Special Referee Jeffrey Helewitz
The Special Referee was ordered to hear and report on the amount of unpaid Worker’s Compensation Fund (WCF) premiums owed by defendants. Commissioners of the State Insurance Fund (SIF) sought a judgment of $103,349.23 reflecting allegedly unpaid WCF premiums. SIF asserted six claims, including breach of contract. Defendants argued several individual and entities listed on SIF’s audit were either independent contractors, did not perform any work for the projects for which insurance was issued, or were exempt from insurance as their only employee was the owner who could opt out of coverage. The court noted SIF continually reassessed and readjusted the amount it was seeking, including adjusting the amount sought during trial, ruling same precluded its account stated cause of action. On the breach of contract claim, the court stated a contractor was not responsible to maintain insurance coverage for independent contractors who had no employees. It found defendant neither alleged nor evidenced he provided documentation to SIF before commencement of this action, regarding the insurance status of his subcontractors, thus he was responsible for all the subcontractor for whom he failed to provide evidence that they were covered or exempt at the time of the audits.
