Beyer v. Porter-Hayden

515 A.2d 790, 104 N.J. 104, 1986 N.J. LEXIS 1234

• Court: Supreme Court of New Jersey
• Decided: October 6, 1986
• Status: Published

Opinions

PER CURIAM.

In this case we are called upon to interpret N.J.S.A. 34:15-95.4 (the Act), which provides for a “special adjustment benefit” (SAB) to supplement the basic workers’ compensation benefits received by certain employees or dependents whose basic benefits were set “at a rate applicable prior to January 1, 1980.” The Judge of Compensation ruled that the survivor of a worker who was injured in 1972, but died in 1982, was not entitled to a SAB. The Appellate Division reversed in a well-reasoned opinion. 212 N.J.Super. 539 (1985).

The Appellate Division calculated respondent’s basic benefit under N.J.S.A. 34:15-13(a), which grants death benefits equal to 50% of decedent’s last-earned wage. The wage factor is based on decedent’s 1972 wage of $75.00 per week, and the percentage factor has been unchanged since 1966. Respondent is thus entitled to a basic death benefit of $37.50 per week— 50% of $75.00. Because both the wage and percentage factors antedate 1980, the Appellate Division reasoned, this benefit is computed on the basis of “a rate applicable prior to January 1, 1980,” and consequently entitles respondent to a SAB.

We affirm the judgment of the Appellate Division for substantially the reasons expressed in its opinion.¹ We write only to address an issue raised for the first time before this Court.

Appellant, the Commissioner of Labor and Industry (Commissioner), focuses on the application of L.1979, c. 283 (the 1979 Amendments), which effected a thorough revision of the schedules for workers’ compensation payments. Among other changes, the 1979 Amendments raised the minimum compensation payment guaranteed under N.J.S.A. 34:15-12(a) and -13(j) from $15.00 per week to 20% of the statewide average weekly wage (SAWW). The Commissioner contends that because respondent’s basic compensation payment under N.J.S.A. 34:15-13(a) is less than the statutory minimum, respondent is entitled to 20% of the 1982 SAWW. Because this minimum is computed on the basis of the 1982 statewide wage, it is not “a rate applicable prior to 1980.” Accordingly, the Commissioner concludes that respondent is not entitled to a SAB under N.J.S.A. 34:15-95.4.²

Unfortunately, neither party to this litigation recognized the effect of section 19 of L.1979, c. 283.³ This section made the amended compensation rates applicable only to injuries occurring after January 1, 1980. Sections 18-20, reported as a note under N.J.S.A. 34:15-7, state in pertinent part:

The provisions of this amendatory and supplementary act shall apply to accidents and occupational disease exposures which occur on or after January 1, 1980 and shall not be applied retroactively to accidents or occupational diseases occurring prior to January 1, 1980 except to cases where claim is made for an occupational disease characterized by latent manifestation as set forth in R.S. 34:15-34.

It is clear from this section that the amended minimum compensation rate of 20% of the SAWW is not applicable to this case. Respondent’s decedent was injured in 1972 and the amendatory act applies only to injuries occurring on or after January 1, 1980.⁴ The minimum compensation rate applicable to respondent’s claim is the rate in effect prior to the 1979 Amendments —$15.00 per week. Because the $15.00 minimum is “a rate applicable prior to 1980,” respondent would be entitled to a SAB even if her basic rate calculated under section 13(a) were less than the minimum weekly benefit.

The special adjustment benefit provided by N.J.S.A. 34:15-95.4 raises a pre-1980 compensation payment to a level that bears the same relationship to the 1980 maximum workers’ compensation rate as the compensation payment bore to the maximum compensation rate in effect at the time of award. N.J.S.A. 34:15-105 provides for an annual supplement to the special adjustment benefit that increases an individual’s total compensation payments to maintain the relationship with the current year’s maximum compensation rate. Read together, the purpose of these two provisions is to adjust the workers’ compensation benefits of certain employees and dependents so as to minimize the impact of inflation.

It should be noted that the legislative scheme allows a worker injured prior to 1980 to receive continual adjustments for inflation, whereas a worker injured after January 1, 1980 and compensated under the revised schedules effected by A. 1979, c. 283 will not receive such automatic annual adjustment. Any apparent inequity is mitigated by the fact that the 1979 Amendments significantly increased the compensation available to workers suffering serious injury after its effective date.⁵ Further, it is conceivable that the legislative interpretation we offer here could result in reduced compensation in a small number of cases.⁶ This result will be rare, and is unavoidably mandated by the law as enacted. Whatever disparities exist are intrinsic to the legislative scheme and consequently are for the Legislature, and not for this Court, to remedy.

Accordingly, the judgment of the Appellate Division is affirmed.

1 The facts and legislative background of this controversy are set forth in the opinion below. 212 N.J.Super. at 540-43.

2 The Commissioner's interest in this matter derives from the fact that special adjustment benefits are ultimately paid from the Second Injury Fund, created under N.J.S.A. 34:15-94. This fund is maintained by assessments against self-insurers and companies writing employer liability insurance. N.J.S.A. 34:15-94. Under certain circumstances a self-insurer or insurance carrier must pay a SAB directly to the recipient. However, these payments are credited against the insurer’s annual N.J.S.A. 34:15-94 assessment. Consequently, even if an insurer assumes liability for SAB payments, the revenues of the Second Injury Fund will be diminished.

3 Although the dissenting opinion advocates reargument with respect to the impact of this section of the 1979 Amendments, the Court has already brought this issue to the attention of the parties and solicited their comment.

4 Section 19 contains an express exception to the rule of nonretroactivity when claims are made for occupational diseases characterized by latent manifestation. While Mr. Beyer’s disease, asbestosis, is a latent disease as defined under N.J.S.A. 34:15-34, the exception is not applicable to this case because both his exposure to asbestos and the manifestation of the disease occurred prior to 1980. Section 19 "is not construable as excepting from the rule of nonretroactivity those occupational disease exposures resulting in symptomatology patently manifested prior to January 1, 1980, and on the basis of which claim petitions were filed prior to that date." Rybski v. Johns-Manville Prods. Corp., 185 N.J.Super. 433, 437 (App.Div.1982).

5 The Senate Labor, Industry and Professions Committee Statement to the 1979 Amendments noted that the bill

would make available additional dollars for benefits to seriously disabled workers while eliminating, clarifying or tightening awards of compensation based upon minor permanent partial disabilities not related to the employment.

6 For example, the dependent of a deceased worker injured prior to 1980 and otherwise eligible for a SAB may receive no adjustment, or a reduced adjustment, if he or she receives offsetting social security or Black Lung benefits. N.J.S.A. 34:15-95.4. This recipient might conceivably be more generously compensated if the legislative scheme entitled him or her to the minimum basic benefit of 20% of the SAWW afforded by the 1979 Amendments, because the statutory offset for compensation from other sources in cases involving post-1979 injuries applies only to benefits to be paid to injured workers, not their surviving dependents. N.J.S.A. 34:15-95.5.