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Workers' Compensation

Attorney Penalized for Making a Baseless Request for a Change of Venue

The Third Department upheld the Board’s determination that counsel should be penalized for making a baseless request for a change of venue (closer to the attorney’s office):

Workers’ Compensation Law § 114-a (3) (ii) provides that “[i]f the [B]oard . . . determines that the proceedings in respect of [a claim for compensation], including any appeals, have been instituted or continued without reasonable ground[,] . . . reasonable attorneys’ fees shall be assessed against an attorney . . . who has instituted or continued proceedings without reasonable grounds.”  We will not disturb the Board’s imposition of a penalty for a violation of that statute so long as the determination is supported by substantial evidence … .  The Board considers a request for change of venue, which is a procedural motion, to constitute a proceeding for purposes of the statute.  Counsel was previously warned that what she cited as a “Board Rule” was actually a provision of a private legal treatise, that it did not accurately reflect the law or Board policy on venue, and that any further change of venue request filed based on that reasoning and citation “will be deemed a proceeding instituted without reasonable grounds and subject to the imposition of penalties under” the statute. Matter of Banton…, 516574, 3rd Dept 12-19-13

 

December 19, 2013
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Workers' Compensation

It May Be an Abuse of Discretion for the Board to Refuse to Review an Untimely Application Raising a Jurisdictional Issue/Board May Be Barred from Reopening a Closed Claim More than Seven Years After the Accident

The Third Department determined the Workers’ Compensation Board should have considered the employer’s untimely application for review because the employer raised a jurisdictional issue. The court noted that the Board may barred from reopening closed claims after more than seven years have elapsed since the accident:

“The general rule is that lack of jurisdiction to render a judgment or determination may be asserted at any time . . .” … .  Accordingly, “[w]hile the Board enjoys broad discretion to reject a late application for review,” its refusal to consider an untimely challenge to its jurisdiction may constitute an abuse of discretion … .

While the Board generally retains continuing jurisdiction over workers’ compensation claims, it is barred from reopening a claim “that has been . . .  disposed of without an award after the parties in interest have been given due notice of hearing or hearings and opportunity to be heard and for which no determination was made on the merits, [where there has been] a lapse of seven years from the date of the accident” (Workers’ Compensation Law § 123;…). Workers’ Compensation Law § 123 accordingly acts to “prevent a brand new attempt to prove up a stale claim” …, and deprives the Board of “power and jurisdiction” over such an attempt (Workers’ Compensation Law § 123…).  Given the age of the claim here and the fact that it was marked closed in 1995, the employer plausibly argues that the Board lacked jurisdiction to reopen the present claim.  Matter of VanAusdle, v NYC Police Department, 515592, 3rd Dept 12-19-13

 

December 19, 2013
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Workers' Compensation

Slip and Fall in Employee Parking Area Was Compensable

The Third Department determined that a slip and fall in an employee parking area can be compensable under Workers’ Compensation.  The Board’s finding that the injury was compensable in this case was affirmed:

As a general rule, “accidents that occur in public areas away from the workplace and outside of work hours are not compensable” … .  However, “by making arrangements for employee parking, [an employer] may be found to have extended its premises to the area of the approved parking facility so that an accident that occurs therein may be found to have arisen within the precincts of the claimant’s employment, rendering it compensable.  This is particularly true where the claimant is injured on the way to work and in such physical proximity to his or her worksite as to establish a relationship between the accident and the employment”… .

Here, claimant testified that following the approval of her application to park in the subject lot, she was given a hang tag to display in her vehicle’s window and a parking fee was deducted from her biweekly paycheck … .  Although a portion of the parking lot occasionally was set aside for vendors participating in events at the nearby Times Union Center, the lot was not – to the best of claimant’s knowledge – open to the public during the work week.  Finally, claimant described the route traveled from the surface lot to her building and testified that “[e]veryone” who parked in the vicinity of the lot “usually [took the] same route into [the employer’s] building”… .  Matter of Stratton v NYS Comptroller…, 514766, 3rd Dept 12-12-13

 

December 12, 2013
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Workers' Compensation

Application for a Full Board Review Must Be Considered by a Panel of At Least Three Members of the Workers’ Compensation Board

The Third Department noted that an application for a full Board review must be considered by a panel of at least three members of the Workers’ Compensation Board:

Applications for Board review are to be considered by a panel of at least three members and may not be decided by the chair, or any other single member of the Board, alone (see Workers’ Compensation Law §§ 23, 142 [2]…).  The record before us provides no indication that the application for reconsideration and/or full Board review was considered by a three-member panel.  Rather, the decision appears to have been made solely by the chair “on behalf of the Board.”  Accordingly, this matter must be remitted to the Board for proper consideration of the application by a panel of the Board consisting of not less than three members… . Matter of Scalo v CD Perry & Sons Inc…, 514342, 3rd Dept 12-12-13

 

December 12, 2013
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Civil Procedure, Evidence, Negligence, Workers' Compensation

Workers’ Compensation Board’s Finding Re: Extent of Disability Should Not Be Given Collateral-Estoppel Effect in Related Negligence Action

The Court of Appeals, in a full-fledged opinion by Judge Lippman, determined that collateral-estoppel effect should not be given to a finding by the Workers’ Compensation Board in a related negligence action.  Plaintiff, a delivery person, had been struck by a piece of plywood which fell from a building under construction in 2003.  The Workers’ Compensation Board found that plaintiff’s disability from the accident ceased as of January, 2006. In the related negligence action, the defendant sought to limit plaintiff’s proof of disability to the period prior to January, 2006.  The court held “that there is no identity of issue and that collateral estoppel therefore should not be applied:”

…[D]efendants have failed to meet their burden of establishing that the issue decided in the workers’ compensation proceeding was identical to that presented in this negligence action.  We have observed that the Workers’ Compensation Law “is the State’s most general and comprehensive social program, enacted to provide all injured employees with some scheduled compensation and medical expenses, regardless of fault for ordinary and unqualified employment duties” … .  The purpose of awarding such benefits is to provide funds on an expedited basis that will function as a substitute for an injured employee’s wages … .  We have observed that the term “disability,” as used in the Workers’ Compensation Law, “generally refers to inability to work” … .  In addition, the Board uses the term “disability” in order to make classifications according to degree (total or partial) and duration (temporary or permanent) of an employee’s injury … .  The focus of the act, plainly, is on a claimant’s ability to perform the duties of his or her employment.

By contrast, a negligence action is much broader in scope.  It is intended to make an injured party whole for the enduring consequences of his or her injury — including, as relevant here, lost income and future medical expenses. Necessarily, then, the negligence action is focused on the larger question of the impact of the injury over the course of plaintiff’s lifetime.  Although there is some degree of overlap between the issues being determined in the two proceedings, based on the scope and focus of each type of action, it cannot be said that the issues are identical. Auqui v Seven Thirty One Limited Partnership, 212, CtApp 12-10-13

 

December 10, 2013
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Workers' Compensation

Worker’s Compensation Carrier Was Entitled to Credit for Amount Claimant Recovered in Civil Suit against Employer and Co-employees

In a full-fledged opinion by Judge Read, over a dissent, the Court of Appeals determined the worker’s compensation carrier, the NYS Insurance Fund (SIF), was entitled to a credit against the claimant’s future worker’s compensation benefits in the amount of her recovery in a lawsuit against her employee and a co-employee:

Workers’ Compensation Law § 29 (1) provides that an employee injured by “the negligence or wrong of another not in the same employ” may commence an action against “such other.”  If the employee has received workers’ compensation benefits, SIF or the other entity or person liable for the payment of these benefits

“shall have a lien on the proceeds of any recovery from such other, whether by judgment, settlement or otherwise, after the deduction of the reasonable and necessary expenditures, including attorney’s fees, incurred in effecting such recovery, to the extent of the total amount of compensation awarded under or provided or estimated . . . for such case and the expenses for medical treatment paid or to be paid by it and to such extent such recovery shall be deemed for the benefit of”

SIF or the other entity or person liable for the payment of compensation benefits (Workers’ Compensation Law § 29 [1]). Concomitantly, section 29 (4) specifies that “[i]f such injured employee . . . [shall] proceed against such other,” SIF or the other entity or person liable for the payment of compensation benefits “shall contribute only the deficiency, if any, between the amount of the recovery against such person actually collected, and the compensation provided or estimated . . . for such case” (Workers’ Compensation Law § 29 [4]).

Section 29 (4) is referred to as the carrier’s credit against or right to offset the proceeds of a lawsuit brought pursuant to section 29 (1).  The lien and offset provisions in sections 29 (1) and (4), respectively, “cushion[] the inflationary impact of the cost of compensation insurance and avoid double recovery by the claimant for the same predicate injury”… . Matter of Beth V v NYS Office of Children & Family Services…, 202, CtApp 11-19-13

 

November 19, 2013
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Workers' Compensation

Stroke Not Work-Related

The Third Department affirmed the determination that claimant’s stroke was not work-related:

Inasmuch as it is undisputed that claimant’s stroke occurred while he was at work, he was entitled to the statutory presumption that his stroke arose out of and in the course of his employment (see Workers’ Compensation Law § 21… ). The employer, however, may rebut that presumption with substantial evidence to the contrary … . Here, the employer’s medical expert opined that claimant’s stroke was not related to his employment, but was directly related to certain preexisting conditions, including cerebral vascular disease, hypertension, diabetes, hypercholesterolemia and a prior transient ischemic attack, which combined to put claimant “at extreme risk for a stroke.”Claimant’s medical expert, although unaware of certain of claimant’s preexisting conditions that he testified may be predisposing factors for a stroke, concluded that claimant’s stroke was caused by job related exertion and fatigue. * * *Inasmuch as the Board is vested with the authority to credit the opinion of one medical expert over another …, its determination that there was no causal relationship between claimant’s stroke and his employment is supported by substantial evidence and will not be disturbed. Matter of Pengal v Chloe Foods Corporation…, 513003, 3rd Dept 11-14-13

 

November 14, 2013
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Workers' Compensation

Home Attendant for Elderly Injured Walking from One Client’s Home to Another Was Covered by Workers’ Compensation

The Third Department affirmed the determination that a home attendant for the elderly, who was injured walking from one client’s home to another client’s home, was entitled to workers’ compensation:

While “injuries sustained during travel to and from the place of employment” are generally not compensable under the Workers’ Compensation Law, an outside employee “who does not have a fixed worksite[] may be compensated for injuries sustained in the course of” work-related travel … .  The employer and carrier contend that claimant was not an outside employee, but “[t]he distinguishing feature of outside employees is that they do not work at a fixed location and are required to travel between work locations” … .  The employer here assigned claimant to care for two clients in different locations and, thus, substantial evidence supports the Board’s determination that she “became an outside employee when [s]he left” one work site and proceeded to another… . Matter of Bedmark v Caring Professionals Inc…, 515870, 3rd Dept 11-7-13

 

November 7, 2013
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Workers' Compensation

Music Teachers Are Employees Not Independent Contractors

In finding that music teachers were employees [of Musika, LLC], not independent contractors, the Third Department wrote:

Claimant offered guitar lessons for Musika LLC, a business that matches music teachers it deems qualified with students. Musika required its teachers to execute a contract that set the fee for lessons, prohibited them from competing with Musika or soliciting its students, and obliged teachers to perform any services “reasonably requested” by it. The teachers were required to report their work activities to Musika which, in turn, billed the students and paid the teachers by check. Moreover, teachers were expected to notify Musika if they were unavailable to work and could not use a substitute teacher without prior approval. Notwithstanding the proof in the record that could support a contrary result, the above constitutes substantial evidence for the determination of the Unemployment Insurance Appeal Board that claimant and those similarly situated were Musika’s employees and not independent contractors… . Matter of Tekmitchov…, 516112, 3rd Dept 10-24-13

 

October 24, 2013
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Workers' Compensation

As Long As Work-Related Injury Was A Cause of Death, Death Benefit Must Be Paid—No Apportionment Between Non-Work-Related and Work-Related Causes of Death

In a full-fledged opinion by Judge Read, the Court of Appeals determined death benefits under the Workers’ Compensation Law (section 16) could not be apportioned between work-related and non-work-related causes of death.  As long as the work-related injury or illness is a cause of death, the benefit must be paid.  In a concurring opinion, Judge Pigott agreed that the benefit cannot be apportioned, but concluded the result in this case, where the claimant’s (Hroncich’s) death was primarily related to non-work-related thyroid cancer, should be that no death benefit was available.;

Importantly, there is no language in section 16 to suggest that the Board should apportion death benefits to workrelated and non-work-related causes when fashioning an award. Presumably, if the legislature had wanted this to be the case, it would have said so.  Instead, however, the legislature made employers joint-and-several insurers of their injured employees’ lives, subject to a prescribed schedule of payments.  The death benefit is not about replacing lost wages, but rather compensates for a life lost at least partly because of work-related injury or disease (see e.g. Bill Jacket, L 1990, ch 296 [authorizing $50,000 in death benefits to non-dependent survivors]).  Matter of Hroncich v Con Edison…, 145, CtApp 10-15-13

 

October 15, 2013
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