104 A.D.3d 1013
N.Y. App. Div.2013Background
- Claimant had a compensable workers’ compensation claim in 2003 and also pursued a related third‑party personal injury action.
- On September 16, 2010 the employer’s workers’ compensation carrier consented to a $35,000 settlement of the third‑party action.
- Claimant received the third‑party settlement on October 5, 2010.
- The carrier suspended further payments to claimant on October 1, 2010 pursuant to the settlement and sought an overpayment recovery.
- A Workers’ Compensation Law Judge held that the carrier’s credit against claimant’s third‑party recovery commenced on October 5, 2010 (date of actual receipt).
- The Board affirmed; the employer/carrier challenged contending the credit should commence on September 16, 2010 and sought reversal on that basis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the credit commence under §29(4)? | Carrier contends credit starts September 16, 2010. | Board’s rule that credit starts on actual collection (October 5, 2010). | Reversed; consent‑letter terms control, require remand for proper determination. |
| Does consent letter alone govern credit start date irrespective of who is liable in the third‑party action? | Consent letter language permits start on date of consent. | Start date tied to actual collection or other board precedents. | Reversed; prior precedents and consent terms show start date may be earlier based on consent language. |
| Did the Board irrationally depart from its prior precedent without rational explanation? | Board’s reasoning is inconsistent with prior decisions. | Board properly applied its current view of credit commencement. | Reversed; Board failed to rationally justify departure from established precedent. |
Key Cases Cited
- Matter of Catapano v Jaw, Inc., 73 A.D.3d 1361 (2010) (Board must provide rational explanation when altering precedent; otherwise arbitrary and capricious)
