Current Edition- California Business Practice

The Peacemaker Quarterly- April 2014

Friday, November 20, 2009

Case 13-2

Group Members-
David Aiello, Alvaro Figueroa, Lexan Jaravata, Mark López, & Matt Rocco

PACHE V. AVIATION VOLUNTEER FIRE CO.
Case Brief

Facts: In New York City, Mr. Pache, who was the fire chief of the Aviation Volunteer Fire Company in the Bronx, suffered a fatal heart attack at the scene of a fire. His widow applied for Worker’s Compensation and was granted benefits by the Worker’s Compensation Board because it was found that there was an implied contract between Aviation and the New York City, giving rise to the city’s liability pursuant to the Volunteer Fireman’s Benefit Law. The city appealed.

Issue: Whether the claimant was covered within the Volunteer Firefighters Benefit Law and whether or not an implied contract existed between New York City and Aviation. In relevant part, whether the Volunteer Firefighters Benefit Law applied.

Rationale: The Worker’s Compensation Board was presented with evidence that Aviation had been in existence since 1923 and that it worked “hand-in-hand” with the local FDNY company to fight tires. There was evidence that the local fire company occasionally called Aviation to request assistance, and a representative of NYC provided evidence that NYC was aware of Aviation and knew that it fought fires in conjunction with the FDNY. There was no evidence that City officials or the local fire company ever objected to or rejected the services of Aviation. Furthermore, the City failed to produce an employee from the local FDNY company with knowledge of the relationship between the local fire company and Aviation as well as other relevant facts to the implied contract issue, and in turn, the Board was entitled to draw reasonable and adverse inferences. Ultimately, substantial evidence supports the Board’s determination that an implied-in-fact contract existed between Aviation and the City of New York.

*Note: An implied-in-fact contract arises out of the conduct of the parties.

Conclusion: It was concluded that an implied contract did exist between Aviation and New York City. Therefore, the Fireman's Benefit Law applies and the Worker’s Compensation Board may grant worker's compensation benefits to Pache's widow.

Agreement/Disagreement: We agree with the decision. The Volunteer Fireman’s Benefit Law was created because the Board recognizes the debt of gratitude the government owes to individuals who volunteer. By enacting this law, the Board supports and encourages participation by such organizations such as Aviation. Essentially, the purpose of the Volunteer Fireman’s Benefit Law is to benefit volunteers and to ensure that individuals such as Pache that are injured or killed in the line of duty receive proper worker's compensation benefits. The high stress situation fire did not help Pache’s condition. He should be protected under the Volunteer Firefighters Benefit Law because he suffered the heart attack while under the line of duty. An implied-in-fact contract existed because it was understood that Aviation worked with New York City, and there didn't necessarily have to be a written agreement. If an implied-in-fact contract did exist, Pache should be entitled to worker's compensation, regardless of whether or not the heart attack that he suffered was due to the volunteer activity. The fact that he suffered in the line of duty should be sufficient enough to ensure that he receives benefits.

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