Court: Commission Improperly Drew Down Letter of Credit, Must Return Unused Funds

The South Carolina Court of Appeals ruled that the Workers’ Compensation Commission improperly drew down a $1.8 million letter of credit posted to cover claims against a bankrupt self-insured textile company and ordered the employer's successor to recover the unused funds. WestPoint Home LLC emerged out of the dissolution of WestPoint Stevens, a South Carolina textile manufacturer that went into bankruptcy in August 2005. WestPoint Stevens was a self-insured employer for purposes of its workers' compensation liabilities in South Carolina. In conjunction with the purchase of Wes...