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What's Hot in Workers' Comp

What's Hot in Workers' Comp - News and Results*

What’s Hot in Workers’ Comp, Vol. 26, No. 3, March 2022

March 1, 2022

NEWS

Frank Wickersham and Mike Duffy (King of Prussia, PA) presented a webinar for Lorman Education Services, “Unique Workers’ Compensation Aspects of Independent Contractors and Traveling Employees.” The course provided an overview of the many components considered by the courts in determining whether a worker was in an employment relationship at the time of an injury to determine compensability.
 

RESULTS*

Michael Duffy (King of Prussia, PA) won on a termination petition for a low back injury that occurred in 2017. Surgery was recommended for the claimant, but he refused. Instead, the claimant had radiofrequency ablation procedures and injections performed over a period of five years. The judge found that Dr. Rushton, the defense medical expert, was more credible than the claimant’s expert.

Ben Durstein (Wilmington, DE) was successful on appeal before the Delaware Supreme Court, which affirmed the Superior Court’s decision. The Supreme Court affirmed an opinion of the Superior Court and the decision of the Industrial Accident Board that denied the claimant’s petition for a recurrence of total disability benefits due to a worsening of her complex regional pain syndrome. The court relied upon the Superior Court’s reasoning and holding that there was substantial evidence to support the Board’s ultimate determination and preference for the medical expert and vocational expert opinions of the employer over those of the claimant’s experts.

Tony Natale (Philadelphia, PA) successfully defended a claim and penalty petition on behalf of a nationwide vision-wear supply company. The judge dismissed the claimant’s petitions on three bases. First, it was established on cross examination that the claimant’s medical expert relied on the wrong mechanism of injury in arriving at his opinions on causation. Second, surveillance showed that the claimant was not disabled as alleged and was able to perform activities contrary to his testimony, and third, the claimant was working for another company despite his allegations to the court and his expert that he could not work.

Tony also successfully prosecuted a termination petition on behalf of a northeastern Pennsylvania trucking company. The claimant was involved in a horrific accident involving an 18-wheeler and a negligent auto driver. The carrier accepted a cervical spine strain injury and paid benefits. Ultimately, an IME was undertaken, and the claimant was pronounced fully recovered. When the termination petition was filed, the claimant alleged additional injuries in the form of cervical radiculopathy and lumbar radiculopathy, the latter allegedly related to a cervical injection causing lumbar radicular complaints. Tony convinced the trial judge that the original injury was limited to a cervical muscle/ligament injury; that the claimant fully recovered from that injury; that the claimant had no true cervical radiculopathy; and that an injection in the neck cannot cause lumbar radiculopathy. Benefits were completely terminated.

Tony successfully defended a Berks County farm and mushroom supplier in litigation surrounding a claim with an alleged shoulder tear and surgery against a backdrop of two additional tears and surgery dependent on the outcome of the case. Based on the direct and cross exam of the expert witnesses, Tony convinced the trial judge that the claimant’s shoulder tear was not work-related. MRI films generated before and after the tear could not be linked to the claimant’s one-armed work that he was performing months before the injury.

Tony successfully prosecuted a modification petition on behalf of a Berks County farm and mushroom supplier. The claimant sustained injuries to his hand and wrist in the form of a strain, CTS and TFCC tear. Tony was able to convince the trial judge that despite these injuries, the claimant was capable of working within modified restrictions. Consequently, the claimant’s benefits were modified in accordance with the job offer.

Tony successfully prosecuted a termination petition and defended a review petition on behalf of a Berks County mushroom farm and supply company. The claimant sustained a shoulder tear at work. After a full recovery petition was filed, the claimant alleged that an unspecified hand injury, along with the shoulder injury, continued to be disabling. Tony convinced the trial judge that the work injury was limited to a shoulder tear and the tear had fully and completely recovered. All benefits were terminated.

Judd Woytek (King of Prussia, PA) successfully defended a claim petition where the claimant was seeking benefits for the time period he had to quarantine after a possible COVID-19 exposure. The claimant admitted that he never tested positive for COVID. The judge agreed with Judd’s argument that the claimant had, therefore, not suffered an injury or contracted an occupational disease under the Pennsylvania Workers’ Compensation Act. The claim petition was denied and dismissed.
 
Judd also successfully prosecuted a petition to compel a claimant to undergo an MRI of his knee, which the claimant opposed due to allegedly having metal in his eye. The claimant admitted, however, that he had previously had MRIs performed. The judge directed the claimant to undergo x-rays of his eyes and, if clear, to undergo the MRI of the knee.
 
In a second successfully prosecuted a petition to compel an IME handled by Judd, the claimant had refused to cooperate with the IME doctor’s office and complete informational questionnaires. He also brought a priest along to the IME. The judge ordered the claimant to attend the rescheduled IME and complete the requested questionnaires and forms.
 
Judd was partially successful in defense of a claim petition and in prosecution of a termination petition. The judge agreed with Judd’s argument that the claimant had failed to present any evidence of disability related to his October 2020 injury until the date of his shoulder surgery in February 2021. The judge also granted a partial termination of benefits with regard to the claimant’s cervical and lumbar injuries.
 
Finally, Judd was successful in defending the claimant’s appeal from a judge’s decision that denied the claimant’s claim petition and Utilization Review Petition and granted our termination petition relating to a Medical-Only Notice of Compensation Payable. The Appeal Board affirmed the judge’s decision in its entirety by crediting Judd’s arguments raised at oral argument and in his brief.

*Prior Results Do Not Guarantee A Similar Outcome
 

What’s Hot in Workers’ Comp is prepared by Marshall Dennehey Warner Coleman & Goggin 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. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2022 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

SIU Gets a Boost: NJ Supreme Court Affirms Insurers' Right to Litigate, Not Arbitrate, Fraud Claims

In a significant win for insurers' Special Investigation Units, the New Jersey Supreme Court clarified that statutory insurance fraud and racketeering claims may proceed in court rather than through PIP arbitration. At issue was whether insurance fraud claims brought under New Jersey's Insurance Fraud Prevention Act (IFPA) and the state's Anti-Racketeering Act (NJ RICO) are subject to mandatory arbitration under the Automobile Insurance Cost Reduction Act’s (AICRA) PIP dispute-resolution framework. Allstate had sued a network of medical practices, physicians, and related corporate entities, alleging a scheme to extract more than $1.7 million in PIP benefits through fraudulent and misleading billing. The trial court dismissed Allstate's complaint and compelled arbitration, reading AICRA's arbitration clause — which covers "any dispute regarding the recovery of... benefits" under PIP coverage, N.J.S.A. 39:6A-5.1(a) — as sweeping in fraud and racketeering claims along with routine benefit disputes. The Supreme Court affirmed the Appellate Division's reversal, adopting Judge Gilson's opinion below (480 N.J. Super. 566 (App. Div. 2025)) as its own reasoning. The Court held that IFPA and RICO claims fall outside the scope of AICRA's PIP arbitration mechanism because that "streamlined and specialized" process cannot grant the relief those statutes contemplate — treble damages, injunctive relief, broad discovery, and joinder of third parties — and because arbitrators lack authority to award compensatory or treble damages to an insurer. The Court also rejected the argument that Allstate's own Decision Point Review Plans independently compel arbitration, finding those plan provisions no broader than AICRA's own arbitration clause. Notably, the Court expressly disagreed with the Third Circuit's contrary holding in GEICO v. Mt. Prospect Chiropractic Center, 98 F.4th 463 (3d Cir. 2024), concluding it is not bound by that federal interpretation of New Jersey law. Insurers retain the right to pursue IFPA and RICO claims in the Law Division, with a jury trial. For SIU units and NJ insurance carriers, this decision is a significant win: it forecloses defense clinics' primary procedural tool for shunting fraud investigations into limited-scope PIP arbitration, where treble damages, RICO relief, and meaningful discovery were never realistically available. Carriers building cases against fraudulently structured clinics, straw-owned practices, or coordinated billing networks can now proceed with confidence that a well-pleaded IFPA/RICO complaint stays in the Law Division rather than being diverted to arbitration on a motion to compel. Practically, this strengthens SIU's leverage in settlement negotiations, preserves civil discovery tools (subpoenas, depositions, joinder of related corporate entities) critical to unwinding complex ownership and referral schemes, and resolves the split with the Third Circuit in favor of NJ insurers — at least as a matter of state law. Expect increased reliance on IFPA civil actions, rather than PIP arbitration demands, as SIU's primary enforcement vehicle going forward.

Thought Leadership

Congress Passes Financial Exploitation Prevention Act

On June 25, 2026, the House passed the Financial Exploitation Prevention Act of 2025 (“the Act”) by a vote of 414 to 2. The Act allows financial advisors and firms to delay suspicious transactions regarding the accounts of clients who are 65 or older, if they believe financial exploitation has occurred or is about to take place. With the advancement of technology and AI, the House’s overwhelming bipartisan passage of the Financial Exploitation Prevention Act represents an important step in strengthening the financial industry’s ability to combat the growing threat of elder financial exploitation. The Act recognizes what advisors have long known that financial professionals are often the first to detect suspicious behavior but have historically lacked clear legal authority to intervene before irreversible financial harm occurs. From the industry’s perspective, the bill accomplishes several important objectives, including the following: (1) Provides a practical “pause button” by allowing financial professionals to temporarily delay certain transaction requests when there is a reasonable belief that a senior or vulnerable adult is being financially exploited; (2) Empowers financial professionals to act by providing greater certainty that firms can act in good faith to protect clients without unnecessary legal risk; and (3) Strengthens investor protection without sacrificing client rights by allowing temporary delays based on a reasonable suspicion of exploitation, which is intended only to allow additional review and not to deny clients access to their money indefinitely. In sum, the Financial Exploitation Prevention Act will equip financial professionals with practical, carefully tailored tools to stop suspected financial exploitation before client assets are lost. By allowing firms to temporarily delay suspicious transactions under defined circumstances, Congress is recognizing the critical role advisors play as the first line of defense against increasingly sophisticated fraud schemes. The Act strikes an appropriate balance between protecting vulnerable investors and preserving individual financial autonomy, while reinforcing collaboration among advisors, families, and law enforcement to combat financial exploitation. The bill now awaits Senate action.

Thought Leadership

New Jersey Expands Family Leave Protections Effective July 17, 2026

On January 17, 2026, Governor Murphy signed into law legislation expanding the New Jersey Family Leave Act (NJFLA). Beginning July 17, 2026, significant amendments to the NJFLA will expand job-protected family leave to smaller businesses and more employees across the state. The new law broadens coverage by lowering the threshold for private employers from 30 employees to 15 employees, meaning many smaller businesses will now be subject to the NJFLA. Employees of state and local government agencies will continue to be covered regardless of the size of the employer. The amendments also make it easier for employees to qualify for leave. Under the revised law, an employee will be eligible after three months of employment and at least 250 hours worked during the preceding 12 months, replacing the previous requirement of 12 months of employment and 1,000 hours worked. Currently, New Jersey's Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide eligible employees with wage replacement while they are on leave but do not independently guarantee job protection. The recent amendments to the New Jersey Family Leave Act (NJFLA) expand these protections by extending job-protected leave to additional employees. Under the amended law, employees receiving TDI or FLI benefits may be entitled to return to the same position they held before taking leave, or to an equivalent position with the same seniority, status, pay, and benefits. Although the legislation also states that it does not expand or modify an employee's reinstatement rights under the NJFLA, the amendments appear to provide job protection to eligible employees receiving TDI or FLI benefits without requiring them to separately satisfy the eligibility requirements of the NJFLA or the federal Family and Medical Leave Act (FMLA). As a result, some employees may be entitled to longer periods of job-protected leave than were previously available under existing law. With these amendments, New Jersey continues to strengthen workplace protections by expanding access to job-protected family leave for eligible employees. These changes significantly expand access to job-protected family leave and may require employers to update their leave policies, employee handbooks, and HR practices. Notably, employers who were previously not required to administer NJFLA may need to amend their policies and/or create new protocols to come into compliance with the NJFLA. Failure to do so would prove costly, as the penalties for non-compliance are significant.

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.