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What's Hot in Workers' Comp

Delaware Supreme Court affirms Superior Court’s decision regarding an IAB appeal holding that an employer may challenge medical treatment via petition for review if causation is in dispute.

Sheppard v. Allen Family Foods, (2022 WL 2254747, --- A.3d --- (Decided Jun. 23, 2022))

August 1, 2022

by Benjamin K. Durstein

The claimant was injured in a work accident on April 4, 2011. On December 2, 2019, the employer filed a petition for review that sought to terminate the claimant’s entitlement to ongoing narcotic pain medications on the basis that they were not reasonable, necessary or causally related to the work accident. During the hearing on the merits, the claimant moved to dismiss the petition when the employer completed its case-in-chef. The claimant contended the employer failed to raise a good faith causation defense and that, without a causation argument, the treatment was required to be referred to Utilization Review pursuant to the Workers’ Compensation Act. The Industrial Accident Board concluded the employer presented sufficient evidence on the issue of causation to proceed, via petition for review, and denied the motion. Moreover, the Board found that the narcotic pain medication treatment was no longer compensable following a weaning period.

The IAB’s ruling on the motion to dismiss was appealed, and the Superior Court affirmed. The claimant then appealed to the Delaware Supreme Court, with the same arguments regarding whether it was permissible for the employer to file a petition for review instead of referring the treatment to Utilization Review. Specifically, the claimant argued the employer failed to articulate a good faith change in condition or circumstance relating to the causal relationship of her treatment to the work injury.

The Supreme Court opined that the employer’s medical expert testimony, from Dr. Jason Brokaw, was sufficient to raise an issue of causation and that the employer was not precluded from making the argument now, despite a prior Utilization Review of pain management treatment in 2016 or a prior IAB determination that the claimant had a permanent injury. The court explained that Utilization Review is to be used when causation is not in dispute but that it did not forever bar an employer from raising a causation defense. Additionally, the employer’s continued payment for the claimant’s treatment through September 4, 2019, did not equate to a waiver of causation with respect to the December 2019 petition. Lastly, the court emphasized that there was a good faith basis for the causation argument as the claimant and her medical expert were not determined to be less credible than the employer’s expert, who did not feel the treatment was causally related.

 

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.