(c) 2016 Jon L Gelman, All Rights Reserved.

Tuesday, June 24, 2014

Court of Compensation Does Not Have Jurisdiction for Restitution

A Court of Compensation is not the place for an insurance carrier to seek reimbursement from a responsible entity if it has paid a judgment in error. The NJ Court of Appeals, in affirming a trial decision, ruled that a workers' compensation carrier who erroneously appeared and had entered into a settlement of a workers' compensation claim could not, after payment of the award, could not modify the award to have its name removed as the responsible party.

"Travelers, however, did not present sufficient cause to reopen the settlement to change the identity of the settling entity. If Travelers is entitled to reimbursement for a settlement it mistakenly entered into, it must seek such reimbursement from the liable entity in another court. As Travelers acknowledges, petitioner is not at blame nor should petitioner be involved in litigation seeking to modify the settlement. Workers' Compensation Court is not the proper forum for litigation between two insurers after a judgment has been entered and payment of that judgment made to petitioner."

Not Reported in A.3d, 2014 WL 2807529 (N.J.Super.A.D.)

Related articles