Employers who fail to carry workers’ compensation insurance expose themselves to serious legal and financial risks. When an uninsured employee is injured, the Massachusetts Workers’ Compensation Trust Fund may step in to pay benefits, but it will aggressively seek reimbursement from the noncompliant employer. A recent Massachusetts decision illustrates how swiftly the courts can act when an employer ignores these obligations and fails to respond to a civil action. If you are an employee seeking compensation for a workplace injury, it is essential to contact a Massachusetts workers’ compensation attorney promptly to discuss what steps you can take to protect your rights.
Case Setting
It is reported that the plaintiff, the Workers’ Compensation Trust Fund, brought suit against the defendant employer after it paid benefits to an injured worker who had been employed without the required insurance coverage. The Fund filed its complaint in May 2023, seeking reimbursement for all benefits paid, as well as attorneys’ fees and litigation costs associated with both the administrative proceedings before the Department of Industrial Accidents and the civil enforcement action.
Allegedly, the defendant was properly served with the summons and complaint but failed to file an answer or other responsive pleading within the time permitted by law. In October 2023, the clerk’s office entered a default against the defendant. Despite receiving notice of the default, the defendant took no further action to contest the allegations or seek to have the default set aside.
It is alleged that the plaintiff then moved for assessment of damages under Mass. R. Civ. P. 55(b)(2). The Fund submitted detailed documentation, including the verified complaint and an affidavit from an investigator setting forth the amounts paid to the injured worker, along with an affidavit from counsel establishing the legal basis for the recovery of fees and costs. The motion relied on statutory provisions authorizing the Fund to recover all expenditures made on behalf of uninsured employers, including interest and reasonable attorneys’ fees.
Assessment of Damages in Workers’ Compensation Trust Fund Cases
It is reported that the Superior Court conducted a damages assessment pursuant to Rule 55(b)(2), which allows the court to determine the amount owed when liability has been established by default but damages remain uncertain. The Court adopted the factual allegations of the complaint as true, consistent with Hermanson v. Szafarowicz, 927 N.E.2d 982, 991 n.14 (Mass. 2010), which provides that well-pleaded allegations are deemed admitted upon default.
After reviewing the affidavits and supporting evidence, the Court found that the Workers’ Compensation Trust Fund was entitled to recover a total of $110,353.02. This sum included $95,614.16 in damages representing benefits paid to the injured worker, with interest accruing from the filing date of the action. The Court also awarded $13,836.86 in attorneys’ fees incurred by the injured claimant’s counsel and $902.00 in litigation costs associated with both the administrative and civil proceedings.
In reaching its conclusion, the Court relied on the statutory framework established by G.L. c. 152, §§ 65 and 66, which authorizes the Fund to pursue reimbursement from uninsured employers. These statutes ensure that injured employees receive compensation even when their employers have not met their legal obligations, while preserving the Fund’s right to recover those amounts from the responsible party. The Court also referenced G.L. c. 262, § 4A and 452 CMR 3.04(6) as supporting the award of litigation expenses.
Consult with an Experienced Massachusetts Workers’ Compensation Attorney
If you are an employee seeking benefits after a workplace injury, understanding your rights and obligations under Massachusetts law is essential. James K. Meehan of the Law Office of James K. Meehan is a capable Massachusetts workers’ compensation lawyer who can help you navigate these complex issues, protect your interests, and pursue any available remedies. You can contact Mr. Meehan by calling 508-822-6600 or by filling out the online form to arrange a consultation.