Claim of Nicpon v. Zelasko Construction, Inc.
This case involves a workers' compensation claim where the claimant sustained a lower back injury in 2003 and was subsequently classified with a permanent partial disability. A key event was the claimant's settlement of a third-party action in 2008 for $240,000, which included the employer waiving liens and agreeing to cover future medical costs in exchange for the claimant's waiver of future indemnity benefits. Subsequently, in 2011, the employer attempted to transfer liability for these future medical expenses to the Special Fund for Reopened Cases under Workers' Compensation Law § 25-a. The Workers’ Compensation Board initially found the Special Fund liable, reversing a prior Workers’ Compensation Law Judge's finding. However, the Appellate Division reversed the Board's decision, ruling that the third-party settlement constituted a lump-sum payment for the purposes of Workers' Compensation Law § 25-a, thereby preventing the transfer of liability for future medical benefits to the Special Fund. The case was remitted to the Board for the specific calculation of the date of the last payment of compensation.