Stenz v. Industrial Commission

In Stenz v. Industrial Commission, 236 Ariz. 104, 336 P.3d 737 (App. 2014), the petitioner, a widow of the petitioner employee, filed a claim seeking death benefits from respondent insurer-carrier. See id.2. The ALJ upheld the carrier's denial of her claim and this court reversed. Id. On remand, the petitioner was awarded death benefits and the carrier paid her claim, but did not pay any interest. Id. Petitioner requested a hearing, asserting she was entitled to interest on the unpaid death benefits for the four-year period between her husband's death and the carrier's payment. Id.3. The Court determined that although a claim for death benefits "'did not create an obligation to pay death benefits'" because the petitioner had a burden to establish the carrier was obligated to pay the requested benefits, the ALJ's benefits award did create an obligation. Id.14-16, quoting DKI, 173 Ariz. at 537, 845 P.2d at 463. The Court also concluded that death benefits were liquidated because they were "'susceptible to mathematical computation' and subject to a 'statutory payment schedule.'" Id.15. The Court further held that the carrier had notice of its obligation to pay when the claim for death benefits was filed; therefore, interest on the death benefits began to accrue from when the carrier received notice of the petitioner's claim. Id.18. In Stenz, the Court noted that the carrier did not have to wait for a formal determination of the claim and could have begun payments when it issued its notice of claim status. Id.