In the Matter of Aides at Home, Inc. v State of New York Workers’ Compensation Board et al.

 

In this Article 78 case, petitioner asked the court to review a determination of respondent imposing an assessment against the petitioner.

 

From 1997 to 2000, petitioner was a member of a workers’ compensation group self-insured trust, New York Health Compensation Trust. In 2006, respondent terminated the Trust due to underfunding. Respondent assumed that the Trust would administer and distribute the assets and liabilities. Approximately two years later, the Board administered a deficit assessment to current and former Trust members, including the petitioner. The purpose of the deficit assessment was to cover the costs of fulfilling the Trust’s workers’ compensation claims.

 

Petitioner, then, initiated a combined proceeding of Article 78 and a declaratory judgment challenging the Board’s assessment. Petitioner claimed that the Board could not impose an assessment because the Board did not have statutory or regulatory authority and petitioner believes that the assessment is arbitrary and capricious and it violated the petitioner’s due process rights. The court dismissed the petition and the petitioner appealed.

 

Originally, the Board decision was limited to whether it "was affected by an error of law or was arbitrary and capricious or an abuse of discretion." Additionally, "the construction given statutes and regulations by the agency responsible for their administration will, if not irrational or unreasonable, be upheld" Therefore, the Trust was allowed to administer its workers’ compensation liabilities after the Board terminated the Trust., the Board, according to the regulation, was allowed to assume that the Trust would administer and distribute the assets and liabilities and the Board was authorized to levy an assessment up the member in order to make up for the deficiency.

 

The court affirmed the judgment and order, without cost.

 

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