Employer's Failure To Submit A Memorandum of Agreement To the Commission

In National Linen Service v. McGuinn, 5 Va. App. 265, 362 S.E.2d 187 (1987), the Court held that where the employer has stipulated to the compensability of the claim, has made payments to the employee for some significant period of time without filing a memorandum of agreement, and fails to contest the compensability of the injury, it is "reasonable to infer that the parties have reached an agreement as to the payment of compensation," and a de facto award will be recognized. In McGuinn, the Court addressed the consequences of an employer's failure to submit a memorandum of agreement to the commission where the employer voluntarily paid disability benefits to the claimant. After the claimant injured his ankle at work, the employer voluntarily paid him total disability benefits for a period of thirteen months. The employer did not, however, submit a memorandum of agreement to the commission. After the employer ceased paying benefits, the claimant filed an application for hearing seeking continued benefits. The employer defended on the ground that the claimant had failed to market his residual capacity. See McGuinn, 5 Va. App. at 267-68, 362 S.E.2d at 188.