Ahlers v. Wilson, 1D02-4852.

Decision Date26 February 2004
Docket NumberNo. 1D02-4852.,1D02-4852.
Citation867 So.2d 524
PartiesLeland AHLERS, Petitioner, v. Daniel WILSON and International Restaurant Equipment Co., Respondent.
CourtFlorida District Court of Appeals

Mary L. Wakeman, McConnaughhay, Duffy, Coonrod, Pope & Weaver, P.A., Tallahassee, for Petitioner.

Gregory Stone, Orlando, and Bill McCabe, Longwood, for Respondent Daniel Wilson.

BARFIELD, J.

Leland Ahlers, the owner of International Restaurant Equipment Co. (IREC) at the time the claimant, an employee of IREC, was injured in a work-related accident, appeals an order of the Judge of Compensation Claims (JCC) finding him personally responsible for payment of all benefits awarded to the claimant in the order, notwithstanding that Ahlers had in the meantime sold IREC. Because the parties agree that at the time the claimant was injured, he was not covered by workers' compensation insurance, the employer, as defined in section 440.02(16)(a), Florida Statutes, is subject to the sanctions set out in section 440.06, Florida Statutes.

On June 7, 2000, after the claimant's petition for benefits had been filed, Ahlers signed an agreement with Mack Cartwright, as president of Restaurant Services, Inc. (RSI), in which Ahlers and IREC agreed to sell to RSI "all of the physical assets of Seller from a going business known as International Restaurant Equipment Co. presently located at 1014 Sligh Boulevard, Orlando, Florida 32806," as well as "all of the Sellers' business as a going concern, including the right to use the name `International Restaurant Equipment Co.' and any trade mark or marks associated therewith," for the sum of $400,000 to be paid by a purchase money note payable in full within five years. Ahlers and IREC agreed to indemnify RSI for various damages, expenses, or loss, including claims against IREC "arising from the conduct of the business of the Corporation prior to the Closing Date" or any proceedings "incident to the foregoing." The parties to this appeal appear to agree that by these provisions, Ahlers agreed (in his individual capacity) to indemnify RSI for any expenses arising out of the claimant's workers' compensation claim. Paragraph 14.2 provided that the agreement would be construed according to Georgia law, and Paragraph 12 stated:

In the event the Purchaser or the Sellers fail to perform their obligations hereunder, the other shall have the right (i) to terminate its obligations hereunder by giving written notice of such termination or (ii) to require specific performance of the obligation not performed. Either party has the right to waive the other party's compliance with a condition to Closing and to require specific performance of this Agreement. 30 days Notice.

In August 2000, the claimant apparently learned that the company had been sold, and Ahlers retained an attorney (Thomas E. Mooney) to represent him and IREC in the workers' compensation proceeding. In the parties' September 2000 pretrial stipulation signed by the attorneys, IREC accepted the claimant's accident as compensable, but did not accept the claimant's injuries as compensable, the parties agreed that medical benefits would be handled administratively, and both sides stipulated to timely notice of pretrial and final hearing. The record on appeal contains no evidence of any further activity in the workers' compensation proceeding until April 18, 2002, when Mooney filed a motion to withdraw as attorney for IREC. Attaching the contract with RSI, Mooney asserted that he had been hired to defend Ahlers and IREC in the workers' compensation proceeding; that in the RSI contract, Ahlers had "agreed to fund the defense of the employer in this workers compensation claim"; that Cartwright had recently ceased making payments on the purchase of the business and had fled the state with all the property in which Ahlers had a secured interest; and that therefore Ahlers "is no longer obligated under the agreement of sale to defend International Restaurant Co. in this workers compensation claim."

On April 22, 2002, Mooney signed another pretrial stipulation in which IREC stipulated to proper notice of the pretrial and final hearing, and disputed the claims for temporary disability and permanent impairment benefits. On April 30, 2002, Mooney's motion to withdraw was granted. The case was thereafter transferred to another JCC, who timely mailed to "International Restaurant Equipment Co., 1014 Sligh Blvd, Orlando Florida 32806" a certified letter notifying IREC of the September 23, 2002, hearing; the letter was eventually returned to the court unsigned. On the same day the JCC's certified letter was sent, the claimant's attorney also prepared an amended notice of the final hearing, certifying that it had been served by mail to the JCC, as well as to "Leland Ahlers and International Restaurant Equipment Co."; the certified mail receipt addressed to Leland Ahlers at his home address was signed by his wife.

At the final hearing, neither Ahlers, nor Mooney, nor any representative of IREC appeared. The JCC considered the live testimony of the claimant, the petitions for benefits and pretrial stipulations, the notices of hearing, Mooney's motion to withdraw, the attached contract for sale of IREC, the order granting Mooney's motion to withdraw, and various documents related to the workers' compensation claims.

Based upon Mooney's assertions in the motion to withdraw and the attached contract for sale of IREC, the JCC found in the final order that Leland Ahlers "is the party that is personally responsible for payment of all benefits...

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