Claim of Arena v. Crown Asphalt Co.
Thomas Arena (decedent) sustained a work-related foot injury in 1980, leading to workers' compensation benefits and subsequent renal failure. Decedent and his wife (claimant) filed a third-party medical malpractice action against treating physicians and the hospital, which was settled in 1988 through a structured settlement. A stipulation between the carrier and decedent outlined the carrier's offset credit against decedent's workers' compensation claim and reserved rights against future death benefits claims, but claimant was not a signatory. After decedent's death in 1993, claimant filed for death benefits, prompting the carrier to seek an offset credit from the third-party settlement proceeds. The Workers’ Compensation Board initially found the carrier entitled to a credit, but later reversed itself, ruling against any credit. The appeals court determined that the carrier sufficiently preserved its offset rights through a general release signed by both claimant and decedent. However, it found no clear agreement on the specific offset amount in the stipulation or settlement that applied to claimant's death benefits. Consequently, the Board's decision of zero credit was reversed, and the matter was remitted for a factual determination of the precise credit amount.