Matter of Giemza v Town of Cambridge
2007 NY Slip Op 08331 [45 AD3d 1008]
November 8, 2007
Appellate Division, Third Department
As corrected through Wednesday, January 16, 2008


In the Matter of the Claim of Eugene Giemza, Respondent, v Townof Cambridge et al., Respondents, and Washington County Self-Insurance, Care of Benetch Inc.,Appellant. Workers' Compensation Board, Respondent.

[*1]Sullivan, Cunningham, Keenan, Mraz, Oliver & Violando, L.L.P., Albany (Michael D.Violando of counsel), for appellant.

Steven Licht, Special Funds Conservation Committee, Albany (Jill Waldman of counsel), forSpecial Fund for Reopened Cases, respondent.

Rose, J. Appeal from a decision of the Workers' Compensation Board, filed April 18, 2006,which ruled that liability did not shift to the special fund for reopened cases pursuant to Workers'Compensation Law § 25-a.

On August 16, 1993, claimant was injured while working for the Town of Cambridge inWashington County when the tractor he was operating was struck from behind by a dump truck.He filed a claim for workers' compensation benefits and also commenced a third-party actionagainst the driver of the dump truck. Following a hearing, a Workers' Compensation Law Judge(hereinafter WCLJ) issued a June 25, 2002 decision finding that claimant suffered work-relatedinjuries to his neck and back, and awarded him benefits through August 20, 1998. At that time,the WCLJ noted that the applicability of Workers' Compensation Law § 25-a had not yetbeen [*2]established and that the findings made were "pending[t]hird [p]arty [a]ction." Following another hearing in June 2003, the WCLJ found that there wasno compensable lost time from June 19, 2002 through June 13, 2003. At the request of theemployer's self-insured carrier, the WCLJ also addressed the applicability of Workers'Compensation Law § 25-a and concluded that the issue could not be resolved due to thestill pending third-party action. Claimant subsequently obtained the consent of the carrier andsettled the third-party action for $10,000. In August 2005, the carrier requested another hearing todetermine the applicability of Workers' Compensation Law § 25-a. Following that hearing,the WCLJ found, among other things, that liability had shifted to the special fund for reopenedcases pursuant to Workers' Compensation Law § 25-a. On administrative appeal, the Boardreversed the WCLJ's decision and ruled that, because there was not a "true closing" of the case atthe time of the WCLJ's June 25, 2002 decision, liability did not shift to the special fund. Thecarrier now appeals.

"Workers' Compensation Law § 25-a (1) provides that the Special Fund must coverany payments if a case is reopened more than seven years following the injury and three yearsfollowing the last payment of compensation" (Matter of Washburn v Bob Hooey Constr. Co., 39 AD3d 956, 957[2007]). It is undisputed that these time periods have been satisfied here. However, theapplicability of the statute depends upon whether there was a true closing of the case and this, inturn, "is a factual question for the Board to determine, based mainly on whether furtherproceedings were contemplated at the time of the presumed closing" (Matter of Bates v Finger Lakes TruckRental, 41 AD3d 957, 959 [2007]; see Matter of Stanford v Lewis County Opportunities, 33 AD3d1098, 1099 [2006]). Here, the third-party action was pending at the time the proceedingscommenced before the WCLJ and its outcome had potentially far-reaching effects on the parties'rights under Workers' Compensation Law § 29. Such effects could not be ascertained untilthe action was concluded and this was acknowledged by the WCLJ's reference to the action in theJune 25, 2002 decision. Under these circumstances, it appears that further proceedings wereindeed contemplated and that there was not a true closing of the case (see Matter of Lane vTompkins County Sheriff's Dept., 117 AD2d 861 [1986]; Matter of Sandles v SuffolkCounty Police Dept., 89 AD2d 682, 683 [1982]). Consequently, substantial evidencesupports the Board's finding that liability did not shift to the Special Fund pursuant to Workers'Compensation Law § 25-a.

Cardona, P.J., Mercure, Crew III and Mugglin, JJ., concur. Ordered that the decision isaffirmed, without costs.


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