10 Year Statute of Limitations in SIF Reimbursement Cases
On 6/20/07, the SC General Assembly passed the Workers’ Compensation Reform Act, which provides for the winding down of the SC Second Injury Fund. Subsequently to the passing of the Reform Act, several carriers requested reimbursement from the Fund for claims in which more than 10 years had passed since the date of injury. The Fund denied these claims on the grounds that the 10 year statute of limitations in S.C. Code Ann. §15-3-600 was applicable. Section 15-3-600 states that “an action for relief not provided for in this chapter must be commenced within ten years after the cause of action shall have accrued.” Section 15-3-20(A) states provides that “civil actions may only be commenced within the periods prescribed in this title after the cause of action has accrued, except when, in special cases, a different statute of limitation is prescribed by statute.”
The underlying cases in this matter were adjudicated by the SC Workers’ Compensation Commission, which held that the 10 year statute of limitations in § 15-3-600 was not applicable to reimbursement cases. The Fund appealed to the Circuit Court. While the appeal was pending, the Supreme Court granted the Fund’s motion to transfer the appeal to the Supreme Court.
The Supreme Court reversed the Commission’s decision and held that the 10 year statute of limitations in § 15-3-600 applied to reimbursement cases. The Court noted that while § 42-9-400, the reimbursement statute, has a notice requirement, it does not have a statute of limitations. The Court further noted that pursuant to § 15-3-600, reimbursement actions are actions “for relief not provided for this chapter.” Therefore, the Court held that § 15-3-20(A) and § 15-3-600 mandated that reimbursement actions must commence within 10 years after the cause of action shall have accrued. While the Fund argued that a cause of action for reimbursement accrues on the date of a claimant’s injury, the Court held that a cause of action for reimbursement begins to accrue on the date a carrier provides notice to the Fund.