Gelman: Workers' Compensation Lien Secures Damages

Friday, October 3, 2025 | 0

In a negligence action arising from a motor vehicle accident, a New Jersey court found that the defendants were 85% at fault, and the plaintiff, Antonio Lorenzo-Noda, was 15% at fault. 

Jon L. Gelman

The court determined that the plaintiff's negligence was less than the 51% threshold under the New Jersey Comparative Negligence Act, which allows him to recover damages.

The workers' compensation law and lien

The court concluded that the plaintiff did not prove that his neck, back and shoulder injuries were caused by the accident, but he did establish that his torn left knee meniscus was. The plaintiff's damages included medical expenses for the knee injury, some of which were covered by his employer's workers' compensation insurance.

• Workers' compensation lien: The total workers' compensation lien was in evidence, with the medical benefits portion amounting to $32,009.39. This lien represents the amount the workers' compensation carrier paid for the plaintiff's treatment, specifically for the treatment of the torn meniscus.
• Proof of damages: The court considered the medical benefits portion of the workers' compensation lien as sufficient proof of the expenses related to the doctor's treatment of the plaintiff's knee injury. The court used this amount to determine a portion of the plaintiff's total damages.

Key takeaways

• Proximate cause: The plaintiff must establish that the defendant's negligence was the proximate cause of the injury. Though the court concluded that the accident caused the plaintiff's knee injury, it found his expert testimony regarding his neck and back injuries to be unpersuasive and speculative.
• Contributory negligence: Under the New Jersey Comparative Negligence Act, a plaintiff can recover damages as long as his share of negligence is not greater than the defendant's. Since the plaintiff was 15% at fault, he was entitled to recover 85% of his proven damages.
• Damages and liens: The court calculated the total proven damages to be $75,657.39, which included $23,648 in out-of-pocket medical expenses, $32,009.39 for the knee treatment (based on the workers' compensation lien) and $20,000 for pain and suffering. The final award was $64,308.78, representing 85% of the total proven damages, which reflects the plaintiff's comparative negligence.
• Expert testimony: The credibility of expert testimony is crucial. The court found the opinion of the plaintiff's treating physician more persuasive than that of the defense's expert, who had not treated patients in a decade. The court noted that this expert's opinion lacked support and contradicted medical records.

Claimants' attorney Jon L. Gelman is the author of "New Jersey Workers’ Compensation Law" and co-author of the national treatise "Modern Workers’ Compensation Law." He is based in Wayne, New Jersey. This blog post is republished with permission.