JCC Grants Penalties After Carrier Reinstates Suspended Benefits

In Rhine v. Suntex Marina Investors, Inc. / Monty's at Coconut Grove, OJCC Case No. 25-017314MGK, Judge Margret G. Kerr addressed whether a carrier owed penalties after suspending indemnity benefits for alleged medical non-compliance and later reinstating them retroactively.

The claimant's shoulder procedure was postponed twice after she reported flu-like symptoms and was taking medication. The carrier treated the delay as non-compliance, suspended benefits from September 16 through September 29, 2025, then reinstated benefits after surgery occurred and paid interest, but not penalties.

The JCC found penalties were owed under section 440.20(6), Florida Statutes. The key point was control: the late payment resulted from the carrier's decision to suspend benefits, not from circumstances beyond its control. The JCC also found the evidence did not show the claimant fabricated illness or improperly canceled surgery; the doctor's office rescheduled the procedure based on her symptoms.

The claim for penalties was granted, and entitlement to attorney's fees and costs for securing the benefit was also granted.

Source: Final Merits Order