*/
Workers’
Compensation Board
OPINION ENTERED: July 20, 2018
CLAIM NO. 201190552
AIR METHODS CORP. PETITIONER
VS.
APPEAL FROM HON. R. ROLAND CASE,
ADMINISTRATIVE
LAW JUDGE
DAVID PACE
And HON. R. ROLAND CASE,
ADMINISTRATIVE LAW
JUDGE RESPONDENTS
OPINION
AFFIRMING
* * *
* * *
BEFORE: ALVEY, Chairman, STIVERS and RECHTER,
Members.
RECHTER, Member. Air Methods Corp. appeals from the March 21, 2018 Opinion, Award and Order and the April 19, 2018 Order rendered by Hon. R. Roland Case, Administrative Law Judge (“ALJ”), awarding David Pace temporary total disability and permanent partial disability benefits. On appeal, Air Methods argues the ALJ erred in ordering interest paid at a rate of 12% on unpaid benefits accruing prior to June 29, 2017. We affirm.
The
ALJ found Pace permanently partially disabled as a result of
an April 11, 2011 motor vehicle accident.
The ALJ ordered Air Methods to pay interest at a rate of 12% for unpaid
installments of compensation through June 28, 2017 and at a rate of 6% on or
after June 29, 2017.
The
sole issue raised by Air Methods on appeal concerns the appropriate interest
rate for unpaid installment of income benefits.
Air Methods argues the ALJ erred in awarding 12% interest on a portion
of the award, rather than at a rate of 6% for the entirety of the award. Air Methods notes the ALJ rendered his
decision after the effective date of the 2017 amendment of KRS 342.040, which
provides for interest at a rate of 6%.
Air Methods contends the date of the award controls the applicable
interest rate.
We
have considered the issue of the appropriate interest rate
in numerous cases including Limb Walker Tree Service v.
Ovens (WCB No. 2015-78695, December 22, 2017), and Lake Cumberland
Health Dep’t v. Oliver (WCB No. 2012-71309, December 21, 2017). In those cases, we relied upon Stovall v.
Couch, 658 S.W.2d 437 (Ky. App. 1983), to conclude a change in the legal
interest rate applies prospectively. As
applied to this claim, Pace’s entitlement to permanent partial disability
benefits vested as of April 12, 2011.
Thus, from that date and through June 28, 2017, Pace is entitled to 12%
interest on all past due benefits. Pace
is entitled to 6% interest on income benefits accrued from and after June 29,
2017. We find no indication that the
legislature desired the recent amendment to have retroactive effect. See KRS 446.080(3).
Accordingly,
the March 21, 2018 Opinion, Award and Order and the April 19, 2018 Order
rendered by Hon. R. Roland Case, Administrative Law Judge, are hereby AFFIRMED.
ALL CONCUR.
COUNSEL FOR PETITIONER:
HON. BONNIE HOSKINS
PO BOX 24564
LEXINGTON, KY
40524-4564
COUNSEL FOR RESPONDENT:
HON. RONALD HAMPTON
103 E MAIN ST
GLASGOW, KY 42141
MEDICAL PROVIDER:
DR. VAUGHAN A. ALLAN
2011 MURPHY AVE
SUITE 301
NASHVILLE, TN 37203
ADMINISTRATIVE LAW JUDGE:
HON. R. ROLAND CASE
ADMINISTRATIVE LAW
JUDGE
PREVENTION PARK
657 CHAMBERLIN AVENUE
FRANKFORT, KY 40601
