Thursday, April 5, 2007

Employee Injured Prior to Employer's Bankruptcy Not Subject to Bankruptcy Claim Process

In Patricia Morella v. Grant Union/New Jersey Self-Insurers Guaranty Association, A-0056-05T3, the Appellate Division of the Superior Court of New Jersey held, on March 21, 2007, that an employee who is injured prior to the employer's bankruptcy filing is not required to file a proof of claim in the employer's bankruptcy case as a condition for qualifiying for workers' compensation benefits under New Jersey law (N.J.S.A. 34:15-120.18a). The court noted that the bankruptcy proof of claim process would apply to workers' compensation claimants whose injuries occurr after the employer has filed for bankruptcy.