eNotes: Workers’ Compensation – November 2022 – New Jersey

SIGNIFICANT CASE SUMMARIES

New Jersey Case Summary

Saiti v. Garden Homes
No. A-1328-20
Superior Court of New Jersey Appellate Division

Decided October 11, 2022

Respondent needs to be provided the opportunity to present a justification for delay of payment of an award on Motion to Enforce.

Background

A Permanency Award was entered for a total of $66,074.00, plus fees and costs as assessed by the Court, and Respondent failed to pay that award as memorialized by the Workers’ Compensation Judge within the statutory 60 days. Petitioner’s attorney filed a Motion to Enforce the award, and a telephone conference was held around 90 days following the execution of the award. The Workers’ Compensation judge entered an award assessing substantial penalties (over $25,000.00 in additional costs on the insurance carrier) due to payments being over 90 days delayed. Respondent appealed the penalties and sanctions citing the Workers’ Compensation Judge abused its discretion, specifically in entering an Order without findings on the record.

Holding

The Appellate Division overturned the award of penalties and sanctions, and remanded the matter back to the Workers’ Compensation Judge to make findings regarding the reasonableness of delay and provide Respondent the chance on the records to provide justification for delay in payment. The decision also engages in discussion as to whether the New Jersey Workers’ Compensation Act does in fact statutorily hold Employers to payment of awards within 60 days. The Appellate Division – un-shockingly – found that N.J.S.A. 34:15-28 specifically identifies that all awards are to be paid within 60 days.

Takeaway

While the Order was remanded and overturned, Respondent in this matter will likely still have to pay penalties and sanctions as assessed by the Court. The basis for overturning the Order was that Respondent was not provided the opportunity to present evidence to provide a justification as to the late payments. Respondent was denied its day in Court. However, the remand says nothing about the amount of the penalty. This decision, even with Respondent being successful, is a good example as to pay awards within the statutory 60 day period to avoid a Motion to Enforce.

Questions about this case can be directed to Caroline E. Gentilcore, Esquire at 908-528-2600 or cgentilcore@tthlaw.com.