SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-4588-96T3
WILLIAM J. CONNOLLY,
Petitioner-Respondent,
v.
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY,
Respondent-Appellant.
_____________________________________________
Argued December 9, 1998 - Decided December 28, 1998
Before Judges Conley, A.A. Rodríguez and Kimmelman.
On appeal from the Division of Workers' Compensation.
Michael Driscoll argued the cause for appellant (Hugh H.
Welsch, attorney; Christopher J. Neumann, on the brief).
Alfred G. Osterwell argued the cause for respondent
(Cynthia A. Rollenhagen, attorney; D. John McAusland,
on the brief).
The opinion of the court was delivered by
CONLEY, J.A.D.
Does the New Jersey Workers' Compensation Court have subject
matter jurisdiction over a compensation claim against the Port
Authority of New York and New Jersey by an employee who has no
contact with New Jersey either in terms of his employment
relationship with the Port Authority, his location of employment,
his residency or the place of the accident? Despite the
unreported Appellate Division opinions to the contrary,See footnote 1 the
Workers' Compensation Judge held that jurisdiction did lie in New
Jersey based entirely on the bi-state nature of the Port
Authority, regardless of the presence or absence in New Jersey of
the usual jurisdictional grounding factors - place of injury,
place of employment contract or hiring, location of the
employer/employee relationship, and/or the employee's residency.
We disagree and reverse.
We preface our discussion, however, by emphasizing the
narrowness of the precise issue before us. The particular claim
petition involved in this appeal was only one of a number of
petitions that had been filed in the New Jersey Workers'
Compensation Court by Port Authority employees. As we understand
it the indicia of New Jersey jurisdiction varied. For
jurisdiction purposes, the cases were placed in one of four
categories of employees: 1) employees who lived and were based in
New York; 2) employees who lived in New York but who were
assigned to the Central Police Pool; 3) employees who lived in
New York, were assigned to the central pool and who were injured
during that assignment; 4) employees who lived in New Jersey. As
we understand it, petitioner here was placed into the first
group. Thus, while the Workers' Compensation Judge found New
Jersey jurisdiction in all of the cases, the Port Authority has
appealed only the determination as to petitioner William
Connolly. We decide the jurisdictional issue only in the context
of the specific jurisdictional facts present in his case. Our
opinion, therefore, should be construed no broader than those
facts.
Petitioner began his employment with the Port Authority in
1954 and worked until his retirement in 1987. The claim petition
before us, filed in 1988, alleges an occupational hearing loss as
a result of exposure to loud noises.See footnote 2 Petitioner has always
been a resident of New York and was hired at the Port Authority
New York offices. His initial employment was as a building and
grounds attendant and he then became an electrician's helper.
During the course of his employment with the Port Authority,
petitioner worked at the LaGuardia Airport, at the Idlewild
Airport (now the Kennedy International Airport) and at the
Brooklyn Piers. His employment locations have all been within
New York. During his thirty-three years with the Port Authority,
he was in New Jersey for one day when, during his employment, he
was offered, but rejected, a helper's job in the Holland Tunnel.
Because petitioner has lived and worked entirely in New York, he
has not paid New Jersey taxes or had New Jersey taxes withheld
from his paycheck. Petitioner also never filed a New Jersey non-resident tax return.
We begin with the principle that the Workers' Compensation
Court is statutory, with limited jurisdiction. Young v. Western
Electric Co., Inc.,
96 N.J. 220, 225 (1984); Riccioni v.
American Cyanamid,
26 N.J. Super. 1, 4 (App. Div.), certif.
denied,
13 N.J. 289 (1953). Unlike some states, New Jersey's
Workers' Compensation Act does not have an extra-territorial
jurisdiction provision and each case, therefore, requires
consideration of the particular facts. And see Roberts v. United
States Steel Corporation, Fairless Works,
125 N.J. Super. 480,
484 (App. Div. 1973) ("[w]e look to the substance of the
employment relation - not to the form.").
Because a Workers' Compensation Court may apply only its own
state law to award a compensation benefit, frequently the issue
of jurisdiction over an out-of-state injury, such as petitioner's
New York employment caused alleged hearing loss, becomes mixed
with a choice-of-law analysis. Thus, generally it has been said
that:
Any state having a more-than-casual interest
in a compensable injury may apply its
compensation act to that injury without
violating its constitutional duty to give
full faith and credit to the compensation
statutes of other states also having an
interest in the injury. Among the factors
which, if occurring within the state, will
give rise to such a legitimate interest are:
The making of the contract, the occurrence of
the injury, the existence of the employment
relation, and possibly also the residency of
the employee and the localization of the
employer's business.
[9 Larson's Workers' Compensation Law §86:00
at 16-55 (1997) (Larson's).]
In §86.10, Larson's sets forth six grounds "on which the
applicability of a particular compensation act has been
asserted":
(1) Place where the injury occurred;
(2) Place of making the contract;
(3) Place where the employment relation
exists or is carried out;
(4) Place where the industry is localized;
(5) Place where the employee resides; or
(6) Place whose statute the parties
expressly adopted by contract.
[9 Larson's §86.10 at 16-55.]
The treatise further states:
When one of these falls within the local
state, and some or all of the others occur in
another state, the question arises whether
the local state can apply its statute without
being accused of denying full faith and
credit to the statute of the other. As
matters now stand, it is clear that the state
which was the locus of any one of the first
three items - contract, injury or employment-and probably also of the next two - employee
residence and business localization - can
constitutionally apply its statute if it
wants to.
[9 Larson's §86.10 at 16-55 to 16-56.]
As we read the Compensation Judge's decision here, and as
petitioner argues, the "place where the industry is localized"
was considered to be determinative. Since the Port Authority can
be said to be "localized" in both states, Lieberman v. Port
Authority of New York and New Jersey,
132 N.J. 76, 81-82 (1993)
("[t]he Port Authority controls Newark, Teterboro, Kennedy, and
LaGuardia Airports; two heliports; seven marine terminals; three
industrial parks; the World Trade Center; the PATH train system;
the Lincoln and Holland Tunnels; the Bayonne, Goethals, and
George Washington Bridges; the Outerbridge Crossing; and the
[Port Authority Bus] Terminal."), jurisdiction could be posited
in either state.
Certainly we have recognized the summary of grounds in
Larson's set forth in §86.10 as a list of "valid bases for
jurisdiction in the field of workmen's compensation law." Wenzel
v. Zantop Air Transport, Inc.,
94 N.J. Super. 326, 333 (Cty.
Ct.), aff'd o.b.,
97 N.J. Super. 264 (App. Div. 1967). See Beeny
v. Teleconsult, Inc.,
160 N.J. Super. 22, 26-27 (App. Div. 1978).
But thus far, we know of no case in this jurisdiction or any
other that has adopted such a broad base for jurisdiction as was
done here, that is the presence of the employer in this state
solely by virtue of its bi-state existence, and where there are
virtually no New Jersey employer/employee contacts, or any other
New Jersey contacts incidental to the alleged injury or
occupational loss or the employee himself. Traditionally, an
injury in New Jersey will trigger jurisdiction in the New Jersey
compensation court. Boyle v. G. & K. Trucking Co.,
37 N.J. 104,
108 (1962). So too where New Jersey is the place of the
employment contract or hiring. Gotkim v. Weinberg,
2 N.J. 305,
307 (1949); Rivera v. Green Giant Co.,
93 N.J. Super. 6, 11 (App.
Div. 1966), aff'd o.b.,
50 N.J. 284 (1967). The employee's New
Jersey residency appears, as well, to be sufficient, Bunk v. Port
Authority of New York and New Jersey,
144 N.J. 176, 180-81
(1996), at least where there are also some employment contacts in
New Jersey, Parks v. Johnson Motor Lines, 156 N.J. Super. 177,
180-81 (App. Div. 1978); Beeny v. Teleconsult, Inc., supra, 160
N.J. Super. at 27-28.
Finally, where there exists neither location of the injury,
location of the employment contract or hiring, or residency of
the employee in New Jersey, jurisdiction may still arise where
the "composite employment incidents present a[n]. . .
identification of the employment relationship with this State."
Phillips v. Oneida Motor Freight, Inc.,
163 N.J. Super. 297, 303
(App. Div. 1978). In Phillips, the petitioner had filed a
dependency claim petition for New Jersey workers' compensation
based upon her husband's death while driving a truck in New York
for respondent employer. He had resided in Pennsylvania and was
hired in Pennsylvania. But respondent's main terminal was
located in New Jersey and it was out of that terminal that the
decedent received his trip instructions and from which he usually
departed for his out-of-state runs. Under these circumstances,
we held that the presence in New Jersey of "the employment situs
or relationship alone" was sufficient to establish New Jersey
jurisdiction. Id. at 301. It was, then, not the mere presence
of the respondent/employer in New Jersey that was deemed
sufficient but rather the "strong case of employment situs" in
this State, id. at 304, or the "functional relationship of the
work to the State," id. at 303.
As we have said, jurisdiction was assumed here because Port
Authority, as a bi-state entity, has a New Jersey "localization."
But that factor, though it can be one of several considerations,
is not sufficient ipso facto to establish jurisdiction. Larson's
for instance, has observed:
The state in which the employee's
business is localized has a relevant interest
in a compensable injury . . . since the
obligation side of the compensation relation
is as much a part of that relation as the
benefit side, and since the burden of payment
would ordinarily fall most directly on the
employer and community where the industry is
centered. But, except for an early period in
Minnesota, this factor has never been held
sufficient in itself to confer jurisdiction
over out-of-state injuries. In a few states,
however, it is relevant in conjunction with
other tests.
[9 Larson's §87.50 at 16-157 to 16-158
(emphasis added).]
See Puckett v. Bd. of Review of Industrial Comm'n of Utah, 734 P.
2d 468 (Utah 1987); Matter of Gneiting,
897 P.2d 1306 (Wyo.
1995).
On the other hand, Larson's asserts that:
In the majority of states, the local statute
will be applied [and jurisdiction asserted]
if the place of injury, or the place of
hiring, or the place of employment relation
is within the state. Two-thirds of the
states will take jurisdiction of out-of-state
injuries if either the place of hiring or the
place of employment relation is within the
state. These two factors figure in most of
the other states in different combination.
[9 Larson's §87.00 at 16-78.]
As we have already indicated, to this list New Jersey would add
the residency of the employee. Bunk v. Port Authority, supra,
144 N.J. at 181. Cf. Lieberman, supra, 132 N.J. at 84; Rose v.
Port of New York Authority,
61 N.J. 129, 140 (1972).
Here, there was no indication of an employment relationship
between the Port Authority and petitioner present in New Jersey,
petitioner was not hired in New Jersey, did not live in New
Jersey, did not work in New Jersey, and his occupational hearing
loss did not occur in New Jersey. We see no basis for New Jersey
jurisdiction on these facts. The bi-state nature of the Port
Authority is simply not a sufficient factor to trigger
jurisdiction. Cf. Rose v. Port of New York Authority, supra, 61
N.J. at 140 ("the defendant [is] a bi-state governmental agency
in which this State has an interest no different than that of New
York.").
We briefly comment on petitioner's reliance upon the Port
Authority's waiver of sovereign immunity and consent to suit set
forth in N.J.S.A. 32:1-157 and N.J.S.A. 32:1-162. N.J.S.A.
32:1-157 provides:
Upon the concurrence of the State of New
York in accordance with section twelve hereof
[N.J.S.A. 32:1-168], the States of New York
and New Jersey consent to suits, actions or
proceedings of any form or nature at law, in
equity or otherwise (including proceedings to
enforce arbitration agreements) against the
Port of New York Authority (hereinafter
referred to as the "Port Authority"), and to
appeals therefrom and reviews thereof, except
as hereinafter provided in sections two
through five, inclusive, hereof [N.J.S.A.
32:1-158 to -161].
[Emphasis added.]
N.J.S.A. 32:1-162 provides:
The foregoing consent is granted upon
the condition that venue in any suit, action
or proceeding against the Port Authority
shall be laid within a county or a judicial
district, established by one of said States
or by the United States, and situated wholly
or partially within the Port of New York
District. The Port Authority shall be deemed
to be a resident of each such county or
judicial district for the purpose of such
suits, actions or proceedings. Although the
Port Authority is engaged in the performance
of governmental functions, the said two
States consent to liability on the part of
the Port Authority in such suits, actions or
proceedings for tortious acts committed by it
and its agents to the same extent as though
it were a private corporation.
[Emphasis added.]
N.J.S.A. 32:1-152 does no more than establish consent to suit in
New Jersey and 32:1-162 establishes venue. Neither is
dispositive of subject-matter jurisdiction of New Jersey's
Workers' Compensation Court over an out-of-state occupation
injury or loss. See New Jersey D.E.P. v. Middlesex Cty. Bd. of
Chosen Freeholders,
206 N.J. Super. 414, 420 (Ch. Div. 1985),
aff'd o.b.,
208 N.J. Super. 342 (App. Div. 1986) ("[v]enue
requirements are not jurisdictional. Rather, they are rules of
practice designed to place litigation at a location convenient to
parties and witnesses.").
Reversed and remanded for the entry of an order dismissing
petitioner's claim petition No. 88-286637.
Footnote: 1Hart v. Port Authority of New Jersey and New York, No. A
3432-78 (App. Div. 1980); Brown v. The Port of New York
Authority, No. A-2956-72 (App. Div.), certif. denied,
65 N.J. 286
(1974).
Footnote: 2Following an evidentiary hearing on his hearing loss claim,
petitioner was awarded a 22 1/2" binaural hearing loss.
Petitioner had also filed a claim petition for a work related
back injury arising from an accident on July 26, 1986. In
addition to filing that claim in New Jersey, he had also filed a
similar claim in New York. When petitioner ultimately received a
Workers' Compensation award in New York on the back injury, he
voluntarily dismissed his New Jersey back injury petition.