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In the Matter of the Claim of Lesley SHINER, Appellant, v. SUNY AT BUFFALO et al., Respondents. Workers' Compensation Board, Respondent.

MULVEY, J.

Law Office of Lindy Korn, PLLC, Buffalo (Richard Perry of counsel), for appellant.

William O'Brien, State Insurance Fund, Buffalo (Thomas P. Etzel of counsel), for SUNY at Buffalo and another, respondents.

Before: McCARTHY, J.P., LYNCH, DEVINE, MULVEY and AARONS, JJ.

MULVEY, J.Appeal from a decision of the Workers' Compensation Board, filed May 29, 2015, which ruled that claimant's failure to obtain the consent of her employer's workers' compensation carrier to the settlement of a third-party action barred her from receiving further benefits.

One of claimant's supervisors, an associate dean, reportedly sexually harassed and groped her at an office holiday party in December 2010. She filed a claim for workers' compensation benefits, which was established for posttraumatic stress disorder party action within the meaning of the statute. A Workers' Compensation Law Judge determined that the federal action was a third-party action, which claimant had settled without seeking or obtaining the carrier's consent, and, accordingly, that she forfeited further benefits as of the date of the August 2013 settlement. The Workers' Compensation Board affirmed and claimant now appeals.

We affirm. “Workers' Compensation Law § 29(5) requires either the carrier's consent or a compromise order from the court in which the third-party action is pending for a claimant to settle a third-party action and continue receiving compensation benefits” (Matter of Johnson v. Buffalo & Erie County Private Indus. Council, 84 N.Y.2d 13, 19, 613 N.Y.S.2d 861, 636 N.E.2d 1394 [1994] ; see Matter of Hulbert v. Cortland County Sheriff's Dept., 69 A.D.3d 987, 988, 891 N.Y.S.2d 746 [2010], lv. denied 14 N.Y.3d 710, 2010 WL 1795620 [2010] ; Matter of Wright v. Golden Arrow Line, 206 A.D.2d 759, 760, 615 N.Y.S.2d 473 [1994] ). Claimant urges that her federal lawsuit was not a third-party action since the statute addresses “the negligence or wrong of another not in the same employ” (Workers' Compensation Law § 29[1] ) and the associate dean who harassed her had the same employer as her. The Court of Appeals, however, has recently reiterated that Workers' Compensation Law § 29, “ ‘read in its entirety and in context, clearly reveals a legislative design to provide for reimbursement of the compensation carrier whenever a recovery is obtained in tort for the same injury that was a predicate for the payment of compensation benefits ’ ” (Matter of Beth V. v. New York State Off. of Children & Family Servs., 22 N.Y.3d 80, 91, 980 N.Y.S.2d 47, 3 N.E.3d 113 [2013], quoting Matter of Petterson v. Daystrom Corp., 17 N.Y.2d 32, 39, 268 N.Y.S.2d 1, 215 N.E.2d 329 [1966] ). “The Court reasoned that “ ‘[i]t would be unreasonable to read the statute as mandating a different result merely because the recovery came out of the pockets of a coemployee [or the employer] and not from the resources of a stranger’ ” (Ronkese v. Tilcon N.Y., Inc., 129 A.D.3d 1273, 1275, 11 N.Y.S.3d 717 [2015], lv. dismissed 28 N.Y.3d 1045, 43 N.Y.S.3d 244, 65 N.E.3d 1279, 2016 WL 6433453 [Nov. 1, 2016], quoting Matter of Beth V. v. New York State Off. of Children & Family Servs., 22 N.Y.3d at 91, 980 N.Y.S.2d 47, 3 N.E.3d 113 ). The fact that claimant included allegations of intentional conduct by a coemployee in her federal action does not, as urged by claimant, compel the conclusion that it was not a third-party action (see Matter of Beth V. v. New York State Off. of Children & Family Servs., 22 N.Y.3d at 91–92, 980 N.Y.S.2d 47, 3 N.E.3d 113 ; Hanford v. Plaza Packaging Corp., 2 N.Y.3d 348, 351, n. 3, 778 N.Y.S.2d 768, 811 N.E.2d 30 [2004] ; but cf. Matter of Jackson v. Richman & Co., 15 N.Y.2d 877, 878–879, 258 N.Y.S.2d 414, 206 N.E.2d 350 [1965] [exception found where there was a Here, the Board's finding that, in her federal action, claimant “sought and received a recovery that was a predicate for the payment of compensation benefits” is supported by substantial evidence, including, among other things, the terms of the stipulation of settlement of that action. Given such finding, the Board's determination that the federal action was a third-party action is consistent with the case law construing Workers' Compensation Law § 29 notwithstanding the involvement of a coemployee and allegations of intentional conduct. It is undisputed that claimant did not seek or obtain the carrier's consent or a compromise order before settling such action. Under such circumstances, the Board's determination that claimant forfeited future benefits by entering into the settlement without the carrier's consent must be affirmed. The remaining issues were not raised before the Board and, thus, are not preserved for our review (see Matter of Duncan v. John Wiley & Sons, Inc., 137 A.D.3d 1430, 1431, 27 N.Y.S.3d 286 [2016] ; Matter of Thomas–Fletcher v. New York City Dept. of Corr., 120 A.D.3d 867, 867, 990 N.Y.S.2d 420 [2014] ; Matter of Stewart v. NYC Tr. Auth., 115 A.D.3d 1046, 1046–1047, 981 N.Y.S.2d 630 [2014] ).

ORDERED that the decision is affirmed, without costs.

McCARTHY, J.P., LYNCH, DEVINE and AARONS, JJ., concur.

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Shiner v. Suny at Buffalo
(Nov 17, 2016)