Claim of Lala v. Siteworks Contracting Corp.
Claimant Nick Lala sustained work-related injuries in an October 2007 motor vehicle accident and settled a third-party action for $100,000, with a net recovery of $64,541.51. The employer's workers' compensation carrier agreed to the settlement, reserving its right to a credit under Workers' Compensation Law § 29 (4) but also acknowledging its obligation to pay a proportionate share of litigation expenses under Burns v Varriale. A Workers' Compensation Law Judge (WCLJ) ruled that the carrier's credit, as reduced by its share of litigation expenses, was exhausted on August 20, 2013, a decision subsequently upheld by the Workers' Compensation Board. The employer and carrier appealed, contending that the Board miscalculated the credit and erroneously determined the exhaustion date. The Appellate Division affirmed the Board's decision, finding that the WCLJ's method of deducting the carrier's proportionate share of litigation expenses directly from the claimant's net recovery before calculating the credit was consistent with established case law and the statute's purpose.