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Thursday, July 10, 2008

Deborah K. Pool v. Morristown Memorial Hospital, et al.

06-16-08 A-6183-06T2

Plaintiff, an injured employee who obtained workers' compensation benefits, brought an action against, among others, a treating doctor. Prior to the rendering of a jury verdict, plaintiff and the doctor entered into a high/low agreement, which guaranteed plaintiff $100,000 regardless of a "no cause" or a verdict in a lesser amount. The jury rendered a "no cause" verdict and defendant paid $100,000 to plaintiff as agreed. In subsequent proceedings, the trial judge held that the employer's workers' compensation lien did not attach to this payment. The court reversed, holding that the payment to an employee of the "low" defined by a high/low agreement, which agreement preceded a decision or verdict in favor of an alleged tortfeasor, is subject to the employer's statutory lien.