Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Settlement of Workers' Compensation Claim
C.P. No.: 2021-29784
Claimant: William Magnusson
Claimant's Attorney: Joseph A. Burke, Esq.
Attorney's Address: Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701
Settlement Amount: Not to exceed $834,425.14
approximately $202,021.14 is due by the first of four-installment payment
Funding Source: 024 Agency 24T Division 5T24 <ACCT #: 96310
Additional Information:
body
WHEREAS, the Petitioner, William Magnusson (“Petitioner”) instituted suit in the Division of Workers Compensation of New Jersey, Essex County, bearing C.P. Number 2021-29784 against the City of Newark seeking workers’ compensation benefits as a result of alleged occupational exposure injuries he sustained while employed by the Newark Fire Department from October 12, 1987 through and including his retirement on December 12, 2012, resulting in various forms of carcinoma cancer, including but not limited to parotid cancer, adenocarcinoma of the prostate, lymphoma, and squamous cell carcinoma, both while in the course of employment with the Newark Fire Department and further developing after his retirement; Petitioner was deemed to be totality disabled, in which his Date of Totality (the date Petitioner’s total disability benefits are scheduled to begin) was stipulated to start on July 26, 2021 and end on or about March 11, 2030 (approximately 450 weeks after July 26, 2021), in the maximum weekly rate amount of $810 per week based on the 2012 rates (the year of Petitioner’s retirement); and
WHEREAS, the following settlement negotiations through Petitioner’s attorney, Joseph A. Burke, Esq., of Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701 and Corporation Counsel and/or his designee, Ehrlich, Petriello, Gudin, Plaza & Reed, P.C. (“Outside Counsel”) have agreed to amicably resolve and settle this matter under Section 12 of the Workers Compensation Act (N.J.S.A. 34:15-12) by payment in the amount of Three Hundred Sixty-Four Thousand, Five Hundred Dollars and Zero Cents ($364,500). Pursuant to the terms of the Settlement Order to be executed by the Judge of the Division of Workers’ Compensation, the City of Newark will also pay an attorney’s fee of Fifty-Four Thousand, Six Hundred and Seventy-Five Dollars and Zero Cents ($54,675) made payable to Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701; an AETNA Medicare Advance Part C health lien of Four Hundred and Ten Thousand, Three Hundred and Seventy-Seven Dollars and Thirty-Six Cents ($410,377.36) covering the period of treatment of March 4, 2019 through and including June 18, 2025, made payable to The Rawlings Company LLC, P.O. Box 2000, La Grange, KY 40031; a medical evaluation fee of Five Hundred Dollars and Zero Cents ($500.00) for oncologist, Dr. Leon H. Waller, D.O., of Regional Independent Medical Evaluations, made payable as a reimbursement to Petitioner’s attorney, Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701; a medical evaluation fee of Five Hundred Dollars and Zero Cents ($500.00) for ENT, Dr. Gerald West, D.O., F.O.C.O.O., made payable as a reimbursement to Petitioner’s attorney, Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701; a trial testimony fee of One Thousand Dollars and Zero Cents ($1,000.00) for Dr. Waller, made payable as a reimbursement to Petitioner’s attorney, Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701; a trial testimony fee of One Thousand Dollars and Zero Cents ($1,000.00) for Dr. West, made payable as a reimbursement to Petitioner’s attorney, Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701; a medical records expenses fee of One Thousand, Seven Hundred and Ninety-Eight Dollars and Seventy-Eight Cents ($1,798.78), made payable as a reimbursement to Petitioner’s attorney, Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701; a transcription fee of Seventy Four Dollars and Zero Cents ($74.00) made payable to Guy Renzi & Associates, Inc., located at 2277 State Highway #33 Suite 410 Trenton, NJ 08690; and coverage of Petitioner’s medical expenses related to his various forms of employment-related carcinoma payable by Respondent for related treatment to Petitioner’s claim starting June 19, 2025 for the remainder of Petitioner’s life, for a total settlement of Eight Hundred and Thirty-Four Thousand, Four Hundred and Twenty-Five Dollars and Fourteen Cents ($834,425.14); and
WHEREAS, Petitioner’s medical expenses related to his continued treatment of various forms of carcinoma cancer attributable to his claim shall continue to be made payable by the City of Newark until 450 weeks have passed from July 26, 2021 when Petitioner’s total settlement award has concluded (approximately March 11, 2030), or until Petitioner dies, whichever date comes first; and
WHEREAS, this settlement is subject to approval by the Judge of the Division of Workers’ Compensation; and
WHEREAS, the total settlement amount may be subject to minor changes in amount or distribution at the time the Settlement Agreement is approved, and the Settlement Order executed by the Judge of the Division of Workers’ Compensation; and
WHEREAS, the Municipal Council believes it is in the best interests of the City of Newark, that minor changes to the amount of the settlement and distribution shall not require subsequent Municipal Council approval provided the settlement amount is not increased or decreased above $500.00 and all the terms and conditions are substantially the same as authorized by the resolution; and
WHEREAS, based upon all of the facts and circumstances surrounding this matter, Corporation Counsel and/or Outside Counsel deem it is in the best interest of the City of Newark to accept said settlement in the total amount of Eight Hundred and Thirty-Four Thousand, Four Hundred and Twenty-Five Dollars and Fourteen Cents ($834,425.14)
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The settlement of the Workers’ Compensation matter bearing C.P. No.: 2021-29784 is hereby approved.
2. Upon receipt by the Corporation Counsel and/or outside Counsel of all supporting documents, the Director of Finance is hereby authorized and directed to issue checks in the amounts as follows:
3. Installment Payment Due by 8/15/25: $127,148.36 (One Hundred and Twenty-Seven Thousand, One Hundred and Forty-Eight Dollars and Thirty-Six Cents) covering approximately 205 weeks and 3 days of disability from July 26, 2021 through and including July 2, 2025, with an additional $810 payable to Petitioner for each additional week that passes after July 2, 2025 until 450 weeks have passed from the Date of Totality of July 26, 2021 when payment is generated until a total of $364,500 (Three Hundred Sixty-Four Thousand, Five Hundred Dollars and Zero Cents) has been issued, made payable and mailed to William Magnusson, whose address is 644 Mark Manor Drive, Brick, NJ 08723. (It is understood that pursuant to the terms of the Settlement Order to be entered by the Judge of the Division of Workers’ Compensation, $36,450 (Thirty-Six Thousand Four Hundred and Fifty Dollars and Zero Cents) is being subtracted from the Petitioner’s award to pay attorney’s fees, $1,000.00 (One Thousand Dollars and Zero Cents) is being subtracted from the Petitioner’s award to pay for both of Petitioner’s medical evaluations, and $1,798.78 (One Thousand, Seven Hundred and Ninety-Eight Dollars and Seventy-Eight Cents) is being subtracted from Petitioner’s award to pay for medical records expenses, in accordance with the settlement provisions.
(a) $74,798.78 (Seventy-Four Thousand, Seven Hundred and Ninety-Eight Dollars and Seventy-Eight Cents) made payable to Joseph A. Burke, Esq., of Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701. This amount reflects the following settlement breakdown: $70,000.00 (Seventy Thousand Dollars and Zero Cents) as a first installment payment towards the $91,125.00 (Ninety-One Thousand, One Hundred and Twenty-Five Dollars and Zero Cents) in total attorney’s fees, $500.00 (Five Hundred Dollars and Zero Cents) to reimburse Petitioner’s attorney for his prepayment of Respondent’s portion of Petitioner’s medical evaluation with Dr. Waller, $500.00 (Five Hundred Dollars and Zero Cents) to reimburse Petitioner’s attorney for his prepayment of Respondent’s portion of Petitioner’s medical evaluation with Dr. West, $1,000.00 (One Thousand Dollars and Zero Cents) to reimburse Petitioner’s attorney for his prepayment of Dr. Waller’s trial testimony that is fully payable by Respondent, $1,000.00 (One Thousand Dollars and Zero Cents) to reimburse Petitioner’s attorney for his prepayment of Dr. West’s trial testimony that is fully payable by Respondent, and $1,798.78 (One Thousand, Seven Hundred and Ninety-Eight Dollars and Seventy-Eight Cents) to reimburse Petitioner’s attorney for his prepayment of medical records expenses that are fully payable by Respondent.
(b) $74.00(Seventy-Four Dollars and Zero Cents) made payable to Guy Renzi & Associates Inc., 2277 State Highway #33, Suite 410, Trenton, NJ 08690
4. Installment Payment Due by 10/15/25: The remaining $21,125.00 (Twenty-One Thousand, One Hundred Twenty-Five Dollars and Zero Cents) of Petitioner’s total attorney’s fees in the amount of $91,125.00 (Ninety-One Thousand, One Hundred and Twenty-Five Dollars and Zero Cents) will be due, made payable to Joseph A. Burke, Esq., of Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701.
(a) $102,594.34 (One Hundred and Two Thousand, Five Hundred and Ninety-Four Dollars and Thirty-Four Cents) made payable to The Rawlings Company LLC, and mailed to The Rawlings Company LLC, P.O. Box 2000, La Grange, KY 40031. This amount reflects the 1st of 4 equal installment payments towards Petitioner’s total AETNA Medicare Advance Part C health lien in the amount the $410,377.36 (Four Hundred and Ten Thousand, Three Hundred and Seventy-Seven Dollars and Thirty-Six Cents) covering the period of treatment of March 4, 2019 through and including June 18, 2025.
5. Installment Payment Due by 12/15/25: The 2nd of 4 equal installment payments in the amount of $102,594.34 (One Hundred and Two Thousand, Five Hundred and Ninety-Four Dollars and Thirty-Four Cents) towards Petitioner’s total AETNA Medicare Advance Part C health lien in the amount the $410,377.36 (Four Hundred and Ten Thousand, Three Hundred and Seventy-Seven Dollars and Thirty-Six Cents) covering the period of treatment of March 4, 2019 through and including June 18, 2025 will be due, made payable to The Rawlings Company LLC, and mailed to The Rawlings Company LLC, P.O. Box 2000, La Grange, KY 40031.
6. Installment Payment Due by 2/15/26: The 3rd of 4 equal installment payments in the amount of $102,594.34 (One Hundred and Two Thousand, Five Hundred and Ninety-Four Dollars and Thirty-Four Cents) towards Petitioner’s total AETNA Medicare Advance Part C health lien in the amount the $410,377.36 (Four Hundred and Ten Thousand, Three Hundred and Seventy-Seven Dollars and Thirty-Six Cents) covering the period of treatment of March 4, 2019 through and including June 18, 2025 will be due, made payable to The Rawlings Company LLC, and mailed to The Rawlings Company LLC, P.O. Box 2000, La Grange, KY 40031.
7. Installment Payment Due by 4/15/26: The final 4th of 4 equal installment payments in the amount of $102,594.34 (One Hundred and Two Thousand, Five Hundred and Ninety-Four Dollars and Thirty-Four Cents) towards Petitioner’s total AETNA Medicare Advance Part C health lien in the amount the $410,377.36 (Four Hundred and Ten Thousand, Three Hundred and Seventy-Seven Dollars and Thirty-Six Cents) covering the period of treatment of March 4, 2019 through and including June 18, 2025 will be due, made payable to The Rawlings Company LLC, and mailed to The Rawlings Company LLC, P.O. Box 2000, La Grange, KY 40031.
A copy of the Comptroller’s certifications shall be filed by the Corporation Counsel in the Office of the City Clerk along with a copy of this Resolution.
8. A fully executed copy of the Order Approving Settlement shall be filed in the Office of the City Clerk by the Corporation Counsel.
STATEMENT
This resolution authorizes Corporation Counsel or his designee, Ehrlich, Petriello, Gudin, Plaza & Reed, P.C., on behalf of the City of Newark, to effectuate settlement by entering into an Order for Total Disability, Order Approving Settlement, of a Workers’ Compensation claim in the amount of $834,425.14 brought by William Magnusson whose address is 644 Mark Manor Drive, Brick, NJ 08723; and represented by Joe Burke, Esq., of Joseph A. Burke, Esq., 140 Broad Street, 2nd Floor, Red Bank, NJ 07701, who sustained injuries while employed by the City of Newark’s Fire Department. Of the $834,425.14 total resolution amount, approximately $202,021.14 is due by the first installment payment deadline of August 15, 2025, $123,719.34 is due by the next installment payment deadline of October 15, 2025, $102,594.34 is due by the next installment payment deadline of December 15, 2025, $102,594.34 is due by the next installment payment deadline of February 15, 2026, and $102,594.34 is due by the final installment payment deadline of April 15, 2026, based on the aforementioned explained payments owed, with settlement payments continuing to be payable to Petitioner in the amount of $810 per week until approximately March 11, 2030.