Beyer v. Porter-Hayden

515 A.2d 1223, 212 N.J. Super. 539, 1985 N.J. Super. LEXIS 1680
CourtNew Jersey Superior Court Appellate Division
DecidedJune 12, 1985
StatusPublished
Cited by6 cases

This text of 515 A.2d 1223 (Beyer v. Porter-Hayden) 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
Beyer v. Porter-Hayden, 515 A.2d 1223, 212 N.J. Super. 539, 1985 N.J. Super. LEXIS 1680 (N.J. Ct. App. 1985).

Opinion

PER CURIAM.

Plaintiff appeals the judgment of dismissal denying her claim for a special adjustment benefit pursuant to N.J.S.A. 34:15-95.4 in this Workers’ Compensation dependency case.

Decedent-employee died in March 1982 from lung and pleural diseases directly related to his occupational exposure to asbestos. Decedent was unable to work, as a result of his illness, since 1972. In October 1976, decedent was awarded 100% total disability, 35% of which was due to a preexisting medical [541]*541condition, and 65% of which was attributed to his employment with respondent, Porter-Hayden. Until early 1978, respondent’s two insurance carriers directly paid decedent his weekly compensation of $50 (based on his last earned wage of $75 per week), and at that time and until his death, the payments were assumed by the Second Injury Fund as provided in N.J.S.A. 34:15-94 and 95.

In May and June of 1972, plaintiff filed three dependency claim petitions against Porter-Hayden, its insurance carriers, and against the Second Injury Fund to seek dependency benefits for herself and a minor daughter, and to establish her statutory right to receive a special adjustment benefit pursuant to N.J.S.A. 34:15-95.4.

Despite the agreement of respondent’s carriers to be responsible for any dependency benefit, including a Special Adjustment due plaintiff, as well as an early determination that the Second Injury Fund should be dismissed as a respondent, lengthy litigation, spanning nearly two years, ensued while the Deputy Attorney General, appearing on behalf of the Commissioner of Labor and Industry, explored the possible statutory parameters of the special adjustment provision.

On March 1, 1984, the court found that since decedent had died in 1982, plaintiff’s benefits were not “at a rate applicable prior to 1980,” although they were indeed based on the wages earned by her husband in 1972. The court awarded plaintiff dependency benefits of $58 per week, the minimum 1982 rate, to be apportioned between the two carriers.

During discussions at the pretrial conference, it was learned from the Deputy Attorney General that decedent’s offset for $402.50 monthly in Social Security benefits precluded him from receiving a special adjustment benefit during his lifetime. The Attorney General on behalf of the Commissioner of Labor took the position that the widow could not be entitled to a special adjustment benefit in addition to her basic dependency benefit because the decedent had not actually received a special adjust[542]*542ment benefit for himself. Plaintiff does not receive Social Security benefits. Her dependent daughter Susan is paid approximately $369 by Social Security which will continue until the end of her minority in June 1985.

Briefs were requested from the plaintiff and the Attorney General on the issue of whether the widow’s entitlement to special adjustment benefits is derivative of the decedent-husband’s receipt of such benefits.

In the period following, the Commissioner reversed his position and agreed that the widow’s right to special adjustment benefits is not derivative of the husband’s receipt of those benefits while alive.

On June 13, 1983, a hearing was held before the Supervising Judge of Compensation, at which time plaintiff testified on the issues of dependency and funeral expenses. All parties conceded that decedent’s death was causally related to his compensable occupational disease. The Second Injury Fund was dismissed as a respondent, and counsel for the two respondent insurance carriers stipulated their agreement to be proportionally liable (Hartford, 61.5% and I.N.A. 38.5%) for any dependency benefits which- the court determined were due plaintiff. They also agreed to pay any special adjustment to which she was found entitled. Entry of a dependency judgment was postponed pending receipt of the Division’s calculations of the amount of the special adjustment to which the plaintiff was entitled.

Thereafter, the Attorney General again challenged the plaintiff’s right to receive a special adjustment. This time it was alleged that the plaintiff’s dependency benefits would not be paid at a rate “applicable prior to January 1, 1980” so as to render her eligible for the increment. He argued that the date of death which would be determinative of the proper rate to be paid, occurred subsequent to January 1, 1980. The Attorney General also contended that Social Security benefits payable to the minor ■ daughter should reduce not only the daughter’s [543]*543portion of the adjustment benefit, but also the widow’s share of the benefit.

On March 1, 1984 the Judge of Compensation awarded plaintiff the statutory funeral allowance and dependency benefits of $58 per week, the minimum rate in effect at the date of death in 1982. The court held that, since decedent died in 1982, plaintiff’s benefits were not “at a rate applicable prior to 1980” as required by N.J.S.A. 34:15-95.4. The court awarded plaintiff the 1982 minimum rate and rejected the claim for a special adjustment benefit over the argument that hers was a pre-1980 rate since it was based on pre-1980 wages.

Plaintiff instituted this action against her husband’s employer, Porter-Hayden, and its insurance carriers, to establish her right to a special adjustment benefit payment as provided under N.J.S.A. 34:15-95.4 which was enacted by the Legislature in 1980. The provision for a special adjustment benefit was intended to help employees and or their dependents, whose workers’ compensation payments were fixed at less than 1980 maximum compensation rates, keep pace with the rising cost of living brought about by the last decade’s spiraling inflation, through an incremental adjustment of their scheduled payments to match the percentage relationship of comparable compensation awards set in 1980, minus a set-off for any social security or black-lung benefits or employer paid portion of pension plans. N.J.S.A. 34:15-95.4.

The Attorney General claims the right to appear on behalf of the Commissioner of Labor and Industry as custodian of the special adjustment benefits Fund. By statute and under the present New Jersey Court Rules, there is no provision for such intervention. In fact, the special adjustment benefits statute specifically provides that while the Commissioner makes payments from the fund to persons currently receiving disability payments under N.J.S.A. 34:15-95, those persons entitled to compensation under N.J.S.A. 34:15-12(b), or persons entitled to receive dependency benefits pursuant to N.J.S.A. 34:15-13 (as [544]*544in the case of plaintiff here), are paid their new adjustment increment directly by the responsible insurance carrier or self-insured employer. It is apparent that in these latter two instances, neither the Commissioner nor the Special Adjustment Benefits Fund is directly involved in either the assessment or administration of pay-outs due dependents such as plaintiff, so as to implicate intervention by the Attorney General.

We do not, however, decide the issue, deeming its resolution unnecessary in view of our ultimate decision.

There have been no definitive interpretations of N.J.S.A. 34:15-95.4 concerning a widow’s right to special adjustment benefits since its enactment effective August 21, 1980.

The purpose of the special adjustment benefit of N.J.S.A.

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Related

Jenkins v. Johns-Manville Products Corp.
573 A.2d 963 (New Jersey Superior Court App Division, 1990)
Wehrle v. American Can Co.
228 N.J. Super. 382 (New Jersey Superior Court App Division, 1988)
Beyer v. Porter-Hayden
515 A.2d 790 (Supreme Court of New Jersey, 1986)

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Bluebook (online)
515 A.2d 1223, 212 N.J. Super. 539, 1985 N.J. Super. LEXIS 1680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beyer-v-porter-hayden-njsuperctappdiv-1985.