TRENTON, N.J. (Legal Newsline) – A summary judgment in a case involving a reimbursement of expenses by a Workers' Compensation carrier over an NJ Transit employee's accident was reversed in court.
Superior Court of New Jersey Appellate Division Judge Richard Geiger issued an 18-page ruling on Dec. 4 that reversed the Superior Court of New Jersey, Law Division of Bergen County decision's in the lawsuit filed by New Jersey Transit on behalf its employee David Mercogliano against Sandra Sanchez and Chad Smith.
"In this appeal, we consider whether a workers' compensation carrier can obtain reimbursement of medical expenses and wage loss benefits it paid from tortfeasors who negligently caused injuries to an employee in a work-related motor vehicle accident, if the employee would be barred from recovering non-economic damages from the tortfeasors because he did not suffer a permanent injury," Geiger wrote.
"...We hold NJ Transit's workers’ compensation carrier is permitted to pursue its claim for reimbursement of the worker's compensation benefits paid to the injured employee against the third-party tortfeasors," Geiger wrote.
NJ Transit filed a subrogation action to allow a workers' compensation carrier the right to impose proceedings against third-party tortfeasors seeking to recover damages paid to the injured employee.
As stated in the ruling, "on Dec. 2, 2014, Mercogliano was involved in a motor vehicle collision during the course of his employment," when the NJ Transit-owned vehicle he was driving was involved in a collision with another vehicle driven by Sanchez and owned by Smith.
The ruling states Mercogliano, Sanchez and Smith had personal automobile insurance policies at the time of the accident. In addition to being paid from his own policy, Mercogliano was compensated by the workers' compensation.
"As a direct result of Mercogliano's injuries and lost wages, NJ Transit's workers' compensation carrier paid him $33,625.70 in workers' compensation benefits, comprised of $6,694.04 in medical benefits, $3,982.40 in temporary indemnity benefits, and $22,949.26 in permanent indemnity benefits," the ruling said.
NJ Transit appealed the summary judgment of the lower court that dismissed its subrogation claim against the defendants.
Superior Court of New Jersey Appellate Division case number A-0761-17T3