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What's Hot in Workers' Comp

TOP 10 DEVELOPMENTS IN FLORIDA WORKERS’ COMPENSATION IN 2024

What’s Hot in Workers’ Comp, Vol. 28, No. 12, December 2024

December 1, 2024

by Linda Wagner Farrell

1.    As the employer/carrier was not able to overcome presumption, a firefighter’s COVID-19, requiring heart transplant, was found to be work-related.
Seminole County, Florida and Johns Eastern Company, Inc. v. Chad Braden, Fla. 1st DCA, DCA#: 21-3530

The claimant, a firefighter, tested positive for COVID-19 and within a month suffered a heart attack. Three months prior, in a routine cardiology visit, he had been cleared and had no issues. After the heart attack, his condition deteriorated, and he ultimately required a heart transplant. The judge of compensation claims ruled COVID-19 caused the heart issues. Then the judge found the claimant contracted the virus at work, based on the timeline of his co-worker’s diagnosis of COVID-19, while his close contacts never developed symptoms or tested positive. The First District Court of Appeals affirmed the judge’s ruling, finding it was supported by competent substantial evidence.

2.    Claimant counsel’s appeal of order denying statutory fee on settlement was overturned and held to be reasonable.
Rudolph v. Darien Smith, The Home Depot U.S.A., Inc. and Liberty Mutual Ins. Co., Fla. 1st DCA, DCA#: 22-1627

The claimant settled the medical portion of a complex case, stemming from a 1993 date of accident, with his sixth attorney (Mr. Rudolph) for $13.5 million. They petitioned the judge to award attorney’s fees for all six attorneys for a total of $1,330,000, which is $695,750 lower than the statutory guideline amount at 9.85%, and accounted for 5.9% of the overall settlement. Out of that amount, Mr. Rudolph resolved the liens of all prior counsel. The judge reduced Mr. Rudolph’s fee from $805,000 to $123,000. The First District Court of Appeal reversed, saying the judge erred by being hyper-focused on converting the fee to determine an hourly rate.

3.    The 120-day rule does not apply if the employer/carrier only accepted compensability and provided treatment for a temporary exacerbation.
Verilyn Lunsford v. Hospital Housekeeping Systems Inc. and Corvel Corporation, OJCC# 21-028027

The employer/carrier accepted compensability of an exacerbation of a knee injury. The claimant asserted the employer/carrier failed to issue a 120-day letter and to deny her request within 120 days. The judge of compensation claims stated a correct analysis of this issue requires three findings: (1) the date the employer/carrier first provided benefits for the claimant’s condition, (2) the identity of the specific injury for which benefits were provided, and (3) whether the employer/carrier timely denied compensability of the injury for which it provided benefits. The judge held that the 120-day rule did not apply to the pre-existing knee degenerative joint disease because the employer/carrier never provided any medical treatment, other than for the temporary exacerbation. The claimant appealed, and the First District Court of Appeal affirmed without a written opinion.

4.    Notice requirement is not fulfilled by reporting an injury via Petition for Benefits within 30 days of alleged accident.
Bressler v. Florida School Board Assn and Hartford Underwriters Ins. Co., Fla. 1st DCA, DCA# 22-4145

The claimant, a senior claims adjuster, alleged a bike injury during work but admitted he did not report the accident to his employer. A petition was later filed. The claimant argued that notice was timely because the petition was filed within 30 days of the subject and alleged date of accident. However, the judge of compensation claims pointed out that section 440.185 1(d), Florida Statutes (2021) states: “Documents prepared by counsel in connection with litigation, including but not limited to notices of appearance, petitions, motions, or complaints, shall not constitute notice for purposes of this section.” The claimant testified he did not give notice to his employer of this alleged accident. The petition, pursuant to statute, does not serve to fulfill the notice requirement. The judge also denied the petition based on misrepresentation due to inconsistencies in the claimant’s testimony. The claimant appealed, and the First District Court of Appeal affirmed without a written opinion.

5.    A judge of compensation claims must be specific when awarding non-professional attendant care to a family member.
Kelly Girardin v. AN Fort Myers Imports, LLC, Gallagher Bassett, Fla. 1st DCA, DCA#: 22-1485

The claimant petitioned for attendant care benefits to be paid to her husband. The judge of compensation claims ordered the employer/carrier to pay him for 30 hours per week at the federal minimum wage. The judge made a generalized finding that services, “such as carrying her upstairs for her bathe, qualifies as attendant care under Florida Law.” The judge did not specify which “services” provided by the husband qualify for compensation, and the employer/carrier argued that some services do not qualify.

The First District Court of Appeal agreed with the employer/carrier in this regard and found that the judge erred in its award for non-professional attendant care. The judge could not award compensation for the husband under 440.13(1)(b), Fla. Stat. (2020), “that falls within the scope of household duties and other services normally and gratuitously provided by family members.” 

6.    Pending petition for fees and costs does not toll statute of limitations, nor does payment of attorney’s fees and/or costs, as these petitions are pending and relate to jurisdiction only. 
American Airlines Group; American Airlines and Sedgwick CMS v. Alejandro Lopez, Fla. 1st DCA, DCA#: 23-0379

The employer/carrier asserted a statute of limitations defense in response to a petition filed. The First District Court of Appeal held that the judge of compensation claims erred in presuming that reserving jurisdiction on a pending petition for benefits for attorney’s fees tolls the statute of limitations. Once that issue is resolved, the pending status is effectively extinguished. The judge also erred by disregarding the plain language of the statute. “Pending” status of a petition for benefits is an element of jurisdiction, while “tolling” is a separate legal doctrine that delays the time limits for pursuing a claim. The payment of attorney’s fees and costs is not a “benefit.” To hold same would add another tolling event to the statute outside of the two contained in section 440.19(2); “payment of any indemnity benefits or the furnishing of remedial treatment, care or attendance.”

7.    Judge of compensation claims abused his discretion in rejecting the terms of the employment contract as it expressly stated the claimant would receive his salary only during the five-month championship playing season.
Detroit Tigers, Inc. and Sedgwick CMS v. Austin Sodders, Fla. 1st DCA, DCA#: 23-0827

A dispute arose over the claimant’s average weekly wage when his claim involved a contract over a five-month period. All agreed that the judge of compensation claims was to determine the average weekly wage under section 440.14(1)(d), the so-called catch-all provision, which states: “If any of the foregoing methods cannot reasonably and fairly be applied, the full-time weekly wages of the injured employee shall be used.” The First District Court of Appeal held the judge abused his discretion when rejecting the terms of the contract. There was no competent, substantial evidence to support that the claimant would have been paid $1,500 per month over 12 months. The contract expressly provided he would receive his salary only during the five-month championship playing season. The case was reversed and remanded.

8.    Essential hypertension without evidence of disability did not meet presumption of compensability under Heart/Lung Bill, Fla. Stat. 112.18(1). 
Cloris Vazquez v. City of Miami Beach and Corvel Corporation, OJCC# 22-015627

The claimant, a police officer, had elevated blood pressure. He was treated at a hospital and had further work-up, which caused him to miss work. The judge of compensation claims was not persuaded by any of the arguments offered by the claimant and afforded the expert medical advisor’s opinions the presumption of correctness. The judge held the evidence was insufficient to establish the claimant suffered disability as a result of his diagnosed essential hypertension and that the presumption of compensability under the Heart/Lung Bill did not apply. Further, the judge ruled the remaining medical evidence did not establish a causal relationship of hypertension to his work activity; therefore, compensability was denied. The claimant appealed, and the First District Court of Appeal affirmed the decision per curiam.

9.    An order imposing sanctions on the claimant’s attorney highlights the non-frivolous litigation and ‘good faith’ limitations imposed on the statutory right to file petitions for benefits.
Willie Arrington v. Advanced Disposal – West Palm Beach/ Gallagher Bassett Services, Inc., OJCC # 21-013075

While not a District Court opinion, this judge of compensation claims’ order addresses an ever-increasing source of frustration: the filing and maintaining of petitions for benefits without good faith efforts to either resolve disputes before filing or to dismiss petitions once the disputes are resolved. In this case, the claimant filed five petitions for benefits within twelve weeks. The employer/carrier filed a motion for sanctions, arguing that either the benefits requested had already been provided before the petitions were filed or that they were timely provided and that the petitions were frivolously maintained thereafter. The judge of compensation claims found the single e-mail, sent after business hours the day before filing the petition during business hours, “does not constitute a good faith effort to resolve the matter.” He further found that claimant’s counsel frivolously maintained the petition well after the carrier provided the requested benefits. 

10.    Sufficient compliance with the Florida Drug-Free Work Place policy rules by employers and medical review officers is not enough. 
Louis Gonzalez Chanza v. Orlando World Center Marriott and Marriott International, Inc. and Self-Insured, OJCC # 22-013883

Once again, sufficient compliance with Florida’s Drug-Free Work Place (DFWP) rules by employers and medical review officers is not enough. This case also highlights the disconnect between Florida’s Workers’ Compensation Act and the laws permitting medical marijuana. The judge ruled that the employer did not fully comply with all of the DFWP requirements under section 440.102 because it did not contain a representative sampling of the name, address and phone numbers of local drug rehab programs. Further, the policy did not comply with the portion that required positive confirmation of the test result to the employee in writing. Dr. Portnoy placed the review on “medical hold,” pending receipt of the medical marijuana card and when not received, reported the positive drug test. Therefore, the judge held that the DFWP presumption did not take place and the employer/carrier failed to show that intoxication caused the injury. The First District Court of Appeal affirmed without a written opinion. 



 

What’s Hot in Workers’ Comp, Vol. 28, No. 12, December 2024 is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2023 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

 

Firm Highlights

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

Thought Leadership

Supreme Court of Pennsylvania Holds That Public Policy Does Not Prevent Insurance Coverage for Sex Trafficking Claims

On July 21, 2026, the Supreme Court of Pennsylvania issued an opinion emphasizing the limited circumstances in which courts may invoke public policy to bar insurance coverage, holding in Samsung Fire & Marine Insurance Co., Ltd. (U.S. Branch) v. RI Settlement Trust that Pennsylvania public policy does not preclude coverage for claims alleging that insureds enabled or profited from human sex trafficking. The decision rejects a line of federal district court decisions predicting otherwise and reinforces that Pennsylvania courts will invoke the public policy doctrine only in the clearest of circumstances. RI Settlement is particularly significant because it arose on certified questions from the United States Court of Appeals for the Third Circuit, giving the Supreme Court the opportunity to resolve an issue on which federal courts had predicted Pennsylvania law differently. RI Settlement arose out of four separate civil complaints in which the underlying plaintiffs alleged that, as minors, they were the victims of human sex trafficking at various hotels in Philadelphia. The plaintiffs claimed that the hotel owners were negligent in failing to stop the sex trafficking from happening at their hotels. After the filing of the lawsuits, the hotel owners sought coverage under their Commercial General Liability policies. The insurers initially defended the hotels under Reservation of Rights letters, though the carriers later filed Declaratory Judgment actions seeking declarations that they did not owe a duty to defend or indemnify. In short, the insurers argued in the alternative that they did not owe any obligation to provide coverage based upon Pennsylvania public policy (because the claims violated the Human Trafficking Law – 18 Pa.C.S. § 3011) and the terms and conditions of the policy. On motions for judgment on the pleadings, the District Court found for the insurers on the basis of public policy: There is no duty to defend or indemnify against actions arising out of an insured's criminal conduct related to the sex trafficking of minors. The Court appreciates that it may make public policy the basis of a judicial decision only in “the clearest of cases.” See Minnesota Fire & Cas. Co. v. Greenfield, 589 A.2d 854, 868 (Pa. 2004) (quoting Hall v. Amica Mut. Ins. Co., 648 A.2d 755, 760 (Pa. 1994)). Yet, the Court strains to imagine a clearer case than the one presented here in which the facts alleged indicate that Policyholders engaged in criminal conduct in violation of Pennsylvania's Human Trafficking Law. The hotel owners appealed the matter to the Third Circuit, which petitioned the Supreme Court of Pennsylvania to grant review of two certified questions of law: (1) whether Pennsylvania law had an “overriding public policy” against sex trafficking, such that an insurer’s duty to defend and/or indemnify is abrogated when an insured is alleged to have enabled or profited from such trafficking; and (2) if yes, is that duty abrogated whenever the insured’s alleged conduct would constitute a violation of the Pennsylvania Human Trafficking statute. Importantly, the certified questions did not ask the Supreme Court to determine whether the policies afforded coverage under their terms. Rather, the court was asked only whether Pennsylvania public policy independently barred coverage. As a result, the court assumed for purposes of answering the certified questions that the insurers otherwise owed a duty to defend and addressed only the public policy issue, leaving all policy-based coverage defenses for further proceedings. Because the court concluded that the answer to the first certified question was “no”, it did not reach the second issue. In reaching its determination that Pennsylvania public policy does not prohibit insurance coverage for sex trafficking claims, the court limited the impact of its decision in Minnesota Fire & Cas. Co. v. Greenfield, 855 A. 2d 854, 855 (Pa. 2004), which the RI Settlement opinion emphasized as having been an “Opinion Announcing Judgment of the Court” – or a plurality opinion. In Greenfield, the insured homeowner was sued by the estate of his houseguest who overdosed from heroin that he sold to her. The matter wound its way to the Supreme Court, which determined that the insurer did not owe a duty to defend or indemnify based upon Pennsylvania public policy, which criminalized the sale and use of heroin as a Schedule I narcotic. In RI Settlement, the court “decline[d] the invitation” to extend the rationale of the three-justice plurality in Greenfield beyond cases involving Schedule I controlled substances. In so holding, the justices in RI Settlement refused to “divine an overriding public policy pronouncement by the General Assembly by virtue of its enactment of the Human Trafficking Law.” The opinion further states that it is not “within the purview of this Court to rank the magnitude of the public policy underlying the various crimes defined in the Crimes Code. It is sufficient for the work of the courts to know that the General Assembly has identified conduct it deems harmful and dangerous to the maintenance of an orderly society and criminalized it.” While the court declined to declare that Pennsylvania public policy prohibits coverage for sex trafficking claims, the opinion in RI Settlement expressly states that insurers are free to include appropriate exclusionary language for such causes of actions in their policies if they desire to do so. It will certainly be interesting to see whether the insurance industry accepts the court’s invitation, or perhaps whether the Pennsylvania legislature steps in to clarify that sex trafficking claims are indeed of the type or magnitude that they should not be covered by insurance. In any event, we will, of course, continue to monitor this and other insurance coverage issues that arise before courts in Pennsylvania, New Jersey and throughout our firm’s geographic footprint and around the country.

Thought Leadership

New Jersey Appellate Division Affirms Exclusion of Legal Malpractice Expert as Impermissible Net Opinion

Jack Slimm and Jeremy Zacharias obtained a favorable decision on behalf of their client in a case centering on the admissibility of expert testimony in legal malpractice actions. In Martin v. Loury, the New Jersey Appellate Division affirmed the exclusion of a plaintiff's legal malpractice expert, holding that the expert's opinions on causation and damages were too speculative to support the malpractice claim. The legal malpractice action arose from an underlying employment dispute involving claims for damages stemming from the breach of an employment agreement. The plaintiff alleged that defense counsel committed malpractice during a second trial by failing to recall the plaintiff as a rebuttal witness after the employer's CEO testified. According to the plaintiff's expert, additional rebuttal testimony would have bolstered the plaintiff's damages claims and led to a more favorable result. Both the trial court and the Appellate Division rejected that theory. The courts found that the expert could not explain how the proposed rebuttal testimony would have altered the outcome of the underlying case or resulted in any additional recoverable damages. Notably, the trial judge in the underlying employment matter had already rejected the CEO's testimony as not credible and had accepted the damages analysis advanced by the plaintiff. The court had also determined that the amount of damages was not genuinely disputed. As a result, the expert's opinion that additional rebuttal testimony would have produced a better outcome was unsupported by the record and based on speculation rather than evidence. The Appellate Division agreed that neither the plaintiff nor the expert could identify any actual damages attributable to the alleged malpractice or demonstrate the required element of proximate causation. The court further upheld the trial court's application of New Jersey's net opinion doctrine, finding that the expert failed to provide the necessary "why and wherefore" supporting his conclusion that the attorney's conduct caused a compensable loss. Because the opinions rested on unquantified possibilities rather than demonstrable facts, they were inadmissible. Key Takeaway for Legal Malpractice Defendants For attorneys and firms defending legal malpractice claims, Martin v. Loury underscores the importance of closely scrutinizing an opponent's expert report on the critical elements of proximate causation and damages. The decision demonstrates that a malpractice claim cannot survive where an expert merely speculates that different litigation tactics might have produced a better result. Instead, the plaintiff must present admissible expert testimony grounded in the record that explains how the alleged attorney error probably changed the outcome of the underlying matter and resulted in measurable damages.

Thought Leadership

Court Allows Recklessness and Punitive Damages Claims to Proceed After Work‑Zone Crash

In a case where a defendant filed preliminary objections against allegations of recklessness and punitive damages, the Susquehanna County Court of Common Pleas denied these preliminary objections. This case stems from a motor vehicle accident, where the defendants car struck the plaintiffs car after the defendant allegedly fell asleep at the wheel, going at a high rate of speed, through a construction work zone. Defendant first objected to the general allegations throughout the plaintiff’s complaint pertaining to “reckless” conduct contending that there were insufficient factual allegations to support the claim of reckless conduct. Defendant next objected to the plaintiffs claim for punitive damages, as punitive damages may only be assessed against a motorist for falling asleep while driving if there is further evidence to prove driver was aware of their drowsiness and risk of falling asleep. Lastly, defendant objected to plaintiffs complaint, claiming it lacked specificity. The court here found that the plaintiff had included in the complaint specific allegations related to the defendant’s alleged recklessness, including allegations regarding speeding in a work zone, almost striking the flagger, falling asleep at the wheel, and striking the plaintiffs vehicle which was stopped. Additionally, the court noted that falling asleep does not come without warning. The court found that these allegations were sufficient to support an allegation of recklessness at the pleadings stage.