Vincent Hager v. M&K Construction

Summary

The Supreme Court of New Jersey held that a workers’ compensation court could require M&K Construction to reimburse an employee for prescribed medical marijuana and related expenses. The court concluded that M&K was not exempt from reimbursement under the New Jersey Compassionate Use Medical Cannabis Act and that the treatment was reasonable and necessary under the Workers’ Compensation Act. It further held that, for the relevant period, federal appropriations restrictions suspended application of the Controlled Substances Act to conduct compliant with New Jersey’s medical-marijuana law, so the state law was not preempted as applied.

Holdings

1. M&K Construction did not qualify as either a government medical assistance program or a private health insurer and therefore was not exempt from reimbursing Hager’s medical-marijuana costs.
2. Medical marijuana may constitute reasonable and necessary care under New Jersey’s workers’ compensation scheme when supported by competent medical testimony.
3. The federal Controlled Substances Act did not preempt New Jersey’s Compassionate Use Medical Cannabis Act as applied to the reimbursement order.
4. M&K did not face a credible threat of federal aiding-and-abetting or conspiracy liability by complying with the court-ordered reimbursement obligation.

Questions Presented

1. Whether M&K Construction qualified as a government medical assistance program or private health insurer exempt from reimbursement under N.J.S.A. 24:6I-14.
2. Whether prescribed medical marijuana could constitute reasonable and necessary treatment compensable under the New Jersey Workers’ Compensation Act.
3. Whether the federal Controlled Substances Act preempted New Jersey’s Compassionate Use Medical Cannabis Act as applied to an order requiring M&K to reimburse Hager.
4. Whether compliance with the reimbursement order exposed M&K to federal aiding-and-abetting or conspiracy liability.

Disposition

affirmed