Appeal from the Order of the Workmen's Compensation Appeal Board in case of James T. McCarthy v. Jones & Laughlin Steel Corporation and Commonwealth of Pennsylvania, No. A-73581.
Larry A. Makel, with him Laurence W. Dague, Assistant Attorney General, for petitioner.
David M. McCloskey, with him Will & Keisling, for respondent.
Judges Crumlish, Jr., Mencer and Craig, sitting as a panel of three. Opinion by Judge Craig.
[ 45 Pa. Commw. Page 582]
On March 18, 1976, the employer-appellee in this case filed a petition to review a previous award of compensation by a referee, dated April 2, 1975,*fn1 directing
[ 45 Pa. Commw. Page 583]
that payment of the compensation be apportioned 75% and 25% against the Commonwealth and employer respectively, and adding:
The above Award against the Defendant-Company only shall bear interest on all deferred payments of compensation at the rate of ten percentum per annum.
The interest provision of the award was never appealed, but the employer, much later, has now filed a petition under Section 413 of The Pennsylvania Workmen's Compensation Act (Act),*fn2 raising only the issue of who was to pay the interest, if any, on the portion of the award assessed against the Commonwealth; both the employer and the Commonwealth have refused to pay any interest on that portion of the award.
The same referee then concluded that the petition filed by the employer could not be considered a petition for review or modification under Section 413 of the Act and dismissed it. However, he also concluded as a matter of law that, under Section 406.1 of the Act,*fn3 interest on all compensation due could be assessed only against the employer and not the Commonwealth and directed the employer, who is self-insured, to pay interest on 100% of the original award of compensation.
The employer appealed to the Workmen's Compensation Appeal Board (Board) of the Department of Labor and Industry (Department). The Board reversed and assessed interest on each party in proportion to the respective shares of the ...