SYLLABUS
(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).
Sandra E. Brower v. ICT Group (A-40-99)
Argued March 27, 2000 -- Decided July 13, 2000
COLEMAN, J., writing for a majority Court.
The issue before the Court is whether an employee, who punched out at the end of the workday and
thereafter falls while descending rear stairs that lead from the street only to the injured worker's employer's offices
in a multi-tenant office building, has sustained a compensable accident under the Workers' Compensation Act (the
Act).
Sandra Brower was employed by ICT Group as a telemarketer. She was injured on May 9, 1997 when she
fell down concrete steps within a two-story multi-tenant building. ICT Group was located on the second floor of the
office building. There were three ways to gain access to ICT Group's leased premises: 1) an elevator centrally
located in front of the building and opening across from the main entrance to ICT Group's offices; 2) a front stairway
next to the elevator; and 3) a rear stairway that opened only to ICT Group's leased premises and the basement,
functioning similar to a fire escape. The rear stairway had an outside entrance on the ground level and was fully
enclosed, with its top landing covered with the same carpeting as inside ICT Group's offices. There was a doorway
that led directly from the top landing into ICT Group's premises. This rear stairway was used by ICT Group
employees for ingress and egress to the office and to take smoking breaks. No customers or clients visited the
premises and the rear stairway and top landing were cleaned by the landlord.
Brower fell from the top landing of the stairway after she had punched out on the time clock and had exited
through the rear doorway to the stairwell. Brower contends that the rear stairs were essentially part of ICT's leased
premises and that ICT controlled the stairway within the meaning of the Act. Therefore, Brower maintains that the
accident is compensable because she had not left her place of employment. ICT Group contends that based on the
premises rule, the accident is not compensable because Brower had left her place of employment and the accident
occurred in a place the employer did not control.
The Judge of Compensation found that under both the coming and going rule and the premises rule, the
accident was not compensable. The judge reasoned that the 1979 amendments to the Act represented a legislative
mandate to contain the costs of workers' compensation by limiting the judicially-created exceptions to the going and
coming rule. The judge was of the view that the Legislature accomplished its goal by specifically establishing a
premises rule that defined when employment begins and ends. The Appellate Division affirmed, substantially for the
reasons expressed by the Judge of Compensation.
The Supreme Court granted Brower's petition for certification.
HELD: Based on a consideration of the undisputed facts, such as the physical location and layout of the rear
stairway, and the controlling legal principles and social policies advanced by the Workers' Compensation
Act, Sandra Brower's accident is compensable.
1. Employment begins when an employee arrives at the employer's premises to report for work and ends when the
employee leaves the employer's place of employment, excluding areas not under the control of the employer. An
injury to an employee that happens going to or coming from work arises out of and in the course of employment if
the injury takes place on the employer's premises. Under the Act, accidents are not compensable if they occur in
areas outside of the employer's control. (Pp. 5-6)
2. The fact that Brower punched out does not preclude compensability. The dispositive factors are the site of the
accident and the employer's control. Whether ICT Group leased the rear stairway is irrelevant; it is ICT Group's
conduct regarding the site of the accident that is important in determining control under the premises rule. An
accident is compensable if the employer has the right of control; it is not necessary to establish that the employer
actually exercised that right. (Pp. 6-7)
3. ICT Group knew or should have known that its employees used the back stairway to come and go and for
smoking breaks. Given that knowledge and its failure to take any action forbidding employee use of the stairway,
ICT Group ratified its employees' use of the rear stairway for ingress and egress. Moreover, the physical layout and
location of the rear stairway prevents it from being considered a common area. Thus, consistent with the policy of
liberally interpreting the Act to favor employees, and because an employee is entitled to safe egress from the work
premise, Brower's accident is compensable.
Judgment of the Appellate Division is REVERSED and the matter is REMANDED to the Law Division
for further proceedings.
JUSTICE VERNIERO, dissenting, is of the view that, in the absence of the employer's business use or
ownership of the rear stairway, an employee's idiosyncratic use does not support a finding that the stairway is an
extension of the employer's premises. Further, an employer does not control a stairway merely because the
employer refrains from taking action to disapprove an individual employee's selective use of that area. The plain
words of the statute, prior case law, and public policy require that the judgment of the Appellate Division be
affirmed.
CHIEF JUSTICE PORITZ and JUSTICES O'HERN, STEIN, LONG and LAVECCHIA join in
JUSTICE COLEMAN'S opinion. JUSTICE VERNIERO filed a separate dissenting opinion.
SUPREME COURT OF NEW JERSEY
A-
40 September Term 1999
SANDRA E. BROWER,
Petitioner-Appellant,
v.
ICT GROUP,
Respondent-Respondent.
Argued March 27, 2000-- Decided July 13, 2000
On certification to the Superior Court,
Appellate Division.
William A. Sheehan argued the cause for
appellant.
Francis T. Giuliano argued the cause for
respondent (Mattson & Madden, attorneys;
LeRoy H. Mattson, of counsel; Michael J.
Pasnik, on the brief).
The opinion of the Court was delivered by
COLEMAN, J.
This workers' compensation case raises the issue of whether
an employee, who has punched out at the end of the workday and
falls while descending steps that lead from the street only to
the injured worker's employer's offices in a multi-tenant office
building, has sustained a compensable accident under the Workers'
Compensation Act, N.J.S.A. 34:15-1 to -128 (Act). The Division
of Workers' Compensation (Division) and the Appellate Division
held that the accident is not compensable. We granted the
worker's petition for certification,
162 N.J. 486 (1999), and now
reverse.
I.
The controlling facts were stipulated by the parties.
Petitioner Sandra Brower, a forty-year-old telemarketer employed
by respondent ICT Group, was injured on May 9, 1997 when she fell
down concrete stairs within a two-story multi-tenant building.
ICT Group was located on the second floor of the building, with
three accesses to its leased premises. An elevator was centrally
located in the front of the building and opened across from the
main entrance to ICT Group's offices. There was a front stairway
accessory to the elevator. In addition, there was the back
stairway on which petitioner fell.
The rear stairway opened only into ICT Group's leased
premises and the basement, functioning much like a fire escape.
It had an outside entrance on the ground level. It was a fully
enclosed stairway with its top landing carpeted with the same
floor covering as the inside of ICT Group's offices. There was a
doorway that led directly from the top landing into ICT Group's
premises. This rear stairway was used by ICT Group employees for
ingress and egress to the offices and to take smoking breaks on
the carpeted landing. ICT Group had no special requirements or
prohibitions concerning which means of ingress and egress were
used by employees. It had no customers or clients who visited
the premises because it provided telemarketing services. The
rear stairway and its top landing were cleaned by the landlord.
The record does not inform us who cleaned ICT Group's offices.
Employees frequently propped open the door to that stairway for
easy access.
Petitioner sustained her accident after she had punched out
on the time clock. After stepping through the ICT Group's
doorway to the rear stairway, she fell from the top landing of
the stairway.
The Judge of Compensation found that under both the going
and coming rule and the premises rule the accident was not
compensable. He reasoned that the 1979 amendments to the Act
represented a legislative mandate to contain the costs of
workers' compensation by limiting the judicially-created
exceptions to the going and coming rule. He was of the view that
the Legislature accomplished that purpose by specifically
establishing a premises rule that defined when employment begins
and ends. The Appellate Division, in an unpublished opinion,
affirmed substantially for the reasons expressed by the Judge of
Compensation.
II.
Petitioner argues that the rear stairs were essentially part
of her employer's leased premises and that her employer
controlled that stairway within the meaning of the Act. She
maintains that the accident is compensable because she had not
left her place of employment. The respondent, on the other hand,
contends that based on the premises rule the accident is not
compensable because petitioner had left her place of employment
and the accident occurred in a place the employer did not
control.
A.
Only two years ago, we stated succinctly the overriding
legal principles that inform our determination of whether the
accident transpired on ICT Group's premises or whether it falls
within the going and coming rule. We stated:
The going and coming rule that existed
in workers' compensation jurisprudence since
the inception of the Act was abrogated by the
1979 amendments to the Act.
L. 1979,
c. 283,
§ 12. In its place, the Legislature
established the premises rule. That was
accomplished by defining for the first time
when employment begins and ends. Pertinent
to this case, the amendments provide:
Employment shall be deemed to commence when
an employee arrives at the employer's place
of employment to report for work and shall
terminate when the employee leaves the
employer's place of employment, excluding
areas not under the control of the employer.
N.J.S.A. 34:15-36.
The premises rule is based on the notion
that an injury to an employee that happens
going to or coming from work arises out of
and in the course of employment if the injury
takes place on the employer's premises.
Cressey v. Campus Chefs, Div. of CVI Serv.,
Inc.,
204 N.J. Super. 337, 342-43,
498 A.2d 1274 (App. Div. 1985). The premises rule
limits recovery to injuries which occur on
the employer's premises . . . by confining
the term 'course of employment' to the
physical limits of the employer's premises.
Id. at 342,
498 A.2d 1274. Thus, unless one
of the statutory exceptions not implicated
here is triggered, an employee who is not
physically on the employer's premises is not
technically in the course of the employment.
Livingstone v. Abraham & Straus, Inc.,
111 N.J. 89, 96,
543 A.2d 45 (1988).
The Legislature used the phrase
excluding areas not under the control of the
employer in its definition of employment
because it intended to include areas
controlled by the employer within the
definition. That phrase was intended to make
clear that the premises rule can entail more
than the four walls of an office or plant.
[Kristiansen v. Morgan,
153 N.J. 298, 316
(1998), modified for other reasons,
158 N.J. 681 (1999)].
The premises rule is important because as a general rule we
interpret the [Act] as not allowing compensation for accidents
occurring in areas outside of the employer's control. Zelasko
v. Refrigerated Food Express,
128 N.J. 329, 336 (1992). The fact
that petitioner had punched out on the time clock does not
preclude compensability because the situs of the accident and the
employer's control of that location are the dispositive factors.
See Kristiansen, supra, 153 N.J. at 317 (stating an employee who
punches out on the time clock at the [employer's] front entrance
and is injured while walking through the plant to reach his or
her car parked in a rear parking lot sustains a compensable
accident); Cressey supra, 204 N.J. Super. at 343 (stating duties
of maintenance do not indicate control). Thus, the premises rule
determines whether petitioner's accident is compensable. The
narrow issue is whether ICT Group controlled the stairway on
which petitioner fell. Whether the employer leased that stairway
is not a relevant consideration. 1 Arthur Larson, The Law of
Workmen's Compensation § 15.43 (1990). The employer's conduct
regarding the situs of the accident, however, is an important
consideration in determining control. See generally Ramos v. M &
F Fashions, Inc.,
154 N.J. 583, 591-93 (1998) (analyzing
employer's conduct regarding a freight elevator in determining
whether employer exercised control).
B.
The meaning of control under the Act is more expansive
than under formal property law concepts.
Ramos,
supra, 154
N.J.
at 592;
Livingstone,
supra, 111
N.J. at 105;
Ehrlich v.
Strawbridge & Clothier,
260 N.J. Super. 89, 92 (App. Div. 1992),
certif. denied,
133 N.J. 435 (1993). The phrase in
N.J.S.A.
34:15-36, excluding areas not under the control of the
employer, does not relate to concepts of exclusive control or
duties of maintenance.
Cressey,
supra, 204
N.J. Super. at 343.
Indeed, that statute uses no adjective to modify control. It
is well-established in workers' compensation jurisprudence that
when compensability of an accident depends on control of the
employer, that test is satisfied if the employer has the right of
control; it is not necessary to establish that the employer
actually exercised that right.
Mahoney v. Nitroform Co.,
20 N.J. 499, 506 (1956);
Kertesz v. Korsh,
296 N.J. Super. 146, 153 (App.
Div. 1996);
Pollack v. Pino's Formal Wear & Tailoring,
253 N.J.
Super. 397, 408 (App. Div.),
certif. denied,
130 N.J. 6 (1992);
Brower v. Rossmy,
63 N.J. Super. 395, 405 (App. Div. 1960),
certif. denied,
34 N.J. 65 (1961); 1B Arthur Larson,
The Law of
Workmen's Compensation § 44.10 (1993). In
Ramos,
supra, we
concluded that where the employer has the right to control its
employees' use of property for ingress or egress to its place of
employment, and an accident occurs on that property, the accident
is compensable. 154
N.J. at 593-94. The foregoing principles are
consistent with the social policy of liberally construing the Act
to implement the legislative policy of affording coverage to as
many workers as possible.
Saunderlin v. E.I. DuPont Co.,
102 N.J. 402, 419 (1986).
C.
Based on our consideration of the undisputed facts, such as
the physical location and layout of the stairway, and the
controlling legal principles and social policies advanced by the
Act, we conclude that the accident is compensable. The
undisputed facts reveal that ICT Group knew or should have known
that its employees used the back stairway for ingress and egress
and for smoking breaks. The stairway ended at an entrance to
respondent's premises and none of its customers or clients
visited the premises. Given its knowledge and its failure to
take any action disapproving its employees' use of that stairway,
respondent ratified its employees' use of that stairway for
ingress and egress. That is so because, although it is clear
that ICT Group had the capacity to deny use by its employees, it
chose not to, likely because it was perceived that business
purposes would not be advanced or compromised thereby since no
customers or clientele visited the premises.
Furthermore, the physical layout and location of the rear
stairway prevents it from being considered a common area. It is
tantamount to a private staircase used exclusively by ICT Group's
employees. That is its only purpose. Hence, this case involves
an accident that occurred within the physical premises of ICT
Group and cases involving off-premises accidents or common areas
are not controlling.
See,
e.g.,
Novis v. Rosenbluth Travel, 138
N.J. 92, 93 (1994) (involving fall while walking across the only
sidewalk leading from an office-building parking lot to the
entrance of the office building in which [petitioner's]
employer's branch office was located);
Livingstone,
supra, 111
N.J. at 91 (involving a petitioner who was struck by a motor
vehicle while walking to her employer's place of business after
parking in employer-designated parking area of a mall parking
lot);
Ehrlich,
supra, 260
N.J. Super. at 90 (involving a
petitioner who fell on a public sidewalk after exiting a door
leading from employer's premises to sidewalk).
Consistent with the policy of liberally interpreting the Act
to favor employees,
Close v. Kordulak Bros.,
44 N.J. 589, 604
(1965), and because an employee, as part of [his or her]
employment, [is entitled to] safe egress from the premises,
Cressey,
supra, 204
N.J. Super. at 344, the accident that befell
petitioner is compensable.
III.
We reverse the judgment of the Appellate Division and remand
the matter to the Division for further proceedings.
CHIEF JUSTICE PORITZ and JUSTICES O'HERN, STEIN, LONG, and
LaVECCHIA join in JUSTICE COLEMAN's opinion. JUSTICE VERNIERO
filed a separate dissenting opinion.
SUPREME COURT OF NEW JERSEY
A-
40 September Term 1999
SANDRA E. BROWER,
Petitioner-Appellant,
v.
ICT GROUP,
Respondent-Respondent.
VERNIERO, J., dissenting.
The Court finds in favor of compensability, based on its
conclusion that the stairway on which the injury occurred was
tantamount to a private staircase, thereby making the area part
of the employer's premises in satisfaction of the test required
under the workers' compensation statute. I hold a contrary view.
I believe that in the absence of the employer's business use or
ownership of the stairway, an employee's idiosyncratic use does
not support a finding that the stairway is an extension of the
employer's premises. Further, in my view, an employer does not
control a stairwell merely because the employer refrains from
taking action to disapprove an employee's individual and
selective use of that area. The plain words of the statute,
prior case law, and public policy require that we affirm the
Appellate Division. Therefore, I respectfully dissent.
I.
The majority has stated the salient facts. I emphasize the
following. Petitioner's injury occurred in a stairway that was
not owned or leased by the employer; not required to be
maintained by the employer; not designated by the employer to be
used by the employees; not used by the employer in furtherance of
its business; not providing any special benefit to the employer;
not the exclusive means of ingress or egress to or from the
employer's premises; not restricted to the exclusive use of the
employees; and not posing any special hazard.
Specifically, the judge of compensation found that the
stairway on which petitioner was injured, one of three means of
ingress and egress, was not owned, leased, maintained,
controlled,
nor used . . . at all by the employer in its
telemarketing business. Besides leading to a balcony outside of
the employer's premises, the stairway also provided access to the
building's basement. The employer had no requirements concerning
which of the three means of egress were to be used by the
employees. The compensation judge found as well that as a
telemarketing business, the employer had no customers who might
have used the stairway. The judge also found that [t]he
employees' use of the rear stairway furnished no benefit to the
employer, and the stairway provided no inherent danger to the
employees greater than that to which the general public [was]
exposed in using any public stairway.
Notably, the compensation judge did
not find that the
stairway was used exclusively by the employees of petitioner's
employer. Further, although many of the facts were stipulated by
the parties, there was no stipulation that the employer knew that
employees used the stairway for ingress or egress, that the
employees took cigarette breaks on the stairway, or that the
employees propped open the door leading to the stairway. None of
those facts appear in the compensation judge's findings, apart
from recounting petitioner's allegations.
We are bound by the factual findings of the compensation
judge.
Reinhart v. E. I. DuPont De Nemours,
147 N.J. 156, 163-64
(1996);
Manzo v. Amalgamated Indus. Union Local 76B,
241 N.J.
Super. 604, 609 (App. Div),
certif. denied,
122 N.J. 372 (1990).
II.
As amended in 1979, the Workers' Compensation Act (Act)
provides that employment shall terminate when the employee
leaves the employer's place of employment,
excluding areas not
under the control of the employer . . . .
N.J.S.A. 34:15-36
(emphasis added) (hereafter sometimes referred to as the 1979
amendment). The judicial backdrop to the 1979 amendment is
critical to understanding how the present case should be
resolved. Although this Court has previously provided an
extensive narrative of that history,
Livingstone v. Abraham &
Strauss,
111 N.J. 89, 95-103 (1988), it is useful to recount the
history here. Unlike many of the statutes we are called on to
interpret,
N.J.S.A. 34:15-36 comes to us with a wealth of
judicial and legislative history, which aids us in discerning the
legislative intent.
A. Background to the 1979 Amendment
On April 4, 1911, Governor Woodrow Wilson signed New
Jersey's first workers' compensation law. Hon. Fred H. Kumpf,
Occupational Disease Claims Under the Workers' Compensation
Reforms,
12
Seton Hall L. Rev. 470, 470 n.2 (1982). The law
represents carefully balanced tradeoffs between employees,
employers, and insurers. Price V. Fishback & Shawn Everett
Kantor,
The Adoption of Workers' Compensation in the United
States, 1900-1930,
41 J.L. & Econ. 305 (Oct. 1998). Moreover,
the law is designed to place the foreseeable cost of accidents on
the employer who can easily factor it as an expense of doing
business.
Livingstone,
supra, 111
N.J. at 94-95; Fishback &
Kantor,
supra, 41
J.L. & Econ. at 309-10. This Court long ago
noted that the law is designed to place the cost of accidental
injuries which are work-related upon the employer who can make
these funds available out of his operating expenses, and that
this legislative goal must always be kept in mind when
considering factual patterns presented.
Hammond v. The Great
Atl. & Pac. Tea Co.,
56 N.J. 7, 14 (1970). Implicit in the Act
is the realization that when employers and insurers can foresee
and calculate their costs, they will pass some or all of those
costs on to their consumers.
Wyatt v. Metropolitan Maintenance
Co.,
74 N.J. 167, 174 (1977) (Schreiber, J., dissenting) (The
economic reality is that consumers will probably be called upon
to pay in whole or in part for the employer's operating
expenses.).
That cost-shifting purpose is why, prior to the 1979
amendment, we focused not on whether the
employer ought to be
held responsible, but rather, whether the cost of a particular
accident is one that should be imposed upon the
consuming public
as an appropriate production expense.
Wyatt,
supra, 74
N.J. at
174 (Schreiber, J., dissenting) (emphasis added). Put another
way, [compensability should be resolved by asking] is the cost of
that accident reasonably includable in the price to be charged
for the employer's product or service?
Id. at 173 (Schreiber,
J., dissenting). If the cost to employers is unanticipated or
becomes excessive, those employers may be forced to reduce their
workforce or otherwise compensate for their losses at the expense
of their employees.
Id. at 175 (Schreiber, J., dissenting).
Consistent with that cost-shifting rationale and with
certain exceptions not relevant to this appeal, the Act covered
accidents arising out of and in the course of employment.
N.J.S.A. 34:15-7 (as enacted by
L. 1911,
c. 95, § 7). Courts in
New Jersey and across the country construed that and similar
language to mean that coverage should be provided only for
accidents occurring on the employer's premises, leading Professor
Larson to designate the popular restriction as the premises
rule. 1 Arthur Larson,
The Law of Workmen's Compensation, §
15.10 (1990). Under that rule, [t]he line between
compensability and noncompensability . . . is very strict. Under
th[e premises] rule unless an employee is within the physical
confines of the premises when an injury occurs, it is
noncompensable.
Cressey v. Campus Chefs, Div. of CVI Serv.,
204 N.J. Super. 337, 344 (App. Div. 1985) (citation omitted).
The premises rule had and continues to have two important
justifications. First, by restricting coverage to only those
accidents that occur on the employer's premises, employers and
insurers gain certainty concerning the expected cost of
accidents. Because they know the unique hazards presented by
their industry, employers are able to incorporate those costs as
operating expenses.
Livingstone,
supra, 111
N.J. at 94-95;
Hammond,
supra, 56
N.J. at 14;
Wyatt,
supra, 74
N.J. at 176
(Schreiber, J., dissenting); Fishback & Kantor,
supra, 41
J.L. &
Econ. at 309-10. If coverage of accidents was permitted for any
accident occurring to an employee, not only would employers and
insurers be unable to forecast their expected costs, but those
costs also would become exorbitant.
Wyatt,
supra, 74
N.J. at 175
(Schreiber, J., dissenting).
Second, restricting coverage to accidents occurring on the
premises of the employer comports with a sense of fairness
because employers should be responsible for the safety of their
employees when at work. Since industry must carry the burden,
there must then be some causal connection between the employment
and the injury, or it must have had its origin in some risk
incident to or connected with the employment, or have followed
from it as a natural consequence.
Morris v. Hermann Forwarding
Co.,
18 N.J. 195, 198 (1955);
Bryant v. Fissell,
84 N.J.L. 72, 76
(Sup. Ct. 1913) (denying compensability unless risk was
reasonably incidental to employment).
Because employers benefit from the work of their employees,
we have rightly held employers responsible for accidents that
befall those employees at the workplace. Thus, [t]he touchstone
for determining whether the accident arises in the course of
employment is whether it arises out of work for which benefit
accrues to the employer.
Zelasko v. Refrigerated Food Express,
128 N.J. 329, 345 (1992) (Handler, J., dissenting). Conversely,
requiring employer responsibility for any accident occurring to
an employee, regardless of the time or place, is tantamount to
asking employers to pay even for those accidents that are not the
result of activities that benefit the employer or pose a unique
hazard to the employee.
As a necessary corollary to the premises rule, the courts
developed the going and coming rule, which ordinarily precluded
an award of compensation benefits for injuries sustained during
routine travel to and from an employee's regular place of work.
Livingstone,
supra, 111
N.J. at 96 (internal quotation marks
omitted). Despite some contrary usage, the going-and-coming rule
refers to the presumed
lack of compensability for injuries
occurring while an employee was going from or coming to work. 1
Larson,
supra, § 15.11. Like the premises rule from which it
arose, the going-and-coming rule allows employers and insurers to
predict their expected accident costs. The rule also insures
fairness to employers because an employee's routine trip to and
from work yields neither special benefit to the employer nor
results in a special risk to the employee.
Ibid.;
Morris,
supra,
18
N.J. at 197-98. The rule served the State and the entire
country, and served us well, for over sixty years.
Starting about 1970, New Jersey began what has been
described as an abortive . . . ill-fated . . . experiment of
carving out exceptions to the premises rule. 1 Larson,
supra, §
15.12(b), at 4-12. The exceptions began with courts concluding
that because travel to and from work obviously is essential to
the work itself, an injury occurring off the employer's premises
was compensable.
Hammond,
supra, 56
N.J. at 13, 15. Once begun,
the exceptions had neither legal limit nor logical end. An
accident occurring on the highway many miles from work might be
considered compensable. So, too, might an injury occurring in
the employee's home as the employee prepared to go to work. Such
preparation might have been viewed as essential to the work
itself.
Thus, gradually but invariably, [t]he basic going and
coming rule . . . became diluted by a series of exceptions.
Livingstone,
supra, 111
N.J. at 96. Those numerous exceptions
met with stern scholarly criticism.
See 1 Larson,
supra, §
15.12. Professor Larson explained how a court can be led astray
when comparing a case under consideration only to another
isolated case, leading to incremental, but inevitable,
extensions. In Professor Larson's words, New Jersey's workers'
compensation jurisprudence in the decade of the seventies serves
as an example of making law by measuring only the distance to
the last precedent while completely losing sight of the essential
principle involved in the rule. 1 Larson,
supra, § 15.12(b), at
4-14.
Predictably, the judiciary's
de facto abandonment of the
premises rule had fiscal consequences. The costs of workers'
compensation insurance became substantial.
Perez v. Pantasote,
Inc.,
95 N.J. 105, 112 (1984). In just one year, 1976, insurance
company underwriting losses for workers' compensation increased
160 percent.
Wyatt,
supra, 74
N.J. at 175 (Schreiber, J.,
dissenting) (citing Robert R. Heckman, Chairman of the
Compensation Rating and Inspection Bureau of New Jersey). By
that same year, New Jersey ranked third highest in the nation in
cost of workers' compensation insurance.
Id. at 175 n.1
(Schreiber, J., dissenting) (citing 2
Governor's Econ. Recovery
Comm'n Report app., at C-52, D-65 (1976)). The costs became so
high that some businesses departed from this state and others
[were] deterred from establishing plants here.
Id. at 174
(Schreiber, J., dissenting). New Jersey's competitive position
vis-a-vis other states diminished and the high cost of workers'
compensation insurance was seen as a significant cause of that
weakened position.
Id. at 175 (Schreiber, J., dissenting).
Specifically, one cause of the skyrocketing costs was
thought to be the everbroadening scope of workers' compensation
benefits applied by the courts in marginal cases.
Ibid.
(Schreiber, J., dissenting). Accordingly, a blue-ribbon panel,
the Governor's Economic Recovery Commission, recommended that the
Legislature amend the Workers' Compensation Act, with the
objective of becoming competitive with other states.
Ibid.
(Schreiber, J., dissenting) (citing 1
Governor's Economic
Recovery Commission Report 43 (1976)). That recommendation would
serve as the prelude to the 1979 amendment, and was thought to
signal the end of New Jersey's failed experiment with improving
upon the premises rule.
B. The 1979 Amendment
In 1978, identical bills to amend the workers' compensation
laws were introduced in the Senate and the General Assembly.
Joint hearings of the Senate Labor, Industry and Professions
Committee and the Assembly Labor Committee were held in April
1979, leading to the introduction in each house of identical
substitute bills.
Perez v. Panasote,
supra, 95
N.J. at 113.
Identical amended versions of the bills were subsequently enacted
by both houses, and Governor Brendan Byrne signed them into law
on January 10, 1980.
N.J.S.A. 34:15-36 (as amended by
L. 1979,
c. 283, § 12). Judge Alfred J. Napier, who was then Chief Judge
of the Division of Workers' Compensation, noted that [w]hile the
basic pattern and objectives of our Workers' Compensation Act
remain unchanged, the total package result[ed] in major changes
in benefit levels and philosophical attitudes towards certain
injuries, accidents and defenses to claims. Hon. Alfred J.
Napier,
Impact of the Reform Act of 1980,
96 N.J. Lawyer 17, 17
(Summer 1981).
The Joint Statement of the Senate Labor, Industry and
Professions Committee verified that the 1979 amendment was
intended to provide genuine reform and meaningful cost
containment for New Jersey employers from unjustified workers'
compensation costs that [were] presently among the highest in the
nation. Senate Labor, Industry and Professions Committee,
Joint
Statement to Senate Committee Substitute for Sen. No. 802 and
Assembly Committee Substitute for Assem. No. 840, at 1 (Nov. 13,
1979). The Committee specifically referred to its desire to
abrogate the judicially-created exceptions to the going-and
coming rule, noting that the legislation would benefit employers
by establishing relief from the far-reaching effect of the
'Going and Coming Rule' decisions by defining and limiting the
scope of employment . . . .
Id. at 2.
Commentators agreed at the time that the amended law was
intend[ed] not to cover a worker proceeding from the plant to
the parking lot . . . . Steven L. Lefelt,
Workers' Compensation
in New Jersey: A Critique of S-802,
104
N.J.L.J. 425, 434 (Nov.
15, 1979). The definition of employment was specifically
designed to remove from compensability certain cases heretofore
held compensable where special hazards existed en route to the
employer's premises . . . . Napier,
supra, 96
N.J. Lawyer at
18. Notably, Judge Napier expressed the view that the new law
made non-compensable even those injuries caused by special
hazards. Soon after the Act was amended, Judge Napier
characterized the statute as sharply curtail[ing]
compensability in all off-premises accidents.
Ibid.
Since the passage of the amendment, numerous decisions by
this Court have recognized the Legislature's intent to return to
a strict interpretation of the premises rule. We noted in
Livingstone, for example, that by formulating a new definition of
employment, the Legislature was [e]xpressing its disagreement
with the judiciary's broad reading of the statutory criteria for
coverage . . . .
Livingstone,
supra, 111
N.J. at 101. We also
observed the importance of limiting judicially-created
exceptions to the general noncompensability of off-premises
accidents in accordance with the clear legislative mandate of the
1979 amendments.
Id. at 103 (internal quotation marks omitted).
More recently, we observed that the legislative adoption of the
premises rule was designed to overcome the expansive exceptions
to its application that occurred under the going-and-coming
rule.
Ramos v. M & F Fashions, Inc.,
154 N.J. 583, 591 (1998).
Similarly, Justice Handler noted that the Legislature rejected
many of the exceptions that had come to qualify and limit the
effect of the rule.
Zelasko,
supra, 128
N.J. at 342 (Handler,
J., dissenting).
The Appellate Division also has had numerous occasions to
note the Legislature's intent to return to a strict
interpretation of the premises rule.
See,
e.g. Ward v.
Davidowitz,
191 N.J. Super. 518, 522 (App. Div. 1983) (It
follows that the . . . Legislature intended employers to receive
. . . not relief from the 'going and coming rule,' but rather
from the numerous exceptions which have evolved to that rule.);
Cressey,
supra, 204
N.J. Super. at 342 (noting that [t]he
Legislature sought to reinstate the vitality of the premises
rule);
Brown v. American Red Cross,
272 N.J. Super. 173, 177
(App. Div. 1994) (It has been repeatedly held that the 1979
amendment was intended to sharply curtail compensation for off
premises accidents . . . .).
In sum, the judicial and legislative history of the 1979
amendment is unequivocal. The Legislature responded to the
expansive judicial decisions broadening the scope of compensable
accidents by superseding those decisions with a firm mandate to
disallow coverage for accidents occurring outside of the
employer's premises. The statute now plainly states that
employment terminates when the employee leaves the employer's
place of employment . . . .
N.J.S.A. 34:15-36. The subsequent
phrase, excluding areas not under the control of the employer,
is meant to limit, not expand, upon that basic definition.
III.
A. Statutory Analysis
In view of the legislative and judicial backdrop outlined
above, I conclude that the purpose of the 1979 amendment was to
deny compensability for injuries like those sustained by
petitioner,
i.e., injuries occurring outside the confines of the
employer's offices in an area not being used in the employer's
business and outside of the employer's control. It bears
repeating that petitioner's injury occurred in a stairway that
was not owned, leased, or controlled by the employer. Again, we
are bound by the findings of the compensation judge, who
determined:
In this case before me, based on the
available facts, I find as fact that:
1. Petitioner had clocked out prior to her
fall.
2. The rear stairway was not owned, leased,
maintained, controlled,
nor used . . . at all by
the employer in its telemarketing business.
3. There were a common front elevator and a
front stairway available for petitioner's ingress
and egress to and from work.
4. The employees' use of the rear stairway
furnished no benefit to the employer.
5. The rear stairway provided no inherent
danger to the employees greater than that to which
the general public [was] exposed in using any
public stairway.
6. A fall entering or exiting work is not a
risk inherent in petitioner's employment, can
occur anywhere or anytime, and New Jersey's but
for employment risk is totally inapplicable here.
7. The employer's business, being
telemarketing, had no customers whatever entering
or exiting the premises, and the common elevator
and stairs in the front of the building, opening
at the entrance to respondent's leased premises,
were therefore not unduly burdensome for its
employees' use.
Unlike the majority, I believe that those factual findings
are insufficient for the Court to conclude that the stairway was
part of the employer's premises. In my view, if we are to draw
any inference from the facts, it is that petitioner's injury
occurred in the part of the building resembling a public or
common area. That inference is consistent with the judge's
specific finding that, [t]he rear stairway provided no inherent
danger to the employees greater than that to which the general
public [was] exposed
in using any public stairway. (Emphasis
added). Within the context of all other facts, the judge's
reference to any public stairway belies the notion that
petitioner was injured in a private area of the employer's
premises.
Professor Larson does observe as a general rule, that
[w]hen the place of employment is a building, it is not
necessary that the employer own or lease the place where the
injury occurred. It is sufficient if he has some kind of right
of passage, as in the case of common stairs, elevators, lobbies,
vestibules, concourses, hallways, walkways, ramps, footbridges,
driveways, or passage ways through which the employer has
something equivalent to an easement. 1 Larson,
supra, § 15.43,
at 4-132 to 4-136. However, the Professor also notes that New
Jersey's statutory adoption of the premises rule means that it
does not necessarily follow the general rule of compensability.
More particularly, Professor Larson indicates that New Jersey
introduces elements into the rule which could in particular
cases produce results different from those generally worked out
by courts when unrestricted by detailed statutory tests. 1
Larson,
supra, § 15.11, at 4-5 n.2. In my view, the general rule
cited by Professor Larson does not apply to this appeal in light
of the 1979 amendment.
I am persuaded by the extensive legislative history that an
employee's individual use of a stairway, which is not part of the
employer's leased premises or otherwise controlled by the
employer, is not sufficient to support a finding of
compensability. The statute is intended to exclude areas which
are not physically part of the employer's premises.
Cressey,
supra, 204
N.J. Super. at 343. Whatever the law used to be . .
.[,] it is no longer enough . . . that the accident occurred in
an area in reasonable proximity to the employer's place of
business.
Livingstone,
supra, 111
N.J. at 108 (Clifford, J.,
dissenting).
B. Case Law
In my view, the Court's holding is not easily harmonized
with prior case law. To the contrary, I interpret the relevant
cases to compel judgment in favor of defendant. My perception of
the facts leads me to conclude that this case is in line with
those decisions in which compensation was denied under a strict
but required reading of the statute.
Livingstone was the first case in which we examined the
import of the 1979 amendment defining employment.
Livingstone,
supra, 111
N.J. at 90. In that case, the plaintiff's employer
(Abraham & Strauss, or A. & S.) was a tenant in a shopping mall.
Id. at 91. No part of the mall's parking lot was owned, leased,
or maintained by A. & S.
Ibid. A. & S. employees, however, had
been directed to park in a certain far corner of the lot in order
to preserve the closer parking spaces for A. & S. customers.
Ibid. Customers rarely if ever parked in the spots designated
for the employees.
Id. at 91-92. We held that an injury
occurring to the plaintiff as she proceeded from her car to the
A. & S. store was compensable because A. & S. had exercised
control over the section of the parking lot in which the
plaintiff had been directed to park.
Id. at 106.
Our holding in
Livingstone was based on several factors,
none of which is present in this case. First, we relied heavily
on the fact that the plaintiff parked in a far corner of the
mall parking lot, where all Abraham & Straus employees
had been
directed to park.
Id. at 91 (emphasis added). We found it
relevant that the employees had received a written directive on
the matter.
Ibid. Second, we noted that [t]he undisputed
purpose of the parking directive was to ensure that the closer,
more convenient parking spaces remained available for [A. & S.'s]
customers, and thus was entirely for its benefit.
Ibid. Third,
we found it highly significant that the employer had the power
to designate an otherwise under-used area of the shopping center
parking lot for use by its employees.
Id. at 104. Under those
circumstances, we found that the portion of the lot designated
by Abraham & Strauss for its employees' use was effectively
equivalent to an employer-owned lot.
Id. at 104-05. Fourth, we
found that by requiring its employees to park in a distant
section of the lot, in order that customers could enjoy the
convenience of parking adjacent to [the store], [A. & S.] caused
its employees to be exposed to an added hazard, on a daily basis,
in order to enhance its business interests.
Id. at 105-06.
The appellate courts applying the
Livingstone holding have
recognized repeatedly and consistently the self-limitations of
that holding.
See Ehrlich v. Strawbridge & Clothier,
260 N.J.
Super. 89, 90 (App. Div. 1992) (finding employer control where
employee used exit designated by employer for the exclusive
use of its employees),
certif. denied,
133 N.J. 435 (1993);
Serrano v. Apple Container,
236 N.J. Super. 216, 218 (App. Div.
1989) (finding no employer control when it was not disputed that
[employer] did not dictate what means of egress [employee] should
use, nor that there were a number of alternate ways to leave the
plant and the complex),
certif. denied,
121 N.J. 591 (1990);
New
Jersey Mfrs. Ins. Co. v. Public Serv. Elec. & Gas Co.,
234 N.J.
Super. 116, 118-19 (App. Div. 1989) (describing
Livingstone as
finding employer control by virtue of employer's power to
designate an otherwise under-used area of the parking lot for use
by its employees);
Manole v. Carvellas,
229 N.J. Super. 138,
142 (App. Div. 1988) (describing
Livingstone as finding employer
control of common areas when the employer had designated a
section of the common area for its employees).
In a pre-
Livingstone case,
Cressey,
supra, 204
N.J. Super.
at 343-44, the Appellate Division allowed compensation for an
injury occurring on a loading dock adjacent to the employer's
premises. The employee, [i]n order to leave her work place . .
. was required to use a rear door which led to a loading dock and
proceed from there to one of the nearby parking lots . . . .
Id. at 340. It was undisputed that this was the only egress
permitted to the employees.
Id. at 341. Steps leading down
from the loading dock became impassable due to flooding, and that
condition required the employees to step from the loading dock to
a retaining wall, move around the corner of the building, and
then step down.
Id. at 340. That hazardous egress was made even
more dangerous by inadequate lighting.
Id. at 341. The
plaintiff in
Cressey was injured as she undertook that acrobatic
exit.
Ibid.
Recognizing that the legislative history of the 1979
amendment indicated that the Legislature sought to reinstate the
vitality of the premises rule, and that the premises rule denied
compensability unless an employee is within the physical
confines of the premises, the Appellate Division held the injury
compensable.
Id. at 342, 344. The court was convinced that an
exception to the premises rule was justified when special
hazards lie on the only route that the employee can traverse.
Id. at 344. The panel explained its holding by noting that an
employee has a right to obtain safe egress from the premises.
Ibid.
Applying
Cressey's rationale would not require compensation
for petitioner's injury in the present case. Petitioner was not
required to exit by the stairway on which she was injured, nor
was that stairway the only means of egress from the building.
More fundamentally, the stairway on which petitioner was injured
is noticeably unlike the treacherous exit required in
Cressey;
petitioner's stairway posed no unique or added hazard.
Several of the post-
Livingstone cases decided by the
Appellate Division compel affirming the Appellate Division in
this case. In
New Jersey Manufacturer's Insurance Company, an
employee was injured while on an access road owned by his
employer.
New Jersey Mfrs. Ins. Co.,
supra, 234
N.J. Super. at
117. The road was accessible to the general public as well.
Ibid. Although the road was owned by the employer, the Appellate
Division agreed that the accident was non-compensable because the
road created no added hazard, created to enhance the business
interests of the employer.
Id. at 119. The court specifically
rejected the rationale that the injury was compensable because it
occurred on a road which was the only route available.
Id. at
121. The court concluded that because the general public also
used the road, there is no indication that [the employer]
exercised any control over its use.
Id. at 119.
The same reasoning applies to petitioner's claim. The
stairway on which she was injured was accessible to the general
public. The stairway created no enhanced hazard, nor was its use
an enhancement of the employer's business interests. Petitioner
was injured on a stairway that was
not the only route of egress,
making her claim even weaker than the one in
New Jersey
Manufacturers. Finally, unlike the road in
New Jersey
Manufacturers, the stairway in this case was neither owned nor
controlled by the employer.
In
Serrano, after clocking out from work, an employee was
injured as he rode his motorcycle through a parking lot adjacent
to the one designated by his employer for employee use.
Serrano,
supra, 236
N.J. Super. at 218. In finding for the claimant, the
compensation judge held the injury compensable because he
considered it unjust that the plaintiff be denied recovery simply
because the plaintiff had made the ill-fated choice to exit
through a public lot instead of the employer-designated lot.
Id.
at 218-19. In the judge's words, [a]lthough the letter of
Livingstone may not apply on all fours to the facts herein, the
spirit of
Livingstone compels the conclusion that this accident
is compensable.
Ibid. (citation omitted).
The Appellate Division unanimously disagreed. The panel
found that the accident was not compensable because it occurred
in a public area that was not controlled by the employer.
Id. at
220. Unlike
Livingstone, the parking lot in which the accident
occurred was not one in which the employee had been directed to
use, nor did it pose any added or special hazard to the employee.
Ibid. The panel concluded by remarking that [i]t is time to
recognize that the 'going and coming rule' has come and gone. It
was not resurrected . . . by the 'spirit of
Livingstone.'
Id.
at 221.
Petitioner's case is analogous to
Serrano in that the injury
occurred in an area, accessible to the public, that the employer
had not directed the employees to use. Further, in both
Serrano
and petitioner's case, the area in which the accident occurred
did not pose any added or special hazard. Finally, petitioner's
case is similar to
Serrano in that there are multiple paths of
egress from the employer's premises, which should militate
against a finding of compensability.
Id. at 218.
Nor does
Ehrlich, which provides one of the more expansive
readings of
Livingstone, compel today's result. In
Ehrlich, as
here, the plaintiff clocked out and exited through a door which
led to a stairway. 260
N.J. Super. at 90. The plaintiff
descended the stairway and began walking down the sidewalk when
she slipped and was injured.
Ibid. The Appellate Division found
the injury compensable, relying on
Livingstone.
Id. at 92.
Significantly, however, the door and stairway used by the
employee in
Ehrlich were designated by the employer for the
exclusive use of its employees.
Id. at 90. The panel
emphasized that the employees were required to use [that]
entrance when entering or leaving the premises.
Ibid. Thus, at
the very least,
Erhlich read
Livingstone to be limited to
situations in which the employer directed the employee to
traverse the route on which the employee was injured.
Petitioner's injury transcends even those most basic limitations
of
Livingstone, as the stairway on which she was injured was not
the one designated by her employer, and was not commandeered
for the exclusive use of its employees.
Ibid.
In another case,
Novis v. Rosenbluth Travel,
138 N.J. 92
(1994), a unanimous Court denied compensation to an employee who
was required to report to a branch office of her employer, and
who sustained injuries while walking across the only sidewalk
leading from an office-building parking lot to the entrance of
the office building in which her employer's branch office was
located.
Novis,
supra, 138
N.J. at 93. We acknowledged that
the sidewalk on which the plaintiff was injured provided the sole
access to the building.
Ibid. The employer, then, necessarily
knew that its employees used the sidewalk and sanctioned that
use; yet, the Court denied compensability, contrary to the
majority's holding here.
We described at length why the facts in
Novis were
distinguishable from those in
Livingstone; in so doing, we were
emphatic about the limitations inherent in
Livingstone's holding.
In the Court's words,
[t]he facts in
Livingstone differ
significantly from those that control the
outcome of this appeal. Abraham & Straus,
the employer in
Livingstone, had directed its
employees to park at the outermost edge of
the shopping-mall parking lot . . . . The
directive was intended to assure that the
more convenient parking spaces in the mall
were reserved for customers of Abraham &
Straus, and the undisputed testimony
demonstrated that customers rarely, if ever,
had sought access to the remote parking
spaces designated for Abraham & Straus
employees. In that specific context, we
concluded that Abraham & Straus's
appropriation of the designated area of the
mall lot for its employees' use was the
essential equivalent of control[.]
[Id. at 95.]
We proceeded to highlight those facts from
Livingstone
deemed to be of central importance: that the employer had
designated a specific common area for its employees' use, that no
one but the employees used the area, that the use of the area
posed an added hazard to the employees, and that the employer
gained a particular business advantage from its employees' use of
the area.
Id. at 95-96. We rejected the suggestion that mere
use of the area by an employee equated with control. Rather, we
denied compensability because the employer exercised no control
over the area where the injury occurred, and because the
employer simply shared the [area] with the other tenants[.]
Id. at 96.
Petitioner's case is analogous to
Novis. The stairway on
which petitioner was injured led to the basement of the building
as well as to a balcony outside of her employer's premises, and
the employer exercised no control over that staircase. In
Novis,
we described the fact that others shared access to the common
area as vastly different from the specific facts that influenced
our holding in
Livingstone.
Ibid.
Moreover, unlike the present case in which petitioner was
injured on one of several routes of egress from the premises, the
plaintiff in
Novis was injured while on the sole route into her
employer's premises; even so, we denied compensability.
Id. at
93. Here, because petitioner was not required to use the
stairway, and her use of the stairway presented neither a special
hazard nor provided a special benefit to the employer,
petitioner's injury is not compensable under
Livingstone or
Novis.
The next case in which we applied
N.J.S.A. 34:15-36 was
Kristiansen v. Morgan,
153 N.J. 298, 316 (1998),
modified,
158 N.J. 681 (1999). The employee in that case was a bridge operator
employed by the New Jersey Department of Transportation.
Id. at
302. After working on the bridge at night, the employee had to
cross over several lanes of traffic to reach a stairway
descending to where his car was parked.
Id. at 303. The
employee was killed when he was hit by a car and the Court was
called on to determine whether the accident was compensable under
the Act.
We found the accident compensable because the employer
owned, maintained, and controlled the bridge where decedent
worked and was fatally injured.
Id. at 317. The unanimous
Court noted that our case law had established that employer
control exists when the employer owns, maintains, or has
exclusive use of the property.
Ibid. In the present case,
petitioner's employer did not own, lease, maintain, or have
exclusive use of the stairway on which petitioner was injured.
Because an employee who is not physically on the employer's
premises is not technically in the course of the employment,
petitioner's injury is non-compensable under
Kristiansen.
Id. at
316.
Ramos,
supra, contains our most recent explication of the
meaning of control in the workers' compensation setting. In
that case, we held compensable an injury sustained by a worker in
a freight elevator.
Ramos,
supra, 154
N.J. at 593-94. The
employer leased space on the fourth floor of a building, and the
employee was attempting to use the elevator to ascend to those
premises when he was injured.
Id. at 587-88. During the
workday, the elevator regularly was used by the employer to
transport materials between its fourth-floor tenancy and the
ground floor.
Id. at 592. Citing
Livingstone,
Ehrlich, and
Cressey, we held that because the employer used the elevator for
conducting business, the employer could be said to have exercised
control over it.
Ibid.
Ramos does not require recovery for petitioner here;
instead, it requires that we affirm the courts below. Unlike
petitioner's employer, the employer in
Ramos regularly used the