuse	Investigation	Unit

v. Nate Holyoke Builders,	Inc., 2015 ME 99, ¶ 16, 121	A.3d 801 (“Because the

statutes at issue in this case are unambiguous, we need go no further in our

examination	of	them	than	their	plain	meaning.”);	Friedman	v.	Bd.	of	Envtl.	Prot.,

2008 ME 156, ¶ 9, 956 A.2d 97; Cobb v. Bd. of Counseling Prof’ls Licensure,

2006	ME 48, ¶ 13, 896 A.2d 271; see also Chevron, U.S.A., Inc. v. NRDC, Inc.,

467	U.S. 837, 842-43 (1984); Bailey v. City of Lewiston, 2017 ME 160, ¶ 9,

168	A.3d 762 (stating that we will not defer to the Appellate Division’s

interpretation of the Workers’ Compensation Act where the statute’s plain

language	and	legislative	history	“compel	a	contrary	result”).

[¶13] Applying	these	established	principles	of	statutory	construction,	we

conclude	that	the	plain	language	of	section	221(1)	unambiguously	entitles	an

employer to a credit based on an employee’s past receipt of Social Security

retirement	benefits. We	make	this	determination	based	on	several	aspects	of

the language of section 221, as well as a consideration of the underlying

purpose	of	the	statute.
9

[¶14] We first note the grammatical structure of the pertinent part of

section 221(1), which lacks a comma or other punctuation to separate the

references to “liability” and “the same time period.” This indicates that the

phrase “with respect to the same time period” modifies the immediately

preceding	word—“liability”—rather	than	“payments,”	which	appears	earlier	in

that sentence. See Labbe v. Nissen Corp., 404 A.2d 564, 567 (Me. 1979) (“A

comma	is	generally	used	to	indicate	the	separation	of	words,	phrases,	or	clauses

from	others	not	closely	connected	in	the	structure	of	the	sentence.”).

[¶15] Next,	and	more	substantively,	by	its	express	terms	section	221(1)

provides for a reduction of the amount of workers’ compensation payments

made	for	a	period	during	which	the	employee	“is	also	receiving	or	has	received

payments” for old-age Social Security benefits. 39-A M.R.S. § 221(1)(A)

(emphasis added). The reference to past receipt of retirement benefits

demonstrates that the Legislature intended that the amount of incapacity

payments	is	to	be	coordinated	with	other	qualifying	benefits—including	Social

Security retirement benefits—even when the benefits were received in the

past,	before	the	adjustment	is	implemented.

[¶16] Another	provision	contained	in	section	221	specifically	refers	to	a

“credit	or	reduction”	of	incapacity	benefits	based	on	an	employee’s	receipt	of
10

Social	Security	benefits. See	39-A	M.R.S.	§	221(3)(B)	(emphasis	added). The

words “credit” and “reduction” must be seen to signify distinct recovery

mechanisms	in	order	to	avoid	either	word	becoming	surplusage. See	Hickson	v.

Vescom Corp., 2014 ME 27, ¶ 15, 87 A.3d 704. This demonstrates that while

section 221 allows for a “reduction” of ongoing incapacity payments arising

from	the	employee’s	receipt	of	Social	Security	retirement	benefits,	the	statute

also	provides	for	something	different,	namely,	a	“credit,”	which—in	light	of	the

statutory	reference	to	a	“reduction”—can	only	be	based	on	past	overpayments.

[¶17] The	availability	of	a	“credit	or	reduction”	also	corresponds	to	the

statutory reference in section 221(1) to Social Security benefits	“received or

being	received”	by	the	employee:	past	overpayment	of	incapacity	benefits	when

the employee also “received” retirement benefits entitles the employer to a

“credit,”	whereas	the	employer	is	entitled	to	a	“reduction”	of	incapacity	benefits

being presently paid based on retirement benefits “being received” by the

employee. See	39-A	M.R.S.	§	221(3)(B),	(C),	(D).

[¶18] Further, we construe the language of the statute in light of its

purpose. As we have previously held, the adjustment created by the

predecessor	to	the	portion	of	section	221	applicable	here	is	designed	to	“ensure

a minimum income during the period of an employee’s incapacity and to
11

prevent a double recovery of both retirement and compensation benefits.”

Jordan,	651	A.2d	at	361;4	see	also	Foley	v.	Verizon,	2007	ME	128,	¶	11,	931	A.2d

1058. Permitting	Interstate	to	presently	receive	a	credit	based	on	incapacity

benefit	overpayments	made	during	the	past	period	when	Urrutia	also	received

old-age Social Security benefits comports with both of those objectives.

Without	the	credit,	Urrutia	would	retain	the	double	recovery	of	benefits	that

section 221 is intended to prevent, while application of the credit formula

prescribed	in	that	statute	results	in	Urrutia’s	receipt	of	the	combined	level	of

benefits	intended	by	the	Legislature.

[¶19] Supporting this purpose, section 221(3) states explicitly that

“[b]enefit	payments	subject	to	this	section	must	be	reduced	in	accordance	with

the	following	provisions.” (Emphasis	added.) The	statute	thus	not	only	creates

an	employer’s	entitlement	to	the	credit	but	makes	that	credit	mandatory. The

constrictive reading of section 221(1) urged by Urrutia would deny the

employer that stated entitlement and runs counter to the plain language of

section	221(3),	which	creates	a	credit	calculated	on	the	basis	of	Social	Security

4 The	statute	construed	in	Jordan,	39	M.R.S.A.	§	62-B	(1989),	was	the	predecessor	to	the	current

section	221	“coordination	of	benefits”	statute. Jordan	v.	Sears,	Roebuck	&	Co.,	651	A.2d	358,	359-60
(Me.	1994). The	pertinent	aspects	of	those	statutes	contain	similar	language. Compare	39	M.R.S.A.
§	62-B(3)(A)(1)	(1985),	with	39-A	M.R.S.	§	221(3)(A)(1)	(2017),	and	P.L.	1991,	ch.	885	§§	A-7,	A-8
(effective	Oct.	7,	1992)	(repealed	and	replaced	Title	39	M.R.S.A.	§	62-B	as	amended). Section	221	has
since been amended, most recently by P.L. 2013, ch. 152 § 1 (effective Oct. 9, 2013) (codified at
39-A	M.R.S.	§	221(3)	(2017)).
12

retirement	benefits	that	the	employee	has	already	“received.” Section	221(3)

therefore	comports	with	the	purpose	of	the	statute	by	providing	a	mechanism

by	which	to	implement	the	credit	and	prevent	a	double	recovery.

[¶20] As	Urrutia	correctly	points	out,	in	several	different	circumstances

we	rejected	an	employer’s attempt	to	recoup	past	overpayments	of	workers’

compensation benefits. For example, in Pelotte v. Purolator Courier Corp.,

464	A.2d	186	(Me.	1983),	the	employer	voluntarily	made	payments	that	turned

out	to	be	in	a	greater	amount	than	the	employee	was	entitled	to	receive. Id.	at

187. We affirmed the court’s refusal to allow the employer recovery for the

past	overpayments,	observing	that	such	a	remedy	was	neither	created	in	the

statute addressing voluntary incapacity payments, see 39 M.R.S.A. § 51-A

(Supp.	1982-1983),5	nor	revealed	in	that	statute’s	legislative	history. Id.	at	188.

In	LaRochelle	v.	Crest	Shoe	Co.,	655	A.2d	1245	(Me.	1995),	we	concluded	that

the	plain,	express	language	of	39	M.R.S.A.	§	104-A(1)	(1989),	which	provided

for	an	employer’s	recovery	of	overpayments	that	were	“made	pending	appeal,”

5 The	statute	at	issue	in	Pelotte	v.	Purolator	Courier	Corp.,	464	A.2d	186	(Me.	1983),	was	repealed

when	the	Workers’	Compensation	Act	was	recodified	in	1991	and	not	replaced	in	substance. See	P.L.
1991	ch.	885.

We	note	that,	for	reasons	that	are	not	apparent,	our	decision	in	Pelotte	did	not	address	or	even
acknowledge	the	“compensation	payments;	penalty”	provision,	39	M.R.S.A.	§	104-A	(1983),	that	was
in effect	at the time	and contained	similar language as	the current provision found	at	39-A	M.R.S.
§	324(1)	(2017). Compare	39-A	M.R.S.	§	324(1),	with	39	M.R.S.A.	§	104-A.
13

did	not	allow	the	employer	to	recoup	overpayments	that	were	made	before	the

appeal was filed. Id. at 1246-47; see also Bureau v. Staffing Network, Inc.,

678	A.2d 583, 590 (Me.	1996) (stating that, absent statutory entitlement,

reimbursement	is	not	available	for	past	overpayments). Additionally,	we	have

held that in order to promote timely filings and compliance with the

administrative	process,	when	an	employer	fails	to	file	a	timely	response	to	the

employee’s notice of injury, the employee is entitled to retain benefits

exceeding the amount to which the employee was otherwise entitled. See

Doucette v. Hallsmith/Sysco Food Servs., Inc., 2011 ME 68, ¶¶ 7, 24, 25-26,

21	A.3d	99.

[¶21] In contrast to those cases, both the plain language of section

221(1) and its underlying purpose—to prevent a double recovery by the

employee—establish	that	the	Legislature	intended	that	an	employer	is	entitled

to a “credit” for past overpayments resulting from the employee’s receipt of

Social	Security	retirement	benefits	during	the	same	period	when	the	employer

was required to make the incapacity benefit payments. Consequently,

Interstate	is	entitled	to	a	credit	for	incapacity	benefit	overpayments	made	to

Urrutia during the same period when he received Social Security retirement
14

benefits,	from	December 2010	through November	2013,	totaling	$24,141.38.

We	therefore	vacate	the	decision	of	the	Appellate	Division.

[¶22] We also remand for further proceedings to allow the

administrative law judge, see infra n.1, to determine, based on a hardship

analysis,	whether	the	financial	effect	of	Interstate’s	benefit	payment	holiday	on

Urrutia	may	be	considered	and,	if	so,	the	extent	and	terms	of	the	holiday. We

do so because, at oral argument, counsel for Interstate acknowledged the

prospect	that	the	ALJ	is	authorized,	pursuant	to	39-A	M.R.S.	§	324(1)	(2017) 6

or other authority, to consider such an effect when determining the specific

terms of the credit and resulting payment holiday, to which we have now

established	that	Interstate	is	entitled.7 Because	the	issue	is	not	before	us,	we

do	not	address	whether,	in	the	circumstances	presented	here,	an	ALJ	may	tailor

the	implementation	of	a	payment	holiday	to	accommodate	any	hardship	that

the holiday creates. Because, however, Interstate has indicated that such

authority	may	exist,	we	remand	to	give	the	parties	the	opportunity	to	develop

the	issue	further.

6 Section	324(1)	provides	in	part	that	the	“board”	is	authorized	to	determine	“whether	or	not

repayment	should	be	made	and	the	extent	and	schedule	of	repayment”	in	light	of	its	effect	on	the
employee’s	financial	situation. 39-A	M.R.S.	§	324(1).

7 Although	in	the	amended	decree	the	hearing	officer	permitted	Interstate	to	“cease”	payment	of

incapacity	benefits	until	the	credit	was	exhausted,	it	is	unclear	from	the	record	whether	the	officer
actually	considered	whether	the	holiday	would	work	a	“hardship	or	injustice”	on	Urrutia. Id.
15

The	entry	is:

The	decision	of	the	Appellate	Division	is	vacated.
Remanded to the Appellate Division with
instructions	to	affirm	the	decision	that	Interstate
Brands International is entitled to a credit of
$24,141.38 and to then remand to the ALJ for
further proceedings addressing the application
and	effect	of	section	324.

JABAR,	J.,	with	whom	ALEXANDER,	J.,	joins,	dissenting.

[¶23] We respectfully dissent because the Workers’ Compensation

Board Appellate Division was correct when it held that the Workers’

Compensation Act (the Act) does not provide an employer a remedy for

overpayments made to employees as a result of that employer’s failure to

coordinate workers’ compensation benefits with Social Security benefits

pursuant	to	39-A	M.R.S.	§	221	(2017).

[¶24] A	decision	of	the	Appellate	Division	is	“entitled	to	great	deference

and will be upheld on appeal unless the statute plainly compels a different

result.” Jordan	v.	Sears,	Roebuck	&	Co.,	651	A.2d	358,	360	(Me.	1994)	(quotation

marks	omitted). Here,	a	proper	reading	of	section	221	does	not	compel	a	result

in Interstate’s favor, and unlike the Court, we would defer to the Appellate

Division’s	analysis	and	affirm	its	decision.
16

A. The	Plain	Language

[¶25] The Appellate Division unanimously concluded that “[t]he plain

language of section 221(1) requires that the offset or credit be taken ‘with

respect	to	the	same	time	period’	for	which	the	employee	is	also	receiving	or	has

received payments.” Urrutia v. Interstate Brands International, Me. W.C.B.

No.	16-35, ¶ 7 (App. Div. 2016). The Appellate Division reasoned that to

“permit an offset when weekly incapacity benefits are being made for a

different period than that in which the employee received Social Security

retirement	benefits	.	.	.	is	in	contravention	of	the	plain	meaning	of	the	language

in	section	221(1).” Id.

[¶26] The Appellate Division was correct. Workers’ compensation

benefits for total incapacity (39-A M.R.S. § 212 (2017)) or partial incapacity

(39-A	M.R.S.	§	213	(2017))	are	paid	on	a	weekly	basis. Following	an	injury,	an

employer	has	14	days	to	dispute	the	employee’s	claim	of	incapacity. Me.	W.C.B.

Rule,	ch.	1,	§	1;	see	39-A	M.R.S.	§	304(3)	(2017). An	employee	will	then	receive

workers’ compensation benefits under two scenarios. See 39-A	M.R.S.

§§	205(2),	305	(2017). First,	in	the	event	that	the	employer	does	not	dispute

the	claim,	the	employer	must	begin	paying	the	employee	benefits	on	a	weekly

basis, plus any accrued compensation. See 39-A M.R.S. § 205(2). Under this
17

scenario,	even	where	the	employer	agrees	to	pay	the	employee,	there	may	be

an	accrued	amount	due	for	the	time	period	between	the	employee’s	notice	of

claim	and	the	employer’s	decision	to	accept	the	claim.

[¶27] The	second	scenario	in	which	an	employee	receives	compensation

is when the employer disputes the claim. 39-A M.R.S. § 305. Under this

scenario,	in	order	to	receive	benefits,	the	employee	must	file	a	petition	for	an

award with the Workers’ Compensation Board. Id. This leads to hearings

before an administrative law judge (ALJ) and, unless the employer accepts

responsibility	during	the	course	of	the	proceedings,	the	ALJ	renders	a	decision

either denying the claim or granting the claim and awarding the employee

benefits	for	his	incapacity. 39-A	M.R.S. §	318	(2017). If	the	employee	is	still

incapacitated, the award will indicate that the employer has a continuing

obligation to make ongoing payments and, depending on the decision, the

employer may be held responsible for payments retroactive to when the

employee’s	period	of	incapacity	began. The	employee’s	compensation	for	that

past	period	of	time	will	then	be	paid	in	a	lump	sum	by	the	employer.8

[¶28] Section	221	provides	for	adjustments	to	an	employee’s	workers’

compensation benefits covering these two scenarios. If the employee is to

8 This	lump	sum	payment	for	accrued	benefits	is	not	to	be	confused	with	a	lump	sum	settlement

made	pursuant	to	39-A	M.R.S.	§	352	(2017),	where	the	entire	case	is	settled.
18

begin receiving weekly workers’ compensation benefits and the employee is

also receiving Social Security benefits, then the employer is entitled to an

adjustment against the ongoing workers’ compensation benefits that it is

required	to	pay. 39-A	M.R.S.	§	221(1). On	the	other	hand,	if	the	employee	is	set

to receive a lump sum workers’ compensation payment—retroactive to the

employee’s period of incapacity—then the employer is entitled to an

adjustment	against	that	lump	sum	payment	reflecting	a	credit	for	the	amount

of	Social	Security	benefits	the	employee	received	during	the	“same	time	period”

that	he	or	she	was	entitled	to	receive	workers’	compensation	benefits. Id.

[¶29] Accordingly, the plain language of section 221 cannot be

interpreted	to	allow	a	lump	sum	credit	in	the	form	of	a	payment	“holiday”—

covering a past period of time—to be applied to ongoing weekly benefits.

Rather,	the	coordination	set	out	in	section	221	must	be	applied	to	the	same	time

period for which the employee is receiving Social Security benefits, or to the

same	time	period	for	which	the	employee	has	received	Social	Security	benefits.

[¶30] Here,	the	Court	does	not	recognize	the	distinction	between	present

and	past	payments	in	section	221. The	Court	concluded	that	the	phrase	“credit

or	reduction”	in	39-A	M.R.S.	§	221(3)(B)	(2017)	signifies	a	recovery	mechanism

because a	credit	“can	only	be	based	on past	overpayments.” Court’s	Opinion
19

¶	16. However,	in	so	reasoning,	the	Court	failed	to	consider	that	a	“credit”	is

applied when an employee is entitled to—but has not yet received—a lump

sum	payment	for	workers’	compensation	benefits	retroactive	to	the	employee’s

period	of	incapacity. Similarly,	the	Court	wrongfully	concluded	that	“credit”	as

used in section 221 can only be given meaning by applying it to a future

payment “holiday,” even though the credit applies to a lump sum payment

covering	a	past	period	of	time. According	to	the	Court,	“[t]he	reference	to	past

receipt	of	retirement	benefits	demonstrates	that	the	Legislature	intended	that

the amount of incapacity benefits is to be coordinated with other qualifying

benefits—including Social Security retirement benefits—even when the

benefits were received in the past, before the adjustment is implemented.”

Court’s	Opinion	¶	15.

[¶31] We	do	not	agree,	as	this	analysis	fails	to	take	into	consideration	the

lump sum provision in section 221. The language “credit or reduction” in

section 221(3)(B) is in the disjunctive, and therefore the adjustments to an

employee’s workers’ compensation benefits are intended to address the two

methods by which an employee will receive those benefits. It is when the

employee receives workers’ compensation benefits in a lump sum for a past

period	of	time—as	is	usual	in	contested	cases—that	the	adjustment	because	of
20

Social	Security	payments	received	during	that	period	is	coordinated	with	the

workers’	compensation	liability	for	that	same	period	of	time. Stated	simply,	the

statute	does	not	permit	an	employer	to	receive	a	credit	for	a	past	period	of	time,

that	was	never	applied,	to	then	be	applied	to	offset	ongoing	weekly	benefits.

B. Policy	Consideration

[¶32] In	addition	to	correctly	concluding	that	the	plain	language	of	the

statute	denies	Interstate	the	remedy	of	collecting	an	overpayment	by	crediting

ongoing weekly benefits, the Appellate Division also properly identified the

policy considerations underlying section 221. Urrutia v. Interstate Brands

International,	Me.	W.C.B.	No.	16-35,	¶	8	(App.	Div.	2016). It	acknowledged	that

the	dual	purpose	of	the	statute	is	to	(1)	“ensure	a	minimum	income	during	the

period of incapacity,” and (2) “prevent a double recovery of both retirement

and compensation benefits.” Id. (quoting Jordan, 651 A.2d at 361). The

Appellate	Division	reasoned	that	“[a]llowing	an	offset	that	is	concurrent	with

receipt of more than one type of benefit effectuates both of the articulated

purposes, whereas allowing an employer to take a payment holiday from

paying	benefits	to	compensate	for	an	offset	not	taken	previously	does	not.” Id.

Here,	the	Court	discusses	section	221’s	policy	against	double	recovery. Court’s

Opinion ¶ 18. However, in attempting to address the policy of ensuring a
21

minimum income during the period of incapacity, the Court has erred by

improperly	engrafting	a	“hardship	analysis”	onto	the	plain	language	of	section

221. See	Court’s	Opinion	¶	22.

[¶33] On	numerous	occasions,	we	have	held	that	the	Act	does	not	contain

any	remedy	to	protect	against	a	double	recovery	by	an	employee. The	Court’s

decision	prioritizes	the	policy	against	double	recovery	over	the	policy	to	ensure

a	minimum	income,	and	this	is	contrary	to	our	numerous	decisions	holding	that

the Act does not provide an employer a remedy to collect overpayments. In

American	Mutual	Insurance	Companies	v.	Murray,	we	held:

“To . . . engraft[] upon the statutory scheme judicially created
doctrines of restitution would involve us in the establishment of
broad social policy in a field of law created by the legislature in
response	to	legislative	dissatisfaction	with	judicial	solutions	to	the
problems of compensation for workers injured in industrial
accidents.	.	.	. In	the	absence	of	an	express	legislative	command	or
a clear indication of legislative intention, we leave the parties
where	the	legislature	left	them.”9

420 A.2d 251, 252 (Me. 1980); see also Pelotte v. Purolator Courier Corp.,

464	A.2d 186, 188 (Me. 1983) (“Although the absence of a right to set off

9 The Court posits that its construction of section 221 fulfills the statutory purpose of
“prevent[ing] a double recovery of both retirement and compensation benefits.” Jordan v. Sears,
Roebuck	&	Co.,	651	A.2d	358,	361	(Me.	1994). However,	the	equitable	remedy	of	restitution	exists	in
the common law, outside the Workers’ Compensation Act, and thus, there is nothing to prevent
Interstate from attempting to collect any overpayment in an action for equitable restitution. See
Horton	&	McGehee,	Maine	Civil	Remedies	§	7-5	at	178-83	(4th	ed.	2004).
22

voluntary pre-decree overpayments against subsequent periodic

compensation	may discourage	employers	from	making	maximum	pre-decree

payments, it is for the Legislature, rather than this Court, to address that

issue.”);	LaRochelle	v.	Crest	Shoe	Co.,	655	A.2d	1245,	1247	(Me.	1995)	(“If	the

Legislature intended to enable employers to recoup overpayments made

during	the	pendency	of	a	motion	for	findings	of	fact,	it	could	have	easily	drafted

the	statute	to	say	so.”);	Doucette	v.	Hallsmith/Sysco	Food	Servs.,	2010	ME	138,

¶	5,	10	A.3d	692	(reaffirming	the	principle	that	“we	are	limited	to	the	statutory

remedies	for	repayment	of	benefits	ultimately	determined	not	to	be	properly

paid”).

[¶34] The Appellate Division properly concluded that the workers’

compensation statute—which is uniquely statutory—does not, with the

exception	of	39-A	M.R.S.	§	324(1)	(2017),	provide	a	remedy	to	an	employer	to

recoup	an	overpayment. Urrutia	v.	Interstate	Brands	International,	Me.	W.C.B.

No.	16-35,	¶	9	n.2	(App.	Div.	2016). We	have	consistently	held	that	this	Court

has	no	authority	to	supplement	the	statutory	language	of	the	Act. See	Wentzell

v. Timberlands, Inc., 412 A.2d 1213, 1215 (Me. 1980) (“Since the Workers’

Compensation Act is a creation of the legislature, the legislature bears the

primary	responsibility	for	enunciating with	clarity	the	purposes it	intends	to
23

achieve through that statute.”); Ryerson v. Pratt &	Whitney Aircraft, 495 A.2d

808,	812	(Me.	1985)	(“If	a	policy	different	from	that	laid	down	by	th[e]	clear

language	is	to	be	adopted,	it	is	the	legislature	that	should	do	it	.	.	.	.”). As	such,

the Court’s remand to the ALJ to consider the issue of a “hardship analysis”

demonstrates the problem with providing a remedy under section 221 that

does not exist. A hardship analysis pursuant to section 324(1) only applies

when,	following	an	employer’s	successful	appeal	or	motion	for	findings	of	fact

or	conclusions	of	law,	it	is	determined	that	an	overpayment	to	an	employee	has

been	made	during	the	pendency	of	that	appeal	or	motion.10 Because	we	are	not

dealing with this type of overpayment, the hardship analysis provided in

section	324(1)	does	not	apply. However	compassionate	the	Court’s	approach

10 39-A	M.R.S.	§	324(1)	(2017)	provides,	in	pertinent	part:

If	the	board	enters	a	decision	awarding	compensation,	and	a	motion	for	findings	of
fact	and	conclusions	of	law	is	filed	with	the	administrative	law	judge	or	an	appeal	is
filed	with	the	division	pursuant	to	section	321-B	or	the	Law	Court	pursuant	to	section
322, payments may not be suspended while the motion for findings of fact and
conclusions	of	law	or	appeal	is	pending. The	employer	or	insurer	may	recover	from	an
employee	payments	made	pending	a	motion	for	findings	of	fact	and	conclusions	of	law
or	appeal	to	the	division	or	the	Law	Court	if	and	to	the	extent	that	the	administrative
law	judge,	division	or	the	Law	Court	has	decided	that	the	employee	was	not	entitled	to
the	compensation	paid. The	board	has	full	jurisdiction	to	determine	the	amount	of
overpayment,	if	any,	and	the	amount	and	schedule	of	repayment,	if	any. The	board,
in determining whether or not repayment should be made and the extent and
schedule	of	repayment,	shall	consider	the	financial	situation	of	the	employee	and	the
employee’s family and may not order repayment that would work hardship or
injustice.

(Emphasis	added.)
24

may be, and however consistent it may be with the policy of “ensuring a

minimum	income	during	a	period	of	incapacity,”	there	is	no	provision	in	the	Act

that provides such relief. The Court characterizes this remedy as an

“entitlement”	for	the	employer. Court’s	Opinion	¶	19. If	it	is	an	entitlement	for

the employer, the Legislature would have identified it as an entitlement—it

didn’t. By judicially	engrafting	this	“hardship analysis”	onto	section	221,	the

Court	is	legislating.

[¶35] Had the Legislature intended to permit the recovery of

overpayments caused by a failure to coordinate benefits pursuant to section

221—or, for that matter, any overpayment other than the type specified in

section 324(1)—it could have done so. The Legislature did not provide any

remedy in the Act to an employer who overpays as a result of failing to

coordinate	benefits	under	section	221,	and	the	only	mechanism	that	grants	an

employer any such remedy is limited to the specific scenario contained in

section	324(1). Because	section	324(1)	is	not	applicable	here,	it	is	in	error	to

remand	to	the	ALJ	for	a	“hardship	analysis.”

C. Conclusion

[¶36] It	is	up	to	the	Legislature	and	not	this	Court	to	provide	employers

a	remedy	within	the	Act	to	“recoup”	overpayments	that	an	employer	made	to
25

an	employee	because	the	employer	failed	to	coordinate	workers’	compensation

benefits	with	Social	Security	benefits	pursuant	to	section	211. Because	section

211	contains	no	such	remedy,	we	should	affirm	the	decision	of	the	Appellate

Division.

Stephen W. Moriarty, Esq. (orally), Norman, Hanson & DeTroy, Portland, for
appellants Interstate Brands International and Ace American Insurance
Company

James	J.	MacAdam,	Esq.,	Nathan	A.	Jury,	Esq.	(orally),	and	Donald	M.	Murphy,
Esq.,	MacAdam	Jury,	P.A.,	Freeport,	for	appellee	Victor	S.	Urrutia

Benjamin	K.	Grant,	Esq.,	McTeague	Higbee,	Topsham,	for	amicus	curiae	Maine
AFL-CIO

Richard	D.	Tucker,	Esq.,	Tucker	Law	Group,	Bangor,	for	amicus	curiae	Catalyst
Paper	Corporation

Thomas	E.	Getchell,	Esq.,	and	Daniel	F.	Gilligan,	Esq.,	Troubh	Heisler,	Portland,
for	amicus	curiae	S.D.	Warren	Company

Workers’	Compensation	Board	Appellate	Division	docket	number	15-0028
FOR	CLERK	REFERENCE	ONLY

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/4243402. Public record. Not legal advice.
