Supreme Court of New Jersey

Christopher Frazier, Plaintiff-Appellant v. New Jersey Manufacturers Insurance Company, an Insurance Company…

December 1, 1995142 N.J. 590

Summary

The Supreme Court of New Jersey held that a workers' compensation lien under N.J.S.A. 34:15-40 attaches to the proceeds of a legal malpractice recovery, regardless of whether the employee is fully compensated, and that the lien is not contingent on the carrier filing a third‑party claim under §40(f). The Court overruled Wausau and Charnecky, applied the rule retroactively, affirmed the Appellate Division judgment and remanded for further proceedings on the amended complaint.