Colorado § 8-43-410 - Right to compensation operates as lien - interest on award.

§ 8-43-410. Right to compensation operates as lien - interest on award.

(1) The right of compensation granted by articles 40 to 47 of this title and any awards made thereunder shall have the same preference or lien without limit of amount against the assets of the employer or the employer's insurer or both as may be allowed by law for a claim for unpaid wages for labor.

(2) Every employer or insurance carrier of an employer shall pay interest at the rate of eight percent per annum upon all sums not paid upon the date fixed by the award of the director or administrative law judge for the payment thereof or the date the employer or insurance carrier became aware of an injury, whichever date is later. Upon application and satisfactory showing to the director or administrative law judge of the valid reasons therefor, said director or administrative law judge, upon such terms or conditions as the director or administrative law judge may determine, may relieve such employer or insurer from the payment of interest after the date of the order therefor; and proof that payment of the amount fixed has been offered or tendered to the person designated by the award shall be such sufficient valid reason.

Source: L. 90: Entire article R&RE, p. 517, § 1, effective July 1. L. 94: (2) amended, p. 1880, § 16, effective June 1.

Editor's note: This section is similar to former § 8-52-109 as it existed prior to 1990.

ANNOTATION

Law reviews. For article, "Collecting Pre- and Post-Judgment Interest in Colorado: A Primer", see 15 Colo. Law. 753 (1986). For article, "An Update of Appendices from Collecting Pre- and Post-Judgment Interest in Colorado", see 15 Colo. Law. 990 (1986).

Annotator's note. Since § 8-43-410 is similar to § 8-52-109 as it existed prior to the 1990 repeal and reenactment of the "Workers' Compensation Act of Colorado", articles 40 to 47 of this title, relevant cases construing that provision have been included in the annotations to this section.

Interest is a matter of statutory right and is not discretionary with the director. Bourn v. T & T Loveland Chinchilla Ranch, Inc., 32 Colo. App. 315, 514 P.2d 787 (1973); Beatrice Foods Co., Inc. v. Padilla, 747 P.2d 685 (Colo. App. 1987).

Interest on unpaid sums as well as the basic award is not due and payable until the award is final; however, the amount of interest is calculated from "the date fixed by the award of the director for the payment thereof". Bourn v. T & T Loveland Chinchilla Ranch, Inc., 32 Colo. App. 315, 514 P.2d 787 (1973).

Interest is to be paid on each payment from the date that each payment was due. Beatrice Foods Co., Inc. v. Padilla, 747 P.2d 685 (Colo. App. 1987).

Good faith belief that one will prevail in pending litigation is insufficient to warrant waiver of interest. Beatrice Foods Co., Inc. v. Padilla, 747 P.2d 685 (Colo. App. 1987).

The subsequent injury fund is an "employer or insurance carrier of an employer" under the provisions of subsection (2) and is liable for interest on compensation. Providing subsequently injured workers with the full value of their benefits requires payment of interest when payment of benefits is delayed. Subsequent Injury Fund v. Trevethan, 809 P.2d 1098 (Colo. App. 1991).

Relief from interest discretionary. Only portion of this statute which is discretionary is whether, upon application and satisfactory showing, the director sees fit to relieve the employer or the insurer from interest payments. Bourn v. T & T Loveland Chinchilla Ranch, Inc., 32 Colo. App. 315, 514 P.2d 787 (1973).

Upon application and satisfactory showing, the director has discretionary authority to relieve the employer or insurer from interest payments. Harrison W. Corp. v. Hicks' Claimants, 185 Colo. 142, 522 P.2d 722 (1974).

Interest assessed pursuant to this section is not a penalty but is a method to insure that the claimant receives the full value of the compensation to which he or she is entitled. Subsequent Injury Fund v. Indus. Claim Appeals Office, 859 P.2d 276 (Colo. App. 1993); Subsequent Injury Fund v. Indus. Claim Appeals Office, 899 P.2d 220 (Colo. App. 1994).

Applied in In re Brandt v. Indus. Comm'n, 648 P.2d 676 (Colo. App. 1982).

PART 5

UTILIZATION REVIEW PROCESS - INDEPENDENT MEDICAL EXAMINATIONS