Gorman v. Waters & Bugbee, Inc.

865 A.2d 735, 374 N.J. Super. 513, 2005 N.J. Super. LEXIS 41
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 2, 2005
StatusPublished
Cited by2 cases

This text of 865 A.2d 735 (Gorman v. Waters & Bugbee, Inc.) 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
Gorman v. Waters & Bugbee, Inc., 865 A.2d 735, 374 N.J. Super. 513, 2005 N.J. Super. LEXIS 41 (N.J. Ct. App. 2005).

Opinion

865 A.2d 735 (2005)
374 N.J. Super. 513

Anthony GORMAN, Petitioner-Respondent,
v.
WATERS & BUGBEE, INC., Respondent-Appellant.

Superior Court of New Jersey, Appellate Division.

Argued January 5, 2005.
Decided February 2, 2005.

Francis T. Giuliano, Ramsey, argued the cause for appellant (Mr. Giuliano, of counsel and on the brief; David P. Kendall, on the brief).

Gary E. Adams, Princeton, argued the cause for respondent (Pellettieri, Rabstein & Altman, attorneys; Mr. Adams, of counsel and on the brief).

Before Judges NEWMAN, AXELRAD and R.B. COLEMAN.

The opinion of the court was delivered by

*736 NEWMAN, P.J.A.D.

Under N.J.S.A. 34:15-64(c), where an employer makes a timely voluntary tender to its employee of a payment for permanent partial disability within twenty-six weeks of the date of the final active medical treatment, the employer is relieved from paying an attorney's fee on that portion of the disability award representing the amount of the voluntary payment. Here, the Workers' Compensation judge ruled that the voluntary tender of payment was not timely because it was made beyond the twenty-six week period and awarded petitioner's counsel an attorney's fee in the amount of $13,365, of which $8181 was payable by the employer. Respondent, Waters & Bugbee, Inc., the employer, appeals contending that although its insurance carrier, New Jersey Manufacturer's (NJM) payment occurred in the twenty-seventh week, it was at a reasonable time before the hearing to determine the extent of petitioner's permanent partial disability and should have been considered timely. We are persuaded that the judge was correct in finding the voluntary payment by the employer's insurance carrier as untimely and affirm.

The facts are not in dispute. Petitioner, Anthony Gorman, sustained a back injury while working for his employer, on August 1, 2000. The employer was notified immediately and accepted the accident as compensable. The employer's Workers' Compensation insurance carrier, NJM, provided medical care and made temporary disability payments to petitioner. Petitioner did not return to work after the injury.

Petitioner filed a claim petition on August 15, 2001. In its answer, the employer acknowledged that petitioner had sustained a compensable injury while at work, but also invoked the "26-week rule" (N.J.S.A. 34:15-16) to determine total disability.

Petitioner's claim petition was first listed for hearing on June 10, 2002. That hearing was adjourned because petitioner was still actively receiving medical treatment. Petitioner last received active medical treatment on July 29, 2002.

The claim petition was next listed for a hearing on November 25, 2002. That hearing was also adjourned because: (1) twenty-six weeks had not yet elapsed from petitioner's last medical treatment as set forth in N.J.S.A. 34:15-16, and (2) petitioner had not yet obtained medical evaluations regarding the nature and extent of his permanent partial disability.

On December 5, 2002, the employer and NJM initiated discussions toward making a voluntary tender of permanent partial disability payments in accordance with N.J.S.A. 34:15-64, when they were made aware that petitioner was "destitute."

On January 20, 2003, the employer approved making a voluntary tender to petitioner.

On January 22, 2003, the employer's medical expert examined petitioner and evaluated the extent of his disability. The expert prepared a written report dated January 29, 2003.

On January 29, 2003, NJM notified petitioner by letter of its intention to make a voluntary tender.

On January 30, 2003, NJM's Disbursing Department received the voluntary tender letter for processing and disbursement.

On February 3, 2003, NJM issued a check for $9456.36, which was received by petitioner on February 6, 2003.

A hearing was scheduled for November 19, 2003, at which time the parties agreed that petitioner sustained a permanent partial disability in the amount of 37-1/2 percent *737 of total and settled petitioner's claim on those terms. The Workers' Compensation Judge approved the settlement.

The parties disagreed whether the employer's voluntary tender had been timely made in accordance with the provisions of N.J.S.A. 34:15-64. The Workers' Compensation Judge found that the voluntary tender was not timely, finding that the voluntary tender was not made within twenty-six weeks of the employee's final active medical treatment.

N.J.S.A. 34:15-64(c) provides in relevant part:

When however, at a reasonable time, prior to any hearing compensation has been offered and the amount then due has been tendered in good faith or paid within 26 weeks from the date of the notification to the employer of an accident or an occupational disease or the employee's final active medical treatment or within 26 weeks after the employee's return to work whichever is later or within 26 weeks after employer's notification of the employee's death, the reasonable allowance for attorney fee shall be based upon only that part of the judgment or award in excess of the amount of compensation, theretofore offered, tendered in good faith or paid.
[emphasis added.]

Initially, we note that the Workers' Compensation Judge considered the hearing dates scheduled in June and November 2002, but adjourned were in fact "hearings" under the statute. The employer contends that neither the pretrial listing in June 2002 nor November 2002 constituted a hearing as contemplated by the statute and therefore, its voluntary tender occurred prior to the only hearing in the matter on November 19, 2003. We agree.

This court has ruled that an adjournment is not a hearing for the purposes of determining whether the employer's voluntary tender was made pursuant to N.J.S.A. 34:15-64(c). See Miller v. Joseph Savino & Son, Inc., 259 N.J.Super. 425, 614 A.2d 160 (App.Div.1992), certif. denied, 133 N.J. 431, 627 A.2d 1137 (1993). In Miller, a pretrial hearing was scheduled for June 19, 1990. Id. at 427, 614 A.2d at 161. Prior to the pretrial hearing, the employee requested and was granted an adjournment of three cycles in order to determine whether he might still require additional medical treatment. Ibid. Subsequently, the employee was examined and it was determined that he did not require any additional medical treatment. Ibid. On August 2, 1990, the employer made a voluntary tender to the employee. Ibid. The pretrial hearing eventually was scheduled and held on February 5, 1991. Id. at 428, 614 A.2d at 161.

In reversing the Workers' Compensation Judge's decision that the tender was not timely, we held that the voluntary tender was made within a reasonable time prior to any hearing. Id. at 429, 614 A.2d at 162. Although we did not discuss the adjournment on June 19, 1990, we obviously considered the hearing on February 5, 1991 to be the only hearing held in that matter.

So too here. The hearings were postponed on June 10, 2002 and November 25, 2002. The June hearing was postponed because petitioner was not done with his treatment and the extent of his injuries had yet to be determined. The November hearing was postponed because twenty-six weeks had not yet elapsed from the time of petitioner's final active medical treatment and, as a result, the nature and extent of petitioner's permanent disability could not yet be adjudicated pursuant to N.J.S.A. 34:15-16. Like

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865 A.2d 735, 374 N.J. Super. 513, 2005 N.J. Super. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorman-v-waters-bugbee-inc-njsuperctappdiv-2005.