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

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 that is derived from a third‑party tortfeasor, regardless of whether the employee is fully compensated. The Court overruled Wausau and Charnecky, affirmed that a carrier need not file a third‑party claim under §40(f) to preserve the lien, and applied the rule retroactively, affirming the Appellate Division and remanding for further proceedings on the amended complaint.