Tag Archives: N.J.S.A. 34:15-40

Video: Evaluating Exposure in New Jersey Workers’ Compensation Claims

Attorneys Karen Vincent and Greg Lois discuss the role of defense counsel in providing timely and accurate exposure analysis to clients. The attorneys discuss the “when” of providing an exposure analysis – when during the litigation lifecycle the attorney should be providing estimates of exposure and likelihood of prevailing at trial. The attorneys also discuss the “how” of exposure – how estimates of permanent disability are made. This webinar presentation is a must-watch for risk professionals and adjusters relying on outside counsel to provide exposure analysis.

Subject: New Jersey, Workers’ Compensation Law, Exposure, Permanency, MMI
Date Presented: November 27, 2017
Presenter(s): Karen Vincent and Greg Lois
Run time: 31:46

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Reimbursement from Third-Party Recoveries in New Jersey

Greg LoisN.J.S.A. 34:15-40 (“Section 40”) governs the credit due a respondent for any third-party recovery by the petitioner and provides in part:

. . . out of that part of any amount about to be paid in release or in judgment by such third person or his insurance carrier on account of his or its liability to the injured employee or his dependents, the employer or his insurance carrier shall be entitled to receive from such third person or his insurance carrier so much thereof as may be due the employer or insurance carrier pursuant to subparagraph (b) or (c) of this section. Such sum shall be deducted by such third person or his insurance carrier from the sum to be paid in release or in judgment to the injured employee or his dependents and shall be paid by such third person or his insurance carrier to the employer or his insurance carrier. Service of notice, hereinbefore required to be made by the employer or his insurance carrier upon such third person or his insurance carrier, shall be by registered mail, return receipt and in cases other than an individual shall be mailed to the registered office of such other third person or his insurance carrier.

The Appellate Division has recently held that where an individual settles an intentional tort suit against an employer, the workers’ compensation carrier is entitled to assert its N.J.S.A. 34:15-40 lien with respect to the settlement amount. Specifically, the court found that the tort litigation is equivalent to a third party action and that without the lien the petitioner might receive a double recovery for the injuries.

How to assert a workers’ compensation lien under N.J.S.A. 34:15-40.

Serve notice upon the liable third person or that person’s insurance carrier that compensation has been applied for by the injured employee (or his dependents). As a practical matter, it is a good idea to serve a notice letter upon the plaintiff/worker, as well as the plaintiff’s attorney, usually the same attorney representing the worker in the compensation matter. Continue reading Reimbursement from Third-Party Recoveries in New Jersey