Paul v. Baltimore Upholstering Co.

328 A.2d 610, 66 N.J. 111, 1974 N.J. LEXIS 144
Supreme Court of New Jersey·Decided November 15, 1974·Published·Cited by 33 cases

Opinion

The opinion of the court was delivered by

Conford, P. J. A. D.,

Temporarily Assigned. The Second Injury Eund (known at times in the past as the One Percent Eund and the Two Percent Eund, and hereinafter referred to as the Eund) created by the Legislature from contributions by employers to absorb in certain cases of permanent and total disability part of the impact on employers of awards of workmen's compensation, L. 1923, c. 81, as amended at various times thereafter (now N. J. 8. A. 34: 15-94, 95, 95.1), seeks review in this court of the imposition of partial liability upon it by the Appellate Division in respect of claims for compensation by Ered Paul for accidental disability arising out of his employment by Baltimore Upholstering Co. (“Baltimore”)

On November 25, 1969 Paul suffered his fourth myocardial infarction, all in the course of employment by Baltimore as an operator and tufter in its upholstering plant. The first one occurred in Eebruary 1966. Eor this he was awarded partial permanent disability of 25% of total. Two additional infarctions in July and December 1966 resulted in another partial permanent disability award of 25% of total. In late 1967 Paul returned to work for Baltimore and continued there (except for a three-month interval in early 1969 when he was ill with coumadin 1 poisoning) until Novembr 25, 1969, at which time he experienced severe chest pains while lifting a piece of furniture at work. The pains *117 persisted, and Paul received medical attention, being hospitalized about a week later. He has not been able to work since the November 1969 incident because of severe “heart” symptoms.

The original 25% award was entered against Eiremen’s Eund American Insurance Company (“Eiremen’s Eund”) and the second against United States Eidelity & Guaranty Company (“U. S. E. & G.”), which were respectively on the risk when the several prior infarctions occurred. In November 1969 Baltimore was covered by Employers Mutual Liability Insurance Company of Wisconsin (“Employers Mutual”), which is the real adversary of the Eund in this litigation.

Paul filed another claim petition for compensation in the Division of Workmen’s Compensation after his 1969 infarction, based thereon, claiming total and permanent disability. Employers Mutual filed an answer and brought in as respondents to that proceeding the two carriers on the prior coverage and also the Eund. Judge of Compensation Saland found Paul to be totally and permanently disabled as a result of the November 1969 heart attack. He dismissed the claim of Employers Mutual against the Eund on the ground that the latter attack “aggravated and accelerated” the prior coronary disability “to the extent that [Paul] is now totally and permanently disabled.” See N. J. 8. Á. 34:15-95(b). The judge held U. S. E. & G. liable for 12 weeks of temporary disability for the coumadin poisoning and Employers Mutual for 450 weeks of compensation at $83.33 per week, less $11,000 in awards paid by the prior carriers, and he dismissed the claim against Eiremen’s Eund.

On Employers Mutual’s appeal to the Appellate Division that tribunal in an unreported per curiam opinion held:

(1) the trial holding that the incident of November 1969 aggravated and accelerated the pre-existing coronary disability, thus rendering the total disability chargeable to the employer alone, was unjustified. The medical proofs compelled a conclusion that the said incident was the cause of *118 only some partial permanent disability, which when combined with and superimposed upon the partial permanent disability previously existing rendered the workman totally and permanently disabled. In such a situation the employer is responsible only for the disability attributable to the incident of November 1969 and the Pund is responsible for the remainder of the permanent total disability, subject to credit for the amounts awarded on the earlier claim petitions. The court directed a remand to the Division of Workmen’s Compensation for allocation of the respective percentages of disability as between the employer and the Pund;

(2) because of the differential between the statutory maximum weekly rates for partial permanent disability ($40.00) and those for total permanent disability (as to this employee, $83.33), the deductions allowable for the earlier awards are to be calculated on the basis of dollars awarded rather than according to the number of weeks for which such awards were granted;

(3) the present award is payable beginning after the payment of the last installment of the previous awards for partial permanent disability, not before.

Paul and the Pund sought certification, which was granted. 65 N. J. 556 (1974). Although Paul’s financial stake in the Appellate Division decision extends only to the delay in receipt of current compensation at full total permanent disability rates, see IV, infra, he also assails the decision that the Pund is responsible for any part of the liability of 450 weeks (less credits for previous payments). He maintains that liability therefor is solely the responsibility of the carrier, while that of the Pund will begin at the expiration of that period, for such extended payments as may become due the workman under N. J. 8. A. 34:15-12(b) (disability of the workman after the 450 weeks notwithstanding rehabilitation efforts to earn wages equal to those earned at the time of the accident).

The Attorney General on behalf of the Pund argued before the Appellate Division for an affirmance of the judgment *119 of the Division of Workmen’s Compensation relieving the Eund of liability. In his petition here, however, assuming the Eund is liable, he attacks the holding of the Appellate Division that the employer’s share of the joint liability is to be measured at the maximum partial disability rate of $40 provided for in N. J. 8. A. 34:15-12(c) rather than a,t the maximum total disability schedule set forth in N. J. 8. A. 34:15-12(b).

I

The initial issue presented for determination is whether the Appellate Division erred in overruling the holding of the Judge of Compensation, in effect, that the permanent total disability following the November 1969 infarction resulted from an aggravation and acceleration by that episode of the previous coronary disability of the workman. If so, it will then be necessary to determine whether, as a matter of law, such a finding of aggravation and acceleration leads to relieving the Eund of liability, as decided by the Judge of Compensation, even though the prior disabilities were compensable.

A

The Appellate Division was required to affirm the finding of fact mentioned above if that finding could reasonably have been reached on sufficient credible evidence present in the whole record, giving due weight to the expertise in the field of the Judge of Compensation and his opportunity of hearing and seeing the witnesses. De Angelo v. Alsan Masons, Inc., 122 N. J. Super. 88, 89 (App. Div.), aff’d o.b., 62 N. J. 581 (1973).

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Paul v. Baltimore Upholstering Co., 328 A.2d 610, 66 N.J. 111, 1974 N.J. LEXIS 144 (N.J. 1974).

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