New Case Update: Calculation of Employer and Insurer's Credit Upon Modification of a Compensation Award

Swedo v. W.R. Grace & Co., et al., 65 A.3d 692 (Md. App. 2013)

Prior well settled workers' compensation case law has allowed the Employer and Insurer in a workers' compensation claim to obtain a credit for the number of weeks of compensation paid prior to the modification of a permanent disability award. Pursuant to this recent decision, the Maryland Court of Specialty Appeals held that when a compensation award is modified as a result of an appeal from that same award, the ultimate award to the injured employee must be paid at the monetary rate applicable to the modified award. Accordingly, the Employer and Insurer would then be entitled to a credit for the dollar amount paid between the time of the award issued by the Workers' Compensation Commission and the award ultimately modified by the judge or jury in the circuit court appeal.