Wolfe v. Sibley, Lindsay & Curr Co., 36 N.Y.2d 505 (1975)
Psychological or nervous injury precipitated by psychic trauma is compensable under worker’s compensation to the same extent as physical injury, provided the trauma arose out of and in the course of employment and caused disablement.
Summary
Diana Wolfe, a secretary, sought worker’s compensation benefits for severe depression caused by discovering her supervisor’s body after he committed suicide. The New York Court of Appeals reversed the Appellate Division’s denial of benefits, holding that psychological injury caused by psychic trauma is compensable under the Workmen’s Compensation Law. The court reasoned that there is no logical basis for distinguishing between physical and psychological injuries when both result from a work-related accident. This decision eliminated the requirement of physical impact for psychological injuries to be compensable.
Facts
Diana Wolfe worked as a secretary for John Gorman, the security director at Sibley, Lindsay & Curr Co. Gorman was under intense pressure, especially during the holidays, and became increasingly agitated and nervous in early 1971. He confided in Wolfe, expressing doubts about his job performance, and relied heavily on her. On June 9, 1971, Gorman asked Wolfe to call the police to his office. Wolfe found Gorman dead from a self-inflicted gunshot wound. Wolfe was severely traumatized, developed acute depressive reaction, and required psychiatric treatment and hospitalization. She was eventually able to return to work in mid-January, 1972.
Procedural History
The referee granted Wolfe’s claim for worker’s compensation, and the Workmen’s Compensation Board affirmed. The Appellate Division reversed, citing prior precedent that mental injury precipitated solely by psychic trauma is not compensable. The New York Court of Appeals granted leave to appeal.
Issue(s)
Whether a psychological or nervous injury precipitated by psychic trauma, without physical impact, is compensable under the Workmen’s Compensation Law.
Holding
Yes, because psychological injury caused by psychic trauma is compensable to the same extent as physical injury, provided that the trauma arises out of and in the course of employment and results in disablement.
Court’s Reasoning
The court reasoned that the Workmen’s Compensation Law is designed to shift the risk of loss of earning capacity caused by industrial accidents from the worker to industry. It should be construed liberally in favor of the employee. There is no statutory definition of accidental injury, but prior cases fall into three categories: (1) psychic trauma producing physical injury, (2) physical impact producing psychological injury, and (3) psychic trauma producing psychological injury. The Court had already recognized compensability in the first two categories. The court explicitly overruled the prior hesitancy to award benefits in the third category.
The court found no logical distinction between physical and psychological injuries when both result from a work-related accident. The court stated, “There is nothing in the nature of a stress or shock situation which ordains physical as opposed to psychological injury. The determinative factor is the particular vulnerability of an individual by virtue of his physical makeup. In a given situation one person may be susceptible to a heart attack while another may suffer a depressive reaction.” It rejected the argument that allowing recovery would open the floodgates to unlimited liability, distinguishing the case from tort cases involving third-party witnesses. Wolfe was an active participant in the tragedy, as Gorman’s nervous condition had intensely involved her, and she was an integral part of the event by virtue of his last communication and her discovery of his body. The court also noted that its holding aligned with the majority of jurisdictions in the United States and England.