Aetna Life & Casualty v. Estate of Engard

OPINION

MacKENZIE, J.S.C.

On a motion for summary judgment, this Court is presented with a novel question of statutory construction involving the Workers’ Compensation Act, N.J.S.A. 34:15-1, et seq. The issue is whether a workers’ compensation insurance carrier that paid a lump-sum settlement pursuant to N.J.S.A. 34:15-20 should be reimbursed pursuant to N.J.S.A. 34:15-40 from the proceeds of a third-party tort recovery. Consideration of the interplay between these statutory sections leads the Court to conclude that a carrier cannot recoup any part of a settlement which it previously paid under…