(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
STEIN, J., writing for a unanimous Court.
The issue in this appeal is whether an employee's failure to comply with the notice requirement of
N.J.S.A. 34:15-33 bars his right to recover workers' compensation benefits for an occupational disease.
N.J.S.A. 34:15-33, read literally, bars the payment of benefits for death or disability resulting from
occupational disease unless the employer either had actual knowledge of the condition or received written
notice thereof within five months after the employee ceased to be exposed to the disease or within ninety
days after the employee knew or should have known the nature of the disability and its relation to the
employment.
Arthur Brock worked for PSE&G in various capacities from March l956 until his retirement in l987.
During the course of his employment, he regularly handled and was exposed to asbestos products. In l988,
after his retirement, Brock consulted a physician for shortness of breath. The physician diagnosed his
condition as a mild localized pleural reaction in the right lung. When his symptoms worsened in l989, Brock
consulted a pulmonary internist, who concluded that Brock suffered from pleural asbestosis. The internist
mailed his report to Brock's attorney on November 8, l989. Brock first learned of his condition when he
received a copy of that report from his attorney.
During l990, Brock filed suit against several asbestos manufacturers, distributors, and suppliers,
which was ultimately settled. Thereafter, on October 23, 1991, approximately two years after he learned that
he had been diagnosed with pleural asbestosis, Brock filed a workers' compensation claim against PSE&G,
alleging that he had developed asbestosis as a result of his employment. Prior to trial, PSE&G moved to
dismiss the petition for Brock's failure to comply with the notice requirements of N.J.S.A. 34:14-33. The
Workers' Compensation Court granted PSE&G's motion following a three-day trial, rejecting Brock's
contention that the late notice should not bar the petition because PSE&G had not been prejudiced. In
reaching its conclusion, the Compensation Court apparently determined that prejudice was irrelevant and
that compliance with the statutory notice mandate was a jurisdictional prerequisite to Brock's right to
recover compensation.
The Appellate Division reversed, construing the statutory notice requirement to serve as a bar to
occupational disease claims only if an employer can demonstrate prejudice as a result of the late notice.
Because one member of the Appellate Division panel dissented, Brock appealed to the Supreme
Court as of right.
HELD: The absence of proof of employer prejudice does not excuse an employee's noncompliance with
the notice requirement of N.J.S.A. 34:15-33 and, unless otherwise excused, Brock's failure to provide
PSE&G with the required statutory notice that he had developed a compensable disease mandates dismissal
of his compensation claim.
1. An agency's interpretation of a statute, although entitled to some weight, is not binding on the reviewing
court. (p. 5)
2. Although the Workers' Compensation Act is remedial social legislation that should be given liberal
construction, that construction must be constrained by the plain meaning of the statute and the underlying
purpose of the legislature. (pp. 5-6)
3. The legislative history of N.J.S.A. 34:15-33 does not reveal a legislative purpose to excuse noncompliance
with the notice requirement absent proof of prejudice. (pp. 6-8)
4. Because our courts have apparently assumed that failure to prove compliance with the statutory notice
requirement or that the employer had knowledge of the employee's occupational disease results in an
absolute bar to compensation, courts generally have been lenient in finding compliance with either the notice
or knowledge requirement. (pp. 8-9)
5. In order to avoid imposition of a jurisdictional bar to compensation benefits, courts pragmatically have
applied the statutory notice provision in determining when the employee knew or should have known the
nature of his disability and its relation to his employment. (pp. 9-12)
6. The general rule prevailing in other jurisdictions is that a statutory requirement of notice to the employer
is jurisdictional, and noncompliance results in a bar to compensation. (pp. 12-13)
7. A sharp contrast exists between the provisions of N.J.S.A. 34:15-33 and those of other state statutes that
expressly excuse noncompliance with a notice requirement if an employer is unable to demonstrate prejudice.
(pp. 13-14)
8. The omission of any reference to employer prejudice in N.J.S.A. 34:15-33 reflects a deliberate legislative
choice to exclude employer prejudice as a factor in prescribing the consequences of noncompliance with the
statutory notice requirement. (pp. 14-16)
9. Because Brock never raised the issue of PSE&G's actual knowledge of his disease, the matter is
remanded to the Workers' Compensation court to consider that issue. (p. 17)
Judgment of the Appellate Division is REVERSED and the matter is REMANDED to the Workers'
Compensation court.
CHIEF JUSTICE PORITZ and JUSTICES HANDLER, O'HERN and COLEMAN join in
JUSTICE STEIN's opinion. JUSTICES POLLOCK and GARIBALDI did not participate.
SUPREME COURT OF NEW JERSEY
A-
90 September Term 1996
ARTHUR BROCK,
Petitioner-Respondent,
v.
PUBLIC SERVICE ELECTRIC & GAS CO.,
Respondent-Appellant.
Argued February 3, 1997 -- Decided May 29, 1997
On appeal from the Superior Court, Appellate
Division, whose opinion is reported at
290 N.J. Super. 622 (1996).
Robert Silver argued the cause for appellant
(Michals, Wahl, Silver & Leitner, attorneys).
Susan P. Callahan argued the cause for
respondent (Galex, Tortoreti & Tomes,
attorneys).
The opinion of the Court was delivered by
STEIN, J.
This appeal concerns the effect of a failure to comply with
the notice requirement of N.J.S.A. 34:15-33 on an employee's
right to recover workers' compensation benefits for an
occupational disease. Read literally, that statutory provision
bars the payment of benefits for death or disability resulting
from occupational disease unless the employer either had actual
knowledge of the condition or received written notice thereof
within five months after the employee ceased to be exposed to the
disease or within ninety days after the employee knew or should
have known the nature of the disability and its relation to the
employment, whichever is later.
A divided panel of the Appellate Division held in a
published opinion that failure to comply with the statutory
notice requirement is not a bar to compensation unless the
employer was prejudiced by the noncompliance.
290 N.J. Super. 221, 227 (1996). The dissenting member was of the view that non-compliance with the statute precluded recovery of benefits,
irrespective of prejudice to the employer. Id. at 230-31
(Loftus, J.A.D., dissenting). The employer, Public Service
Electric & Gas Co. (PSE&G), appeals as of right. R. 2:2-1(a)(2).
Respondent, Arthur Brock, worked for PSE&G in various
capacities including utility helper, boiler cleaner, maintenance
helper and machinist from March 1956 until his retirement in
1987. That he regularly handled and was exposed to asbestos
products in the course of his employment at PSE&G is not
disputed.
When Brock experienced shortness of breath in 1988, an
attorney suggested that he consult a physician, who diagnosed his
condition as a mild localized pleural reaction in the right lung
and recommended a reevaluation in six months. When his symptoms
worsened in 1989, Brock was examined by Dr. David Goldstein, a
pulmonary internist, who concluded in a report dated October 19,
1989, but mailed November 8, 1989, to Brock's attorney that Brock
suffered from pleural asbestosis. Apparently, Brock first
learned of his condition when he received a copy of Dr.
Goldstein's report from his attorney.
During 1990, Brock instituted suit against various
manufacturers, distributors, and suppliers of asbestos materials
to which he had been exposed while working for PSE&G. The suit
was settled, and Brock received a series of payments from
defendants commencing March 14, 1991, and ending July 7, 1993.
On October 23, 1991, approximately two years after he
learned that he had been diagnosed with pleural asbestosis, Brock
filed a workers' compensation claim petition against PSE&G
alleging that he had developed asbestosis as a result of his
employment. Although PSE&G did not assert in its answer to the
petition Brock's failure to comply with the notice requirements
of N.J.S.A. 34:14-33, it moved to dismiss the petition on that
ground prior to trial and the pretrial order included the failure
to give notice as an issue in dispute. The Appellate Division
rejected Brock's contention that PSE&G's failure to assert lack
of notice as a defense in its answer constituted a waiver of the
issue, reasoning "that Brock was actually aware throughout these
proceedings that [PSE&G] had contested the adequacy of the notice
given." 290 N.J. Super. at 224. That disposition is not
contested before this Court.
After the conclusion of the three-day trial, the Workers'
Compensation court granted PSE&G's motion to dismiss the petition
because of Brock's failure to provide timely notice, as required
by N.J.S.A. 34:15-33, that he had contracted a compensable
occupational disease. The Workers' Compensation court observed
that even if Brock's first knowledge of his disability and its
relationship to his employment did not occur until March 14,
1991, the date on which he received the first settlement check
from the third-party tort action that he had instituted, he did
not notify his employer until more than seven months later.
Rejecting the contention that the late notice should not bar the
petition because PSE&G had not been prejudiced, the Workers'
Compensation court apparently concluded that prejudice was
irrelevant and that compliance with the statutory notice mandate
was a jurisdictional prerequisite to Brock's right to recover
compensation.
Reversing, the Appellate Division majority acknowledged the
existence of a substantial body of out-of-state decisional law
holding that failure to comply with analogous workers'
compensation statutory notice provisions bars recovery
irrespective of prejudice to the employer, and that the contrary
decisions excusing late notice based on lack of prejudice were
based on statutory provisions specifically authorizing that
result. 290 N.J. Super. at 225-26. The majority also
acknowledged that N.J.S.A. 34:15-33 contains no reference
whatsoever to employer prejudice. Nevertheless, the court
construed the statutory notice requirement to serve as a bar to
occupational disease claims only if an employer can demonstrate
prejudice as a result of the late notice. Id. at 227.
The basic principles that govern disposition of this appeal
are well settled. The standard for appellate review of a
workers' compensation judge's determination is equivalent to that
used for review of any nonjury case, which requires the reviewing
court to determine whether the findings reasonably could have
been reached on the basis of sufficient credible evidence in the
record, with due regard to the agency's expertise. Close v.
Kordulak Bros.,
44 N.J. 589, 599 (1965). An agency's
interpretation of a statute, however, although entitled to some
weight, is not binding on the reviewing court. Carpet Remnant
Warehouse v. Department of Labor,
125 N.J. 57, 587 (1991).
First enacted in 1911, see L. 1911, c. 95, the Workers'
Compensation Act (Act) is "humane social legislation designed to
place the cost of work connected injury upon the employer who may
readily provide for it as an operating expense." Tocci v.
Tessler & Weiss, Inc.,
28 N.J. 582, 586 (1959). Our courts
consistently have accorded the Act a liberal construction. See
Bunk v. Port Auth.,
144 N.J. 176, 191 (1996); Squeo v. Comfort
Control Corp.,
99 N.J. 588, 596 (1985); see also Kahle v.
Plochman, Inc.,
85 N.J. 539, 547 (1981) ("It has long been
axiomatic to this Court that the Act is remedial social
legislation and should be given liberal construction in order
that its beneficent purposes may be accomplished.").
Nevertheless, our courts have observed that the preference for a
liberal construction of the Act must be constrained by the plain
meaning of the statute and the underlying purpose of the
legislature. See Bowen v. Olesky,
20 N.J. 520, 526 (1956)
("While the act is remedial in its nature, we will not by
judicial decree direct compensation contrary to the legislative
enactment and intention."); accord Bush v. Johns-Manville Prods.
Corp.,
154 N.J. Super. 188, 192 (App. Div. 1977), certif. denied,
75 N.J. 605 (1978); Buzza v. General Motors Corp.,
49 N.J. Super. 322, 333 (App. Div. 1958).
The legislative history of N.J.S.A. 34:15-33 does not reveal
a legislative purpose to excuse noncompliance with the notice
requirement absent proof of prejudice. The notice provision was
enacted in 1924 when the Legislature amended the Act to provide
coverage for injury or death sustained as a result of an
occupational disease. L. 1924, c. 124. The 1924 amendments
required that compensation claims based on occupational disease
had to be filed within one year after the employee ceased to be
exposed to the occupational disease in the course of employment,
L. 1924, c. 124, § 22(e) (codified as amended at N.J.S.A. 34:15-34), and also provided that no compensation would be payable
unless notice that the employee has contracted a compensable
occupational disease was provided to the employer "within a
period of five months after the date when said employee shall
have ceased to be subject to exposure to such occupational
disease." L. 1924, c. 124, § 22(d) (codified as amended at
N.J.S.A. 34:15-33).
A 1948 amendment to the Act modified both the notice
provision and the time limitation for filing occupational disease
claims. L. 1948, c. 468 (codified at N.J.S.A. 34:15-33, -34).
Under the 1948 amendment, claims are required to be filed within
two years after the employee ceased to be exposed to the
occupational disease in the course of employment, or within one
year after the employee knows or should know the nature of his
disability and its relation to his employment, whichever is
later. N.J.S.A. 34:15-34. Similarly, the amended notice
provision required notice to the employer within five months
after the employee ceased to be exposed to the disease or "within
ninety days after the employee knew or ought to have known the
nature of his disability and its relation to his employment,"
whichever is later. N.J.S.A. 34:15-33. The statement
accompanying the 1948 amendment when presented to the Senate,
although focusing on the reason for extending the filing period
for occupational disease claims, also explains the Legislature's
rationale for modifying the notice requirement:
The present workmen's compensation act in New
Jersey provides that compensation for an
occupational disease is forever barred unless
the claim for such compensation is filed
within one year after the employee ceased to
be exposed, in the course of employment, to
the occupational disease. Thus, our
workmen's compensation act fails to recognize
the established fact that some occupational
diseases have not become manifest until a
considerably longer time than one year after
cessation of the exposure. The essential
purpose of this bill is to extend the
statutory limitation period in an equitable
and reasonable manner and, thereby, to
establish in New Jersey a progressive policy
in this matter comparable to that in New
York, Wisconsin and other States.
[Statement to Senate Bill No. 306
(Apr. 26, 1948).]
It is generally acknowledged that the two primary objectives
of the notification requirement are: (1) to afford the employer a
timely opportunity to investigate the claim when the facts remain
accessible; (2) to enable the employer to provide medical care in
order to minimize the employee's injury. See Bucuk v. Edward A.
Zusi Brass Foundry,
49 N.J. Super. 187, 199 (App. Div.), certif.
denied,
27 N.J. 398 (1958); Arthur Larson, 2B Workmen's
Compensation Law § 78.10 at 102 (1990).
Although the question whether lack of prejudice to the
employer can excuse noncompliance with the notice requirement of
section 33 has not previously been decided, our courts apparently
have assumed that failure to prove that the employee complied
with the statutory notice requirement, or that the employer had
knowledge of the employee's occupational disease, results in an
absolute bar to compensation. As a result, courts generally have
been rather lenient in finding compliance with either the notice
or knowledge requirement. See Gamon Meter Co. v. Sims,
114 N.J.L. 590, 593-94 (Sup. Ct. 1935) (holding actual knowledge
requirement fulfilled by employer's observation during course of
employment that employee manifested unmistakable symptoms of
chronic lead poisoning); A. Fishman Hat Co. v. Rosen, 6 N.J.
Misc. 667, 669 (Sup. Ct. 1928), (holding that notice from
examining physician to employer regarding employee's disability
from occupational disease satisfied statutory notice requirement)
aff'd, 106 N.J.