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What's Hot in Workers' Comp

The Appellate Division Affirms Summary Judgment for the Defendants, Partly Due to Special Employer Relationship.

Rodriguez v. Hartz Metro Fee II, LLC & N.Y. Mut. Trading, Inc., No. A-3083-19 (App. Div. May 27, 2022)

June 1, 2022

by Kiara K. Hartwell

The Appellate Division affirmed the dismissal of the plaintiff’s complaint via summary judgment filed by the defendants, Hartz Metro Fee II, LLC (warehouse owner) and N.Y. Mutual Trading, Inc. (tenant and “special employer”). In late August 2016, the plaintiff was working at New York Mutual’s warehouse, employed by a temporary staffing agency. He worked from noon to 8 p.m., loading and unloading container trucks. After punching in, he would report to his supervisor, a New York Mutual employee, who would provide him with his daily assignment. The staffing agency would use the timecards to bill New York Mutual and then pay the employees their wages. There was no dispute that New York Mutual could ask that an employee not be sent to their warehouse if they were unhappy with his/her performance.

While working, the plaintiff slipped and fell, noting the ramp where he fell was badly lit and rain had made it slippery. The plaintiff’s engineer expert opined that the lack of handrails and non-slip surface made its use unsafe. Although there were stairs with handrails next to the ramp, the plaintiff testified that most workers regularly used the ramp. He noted he had done so in the past, even in heavier rain, and consciously used the ramp the evening of the accident. The plaintiff received workers’ compensation benefits from the agency as there was no dispute his injury was work-related.

After discovery, the defendants filed a motion for summary judgment. After arguments, the judge found they were entitled to summary judgment. Specifically for Hartz, the judge noted there was no “landlord liability” in the case of a commercial tenant’s employee’s injuries where the lease places responsibility of maintenance on the tenant, relying on Geringer v. Hartz Mountain Dev. Corp., 388 N.J. Super. 392 (App. Div. 2006). The judge indicated Hartz’s lease with New York Mutual clearly assigned responsibility for maintenance on New York Mutual.

The judge rejected the plaintiff’s argument that a commercial landlord that reserved authority to approve design and construction should be responsible for the movable ramp because neither defendant had any hand in the design or construction of said ramp. The plaintiff’s argument that there was an issue of fact as to whether the loading dock/ramp was in a common area was also rejected as the lease specifically omitted this area from the definition of common area.

As for New York Mutual, the judge found the plaintiff was New York Mutual’s special employee under the five-pronged test established in Kelly v. Geriatric & Med. Servs., Inc., 287 N.J. Super. 567 (App. Div. 1996). This test analyzed whether: (1) there was a contract of hire; (2) the work done was essentially that of the special employer; (3) the special employer had the right to control the details of the work; (4) the special employer paid the wages; and (5) the special employer had the right to hire, discharge or recall the employee. In applying this test, the judge found the undisputed facts established an implied employment relationship, thus barring the negligence claim under the Workers’ Compensation Act.

The plaintiff appealed, arguing the lease was “not a true triple-net lease”; that Hartz violated the lease by negligently permitting New York Mutual to install a defective ramp and failed to take reasonable steps to remove the hazard; that New York Mutual was not his special employer and, even if it was, New York Mutual placed him in a situation that was substantially certain to cause him injuries; and, finally, that the judge erred in failing to consider that a wet surface was a de facto dangerous condition that was foreseeable and unreasonable.

The Appellate Division noted, none of these required extended discussion. It was noted the motion record established beyond any doubt that the ramp was neither designed nor constructed by either defendant and the lease language relieved Hartz of any responsibility. The Appellate Division also noted it was undisputed the plaintiff was a special employee. Finally, the Appellate Division mentioned the intentional wrong exception was not argued in trial court and indicated the fact that the plaintiff was “forced” to walk was not flagrant enough to constitute an intentional wrong, especially a ramp that he used regularly.
 

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Firm Highlights

Thought Leadership

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.

Thought Leadership

Pennsylvania Supreme Court Takes Up the Gist of the Action Doctrine

The gist of the action doctrine has been a hot topic in legal malpractice cases in Pennsylvania over the last several years.  Beginning in 2014, the Pennsylvania courts applied the gist of the action doctrine to professional liability actions, following the Pennsylvania Supreme Court’s opinion in Bruno v. Erie Ins. Co., 106 A.3d 48 (Pa. 2014).  In Bruno, the court applied the gist of the action doctrine to a professional negligence claim, and found that a negligence claim was not barred simply because the parties were in a contractual relationship where the gist of the claim sounded in negligence. Thereafter, courts in Pennsylvania applied the gist of the action doctrine to breach of contract claims as well, finding that where the allegations sounded in negligence, a plaintiff could not recast a negligence claim as one for breach of contract. This was important because of the distinction between statutes of limitations: negligence claims must be brought within two (2) years, while breach of contract claims can be brought within four (4) years.  Then, last year, the Pennsylvania Superior Court held that the gist of the action doctrine does not apply to breach of contract claims as seen through two opinions. These opinions were Swatt v. Nottingham Village, 342 A.3d 23 (Pa. Super. 2025) and Poteat v. Asteak, et al., 350 A.3d 198 (Pa. Super. 2025). That is, the gist of the action doctrine can bar a negligence claim but it cannot bar a breach of contract claim.  This month, the Pennsylvania Supreme Court granted the petition for allowance of appeal in Poteat.  The Supreme Court phrased the issue for consideration as follows: Whether the Superior Court majority’s holding conflicts with this Court’s holding in Bruno v. Erie Insurance Co., 160 A.3d 48 (Pa. 2014), as well as Superior Court opinions that applied Bruno, and departs from almost 200 years of controlling precedent that distinguishes between causes of action in contract and tort based upon the nature of the duty that was allegedly breached? Attorneys on both sides of legal malpractice matters no doubt look forward to clarification on these issues from our Supreme Court.

Thought Leadership

Delaware Superior Court Clarifies Pleading Standard for Legal Malpractice Claims

In the matter of Edelstein v. Kirschner, No. N25C-09-018 FJJ, 2026 Del. Super. LEXIS 45, at *1 (Super. Ct. Jan. 29, 2026), the plaintiff law firm sued its former client for unpaid legal fees in the amount of $4,399.35. The former client asserted a counterclaim alleging legal malpractice. More, specifically, the former client claimed that his lawyer committed malpractice be recommending that he settle an underlying lawsuit by entering into a stipulated judgment for an excessive amount with interest that was accruing at “an outlandish” interest rate. The law firm moved to dismiss the counterclaim on the basis that its former client had not alleged facts reflecting that he could prove the case within the case. That is, facts reflecting that his attorneys caused him to lose the underlying case. The Superior Court held that while a legal malpractice plaintiff in cases arising from underlying litigation must prove the case within the case to survive a summary judgment motion, he does not need to plead facts reflecting as much in order to survive a motion to dismiss. While this case addresses the pleading requirements of a legal malpractice case in Delaware, it also serves as reminder that chasing unpaid legal fees from a former client can often give rise to a legal malpractice counterclaim. Attorneys seeking to collect unpaid legal fees should ensure that the fees they seek are for a significant amount, which would be recoverable if a judgment is obtained. Otherwise, the effort could backfire.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict.