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What's Hot in Workers' Comp

TOP 10 DEVELOPMENTS IN FLORIDA WORKERS’ COMPENSATION IN 2021

What’s Hot in Workers’ Comp, Vol. 25, No. 12, December 2021

December 1, 2021

by Linda Wagner Farrell

1.    Prior final compensation order did not predict that permanent total disability benefits would flow from the award as the claimant intended, but did not, undergo a surgery to alleviate the work-related injury.
PraXair, Inc. and Broadspire Services, Inc. v. Celentano, First District Court of Appeals, No. 1D20-927, Decision date Nov. 16, 2020 

The claimant argued that the PTD benefits flowed from her attorney successfully defeating a prior misrepresentation defense to temporary disability benefits. The First District Court of Appeals agreed with the judge and found that the prior Final Compensation Order did not predict that PTD benefits would flow from the award and, therefore, there was no entitlement to penalties, interest, fees or costs.

2.    No competent or substantial evidence to support that employer/carrier only accepted the aggravation; thus, they waived the ability to deny compensability. Hence, the apportionment defense also fails, and full permanent impairment benefits are owed.
Joe Sullivan v. NuC02, LLC/Broadspire, First District Court of Appeals, No. 1D19-3275, Decision date Dec. 9, 2020

The First District Court of Appeals reversed the judge’s finding that the employer/carrier had only accepted an aggravation, which meant that they had waived the ability to deny compensability and assert an apportionment defense. The court further held that the employer/carrier acquiesced to 18% PIR by listing same on the Pre-Trial Stipulation. Also, the employer/carrier’s unilateral de-authorization of the treating provider, due to opinion that no further care was related, did not bar the judge from awarding continued care when the causation defense failed.

3.    The court finds that the judge erred by not ruling based on the notice that should have been provided within 52 weeks of the qualifying event versus when the symptoms manifested.
Palm Beach County Fire Rescue and Preferred Governmental Claims Solutions v. Andrew Wilkes, First District Court of Appeals, No. 20-1615, Decision date Dec. 14, 2020

The Judge of Compensation Claims held that a first responder’s PTSD (due to a drowning event) was compensable when analyzed from the date of its manifestation versus the date of the event. On appeal, the First District Court of Appeals held that the judge erred by not ruling based on the notice that should have been provided within 52 weeks of the qualifying event, rather than when the symptoms manifested. The case was reversed and denied due to untimely notice.

4.    Cancellation of the workers’ compensation insurance policy was not valid because a condition precedent had not been met. Promissory estoppel applied because the employer relied on the certificate of insurance.
Scott v. Jones Construction Co. v. Central Florida Siding Pros, NorGuard Ins. Co., Southeast Personnel Leasing, Inc. Lion Insurance Co., Packard Claims, Nobles American Services, LLC, First District Court of Appeals, No. 1D20–689, Decision date Mar. 16, 2021

The First District Court of Appeals rejected the arguments contending that the workers’ compensation insurance policy cancellation was not valid because a condition precedent had not been met and that promissory estoppel applied because Jones, the general contractor, had relied on the certificate of insurance produced by Central Florida Siding Pros.

5.    Applying the 1989 version of the workers’ compensation statute of limitations law for the right to remedial care relating to insertion or attachment of a prosthetic device.
DECA Manufacturing and Southern Owners Ins./Auto-owners v. Faye O. Beckett, First District Court of Appeals, No. 19-3441, Decision date Apr. 8, 2021

The First District Court of Appeals held that, although continued use of a prosthetic would toll the current version of the statute of limitations, it does not toll the 1989 version given its inapplicability to remedial treatment “relating to” the prosthesis. Here the claimant had screws and rods in her cervical spine but requested pain management and a mechanical bed. The First District Court of Appeals pointed out that the fact that she may have a prosthetic device is not, standing alone, sufficient to prevent the statute of limitation from accruing. The claimant failed to prove that either request had anything to do with the screws and rod in her spine. They also agreed with the lower court judge that mistaken payments do not toll the statute of limitations. 

6.    Medical marijuana still illegal and not reimbursable under Florida’s workers’ compensation statute.
Patrick Shawn Jones v. Grace Healthcare, First District Court of Appeals, No. 19-1684, Decision date Jun. 30, 2021

The First District Court of Appeals noted that under Florida law, marijuana is not reimbursable under the workers’ compensation statute. Moreover, federal law—which they pointed out they are “oath-bound” to follow—characterizes marijuana as having no accepted medical use and makes all possession and use of it illegal throughout the United States. They went on to say that a referral to a physician authorized to prescribe medical marijuana, including even just an evaluation of whether the employee is a good candidate for marijuana treatment, could not be, under any circumstances, “medically necessary” as defined and used in section 440.13, Florida Statutes.

7.    Since unemployment compensation is primary, therefore, it is not technically an “offset” to temporary partial disability benefits.
N. Hannoush Jewelers, Inc. and Massachusetts Bay Ins. c/o Hanover Ins. Group v. Patrick Bly, First District Court of Appeals, No. 20-2439, Decision date Jun. 30, 2021

The First District Court of Appeals only wrote to address the effect of the claimant’s receipt of unemployment compensation benefits on the amount of temporary partial disability benefits awarded. The employer/carrier then asserted that the claimant’s unemployment compensation benefits had to be offset and asked the judge to credit same against any TPD due. The claimant replied that any offset argument would be an affirmative defense and was not pled in the pre-trial stipulation; therefore, the employer/carrier had waived that defense. The court held that unemployment compensation is primary and, therefore, not technically an “offset” to TPD benefits.

8.    Because claimant’s mental injury manifested itself within six months of reaching physical maximum medical improvement and she was not receiving impairment benefits for the physical injury after reaching that point, the statutory cap in Section 440.093(3) does not apply.
Le’tavia Jones v. State of Florida, Department of Corrections/Division of Risk Management, First District Court of Appeals, No. 20-1741, Decision date Jul. 29, 2021

At issue in this case was whether the claimant was entitled to more than six months of temporary benefits while treating for psychiatric injury. The First District Court of Appeals reversed the judge who denied indemnity past six calendar months from the date of physical maximum medical improvement. They held that the six-month limit did not apply in this case because the claimant had not received any impairment benefits. Pointing to W.G. Roe & Sons v. Razo-Guevara, 999 So.2d 708 (Fla. 1st DCA 2008), which held the statutory cap in section 440.093(3) does not apply to a claimant not being paid impairment benefits. 

9.    Judge erred in not considering employer/carrier’s request for expert medical adviser once claimant’s one-time change choice of physician was decreed an authorized treating provider, thereby creating a conflict with the prior physician.
ABM Industries, Inc. and ACE/ESIS v. Maritza Valencia, First District Court of Appeals, No. 1D20-2027, Decision date Sep. 29, 2021

The Judge of Compensation Claims erred in not considering the employer/carrier’s request for an expert medical adviser (EMA) once the claimant’s one-time change choice of physician was rendered an authorized treating provider, thereby creating a conflict with the prior physician. The judge’s order was reversed with regard to the portion awarding indemnity and medical benefits and remanded for the appointment of an EMA and further proceedings.

10.    In other news…
For those wondering what the impact of COVID-19 was on Florida workers’ compensation, from March 2020 to July 2021, there were 46,505 claims and $114 million in benefits paid. 

Good news for 2022…
NCCI has proposed a 4.9% workers’ compensation premium decreased, which if approved would have an effective date of January 1, 2022. NCCI also proposed establishing a workers’ compensation insurance catastrophe fund that would provide for an assessment on employers’ premiums. The assessment would generate revenue to cover workers’ compensation costs in the event of a catastrophic event (like another pandemic). Overall, Florida’s workers’ compensation is performing well as a result of   better risk management practices and safer workplaces. 

 

What’s Hot in Workers’ Comp is prepared by Marshall Dennehey Warner Coleman & Goggin 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 © 2021 Marshall Dennehey Warner Coleman & Goggin, 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

New Jersey Expands Family Leave Protections Effective July 17, 2026

On January 17, 2026, Governor Murphy signed into law legislation expanding the New Jersey Family Leave Act (NJFLA). Beginning July 17, 2026, significant amendments to the NJFLA will expand job-protected family leave to smaller businesses and more employees across the state. The new law broadens coverage by lowering the threshold for private employers from 30 employees to 15 employees, meaning many smaller businesses will now be subject to the NJFLA. Employees of state and local government agencies will continue to be covered regardless of the size of the employer. The amendments also make it easier for employees to qualify for leave. Under the revised law, an employee will be eligible after three months of employment and at least 250 hours worked during the preceding 12 months, replacing the previous requirement of 12 months of employment and 1,000 hours worked. Currently, New Jersey's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide eligible employees with wage replacement while they are on leave but do not independently guarantee job protection. The recent amendments to the New Jersey Family Leave Act (NJFLA) expand these protections by extending job-protected leave to additional employees. Under the amended law, employees receiving TDI or FLI benefits may be entitled to return to the same position they held before taking leave, or to an equivalent position with the same seniority, status, pay, and benefits. Although the legislation also states that it does not expand or modify an employee's reinstatement rights under the NJFLA, the amendments appear to provide job protection to eligible employees receiving TDI or FLI benefits without requiring them to separately satisfy the eligibility requirements of the NJFLA or the federal Family and Medical Leave Act (FMLA). As a result, some employees may be entitled to longer periods of job-protected leave than were previously available under existing law. With these amendments, New Jersey continues to strengthen workplace protections by expanding access to job-protected family leave for eligible employees. These changes significantly expand access to job-protected family leave and may require employers to update their leave policies, employee handbooks, and HR practices. Notably, employers who were previously not required to administer NJFLA may need to amend their policies and/or create new protocols to come into compliance with the NJFLA. Failure to do so would prove costly, as the penalties for non-compliance are significant.

Thought Leadership

SIU Gets a Boost: NJ Supreme Court Affirms Insurers' Right to Litigate, Not Arbitrate, Fraud Claims

In a significant win for insurers' Special Investigation Units, the New Jersey Supreme Court clarified that statutory insurance fraud and racketeering claims may proceed in court rather than through PIP arbitration. At issue was whether insurance fraud claims brought under New Jersey's Insurance Fraud Prevention Act (IFPA) and the state's Anti-Racketeering Act (NJ RICO) are subject to mandatory arbitration under the Automobile Insurance Cost Reduction Act’s (AICRA) PIP dispute-resolution framework. Allstate had sued a network of medical practices, physicians, and related corporate entities, alleging a scheme to extract more than $1.7 million in PIP benefits through fraudulent and misleading billing. The trial court dismissed Allstate's complaint and compelled arbitration, reading AICRA's arbitration clause — which covers "any dispute regarding the recovery of... benefits" under PIP coverage, N.J.S.A. 39:6A-5.1(a) — as sweeping in fraud and racketeering claims along with routine benefit disputes. The Supreme Court affirmed the Appellate Division's reversal, adopting Judge Gilson's opinion below (480 N.J. Super. 566 (App. Div. 2025)) as its own reasoning. The Court held that IFPA and RICO claims fall outside the scope of AICRA's PIP arbitration mechanism because that "streamlined and specialized" process cannot grant the relief those statutes contemplate — treble damages, injunctive relief, broad discovery, and joinder of third parties — and because arbitrators lack authority to award compensatory or treble damages to an insurer. The Court also rejected the argument that Allstate's own Decision Point Review Plans independently compel arbitration, finding those plan provisions no broader than AICRA's own arbitration clause. Notably, the Court expressly disagreed with the Third Circuit's contrary holding in GEICO v. Mt. Prospect Chiropractic Center, 98 F.4th 463 (3d Cir. 2024), concluding it is not bound by that federal interpretation of New Jersey law. Insurers retain the right to pursue IFPA and RICO claims in the Law Division, with a jury trial. For SIU units and NJ insurance carriers, this decision is a significant win: it forecloses defense clinics' primary procedural tool for shunting fraud investigations into limited-scope PIP arbitration, where treble damages, RICO relief, and meaningful discovery were never realistically available. Carriers building cases against fraudulently structured clinics, straw-owned practices, or coordinated billing networks can now proceed with confidence that a well-pleaded IFPA/RICO complaint stays in the Law Division rather than being diverted to arbitration on a motion to compel. Practically, this strengthens SIU's leverage in settlement negotiations, preserves civil discovery tools (subpoenas, depositions, joinder of related corporate entities) critical to unwinding complex ownership and referral schemes, and resolves the split with the Third Circuit in favor of NJ insurers — at least as a matter of state law. Expect increased reliance on IFPA civil actions, rather than PIP arbitration demands, as SIU's primary enforcement vehicle going forward.

Thought Leadership

Congress Passes Financial Exploitation Prevention Act

On June 25, 2026, the House passed the Financial Exploitation Prevention Act of 2025 (“the Act”) by a vote of 414 to 2. The Act allows financial advisors and firms to delay suspicious transactions regarding the accounts of clients who are 65 or older, if they believe financial exploitation has occurred or is about to take place. With the advancement of technology and AI, the House’s overwhelming bipartisan passage of the Financial Exploitation Prevention Act represents an important step in strengthening the financial industry’s ability to combat the growing threat of elder financial exploitation. The Act recognizes what advisors have long known that financial professionals are often the first to detect suspicious behavior but have historically lacked clear legal authority to intervene before irreversible financial harm occurs. From the industry’s perspective, the bill accomplishes several important objectives, including the following: (1) Provides a practical “pause button” by allowing financial professionals to temporarily delay certain transaction requests when there is a reasonable belief that a senior or vulnerable adult is being financially exploited; (2) Empowers financial professionals to act by providing greater certainty that firms can act in good faith to protect clients without unnecessary legal risk; and (3) Strengthens investor protection without sacrificing client rights by allowing temporary delays based on a reasonable suspicion of exploitation, which is intended only to allow additional review and not to deny clients access to their money indefinitely. In sum, the Financial Exploitation Prevention Act will equip financial professionals with practical, carefully tailored tools to stop suspected financial exploitation before client assets are lost. By allowing firms to temporarily delay suspicious transactions under defined circumstances, Congress is recognizing the critical role advisors play as the first line of defense against increasingly sophisticated fraud schemes. The Act strikes an appropriate balance between protecting vulnerable investors and preserving individual financial autonomy, while reinforcing collaboration among advisors, families, and law enforcement to combat financial exploitation. The bill now awaits Senate action.