Frank Petro recently represented a 64-year-old warehouse operator who alleged that his employment duties over the course of 32 years resulted in the need for bilateral hip replacements superimposed on various preexisting conditions. The claim was completely contested by the employer. The employer’s previous owners had transferred ownership and the carriers for the previous owners were also named. He had had remote bilateral knee replacement surgeries performed in 2013 but never pursued a potential workers’ compensation claim at that time.
Ultimately there was a global settlement of the claim whereby all of the medical liens would be satisfied with the petitioner receiving a gross tax-free compensation award for a Section 20 settlement against the last employer in the gross amount of $275,000.00 with the remaining remote carriers contributing an additional $85,000.00
This matter illustrated the use of Section 20 in a New Jersey Workers’ Compensation case when there are serious issues concerning the compensability of the case. In such a case, the Compensation Court, with the petitioner being properly represented, can approve a one-time lump sum settlement in return for a dismissal of the claims. This type of settlement cannot be accomplished unless there is a formal claim petition or petitions filed within a Division and the matters are approved by the Workers’ Compensation Court. Furthermore, the Compensation Judge has to make certain that the petitioner understands the terms of the settlement, that the settlement is voluntary and that there are appropriate issues to allow the use of Section 20 of the statute which in turn dismisses the claim. This is why a Section 20 settlement requires that the petitioner be represented by competent counsel.
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