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Defense Digest

Celebrating 30 Years of the Defense Digest: A Look at the Last 30 Years in New Jersey Workers’ Compensation

Defense Digest, Vol. 30, No. 4, December 2024

December 1, 2024

by Angela Y. DeMary

Key Points: 

  • The term “palliative” is not decisive as to liability to provide treatment.
  • When addressing requests for temporary total disability benefits from former employees, investigate entitlement beyond a doctor’s note changing work status. 
  • There are exclusions to the general principle that injuries during volunteering activities are not compensable.

Thinking back to 1994—30 years ago—many of us may not recall where we were or what we were doing. In fact, many readers may not have even been born at the time. However, the celebration of 30 years of Marshall Dennehey’s publication of Defense Digest provides a good opportunity to review a few significant New Jersey workers’ compensation judicial decisions from the last three decades that still impact claims handling today. This article will focus on one decision from each decade. 

1994–2004

The first decade, 1994–2004, brought the world such noteworthy events as the debut of the television show “Friends” (1994), the election of Nelson Mandela as President of South Africa (1994), and the unforgettable events of September 11, 2001. The decade also brought a notable New Jersey Appellate Division decision that still raises issues for practitioners today. 

In 1995, the Appellate Division analyzed the term “palliative” with regard to a respondent’s liability to provide medical treatment. In Hanrahan v. Township of Sparta, 284 N.J. Super. 327 (App. Div. 1995), the court held that an employer is required to provide such treatment if there is (1) competent medical testimony that (2) the treatment is both reasonable and necessary to (3) cure or relieve the effect of the work-related injury such as to improve ability to function. Prior to that time, defense counsel would use “palliative” as an indicator to cease liability. Per this decision, that is not the legal analysis.

However, according to the court, “palliative” treatment could cease if it is no longer curing or relieving the effect of the work-related injury to improve one’s ability to function. Therefore, a practitioner should determine whether these requirements apply when addressing this issue.

2004–2014

The next decade, 2004–2014, brought about additional significant events. The world was introduced to Facebook (2004) and saw the election of Barack Obama as President of the United States (2009). This decade also included the death of music icon Michael Jackson (2009). In addition to these events, this decade brought about important judicial decisions in New Jersey workers’ compensation. Next, we will take a look at one of them.

In 2006, the Appellate Division addressed the issue of entitlement to temporary total disability benefits when an injured worker is terminated from employment for reasons unrelated to the work-related injuries and is, thereafter, placed out of work or on modified duty status by the medical doctor. In Cunningham v. Atlantic States Cast Iron Pipe Co., 386 N.J. Super. 423 (App. Div. 2006), the court held that a former employee has the burden of proving that they would have been employed “but for” the work-related disability in order to receive temporary disability benefits. In other words, the work-related disability has to be the reason for the unemployment, not something else. 

It is important for practitioners to ask additional questions when a former employee is placed out of work or on modified-duty status following termination. Specifically, practitioners should inquire whether there was any active employment elsewhere, receipt of unemployment benefits, or proof of an active search for employment at the time of the medical change-in-work status. If the lack of employment was due to some other reason (i.e., simply had not sought employment since termination of employment or personal reasons unrelated to the work injury), there would be an argument that temporary total disability benefits are not due. Thorough investigation is key.

2014—2024

Lastly, 2014–2024. During this period, the world witnessed the marriage of Prince Harry and Meghan Markle (2018) and continues to be impacted by the COVID-19 pandemic (2020). In New Jersey, Chief Judge Maria Del Valle Koch was appointed as the first woman Director and Chief Judge of the Division of Workers’ Compensation (2022). In addition to these events, there continues to be important legal decisions. Of those, we will take a look at one New Jersey Supreme Court decision. 

In 2021, the court analyzed the compensability issue related to employee volunteers in Goulding v. NJ Friendship House, Inc., 245 N.J. 157 (2021). The court reiterated that an injury is compensable where there was compulsion by the employer for the employee to volunteer and that injuries during purely social or recreational events are not compensable. The court also reviewed the two-prong test used in analyzing the compensability issue for employees volunteering at employer-sponsored events: (1) whether the injury was a “regular incident of employment” and (2) whether the event provided a benefit to the employer beyond improvement in employee health and morale. 

When encountering this issue, practitioners should apply the two-prong test to the facts of the claim to determine if it is met. Analysis is very fact sensitive. As such, it is worthwhile to conduct a thorough investigation. 

The review of these decisions shows that, although a decision may have been rendered many years ago, it is necessary to be aware of it as it may continue to impact claims handling today. These decisions and analyses can influence your decision as to whether to provide compensation. Defense Digest will continue to be a source of information on legal trends, cases, and updates in the law. 

*Angela is a shareholder and member of our Workers’ Compensation Department. She works in our Mount Laurel, New Jersey, office. 


 

Defense Digest, Vol. 30, No. 4, December 2024, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2024 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

WCJ Improperly Refused to Conduct C&R Hearing and Erroneously Required Settlement of All Pending Petitions

In this case, the claimant sustained injuries in the course and scope of her employment as a registered nurse. The employer acknowledged the injury by a Notice of Compensation Payable (NCP).  Subsequently, a Workers’ Compensation Judge (WCJ) expanded the description of injury. The employer then filed a Termination Petition, alleging the claimant was fully recovered from the injuries. Providers filed Utilization Review (UR) Petitions, challenging UR determinations finding their chiropractic treatment to be not reasonable and necessary. A settlement of the claim was eventually reached, and the employer filed a Petition to Seek Approval of a Compromise and Release (C&R) Agreement. The C&R outlined that the agreement fully resolved all future workers’ compensation claims except for the termination and UR Petitions. Briefs were filed and one day later, the WCJ issued an Interlocutory Order which stated if instructions were not followed regarding filing of a C&R, a settlement hearing date would not be given. The employer complied with the order, and filed the C&R. Subsequently, the WCJ notified the parties that the C&R must resolve all issues in the petitions, or would not be entertained. A settlement hearing was never held, and the WCJ then issued a decision, granting the Termination Petition and dismissing the UR Petitions. The WCJ also said that the Petition for Approval of a C&R was dismissed without prejudice, as the issues in the Termination and UR Petitions went to a decision. The claimant appealed to the Workers’ Compensation Appeal Board (Board). The Board granted the claimant’s appeal, finding that the WCJ violated the requirement of Section 449 that an expedited hearing be held when a Petition for Approval of a C&R is filed.  The Board further held that it was legally incorrect for the WCJ to insist that the C&R resolve all issues raised by the pending Petitions. The Board remanded the case to a new WCJ, and Employer appealed to the Commonwealth Court. The court affirmed the Board and held that the WCJ erred, as a matter of law, by refusing to hold an expedited hearing within 30 days, once the Petition for Approval of a C&R was filed.  The court noted that the language of Section 449(b) is mandatory, and a settlement hearing is not discretionary or dependent on a party’s separate request for a stay, or whether the record has been closed. The court further rejected Employer’s argument that the case should not be remanded to a new WCJ for a new decision on the termination and and UR Petitions, as the Board passed no judgment on whether the C&R Agreement resolved the termination and UR Petitions, and left it for the WCJ to decide in connection with the Petition for Approval of a C&R.

Thought Leadership

Commonwealth Court Reaffirms the Constitutionality of Act 111's IRE Provisions

In this case, the claimant sustained a work injury of January 6, 1994, which was acknowledged by Notice of Compensation Payable (NCP). After the claimant’s receipt of 104 weeks of temporary total disability benefits, the employer filed a Request for an Impairment Rating Examination (IRE). The IRE was performed in May 2023 and the IRE physician found that the claimant had a 5% whole person impairment, under the AMA Guides. The employer filed a Petition based on the IRE results, and the Petition was granted by the WCJ. During litigation, the claimant argued that the IRE provisions of Act 111 (Section 306(a.3) of the Act) were not applicable to her injury, since it predated June 24, 1996, the date Act 57 went into effect, and that the IRE provisions were unconstitutional. The Workers’ Compensation Judge (WCJ)) granted the Petition and the Board affirmed. On appeal to the Commonwealth Court, the claimant argued that Act 111 violated the nondelegation doctrine and that its retroactive application to the claimant’s injury was unconstitutional. The court rejected the arguments on the basis that they had already found the same arguments without merit in multiple, prior cases. The court also addressed an argument made by the claimant that Act 111 was procedurally defective under the Pennsylvania Constitution because it was only considered on two days in each House after having undergone amendments and reassignments. The court noted that the Pennsylvania Constitution requires every bill to be considered on three different days in each House. The claimant maintained that, according to the legislative history, the bill did not receive three separate days of consideration from each House when it was assigned a new bill number. The court pointed out, however, that the bill number, H.B. 1840 remained constant and was considered on three occasions by the House. Further, the court concluded that minor amendments to the bill were germane to its original subject, which was to modify the Act’s IRE process, in accordance with Protz II.

Thought Leadership

Appellate Division Reversed Trial Judge's Orders Granting a Plaintiff's Section 40 Summary Judgement Motion

In Haskins v. Casey, et al., the plaintiff Dane Haskins worked for defendant Ekornes, Inc. (Ekornes) as a material handler. In June 2021, he filed a workers’ compensation claim petition for benefits due to a left shoulder injury in December 2020. He then resolved his workers’ compensation claim in November 2022 under an Order Approving Settlement. In January 2023, he filed a lawsuit against Ekornes and later amended to add additional claims and name other defendants, including the Ekornes president, chief financial officer, and director of human resources. In May 2025, a second amended complaint alleged that after he filed the workers compensation claim, Ekornes placed him on leave under the Family and Medical Leave Act (FMLA), denied his request for a work accommodation, and ultimately terminated him from employment in December 2021. He pleaded several causes of action asserting violations of the New Jersey Law Against Discrimination (LAD) as well as fraudulent concealment and wrongful discharge. The plaintiff then moved for partial summary judgment, seeking an order enforcing Section 40 of the Workers’ Compensation Act (WCA) as well as summary judgment on his FMLA claims. The defendants opposed the motions and cross-moved for summary judgment on the FMLA claims. After arguments, the court entered an order in December 2025, denying the FMLA motion and cross motion and granting the plaintiff’s Section 40 motion. In the order, the court permitted the plaintiff to pursue compensatory damages at trial in connection with the bodily injury claim. The court also allowed the plaintiff to present evidence of any workers’ compensation benefits to support his claim. The court then denied the defendant's subsequent reconsideration motion in February 2026. The defendants that appealed the Section 40 aspect of the orders. In reviewing the appeal de novo, the Appellate Division rejected the plaintiff's argument that the work-related injury arose out of his discrimination claims under the LAD. The plaintiff argued that he should be able to pursue a personal injury claim as a part of his LAD claim, noting that the employer’s compensation carrier would be able to assert a lien against any recovery against his LAD claims. In distinguishing between the Richter vs. Oakland Board of Education, 246 N.J. 507 (2021) case, in which the Court found that any recovery would be subject to a Section 40 lien as the allegation was that the defendants failed to accommodate her pre-existing diabetic condition, which resulted in bodily injury. In this case, the Appellate Division indicated that there was no bodily injury caused by Ekornes’ failure to accommodate a pre-existing disability. Rather, the shoulder injury was a result of a workers compensation claim, for which he received appropriate benefits previously. The Appellate Division noted that if the plaintiff was successful in proving his LAD claims, he would be entitled to damages caused by the discriminatory discriminatory conduct such as lost wages and emotional distress damages and that there will be no Section 40 lien. In addition, the Appellate Division disagreed that the petitioner could present evidence about and seek damages for his shoulder injury at trial. Although the petitioner argued that a defendant who retaliated against an employee for filing a workers’ compensation claim should not benefit from the exclusivity provision of the WCA, the Appellate Division noted that the Legislature did not include this type of scenario in the statue nor did any of the case law recognize this type of claim as a remedy. As such, the Appellate Division reversed the December 2025 order granting the the plaintiff’s Section 40 summary judgment motion as well as the February 2026 reconsideration motion order. The Appellate Division noted that they did not intend to limit the plaintiff in his pursuit of his other claims on under the LAD, FMLA, and workers’ compensation retaliation causes of action.