Momentum Freight Logistics Corp. v. Benie Logistics, Inc.

**Court Rules Company Must Pay Back Workers' Compensation Dividends** This case involved a dispute between two trucking companies over workers' compensation dividend payments. When Momentum Freight Logistics sold its business assets to Benie Logistics in 2019, their purchase agreement stated that Benie would pass along any future workers' compensation dividend payments to Momentum. The Bureau of Workers' Compensation later issued two dividend payments totaling $327,268 based on premiums Momentum had paid in 2019, but Benie kept the money instead of forwarding it. The court ruled in favor of Momentum, ordering Benie to pay the full $327,268. The appeals court upheld this decision, finding that Benie clearly breached their contract by keeping dividend payments that rightfully belonged to Momentum. The court also held Benie's owners personally responsible for the debt, ruling they had fraudulently transferred company assets. **Why this matters for workers:** This ruling reinforces that workers' compensation dividends belong to the employer who actually paid the original premiums. When companies change hands, clear agreements about these payments protect everyone involved. It also shows courts will hold business owners personally accountable when they try to hide assets or act fraudulently with workers' compensation funds.