A workers’ comp insurer and employer were hit with sanctions after trying to force benefits in a case the state had no power to hear.
On July 2, 2025, the North Carolina Court of Appeals upheld sanctions against TCS Designs, Inc. and its insurer, FFVA Mutual Insurance Company. The case stemmed from the death of Phelifia “Michelle” Marlow, who was shot and killed by a co-worker on January 13, 2021, while working at TCS Designs, a furniture manufacturer in Hickory, North Carolina.
Her widower, Justin Trevor Marlow, filed a workers’ compensation claim seeking death benefits. TCS Designs and FFVA Mutual denied the claim, saying it wasn’t covered under North Carolina’s workers’ compensation law. When mediation failed, Marlow voluntarily dismissed his claim without prejudice on February 18, 2022. He then filed a wrongful death suit in civil court.
Despite the dismissal, TCS and its insurer filed a Form 60 (Employer’s Admission of Employee’s Right to Compensation) on April 11, 2022, and began sending weekly compensation checks. Marlow never cashed them. The employer and carrier kept asking the Industrial Commission to rule on matters like dependency status, offsets, and wage amounts.
But the Industrial Commission had no power to act. The Court of Appeals agreed, holding that after the claim was dismissed, the Commission no longer had subject matter jurisdiction. The court said that filings like the Form 60 and the checks sent after dismissal had no legal effect.
In its decision, the Court of Appeals affirmed the Commission’s denial of the employer and carrier’s request for relief and their motion for dismissal with prejudice. The court also imposed sanctions for a frivolous appeal, ordering TCS Designs to pay costs and Marlow’s attorney’s fees.
The case serves as a reminder that once a workers’ compensation claim is dismissed, continued filings and payments can lead to wasted effort—and financial penalties.
