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Alabama Workers' Compensation Act Provides Sole Remedy for Late Indemnity Payments | News For The Workers Comp Industry


02/26/21
National Workers Compensation Defense Network (NWCDN)
On February 26, 2021, the Alabama Court of Civil Appeals released its opinions concerning three petitions for mandamus that arose out of an action for contempt. Specifically, the plaintiff was awarded permanent and total disability benefits in a 2012 lawsuit against his employer. In 2020, the employee filed a post judgment motion for contempt due to the alleged systematic late payment of his weekly benefits. Although the lion’s share of the opinion addressed procedural and jurisdictional matters not specific to workers’ compensation, Judge Terry Moore pointed out, in his dissenting opinion, that the Legislature already provided for a remedy when indemnity payments are delayed. Alabama Code § 25-5-59(b) provides for an automatic 15% penalty if any indemnity payment that is owed is not paid within 30 days. Further, § 25-5-86(1) provides that, if an employer defaults on its obligation to pay indemnity benefits ....

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