Cruz v. Central Jersey Landscaping, Inc.

947 A.2d 1228, 195 N.J. 33, 2008 N.J. LEXIS 567
CourtSupreme Court of New Jersey
DecidedJune 9, 2008
DocketA-34 September Term 2007
StatusPublished
Cited by65 cases

This text of 947 A.2d 1228 (Cruz v. Central Jersey Landscaping, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cruz v. Central Jersey Landscaping, Inc., 947 A.2d 1228, 195 N.J. 33, 2008 N.J. LEXIS 567 (N.J. 2008).

Opinion

Justice HOENS

In this matter, we consider four consolidated appeals that raise the question of whether the Legislature’s 2004 amendment to the schedule of workers’ compensation death benefits was intended to *37 be applied retroactively. In two of these matters, the Workers’ Compensation judge concluded that the amendment was entitled to prospective application only, with the result that both of those claimants were denied an increase in benefits, which they sought to be calculated from the effective date of the amendment. In the other two matters, a different Workers’ Compensation judge reached the opposite conclusion, determining that claimants were entitled to an increase in the rate of their benefits as of the effective date of the amendment, even if a final award had already been entered based on the rate schedule previously in effect.

The four separate matters were consolidated for consideration in the Appellate Division, where a divided papel found the arguments in favor of retroactivity more persuasive than those in favor of prospective application. However, one member of the appellate panel dissented, which brings the dispute before this Court on appeal as of right. Because the record demonstrates that the Legislature neither expressly stated, nor implicitly made known, its intention to have the increased benefit levels apply retroactively, we reverse.

I.

Prior to the enactment of the 2004 amendments, the Workers’ Compensation Act, N.J.S.A 34:15-1 to -142 (the Act), set forth a schedule of benefits that applied to all claims arising from the death of a worker. That schedule provided for benefits that varied depending upon the number of the deceased worker’s surviving dependents. The benefit rates began at fifty percent of the decedent’s wages if he or she were survived by one dependent, and increased with the number of additional dependents up to a ceiling of seventy percent of wages if there were five or more dependents. N.J.S.A 34:15-13(a) to -13(e) (2003), amended by L. 2003, c. 253, § 1. In 2004, the Legislature amended the statute and replaced the tiered system of benefits with a flat rate of seventy percent of the decedent’s wages, to be payable regardless of *38 whether a deceased worker was survived by one or more dependents. L. 2003, c. 253, § 1.

There is no dispute that each of the claimants is entitled to death benefits payable under the Act. The sole issue is whether they are entitled to benefits at the amended flat rate of seventy percent of each decedent’s gross wages or only to the pre-amendment graduated-tier benefits based on the number of each decedent’s dependents. We begin, then, with a recitation of the particular facts and the relevant procedural history of each of the matters before us on appeal.

A.

Cruz v. Central Jersey Landscaping, Inc.

Luz Cruz’s husband, Jose Antonio Perez, suffered a fatal accident on March 19, 2002, in the course of his employment with Central Jersey Landscaping, Inc. At the time of his death, Perez’s gross weekly wages were $542.00. Perez was survived by Cruz and three dependent children. Cruz filed a claim petition for death benefits under the Act on April 10, 2002. Central Jersey Landscaping conceded that the claim was compensable and voluntarily began making payments of $342.30 per week to Cruz, without the entry of any formal award. That weekly amount was calculated based on the statutory rate for four dependents, which was fixed by the statute at sixty-five percent of Perez’s wages. See N.J.S.A. 34:15-13(d) (2003).

Six months after the statute was amended, Cruz sought a retroactive increase in benefits to seventy percent of her late husband’s wages, as would have been awarded in accordance with the newly modified provision. On February 28, 2005, the judge of compensation denied Cruz’s petition. In reaching this decision, the compensation judge reasoned that the employer’s obligation to pay was fixed, and therefore vested, no later than the date on which it had begun making death benefit payments, if it had not already vested on the date of Perez’s- death. Because the court *39 analyzed the application as Cruz’s effort to overturn a previously vested right, and because the amendment to the statute included no direction from the Legislature about retroactivity, the court concluded that Cruz’s benefits should continue at the rate set forth in the schedule that pre-dated the amendment.

Cruz filed her notice of appeal on April 7, 2005.

Hohl v. Insulated, Duct & Cable Company

Gerald F. Hohl died on July 9,2003, from chronic bronchitis and bladder cancer that he developed as a result of occupational exposure during his employment with Insulated Duct & Cable Company. At the time of his death, his average gross weekly wages were $370.00 and his wife, Valentyna Hohl (Hohl), was his only surviving dependent. The employer voluntarily commenced payment of death benefits of $185.00 per week to Hohl on August 19, 2003, without the entry of any formal award, in accordance with the statutory rate of fifty percent of her decedent’s wages. See N.J.S.A. 34:15-13(a) (2003).

Following the adoption of the statutory amendment, Hohl sought an increase in her benefits to the newly-enacted rate of seventy percent. On February 28, 2005, the same judge of compensation who on that date had denied the Cruz petition, also denied Hohl’s petition, relying on the same rationale.

Hohl filed her notice of appeal on April 7,2005.

Bush v. Kauffman & Minteer, Inc.

Norman Bush died on February 1, 2002, from chronic obstructive pulmonary disease contracted as a result of his employment with Kauffman & Minteer, Inc. At the time of his death, his average gross weekly wages were $419.40 and his only surviving dependent was his wife, Audrey Bush (Bush). She filed a claim for death benefits in May 2002, seeking compensation at the statutory rate of fifty percent of her late husband’s wages, for a weekly payment of $209.70. See N.J.S.A. (2003).

Despite its initial denial, Kauffman & Minteer later conceded that the claim was compensable, leaving the retroactive application *40 of the amendment as the only disputed issue. On December 22, 2004, a different judge of compensation reached the opposite conclusion from that articulated by the judge who had decided the Cruz and Hohl petitions. That judge, in granting Bush’s petition, concluded that the amendment should be applied retroactively. The judge found that Bush’s employer had presented no evidence that manifest injustice would result from a retroactive application of the amendment.

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947 A.2d 1228, 195 N.J. 33, 2008 N.J. LEXIS 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruz-v-central-jersey-landscaping-inc-nj-2008.