SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-1469-96T1
RONALD L. WILLIAMS,
Petitioner-Appellant,
v.
A & L PACKING AND STORAGE,
A & L PACKING, ACE MOVING &
STORAGE, GLOBAL VAN LINES,
INC., ACE MOVING & STORAGE
CORP., and GLOBAL VAN LINES,
Respondents-Respondents.
__________________________________
Argued: March 10, 1998 - Decided: August 12, 1998
Before Judges DreierSee footnote 1, P.G. Levy and Wecker.
On appeal from the Department of Labor,
Division of Workers' Compensation.
Alvin M. Gross, argued the cause for
appellant (Gross and Gross, attorneys; Amy S.
Goldstein, on the brief).
Gerard W. Quinn, argued the cause for
respondent Global Van Lines (Cooper Perskie
April Niedelman Wagenheim & Levenson,
attorneys; Christine M. Cotè, on the brief).
Peter Verniero, Attorney General, attorney
for respondent New Jersey Uninsured Employers
Fund, has not filed a brief.
Freeman, Barton & Huber, attorneys for
respondents Ace Moving & Storage and Ace
Moving & Storage, Corp., have not filed a
brief.
The opinion of the court was delivered by
WECKER, J.A.D.
The issue presented by this appeal is whether petitioner
Ronald L. Williams' claims under the New Jersey
Workers'
Compensation
Act, including his claim against the Uninsured
Employers' Fund pursuant to
N.J.S.A.
34:15-120.1, are barred by
his pursuit of
workers' compensation
benefits in Pennsylvania
arising out of the same injury. The trial court dismissed on the
ground that petitioner made an election of remedies by pursuing
workers' compensation benefits in Pennsylvania. Petitioner
appeals that dismissal as well as the denial of his motion for
reconsideration. We conclude that petitioner's New Jersey claims
are not barred, and we therefore reverse.
A brief procedural history is relevant. Petitioner injured
his knee on June 1, 1991, while he was employed as a furniture
mover and working on a job in New Jersey. He first filed a
workers' compensation claim petition in Pennsylvania against
respondent A & L Packing and Storage, a company located in that
state. In that petition he alleged that the injury to his knee
occurred during the course of his employment with A & L. A
Workers' Compensation Judge in Pennsylvania awarded petitioner
wage-loss compensation as well as medical expenses and litigation
costs. The judge also found that A & L had no workers'
compensation insurance at the time of petitioner's work-related
injury. A & L declared bankruptcy shortly thereafter, and
petitioner has received no payment pursuant to that award.
Petitioner next filed claim petitions in the New Jersey
Division of Workers' Compensation against A & L Packing and
Storage, A & L Packing, Ace Moving & Storage, Ace Moving &
Storage Corporation, Global Van Lines, Inc., and Global Van
LinesSee footnote 2, all arising out of the same injury. Petitioner's motion
to join the Uninsured Employers' Fund was granted.
During the course of hearings on his New Jersey petitions,
petitioner filed a workers' compensation claim petition in
Pennsylvania against respondents Ace and Global, again alleging
the same injury. A different Pennsylvania workers' compensation
judge ruled on that petition, and found that petitioner had
sustained a work-related injury on June 1, 1991, while moving
furniture from Flemington to Somerville during the course of his
employment as a truck driver for A & L. The judge also found
that petitioner was an employee of Ace on that date; that Ace had
entered into a contract with A & L to have A & L employees assist
Ace in moving furniture; and that Ace in turn was acting as agent
for Global, which had a contractual arrangement with Ace to move
goods on Global's behalf. Because neither A & L nor Ace had
workers' compensation insurance, and benefits were not
recoverable against either, the Pennsylvania judge ordered Global
to pay petitioner's temporary disability benefits as well as
medical bills and costs of litigation.
The Pennsylvania Workmen's Compensation Appeal Board
affirmed the liability decision as to A & L and Ace, but reversed
as to Global. The Appeal Board cited, as the determinative
elements of a statutory employment relationship, the right to
control the work and the manner in which it is performed, and
concluded that Global was not petitioner's employer at the time
the accident occurred. The Commonwealth Court of Pennsylvania
affirmed the Appeal Board's order that Global was not
petitioner's employer because it had no control over petitioner's
work or the manner in which he performed it.
The New Jersey Workers' Compensation Judge then held that
petitioner's New Jersey action was barred because he had made an
election of remedies by proceeding in Pennsylvania. Petitioner's
claim against the Uninsured Employers' Fund was likewise
dismissed.
Petitioner's appeal does not challenge the factual findings
of the New Jersey
workers' compensation
judge, and therefore is
not governed by the rule of deference to such findings. Compare
Close v. Kordulak, 44
N.J.
589, 599 (1965). Rather this case
requires us to review the judge's legal determinations de novo.
See Perez v. Capitol Ornamental, Concrete Specialties Inc., 288
N.J. Super.
359, 368 (App. Div. 1996) (deference need not be
given where the judge has applied the wrong legal principles).
Cf. Manalapan Realty v. Township Committee of Tp. of Manalapan,
140
N.J.
366, 378 (1995); Borough of Fort Lee v. Banque National
de Paris, 311
N.J. Super.
280, 286 (App. Div. 1998). We find no
support for the conclusion that petitioner's claim is barred
under the doctrine of election of remedies, or the doctrine of
exhaustion of administrative remedies, or under any other rule of
preclusion. Our analysis is informed by decisions of both the
New Jersey Supreme Court and the United States Supreme Court.
The New Jersey Supreme Court considered whether a prior
workers' compensation proceeding that resulted in an award in
another state should preclude an employee from seeking workers'
compensation benefits under the New Jersey statute. Answering
that question in the negative, the Court in Cramer v. State
Concrete Corp.,
39 N.J. 507, 511 (1963), stated:
The question is not whether an employee
should be permitted to bring multiple suits
to enforce the same right, but whether his
pursuit of a right under the laws of one
state should bar the pursuit of a distinct
right under the laws of another state. As a
matter of fairness the employee should
receive "the highest available amount of
compensation" to which he is entitled, so
long, of course, as credit is given for pay
ments received. The problem doubtless arises
because it is difficult to obtain advice with
respect to the laws of all the states
involved. It would be unjust to charge a
workman with an "election" or "estoppel"
because of an uninformed choice. Moreover,
our State has a special interest in the
enforcement of its own compensation plan, so
much so that the parties cannot bargain away
any part of the employee's scheduled
benefits. In short the payment of anything
less than the employee's full due is
repugnant to the policy of our law. For
these reasons we should not hold that an
award elsewhere will deprive the employee of
his right to benefits under our statute.
[Citations omitted.]
Since Cramer, we have on several occasions held that a
pending workers' compensation proceeding or award in another
state does not bar a workers' compensation proceeding in New
Jersey. See Phillips v. Oneida Motor Freight, Inc.,
163 N.J.
Super. 297, 305 (App. Div. 1978) (workers' compensation
proceeding pending in Pennsylvania was no barrier to workers'
compensation claim in New Jersey, even if petitioner's purpose
was to seek highest available amount of compensation); Roberts v.
U.S. Steel Corp.,
125 N.J. Super. 480, 483-84 (App. Div. 1973)
(right to assert workers' compensation claim in another
jurisdiction, or assertion of such a claim, will not preclude
pursuit of workers' compensation remedies in New Jersey); Wenzel
v. Zantop Air Transport, Inc.,
94 N.J. Super. 326, 331 (Cty.
Ct.), aff'd o.b.,
97 N.J. Super. 264 (App. Div. 1967) (receipt of
workers' compensation benefits under proceeding instituted in
Utah by the employer did not preclude the employee from
compensation benefits in New Jersey).
In Thomas v. Washington Gas Light Co.,
448 U.S. 261, 286,
100 S. Ct. 2647, 2663,
65 L. Ed.2d 757, 776 (1980), the United
States Supreme Court held the following:
[A] State has no legitimate interest within
the context of our federal system in
preventing another State from granting a
supplemental compensation award when that
second State would have had the power to
apply its workmen's compensation law in the
first instance. The Full Faith and Credit
Clause should not be construed to preclude
successive workmen's compensation awards.
However, the Court noted that "it is for each State to formulate
its own policy whether to grant supplemental awards according to
its perception of its own interests." 448 U.S. at 285, 100
S.
Ct.
at 2663, 65 L. Ed.
2d at 775-76. The Court further observed
that resolutions of factual matters underlying a judgment must be
given the same res judicata effect in the forum state as they
have in the rendering state. 448 U.S. at 281, 100
S. Ct.
at
2660-61, 65 L. Ed.
2d at 773. Thus neither federal
constitutional principles found in the full faith and credit
clause, nor New Jersey's worker's compensation law, bars an award
here.
Neither the full faith and credit issue left open in Cramer
and resolved by Thomas, nor the doctrine of issue preclusion,
warrants the dismissal of petitioner's claim against Global
pursuant to
N.J.S.A.
34:15-79. The Pennsylvania appellate court
reversed petitioner's
workers' compensation
award against Global
because it found that petitioner was not acting as a statutory
employee of Global at the time of the accident. While Thomas
requires full faith and credit to the Pennsylvania court's
determination that there was no employment relationship between
petitioner and Global, petitioner's claims against Global in New
Jersey rest upon different facts.
N.J.S.A.
34:15-79 establishes criminal penalties for an
employer's failure to provide
workers' compensation
insurance or
alternative protection for its employees, and further provides:
Any contractor placing work with a
subcontractor shall, in the event of the
subcontractor's failing to carry workers'
compensation insurance as required by this
article, become liable for any compensation
which may be due an employee or the
dependents of a deceased employee of a
subcontractor.
The statute is clearly intended to protect the injured employee
directly, as well as to create an incentive for general
contractors to police their sub-contractors' compliance with the
workers' compensation
law. See generally Bertucci v.
Metropolitan Const. Co., 21
N.J. Super.
318 (App. Div. 1952).
New Jersey's general contractor liability statute has no
parallel in Pennsylvania. Thus the Pennsylvania court's finding
that there was no statutory employment relationship did not and
could not decide the issue of Global's statutory liability as a
general contractor under New Jersey law. Collateral estoppel
applies to issues already litigated and determined in the
original action between the parties; res judicata applies both to
issues actually litigated and to those that might have been.
See, e.g., Mazzilli v. Accident & Casualty Ins. Co.,
26 N.J. 307
(1958); Allesandra v. Gross,
187 N.J. Super. 96, 103-04 (App.
Div. 1982); Brae Associates c/o Hertz Realty v. Park Ridge
Borough,
17 N.J. Tax 187 (N.J.Tax 1998) ("The doctrine of
collateral estoppel precludes the relitigation of issues, whereas
res judicata precludes relitigation of judgments."). The
Pennsylvania decision cannot be the basis of preclusion either
under the doctrine of res judicata or collateral estoppel.
Finally, to deny petitioner relief under the New Jersey
statute would be contrary to the liberal interpretation our
courts traditionally gives to
workers' compensation
remedies.
See Stellmah v. Hunterdon Coop. G.L.F. Serv., Inc., 47
N.J.
163,
169 (1966); Chisholm-Cohen v. County of Ocean, Dept. of Emergency
Services,
231 N.J. Super. 348, 350 (App. Div. 1989) (quoting Doe
v. St. Michael's Med. Center, Newark,
184 N.J. Super. 1, 4 (App.
Div. 1982).
We reverse the dismissals and reinstate petitioner's claims,
including his claim against the Uninsured Employer's Fund. We
remand for further proceedings consistent with this opinion.
Footnote: 1 Judge Dreier did not participate at oral argument, but with the consent of counsel he has been added to this panel. Footnote: 2 The record reveals no explanation for the apparent duplication of names for the three entities involved, which we refer to as A & L, Ace, and Global.