Legislative Silence About Statute of Limitations When Amending Statute Did Not Effect Reduction of Prior Limitations Period

The Plastic Surgery Center, PA v. Malouf Chevrolet-Cadillac, Inc., 457 N.J. Super. 565 (App. Div. 2019).  This opinion today by Judge Fisher was so legal issue-intensive that he found that the factual “details of these cases need not clutter [his] opinion.”  In short, these consolidated cases involved the effect on a statute of limitations of a 2012 amendment to N.J.S.A. 34:15-15.

The amendment declared that “[e]xclusive jurisdiction for any disputed medical charge arising from any claim for compensation for a work-related injury or illness shall be vested in the [D]ivision [of Workers’ Compensation].”  Previously, providers of medical services to injured persons who were pursuing workers’ compensation claims in the Division could be litigated in court, with no need for providers to participate in the Division proceedings.  The 2012 amendment changed that.

In the cases at issue, “[e]ach medical provider filed petitions in the Division for payment of services rendered to employees of the respondent employers.  And each medical provider filed its claim more than two years from the date of each employee’s accident but less than six years from the claim’s accrual.”  The question in these cases was thus whether the 2012 amendment, which said nothing about the statute of limitations that would apply to medical provider claims in the Division, changed the previously applicable six-year contract statute of limitations to the two-year period of N.J.S.A. 34:15-51, the Workers’ Compensation Act (“the Act’).

A Workers’ Compensation judge found in each case that the two-year statute applied.  Today, the Appellate Division reversed that ruling.

Judge Fisher began by noting that the best indicator of legislative intent is the statutory language.  Here, all parties agreed that the 2012 amendment was silent about timeliness issues.  “Instead, the participants offer only their surmisals of what they believe the Legislature’s silence meant.”

Judge Fisher found that the Legislature’s silence showed that it meant to leave things as they had been.  “[T]he fact that the Legislature did not simply express that the Act’s two-year time bar would apply to medical-provider claims is alone persuasive of its more likely intent to leave things as they were.  It was well-established long before the 2012 amendment that the timeliness of medical-provider claims was governed by the general six-year statute of limitations.”  The Legislature must have known that, but it did nothing to say directly that it was changing that state of affairs.

The parties debated a bit of legislative history, involving language directing the Division to provide procedures for medical provider disputes.  That language was ultimately not adopted.  That too showed that the Legislature intended no change to the statute of limitations.

“[M]ost obvious, [was] the fact that the Legislature made no alteration to N.J.S.A. 34:15-51 when it amended N.J.S.A. 34:15-15.  Respondents, and amici who line up on their side, believe the Legislature intended to incorporate medical providers into the existing claimant-for-compensation category of N.J.S.A. 34:15-51 without saying so.”  That view was untenable, because the category of “claimant” was always understood to mean “employee,” and other sections of the act equate the two terms.

Finally, the argument for reducing the limitations period to two years of “the accident” did not fit the claims of medical providers.  Their claims are not dependent on the date of any accident.  Thus, “the idea that the timeliness of a medical-provider’s claim should be gauged by the passage of time from the employee’s accident seems nonsensical.”

Judge Fisher concluded by noting that when interpreting statutes, courts sometimes find themselves “in a kind of hieroglyphic world, where the real thing was never said or done or even thought, but only represented by a set of arbitrary signs.”  That was a quote from Edith Wharton’s “The Age of Innocence,” in keeping with Judge Fisher’s wont of drawing on literary references in his decisions, as in this opinion and this one.  Here, not even “a set of arbitrary signs” supported the notion that the Legislature silently reduced a six-year statute of limitations to two years.  Accordingly, the panel reversed the decisions appealed from.