In Galizia v. WCAB (Woodloch Pines, Inc.), the PA Commonwealth Court provided an important decision on the time limitations for a valid revocation of a Notice of Temporary Compensation Payable, LIBC-501 (or NTCP). The Claimant was injured on November 30, 2002 but continued working without a loss of earnings. The Claimant’s disability commenced January 6, 2003. On February 6, 2003, the Employer issued an NTCP and noted “medical documentation supports disability effective 1/31/03.” The Employer later issued a Notice Stopping Temporary Compensation and a Notice of Denial on April 28, 2003, which was within 90 days from February 6, 2007.

The Claimant filed Review, Reinstatement and Penalty Petitions alleging the Notice Stopping Temporary Compensation Payable and the Denial were untimely and therefore the NTCP had converted.

The Claimant argued that the 90-day period for proper revocation of the NTCP began on January 6, 2003, the date the Claimant retroactively received benefits. The Employer argued the 90-day period began to run on the date the NTCP was issued. The Employer prevailed before both the WCJ and Appeal Board.

The Commonwealth Court focused on §406.1(d)(6), which states:

(6) If the Employer does not file a notice under paragraph 5 within the 90-day period during which temporary compensation is paid or payable, the Employer shall be deemed to have admitted liability and the Notice of Temporary Compensation Payable shall be converted to a Notice of Compensation Payable.

The Commonwealth Court held that it was unambiguous and clear under §406.1(d)(6) that the first day of disability was the date that triggered the 90-day period for temporary compensation benefits pursuant to an NTCP. Accordingly, the Commonwealth Court overturned the WCJ and the Board and found that the NTCP had in fact converted and the Notice Stopping and Denial were untimely.