Laddey Clark & Ryan, LLP is proud to share a significant victory for our Workers’ Compensation Department and, more importantly, for injured workers who are too often forced to wait for benefits they are legally owed.
The New Jersey Appellate Division affirmed an order of the Division of Workers’ Compensation imposing sanctions after an employer and its insurance company, Liberty Mutual, failed to timely pay court-approved settlement proceeds to an injured worker.
The case arose after the workers’ compensation court entered an Order Approving Settlement in favor of the petitioner, represented by LCR’s Workers’ Compensation department, for permanent disability benefits. After the order was entered, Laddey Clark & Ryan promptly supplied all necessary information and repeatedly followed up with respondent’s counsel as the statutory payment deadline approached.
Under N.J.S.A. 34:15-28, when lawful compensation is withheld from an injured worker for 60 or more days following entry of a judgment or order, the Division of Workers’ Compensation may add simple interest for the period of delay. New Jersey law also gives judges of compensation authority to impose additional remedies when an employer, insurer, or other party fails to comply with a compensation order, including costs, interest, an assessment for unreasonable payment delay, and reasonable legal fees.
Rather than promptly pay what was owed, the insurance carrier held onto the money and despite Laddey Clark & Ryan’s efforts, payment was not received within the required time period. When the payment still had not arrived after the 60 days had expired, Laddey Clark & Ryan moved to compel compliance with the court’s order. The workers’ compensation judge found that respondent had failed to comply and awarded interest, sanctions equal to twenty-five percent of the original payment due, attorney’s fees, and costs.
Liberty Mutual appealed, arguing that payment had been timely issued – even though it had not been mailed prior to the expiration of the 60 day period. The Appellate Division rejected Liberty Mutual’s argument because the insurance carrier could not verify that the check had actually been mailed before the statutory deadline. The court found that substantial credible evidence supported the workers’ compensation judge’s determination that the check was issued beyond the deadline. The court also emphasized the unexplained delay, lack of communication, and failure to provide confirmation of mailing as factors supporting the finding that the delay was unreasonable.
The Appellate Division affirmed the sanctions award, holding that the workers’ compensation judge acted within his discretion under New Jersey law. The court recognized that a judge of compensation has authority to impose costs, interest, an additional assessment for unreasonable payment delay, attorney’s fees, and other appropriate relief when a party fails to comply with an order or workers’ compensation statute.
This decision matters because injured workers depend on timely payment of their benefits. A workers’ compensation settlement is not an empty promise. Once a court enters an order, the employer and its insurance carrier must comply. Delayed payment can place serious pressure on injured workers and their families, especially when they are already dealing with the physical, emotional, and financial consequences of a workplace injury.
At Laddey Clark & Ryan, we understand that insurance companies do not always move with the urgency injured workers deserve. Too often, workers must fight not only to obtain an award or settlement, but also to make sure the money is actually paid. When payment is delayed without good reason, we are prepared to hold employers and insurance carriers accountable.
This result is an important reminder: injured workers have rights, court orders matter, and delay has consequences.
Our Workers’ Compensation Department is committed to standing up for injured workers throughout New Jersey. Whether an insurance company denies a claim, delays treatment, disputes disability, or fails to timely pay benefits, we fight to make sure our clients receive the compensation and medical care the law provides.
To read this decision click here: REGULAR OPINION (OPN-AFFIRMED)
