Kelly's Case

In this workers’ compensation case, we hold that an employee who has an emotional breakdown as a result of being told that she will be laid off from one department and transferred to another one, has suffered a personal injury “arising out of and in the course of . . . employment” within the meaning of G. L. c. 152, § 26.

*685This is the insurer’s appeal from a judgment entered in the Superior Court, and affirmed by the Appeals Court, 17 Mass. App. Ct. 727 (1984), awarding compensation under G. L. c. 152 to Helen J. Kelly, the employee. The judgment reversed a decision of the Industrial Accident…