Employee Barred From Bringing Tort Action Against Workers’ Compensation Carrier for Delay or Denial of Treatment

Stancil v. Ace USA, 2011 WL 291926 (App. Div., February 1, 2011) – The Appellate Division has ruled that an employee has no right to bring a tort action to recover damages for refusal by a workers’ compensation carrier to comply with the compensation court’s orders. The court discussed the history of the Workers’ Compensation Act, including the 2008 Amendments, which expanded the authority of compensation judges to levy surcharges, fines, and penalties against a recalcitrant insurer. It ruled that the remedies contained in the Act and regulations, which are enforceable in Superior Court, constitute the sole relief available to a claimant aggrieved by an insurer’s delay or denial of treatment. The court further ruled that an insurer’s willful noncompliance with a workers’ compensation judge’s orders does not fall within the intentional wrong exception of the workers’ compensation law.