Aetna Cas. & Sur. Co. v. Para Mfg. Co.

424 A.2d 423, 176 N.J. Super. 532, 1980 N.J. Super. LEXIS 749
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 12, 1980
StatusPublished
Cited by11 cases

This text of 424 A.2d 423 (Aetna Cas. & Sur. Co. v. Para Mfg. Co.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aetna Cas. & Sur. Co. v. Para Mfg. Co., 424 A.2d 423, 176 N.J. Super. 532, 1980 N.J. Super. LEXIS 749 (N.J. Ct. App. 1980).

Opinion

176 N.J. Super. 532 (1980)
424 A.2d 423

AETNA CASUALTY & SURETY COMPANY, AS P I P CARRIER FOR WILMA PAVUK, PETITIONER-APPELLANT,
v.
PARA MANUFACTURING COMPANY, RESPONDENT-APPELLEE.

Superior Court of New Jersey, Appellate Division.

Argued September 22, 1980.
Decided November 12, 1980.

*533 Before Judges BISCHOFF, MILMED and FRANCIS.

Kenneth J. Doukas, Jr. argued the cause for the appellant (Hoagland, Longo, Oropollo & Moran, attorneys; Kenneth J. Doukas, Jr. on the brief).

Dennis F. Carey, III argued the cause for respondent (Dwyer, Connell & Lisbona, attorneys; Alfred A. Arnold on the brief).

PER CURIAM.

The question on this appeal is whether a PIP carrier can institute a workers' compensation proceeding as a means of enforcing its statutory right to deduct collectible workers' compensation benefits from PIP benefits. The question was answered in the affirmative in Solimano v. Consolidated Mut. Ins. Co., 146 N.J. Super. 393 (Law Div. 1977). However, in Wagner v. Transamerica Ins. Co., 167 N.J. Super. 25 (App.Div. 1979), certif. den. 81 N.J. 60 (1979), this court expressly declined to rule on the validity of Solimano and several related trial court decisions until squarely faced with the issue. The issue is now before us.

The facts can be briefly stated. On August 19, 1976 Wilma Pavuk was injured in an automobile accident. She filed a claim for PIP benefits but did not file a petition for workers' compensation benefits. The PIP benefits were paid by Aetna Casualty & Surety Company. Aetna then filed a workers' compensation petition "as PIP carrier for Wilma Pavuk." Respondent, Pavuk's employer, moved to dismiss the petition for lack of jurisdiction. At oral argument before the judge of compensation it was stipulated that respondent also denied that the accident was *534 work-related. The judge of compensation dismissed the petition, stating that the jurisdiction of the Division of Workers' Compensation was limited to the adjudication of claims filed by injured workers and did not embrace claims by PIP carriers. Aetna appeals.

The PIP carrier's right of deduction of collectible workers' compensation benefits arises from N.J.S.A. 39:6A-6, which provides:

The benefits provided by section 4a., b., c., d., and e. [N.J.S.A. 39:6A-4, PIP benefits] and section 10 [N.J.S.A. 39:6A-10, and additional PIP coverage] shall be payable as loss accrues, upon written notice of such loss and without regard to collateral sources, except that benefits collectible under workmen's compensation insurance, employees temporary disability benefit statutes and medicare provided under Federal law, shall be deducted from the benefits collectible under section 4a., b., c., d., and e. and section 10.

Under the statute, "benefits collectible" from workers' compensation and the other enumerated collateral sources "shall be deducted" from PIP benefits. According to Iavicoli, No Fault & Comparative Negligence in New Jersey (1973), § 13 at 44, as quoted in Wagner v. Transamerica Ins. Co., supra at 33:

... the emphasis is upon the language "benefits collectible." The injured person cannot elect under which coverage he wishes to be paid. If there are collectible workmen's compensation, temporary disability or medicare benefits, the benefits under the Act are reduced by such collectible amount. [Emphasis supplied]

However, in Solimano v. Consolidated Mut. Ins. Co., supra, Judge Morrison ruled that a PIP carrier could not make a unilateral decision that a claimant was entitled to collect workers' compensation benefits. Rather, Judge Morrison ruled, the full PIP benefits had to be paid when due and the carrier could enforce its statutory right of deduction by instituting a workers' compensation proceeding in its own name. This procedure was generally approved and applied also to employees temporary disability benefits in Frazier v. Liberty Mut. Ins. Co., 150 N.J. Super. 123, 146 (Law Div. 1977), and Toppi v. Prudential Ins. Co. of America, 153 N.J. Super. 445, 450-451 (Cty.D.Ct. 1977).

In the present case Aetna followed the procedure set forth in Solimano. However, the judge of compensation dismissed Aetna's *535 petition. He declined to follow Solimano on the ground that it was in conflict with the decisions of the Supreme Court in Conway v. Mister Softee, Inc., 51 N.J. 254 (1968), and Ansede v. National Gypsum, 73 N.J. 444 (1977).

In Conway the court ruled that the statutory jurisdiction of the Division of Workers' Compensation did not embrace disputes solely between two employers. In Ansede the court held that the Division has jurisdiction "as an incident to its jurisdiction over workers' compensation claims," to resolve disputes among successor employers or carriers. The court added: "However, adjudication before the Division of the responsibility inter se must be made in the proceeding instituted by the employee." 73 N.J. at 448.

Conway and Ansede establish the procedures before the Division in cases involving joint employers or successive employers. Those cases make it clear that such disputes can be resolved by the Division but only as part of a proceeding instituted by a disabled worker. They do not, in our view, require dismissal of the petition filed by Aetna.

The PIP carrier is required under the New Jersey Automobile Reparation Reform Act, N.J.S.A. 39:6A-1 et seq., to pay all benefits when due. N.J.S.A. 39:6A-5 and 6; Solimano, 146 N.J. Super. at 396-397. Aetna has complied with this requirement. However, the workers' compensation carrier is primarily liable for any "benefits collectible under the workers' compensation statute." See Wagner v. Transamerica Ins. Co., supra, 167 N.J. Super. at 34; see also Carlo Service Corp. v. Rachmani, 64 App.Div.2d 579, 407 N.Y.S.2d 700, 701 (App.Div. 1978). To the extent the accident and resulting injuries sustained by Pavuk may be work-related and benefits due under the Workers' Compensation Act, Aetna has paid Pavuk a debt owed her by respondent's workers' compensation carrier. Therefore, Aetna has a derivative right to pursue Pavuk's claim against the carrier. This derivative right has its genesis in the statute, N.J.S.A. 39:6A-6 and in the legal and equitable principles underlying *536 the doctrine of subrogation. Hedgebeth v. Medford, 74 N.J. 360, 370-371 (1977). In both Conway and Ansede the court noted that, under N.J.S.A. 34:15-51, a petition must be filed by the "claimant for compensation." In essence, Aetna filed its petition as a subrogee of the claimant for compensation.

We are not unmindful of the limitations on subrogation against third-party tortfeasors contained in N.J.S.A. 39:6A-9. However, we are of the opinion that additional rights of subrogation are necessarily implied by N.J.S.A. 39:6A-6. The right of deduction of collectible benefits afforded by that statute would be meaningless in a case such as the present one unless the PIP carrier is subrogated to the rights of the insured to pursue the collateral benefits.

The Division of Workers' Compensation is vested by statute with exclusive original jurisdiction of all claims for workers' compensation benefits. N.J.S.A. 34:15-49.

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Bluebook (online)
424 A.2d 423, 176 N.J. Super. 532, 1980 N.J. Super. LEXIS 749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aetna-cas-sur-co-v-para-mfg-co-njsuperctappdiv-1980.